Laurent Tarin B P M Ilog
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Transcript of Laurent Tarin B P M Ilog
1
Founding Sponsors
This Presentation Courtesy of the
International SOA Symposium
October 7-8, 2008 Amsterdam Arena
www.soasymposium.com
Gold Sponsors
Platinum Sponsors
Silver Sponsors
ILOG BRMS
for BPM Solutions
Are your business processes « ready for
improvement » ?
Larens Oliver Taurin
Laurent Olivier Tarens
Laurent Olivier TarinProduct Marketing Manager
Business Rules
2
Agenda
Business Rule Management System / BPM in short
Decision intensive Business Processes
Transparent Decision Services
Methodologies and best practices
Conclusion
Copyright© 2007 - ILOG, Inc., All Rights Reserved 3
BRMS in Short
Business Rule Management Systems (BRMS) allow organizations to define, deploy, monitor and maintain decision logic that is used by operational systems.
A BRMS includes: A repository allowing decision logic to be externalized from core
application code
Tools allowing business experts to define and manage decision logic
A runtime environment allowing production systems to access and execute decision logic managed within the BRMS
Repository
Rules
+
Metadata
Rule Authoring Execution Engine
Copyright© 2007 - ILOG, Inc., All Rights Reserved 4
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The Decision Intensive Process
• Until
•New Product
•New Policy
•New Regulation
•New Pricing Rules / Model
•New Scoring Rules / Tables
• …
Streamlined process
works fine today…
Copyright© 2007 - ILOG, Inc., All Rights Reserved 5
The Decision Intensive Process
Streamlined workflow
works fine until…
Your ‘streamlined’ process in x months
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The Nightmare Intensive Process
Streamlined workflow
works fine until…
Your ‘streamlined’ process in x monthsYour ‘streamlined’ process in x years
Copyright© 2007 - ILOG, Inc., All Rights Reserved
Process Improvement with BRMS
Processes are too complex to maintain
Simplify processes diagrams by extracting decision-making
Cost per transactions is to high
Increase decision automation
Update Lifecycles are too long
Manage short life cycle decisions from outside the process
Business users are not involved enough
Give more control to business teams to maintain processes
Business policies are not shared across processes or
applications
Manage business policies as an enterprise asset
Copyright© 2007 - ILOG, Inc., All Rights Reserved 8
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Copyright© 2007 - ILOG, Inc., All Rights Reserved
Externalize your business decisions
Validation
Pricing
Eligibility
Transparent Decision Service
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Transparent Decision Services supporting complex
decisions
10Copyright© 2007 - ILOG, Inc., All Rights Reserved
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Business Decision supported by TDS
The Transparent Decision Service (TDS):
Out of the box Business Rules Based Web Service
Able to automate complex decisions
Easy to understand and to maintain by non-IT skills
Accurate execution reports
Easy to adapt to apart from a BPM process
Easy to integrate with any BPM processes
supporting WSDL
Copyright© 2007 - ILOG, Inc., All Rights Reserved 11
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Automating complex decisions
Business Rules
Decision trees
Decision Tables
Copyright© 2007 - ILOG, Inc., All Rights Reserved
TDS
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TDS: The connection point to the BPM
Rule Repository
Improve BPM
Maintenance by
empowering business
teams
Policies are extracted
and stored in a
Rule Repository
Stand alone Execution
Server which allows
easy re-use of rule
based decision services
across processes
BRMS
User Tools
Execution
Server
Business Process Business Decisions
Design time
Transparent
Decision Service
(TDS)
OOTB
Execution time
Copyright© 2007 - ILOG, Inc., All Rights Reserved 13
Change once, impact anywhere
Rule Repository
BRMS
User Tools
Execution
Server
Business Processes Business Decisions
Transparent
Decision Service
(TDS)
Copyright© 2007 - ILOG, Inc., All Rights Reserved 14
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Redefined process change cycle
TechnicalBusiness
Months / YearsDays / Weeks
Tasks / FlowDecisions / Policies
Copyright© 2007 - ILOG, Inc., All Rights Reserved 15
10/22/2008
Understanding the decision
Les business rules reports
Information on the data
required as input or output
for the service execution
Comprehensive service documentation contains all the rules artifacts composing the business policy like Decision
Tables …
…or easy to understand
action rules
Copyright© 2007 - ILOG, Inc., All Rights Reserved 16
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Auditing the decision
Every rule fired clearly appears in the report
Copyright© 2007 - ILOG, Inc., All Rights Reserved 17
Examples of customized rules execution reports
Business report
where rules can
push business level
trace messages
Execution report
providing detailed
trace information
Every executed rule
can be traced in the
execution report
Copyright© 2007 - ILOG, Inc., All Rights Reserved 18
Managing Change
Business users can
track changes
between different
decision versions
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Methodology and best practices
Copyright© 2007 - ILOG, Inc., All Rights
Reserved
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Copyright© 2007 - ILOG, Inc., All Rights Reserved 20
Predicting change in decision intensive
processes
Embedded VS externalized design:
BPM alone BPM + BRMSVS
State = CA?
Age > 50 ?
Age > 40 ?
Request for amedical certificate
Next Step
Yes Yes
YesNo
No
No
EvaluateMedical
Requirement
Request for aMedical Certificate
Next Step
RequiredCertificate?
Yes
No
IFThe state of the residence of the borrower
is CAAnd The age of the borrower is greater
than 40THENThe case requires a Medical Certificate
IFThe age of the borrower is greater than 50
THENThe case requires a Medical Certificate
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Copyright© 2007 - ILOG, Inc., All Rights Reserved 21
Identifying Business Decisions
B
u
s
i
n
e
s
s
IT
Ow
ners
hip
Change rateLow High
More than 70 BPM references…
Customer Process Pains BPM - Decision Service Results using ILOG BRMS
Insurance
underwriting
• Policy based on
underwriter judgment
• Regulatory and
compliance complexity
• Dispersed policies
Underwriting and pricing
decision service
• 75% of submissions managed
in a STP
• Fast and regular deployment
cycles
Mortgage
Lending
• Legacy systems
automating specific areas
of the organization.
• Little/no business
participation/control in
application evolution
• Poor IT understanding
and service to the
business needs
• Validations/workflow
routing
• Product factory/credit
policy
• Document decisioning
• Better response time to
business requirements – faster
development cycles & process
deployment
• Empowered business users –
flexibility and user-friendliness
Social
benefits
eligibility
• Fragmented systems
with inconsistent data
meant decisions to grant
benefits were not
consistent from one
centre to another
• Several departments
but no clear “interface”
for the citizens
• IBM/FileNet P8 to
manage the application
process end-to-end
• ILOG JRules to
determine the eligibility of
applicants to social
benefits
• Better service delivered to the
citizens: less interactions, clear
and fair application process
• Consistency
• Transparency
• Flexible decision
implementation
Copyright© 2007 - ILOG, Inc., All Rights Reserved 22
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Copyright© 2007 - ILOG, Inc., All Rights Reserved 23
Return on experience
BPM alone Coupled with a BRMSProcess
Telecom -
Order
Processing
Cycle time to validate an order 3 days (manual) 30 seconds
# orders validated manually 40,000 orders/day 1200/day (3%)
Invalid order entering system 35% of 40,000 orders 3%
Adapting to regulatory change 2 months training 2 days (rule change)
Insurance -
Underwriting
Average time for quotes 2 weeks (manual) 6 minutes
Implement a policy change 4 months 1 day
Launch a new product 9 months less than 3 months
Conclusion
ILOG BRMS working with BPM tools
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Copyright© 2007 - ILOG, Inc., All Rights Reserved 25
Keeping your process under control
Combining BRMS with BPM:
Streamlining processes – automate a combination of
decisions and tasks to reduce maintenance cycle
times
Operating more consistently – explicit process
structure and business rules ensure consistency
Increasing transparency – easily track process
performance and audit process activities and
decisions
For more information
About ILOG BRMS
www.ilog.com/products/businessrules
About ILOG and BPM
http://www.ilog.com/solutions/business/bpm/
BRMS Resource Center
http://www.ilog.com/dev/brms/
Copyright© 2007 - ILOG, Inc., All Rights Reserved 26
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Copyright© 2007 - ILOG, Inc., All Rights Reserved 2710/22/2008 ILOG Internal 27
Any Questions