Enhancing Business Process Management with Business Rules · Manage end-to-end business rules...
Transcript of Enhancing Business Process Management with Business Rules · Manage end-to-end business rules...
Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent.© 2009 Fair Isaac Corporation. 1
Enhancing Business Process Management with Business RulesBlaze Advisor Webinar Series
September 23rd, 2009
Carole Ann MatignonVP, Product ManagementTwitter.com/CMatignon
© 2009 Fair Isaac Corporation. Confidential.2
Ability to Anticipate situations like thisAbility to Anticipate situations like this
As well as ability to React swiftlyAs well as ability to React swiftly
Competitive Survival depends onCompetitive Survival depends on
© 2009 Fair Isaac Corporation. Confidential.3
Pattern-Based Strategy4 Key Elements
TransparencyThe demonstration of corporate health and strategic use of transparency for
differentiation
Operational tempo advantageA focus on disciplines, activities,
technologies and resources that gives organizational leaders the mechanisms and controls they need to understand
how to enable consistent and repeatable organizational change in response to
changing patterns
Performance-driven cultureA focus on disciplines, activities,
technologies and resources that enables an organization to monitor leading indicators of change, and to use
performance to enable change through the alignment of organizational
resources to strategic performance metrics
Pattern seekingA focus on disciplines, activities,
technologies and resources that expose signals that may lead to a pattern that
will have a positive or negative impact on strategy or operations
Reference: Gartner, Introducing Pattern-Based Strategy, ID Number: G00168553, August 2009
© 2009 Fair Isaac Corporation. Confidential.4 © 2009 Fair Isaac Corporation. Confidential.4
Survival of the Fittest Pattern-Based Strategies & BPM
© 2009 Fair Isaac Corporation. Confidential.5
How does BPM relate to Pattern-based Strategy?
» Process Agility» Optempo Advantage» Transparency
» Business Activity Monitoring» Pattern Seeking» Performance-Driven Culture
© 2009 Fair Isaac Corporation. Confidential.6
But When More Exceptions Happen
We end up with Dirty Flows
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© 2009 Fair Isaac Corporation. Confidential.7
“Too Much Information Kills the Information”
Reference: Canary Wharf Traffic Lights, London
© 2009 Fair Isaac Corporation. Confidential.8
Pace of Change
» Processes evolve faster than code
» Business Rules changes even more frequently» Up to millions of business rules» Several daily changes in many
cases
» How do we synchronize those updates into Production?» Some may imply organizational
change» Some may imply changes in paper
forms distributed to brokers and resellers
» Some may be imposed by regulation
© 2009 Fair Isaac Corporation. Confidential.9 © 2009 Fair Isaac Corporation. Confidential.9
Survival of the Fittest The Missing Ingredient
© 2009 Fair Isaac Corporation. Confidential.10
Liberate your Business Rules from your Processes
» Define roles clearly» BRMS is responsible for capturing
and maintaining the business rules that make DECISIONS
» BPM is used to turn those decisions into ACTIONS by stringing those decisions together and routing the documents to the appropriate actor – a Rating system, a Fulfillment Service, a Storage area
» The Service-Oriented nature of those technologies make it a simple IT task» Business Rules deploy as a Service» Processes invoke Services natively
An IT Match Made in Heaven
© 2009 Fair Isaac Corporation. Confidential.11
A Simple Analogy
» BRMS is the Brain» It does not DO anything» It sits there and, when exposed with
relevant data, can make a decision
» BPM is the Nervous System» It carries information (Documents)
from the organs (Departments) to the Brain
» It transmit decisions taken in the Brain to the involved organs for a coordinated response
It is getting colder, I just turned the AC on, it’s normalIt is getting colder, it is getting late too, I need a jacket
Go to the closet, pick the black jacket that matches my outfit and put it on
© 2009 Fair Isaac Corporation. Confidential.12
What is Decision? What is Process?
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AutoPolicy
Countr
y or S
tate i
s not
valid
Data is missing
Application is Pre-approvedSilver
Bronze
Gold
Rate & Price
IssuePolicy
Except in CA, VA and CO, where Medical Statement needs to be
reviewed for Applicants older than 65
Except for Renewal, where we can look up the details in our internal system
Except for Classic Cars
Except for Applicants with a risk score below 600 which need to be
declined automatically
Except for Luxury Cars that incur an additional premium in some
states
Except for Driver less than 25
Except when Parking on the Street is in neighborhood with slope > 30%
© 2009 Fair Isaac Corporation. Confidential.13
Achieving the Perfect Balance for maximum Agility and Governance
AutoPolicy
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Form Validation Rules
IssuePolicy
Knock Out Rules
Decline
Ask for Data
Tier Placement & Rating Rules
Get Credit Score
© 2009 Fair Isaac Corporation. Confidential.14 © 2009 Fair Isaac Corporation. Confidential.14
Survival of the Fittest Pattern-based Strategy & BRMS
© 2009 Fair Isaac Corporation. Confidential.15
Pattern-Based Strategy4 Key Elements
TransparencyThe demonstration of corporate health and strategic use of transparency for
differentiation
Operational tempo advantageA focus on disciplines, activities,
technologies and resources that gives organizational leaders the mechanisms and controls they need to understand
how to enable consistent and repeatable organizational change in response to
changing patterns
Performance-driven cultureA focus on disciplines, activities,
technologies and resources that enables an organization to monitor leading indicators of change, and to use
performance to enable change through the alignment of organizational
resources to strategic performance metrics
Pattern seekingA focus on disciplines, activities,
technologies and resources that expose signals that may lead to a pattern that
will have a positive or negative impact on strategy or operations
Reference: Gartner, Introducing Pattern-Based Strategy, ID Number: G00168553, August 2009
© 2009 Fair Isaac Corporation. Confidential.16
Optempo Advantage: Empower Business UsersLet them Speak “Business”
Decision Trees
Decision Tables
Scorecards
Templates
© 2009 Fair Isaac Corporation. Confidential.17
Optempo Advantage: Empower Business UsersTrack and Control Change
» Effective dates and “as of” execution capability
» Versioning» At rule level» At ruleset or project level
» Version History display» Change log» Comparison
» Rule promotion
» Queries
» Diff Queries with Visual Compare
» User-defined Management Properties
» Available» IDE» Rules Maintenance Application
© 2009 Fair Isaac Corporation. Confidential.18
Transparency: Manage End-to-End Business Rules LifecycleAccording to Governance Imperatives
» Rule verification» Rules are complete, coherent» Based on static analysis
» Rule validation» Rules behave as expected » Based on test data
» Lifecycle management» Rules are promoted to test then production» Based on predefined processes, manual
approval…
© 2009 Fair Isaac Corporation. Confidential.19
Pattern Seeking: Increase Strategy Performance
» Predict behavior likelihood» Combine domain expertise with
empirical knowledge» Pinpoint “at risk” population
» Likely to fraud» Likely to defect» Likely to churn» Likely to accept an upsell offer» Likely to repay
» Leverage those scores in cut-off business rules
© 2009 Fair Isaac Corporation. Confidential.20
Pattern Seeking: Increase Strategy Performance
» Optimize» Too many alternative options to
consider» Objective solution ranking—“best”» Some examples
» Product configuration» Scheduling» Planning
» More unusual examples» NFL scheduling
» Combine business rules and optimization routines» Eligibility then allocation
© 2009 Fair Isaac Corporation. Confidential.21
Performance-driven Culture: Decision Improvement
Test
Simulation
ImpactAnalysis
PredictiveModels
StrategyOptimization
Decision OptimizerAbility to predict the impact of decisions on bottom-lineAbility to inject additionalexternal conditions that may influence customer
behaviorRun optimization routines
to improve decision strategies based on
constraints and objectives
Decision SimulatorAbility to run what-ifscenarios based on data warehouse or
production dataInspect risks and
opportunities using reporting tools
Blaze AdvisorAbility to verify
that the rules behaveas expected
Run regression tests
SmoothTransition
Decision LevelOperational Tactical Strategic
Precision
© 2009 Fair Isaac Corporation. Confidential.22
Performance-driven Culture: Increase Confidence in Strategy Performance
» Prove with live evaluation» Champion / Challenger
strategy orchestration» Test-drive strategies
in production
» Decision Performance Management» Monitoring / alerting» Dynamic adaptation
Champion
Challenger
80%
20%
© 2009 Fair Isaac Corporation. Confidential.23 © 2009 Fair Isaac Corporation. Confidential.23
Collections
Governance
PrecisionKeep Your Job
Confidence
Agility
Debt
Cool New Technology
Hostile Take-Over
Cost
Headcount
Uncertainty
Transparency
Fraud
Compliance
Regulations
Stimulus Package
Speed
Improvement
© 2009 Fair Isaac Corporation. Confidential.24
Pattern-based StrategyBRMS Value-added Benefits
1.Empower business users Optempo AdvantageBecause of new regulations, competitive threats, different economic conditions, businesses must react fastTraditional IT implementation adds delays in time-to-market
2.Manage end-to-end business rules lifecycle TransparencyTime-to-production is heavily dependent on lifecycle processesCost of “bad decisions” is a luxury that businesses cannot afford
3.Increase strategy performance Pattern SeekingPrecisely predicting customer behavior can prevent operational costs down the road and improve customer satisfactionComparing all possible strategy alternatives is not always practical
4.Increase confidence in strategy performance Performance-drivenDeploying a new strategy introduces risk Deciding which strategy to deploy is often based on gut feel
© 2009 Fair Isaac Corporation. Confidential.25 © 2009 Fair Isaac Corporation. Confidential.25
Upcoming Webinars & Events
Business Rule Lifecycle Managementwith Blaze Advisor
October 7And many others – approx. every 2 weeks
Register at: www.fico.com/events
Gartner Business Process Management Summit 2009
October 5-7, 2009Hyatt Regency Grand Cypress – Orlando, FL
Gartner Symposium ITExpo 2009October 18-22, 2009
Walt Disney World Dolphin, Orlando, FL
Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent.© 2009 Fair Isaac Corporation. 26
THANK YOU
Carole-Ann Matignon+1 408 535 [email protected]