brs business rules from a – z: what you need to know · brs business rules from a – z: what you...

1© 2008. Business Rule Solutions, LLC.

BRS

Business Rules from A – Z:What You Need to KnowSoftware Engineering der Schweizer Informatik Gesellschaft

by Ronald G. RossPrincipal, Business Rule Solutions, LLCwww.BRSolutions.com

713 668-1651Executive Editor, Business Rules Journalwww.BRCommunity.com

References:

Business Rule Concepts (Second Edition), Ronald G. Ross, 2005, www.BRSolutions.com

Principles of the Business Rule ApproachRonald G. Ross, Addison-Wesley, 2003

Business Rule

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Business Rule

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VisualizationVisualization

Rule EngineRule Engine

Business Rule Management


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Rule VerificationRule Verification

Rule ValidationRule Validation

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About Ronald G. Ross

Mr. Ross is recognized internationally as the “father of business rules.” He has served as Co-Chair of the annual Business Rules Forum Conference since 1997. He was a charter member of the Business Rules Group (BRG) in the 1980s, and an editor of the two landmark BRG papers, “The Business Motivation Model: Business Governance in a Volatile World” (2000, revised 2005, 2007) and the “Business Rules Manifesto” (2003). He is also active in OMG standards development for business rules and business models, including SBVR.

Mr. Ross is the author of eight professional books. His newest are: Business Rule Concepts (2005), a second edition of his popular, easy-to-read 1998 handbook, and Principles of the Business Rule Approach, Addison-Wesley (2003), featuring the business rationale and opportunity for business rules. An earlier work, The Business Rule Book (1994, 1997), was the seminal work in the field.

Mr. Ross received his M.S. in information science from Illinois Institute of Technology, and his B.A. from Rice U.

Ronald G. Ross is Co-Founder and Principal of Business Rule Solutions, LLC (www.BRSolutions.com). BRS provides workshops, consulting services, publications, and methodology supporting business analysis, business rules, business vocabulary, and rule management. His popular public seminars on business rules and business analysis, the first on business rules (starting in 1996) and the longest-running in the industry, are given through AttainingEdge (www.AttainingEdge.com ).

Mr. Ross co-develops ProteusR, BRS’s landmark business analysis and business rules methodology, featuring numerous innovative techniques including the popular RuleSpeakR (free through www.BRCommunity.com ). These are the latest offerings in a 30-year career that has consistently featured creative, business-driven solutions.

Mr. Ross also serves as Executive Editor of BRCommunity.com and its flagship on-line publication, Business Rules Journal. He is a regular columnist for the Journal’s Commentary section which also features John Zachman, Chris Date, Terry Halpin, and Roger Burlton. BRCommunity.com, hosted and sponsored by BRS, is a vertical community for professionals working with business rules and related areas. Mr. Ross was formerly Editor of the Data Base Newsletter from 1977 to 1998.


BRS

About the Business Rules Manifesto

İş Kuralları BildirgesiKural Bağımsızlığının İlkeleri

Business Rules ManifestPrinciperna för verksamhetsreglernas oberoende

Manifiesto de Reglas de NegocioLos Principios de la Independencia de las Reglas

Veiklos taisyklių manifestasTaisyklių nepriklausomumo principai

Business Rules ManifestDie Prinzipien der Business Rules Unabhängigkeit

Manifeste pour les règles métiersLes principes de l’indépendance des règles

Business Rules ManifestDe grondbeginselen van onafhankelijke regels

Business Rules ManifestoThe Principles of Rule Independence

by Business Rules Group, 2003www.BusinessRulesGroup.org

Article 1. Primary Requirements, Not SecondaryArticle 2. Separate From Processes, Not

Contained In ThemArticle 3. Deliberate Knowledge, Not A

By-ProductArticle 4. Declarative, Not ProceduralArticle 5. Well-Formed Expression, Not Ad HocArticle 6. Rule-Based Architecture, Not Indirect

ImplementationArticle 7. Rule-Guided Processes, Not Exception-

Based ProgrammingArticle 8. For the Sake of the Business, Not

TechnologyArticle 9. Of, By and For Business People,

Not IT PeopleArticle 10. Managing Business Logic, Not

Hardware/Software Platforms


BRS

Article 1. Primary Article 1. Primary Requirements, Not Requirements, Not SecondarySecondary1.1. Rules are a first-class citizen of the requirements world.

1.2. Rules are essential for, and a discrete part of, business models and technology models.


“We hold these truths to be self-evident …”


BRS

What are business rules … not?

Not Not ……Wishes: The company wants to grow 10% in the next 5 years.Predictions: The company expects to grow 10% in the next 5 years.Opportunities: The company can grow 10% in the next 5 years.Surmises: The company is probably the largest company in the world.Unknowns: It is unknown whether the company wants to grow.

Business Rules Concepts & Overview

Courtesy Don Baisley, Unisys


BRS


Not lowNot low--level programming code level programming code ……

34510 00 ACT-NUM GT 0 AND34510 00 OPEN-CLOSE-IND-A EQ "O"34510 01 "MDLR" "A0034"34510 02 FUNCTION-RSLT EQ 3 "AELG" 73 "Y"34510 03 "NX"



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Not ifNot if--thenthen--else procedural logic else procedural logic ……Check the product number in database SRU [the Sandals ‘R’ Us database].

If the product number is equal to 422 [the part number of flip-flops] and the product description is equal to “plastic flip-flops”,

then set the new product number in database ASC [The Athens Sandal Company database] equal to 1547and set the product description equal to “Fun-in-the-Sun Flip-Flops”

else if the product number in database is equal to 423 through 495 [the part numbers of all orthopedic sandals]

then set the new product number equal to 1647and set the product category equal to “Good for You, Too Sandals”

else if …

Example of “Business Rules” from a Recent Software Vendor White Paper



BRS


Not Not ‘‘legaldegooklegaldegook’’ ……

No savings and loan holding company, directly or indirectly or through one or more transactions, shall acquire control of an uninsured institution or retain, for more than one year after other than an insured institution or holding company thereof, the date any insured institution subsidiary becomes uninsured, control of such institution.From the Code of Federal Regulations Chosen as the winner of the annual “Legaldegook” contest by the Plain Language Committee of the State Bar of Texas



BRS

Customer.Customer places order.A customer must not place more than three rush orders

charged to its credit account.A customer with preferred status should have its orders filled

immediately.A customer’s annual order volume must be computed as total

sales closed during the company’s fiscal year.A customer must be considered “preferred” if the customer

places more than five orders over $1,000.A customer that does not place any order for 36 consecutive

months must be automatically archived.


What are business rules …


BRS

...is a statement that defines or constrains some aspect of the business.

...is intended to assert business structure, or to control or influence the behavior of the business.

...cannot be broken down or decomposed further into more detailed business rules.

...if reduced any further, there would be loss of important information about the business.

Reference: “Defining Business Rules ~ What Are They Really?” (formerly known as the “GUIDE Business Rules Project Final Report,” November 1995), Business Rules Group, (3rd Ed.), July 2000. Available on www.businessrulesgroup.org.


What are business rules …


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Participants:Adaptive

Automated Reasoning CorpBusiness Rule Solutions, LLC

Business Rules GroupBusiness Semantics Ltd

Fujitsu LtdHendryx & Associates

Hewlett-Packard CompanyInConcept

LibRTKnowGravity Inc

MEGAModel Systems

Neumont UniversityPerpetual Data Systems

PNA GroupSandia National Laboratories

The Rule Markup InitiativeUnisys Corporation

X-Change Technologies Group

Semantic CommunitiesSemantic CommunitiesVocabulary AdoptionVocabulary AdoptionMeaning Separate from ExpressionMeaning Separate from ExpressionSupport for ISO 1087Support for ISO 1087--1 and 7041 and 704--20002000MultiMulti--Language Language Abstract Logical Formulation of Business RulesAbstract Logical Formulation of Business RulesSemantic CommunicationSemantic CommunicationCategorization of Business GuidanceCategorization of Business Guidance

Sampler of Fundamental PrinciplesSampler of Fundamental Principles

Available at http://www.omg.org

Semantics of Business Vocabulary and Semantics of Business Vocabulary and Business Rules (SBVR)Business Rules (SBVR)

For background on the SBVR and the consortium that produced it, refer to: “A Brief History of the Business Rule Approach,” Business Rules Journal. Available at http://www.BRCommunity.com

MilestonesMilestones……

September 2005September 2005 …… the Object Management Group (OMG) approved SBVR the Object Management Group (OMG) approved SBVR to become a final adopted specification.to become a final adopted specification.

December 11, 2007December 11, 2007 …… the OMG authorized official release of Version 1.0.the OMG authorized official release of Version 1.0.


BRS


What is a Business Rule? What is a Business Rule? “…“… a a rulerule that is under business jurisdictionthat is under business jurisdiction””

So what is a So what is a rulerule (real world perspective)?(real world perspective)?

A rule A rule alwaysalways removes some degree of freedom. removes some degree of freedom.

In general, rules are about decisions.In general, rules are about decisions.

Is this a gold Is this a gold customer or customer or not?not?

Let this customer Let this customer in or not?in or not?


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Business Rule Business Rule ……Always Always PracticablePracticable

‘‘PracticablePracticable’’ means means ……

Given a rule and a business situation where the rule applies …

A person (worker) who …

a) knows about the rule

b) understands the associated vocabulary (important!)

… could decide directly whether or not the business was in compliance.… including his or her own behavior(!)

Note: Sometimes called “actionable”.


BRS


Business Policy vs. Business Rule Business Policy vs. Business Rule Is it Is it PracticablePracticable?!?!

ExampleExample

Business PolicyBusiness Policy

Safety is our first concern. Safety is our first concern.

Business RuleBusiness Rule

A hard hat must be A hard hat must be worn in a construction worn in a construction site.site.

‘‘Business PoliciesBusiness Policies’’ ……

NotNot practicable per se.practicable per se.

Must be interpreted into some Must be interpreted into some more concrete business rule(s) more concrete business rule(s) to satisfy their intent.to satisfy their intent.

Important NotesImportant Notes

Practicable Practicable Automatable?? Automatable?? No, not necessarily!No, not necessarily!

Retaining Retaining ‘‘datadata’’ about about acts of acts of interpretationinterpretation is at the heart of is at the heart of ……

‘‘Rule managementRule management’’

Enhancing corporate Enhancing corporate governancegovernance


BRS


Manage change at the speed of business!

“When the rate of change increases to the point that the time required to assimilate change exceeds the time in which the change must be manifest, the enterprise is going to find itself in deep yogurt.”

John Zachman

“The really rapid change is in the rules … not in the processes.”

“If you separate the rules, you can develop remarkably stable processes.”

Roger T. Burlton

Why business rules …


BRS

Business Rules Concepts & OverviewWhere We Are Now…

Stretched to the Limit!

Near-Zero Latency

Instant adaptability

Real-Time Compliance

Get it right in-line, the first time, every time

Mass Customization

A million customers, one-on-one


BRS


ITBusiness Workers

The business needs to ...Make corrections in business strategies and tactics.

Roll out new or modified products and services.

Implement new customer and supplier agreements.

Comply with ever-changing regulatory statutes.

Business Logic

Applications

The business logic ...Embedded in application code.

Inaccessible to the business workers.

Requires IT involvement at every turn.


BRS


Business Workers

Business Logic

ApplicationPlatforms

Re-EnfranchisedWorkers

IT as Business Enabler

IT


BRS


“We are able to do projects that used to cost $1M now for only $50,000.”

Senior IT ManagerFortune 100 Company

One client’s experience...


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Bloopers

English Language Signs in Foreign CountriesEnglish Language Signs in Foreign CountriesAirline ticket office, Copenhagen …“We take your bags and send them in all directions.”

Hotel, Japan …“You are invited to take advantage of the chambermaid.”

Hotel, Zurich …“Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is suggested that the lobby be used for this purpose.”

Advertisement for donkey rides, Thailand …“Would you like to ride on your own ass?”

A laundry in Rome …“Ladies, leave your clothes here and spend the afternoon having a good time.”

In a Nairobi restaurant …“Customers who find our waitresses rude ought to see the manager.”

On the menu of a Swiss restaurant …“Our wines leave you nothing to hope for.”


BRS


Article 2. Separate From Article 2. Separate From Processes, Not Contained Processes, Not Contained In ThemIn Them2.1. Rules are explicit constraints on behavior and/or provide support to behavior.

2.2. Rules are not process and not procedure. They should not be contained in either of these.

2.3. Rules apply across processes and procedures. There should be one cohesive body of rules, enforced consistently across all relevant areas of business activity.

Business Rules ManifestoThe Principles of…

Rule Independence

Rules should be externalized so the business side can manage them directly!

Reduce IT InvolvementEstablish TraceabilityMaintain Control


BRS

How Business Rules Fit into Requirements

e.g. DATA

ENTERPRISE ARCHITECTURE - A FRAMEWORK

Builder

SCOPE(CONTEXTUAL)

BUSINESSMODEL(CONCEPTUAL)

Designer

SYSTEMMODEL(LOGICAL)

TECHNOLOGYMODEL(PHYSICAL)

DETAILEDREPRESEN-

TATIONS(OUT-OF-

CONTEXT)

Sub-Contractor

FUNCTIONINGENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data EntityReln = Data Relationship

e.g. Semantic Model

Ent = Business EntityReln = Business Relationship

List of Things Importantto the Business

ENTITY = Class ofBusiness Thing

List of Processes theBusiness Performs

Process = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/SetsProc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Statement

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business ProcessI/O = Business Resources

List of Locations in whichthe Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business LocationLink = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemsSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressLink = Protocol

e.g. NETWORK

Architecture

Planner

Owner

Builder

BUSINESSMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-conditionMeans = Step

e.g. Rule Design

End = ConditionMeans = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business ObjectiveMeans = Business Strategy

List of Business Goals/Stratgies

Ends/Means = Major Business Goal/Strategy

List of Events/CyclesSignificant to the Business

Time = Major Business Event/Cycle

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component CycleTime = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business EventCycle = Business Cycle

List of Organizations

People = Major Organization Unit

e.g. Work Flow Model

People = Organization UnitWork = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = UserWork = Screen Format

e.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

Planner

Owner

Important to the Business

What How Where Who When Why

SCOPE(CONTEXTUAL)

Architecture

e.g. STRATEGYENTERPRISE

e.g. Business Plan

TM

John A. Zachman, Zachman Internationalc


BRS

The Zachman Architecture Framework is …

NeutralFree of commercial biasNot a methodology

References:The Zachman Framework: A Primer for Enterprise Engineering and Manufacturing,

by John A. Zachman (electronic book), 4Q, 2002.www.zachmaninternational.com.

Collected articles by John Zachman may be found in the Business Rules Journal onwww.BRCommunity.com.

“A Framework for Information Systems Architecture,” John A. Zachman, IBM Systems Journal, 1987, (Volume 26, No. 3), pp. 276-292.www.research.ibm.com/journal/sj/382/zachman.pdf.

How Business Rules Fit into Requirements


BRS

CoreBusinessConcepts


Logical DataModel

Logical DataModel

Physical DataModel

Physical DataModel

DatabaseSchema

DatabaseSchema

OperationalDatabase

OperationalDatabase

WHAT Data

Fact Model & Concepts

Catalog


Catalog

HOW Process

WHERE Location

WHOWork

Scope

Sponsor

Business Model

Owner

System Model

DesignArchitect

TechnologyModel

TechnicalDesigner

DetailRepresentation

Specialist

FunctioningBus. Capacity

Worker

Copyright, Business Rule Solutions, LLC.

ProteusR ... The BRS Methodology Architectural Products

WHEN Timing

WHY Motivation

Mission& Goals

Mission& Goals

Policy Charter& RuleBook/B


OperationalRuleBase

OperationalRuleBase

System Capabilities

Strategy & RuleBook/S

System Capabilities

Strategy & RuleBook/S

PlatformingStrategy

& RuleBook/T

PlatformingStrategy

& RuleBook/T

RuleDeployment

Specifications

RuleDeployment

Specifications


BRS


Catalog


CatalogPolicy Charter& RuleBook/B


BusinessMilestones

BusinessMilestones

OrganizationalWork Model

OrganizationalWork Model

BusinessConnectivity

Map

BusinessConnectivity

MapBusiness

Process Model

BusinessProcess Model

Business Events

Business Events

Mission& Goals

Mission& Goals

PrincipalActors

PrincipalActors

BusinessLocations

BusinessLocations

MajorBusiness

Transformations

MajorBusiness

Transformations



WHAT Data

HOW Process

WHERE Location

WHOWork

WHEN Timing

WHY Motivation

Sponsor

Business Model

Owner

System Model

DesignArchitect

TechnologyModel

TechnicalDesigner

DetailRepresentation

Specialist

FunctioningBus. Capacity

Worker

ProteusR

Copyright, Business Rule Solutions, LLC.

ProteusR ... The BRS Methodology Architectural Products

… for Business Analysis / Business Rules

Scope


BRS

Case Study: Business Model and Business Rules

Case 1Ship Safety Inspection

“From Drifting and Lost to On-Course in 4 weeks”

Organization founded in the 1860s. Non-profit, but with competition(!).

Paper-based workflow no longer viable.

Combined policy issues, workflow issues, and knowledge issues.

Lacked a structure for developing the framework of a business solution…6 months of fruitless efforts.


BRS

Conducted two 3-day facilitated sessions to address workflow and business policy issues.

Business participants from Europe, North America and Asia.

Established a business solution framework to move forward.

Solution ...


Step 1. Establish BusinessEstablish Business--Based Solution FrameworkBased Solution Framework


BRS

Interactive sessions with SMEs.

Combined 6 manuals into a unified logic rule repository, finding 40% duplications or near-duplications.

Thousands of logic rules eventually harvested by the staff on their own.

Able to undertake development in parallel based on careful staging in the business solution framework.

Solution ...


Business People … Active Participants!Business People … Active Participants!

Step 2. Harvest Logic Rules


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Article 3. Deliberate Article 3. Deliberate Knowledge, Not A Knowledge, Not A ByBy--Product Product 3.1. Rules build on facts, and facts build on concepts as expressed by terms.

3.2. Terms express business concepts; facts make assertions about these concepts; rules constrain and support these facts.

3.3. Rules must be explicit. No rule is ever assumed about any concept or fact.

3.4. Rules are basic to what the business knows about itself — that is, to basic business knowledge.

3.5. Rules need to be nurtured, protected, and managed.

Reference: Business Rule Concepts, (Second Edition), Chapters 1 and 4.

Business logic is built in building-block fashion.

Business rules express basic business knowledge.


BRS

Business Vocabulary – Fact Models

Business Meaning1. A network component that uses energy2. The operating level of a network component that uses energy3. A party that owns a network component that uses energy4. A state of a network component

5. A part of the output of a generating resource6. Constancy (“firmness”) of energy usage7. Demand for energy

“Our people think they are talking to each other using the same language … but they often aren’t!”

One Executive’s Lament

Case from the Electrical Transmission Industry ... ““LoadLoad””

… Context of Business Usage… Physical facilities that use energy …Amounts of energy that physical facilities use … Organizations participating in the energy marketplace … Resources that can sometimes use energy (“net”)… Measurements of energy production… Projections of energy production and usage … Aggregate network estimates


BRS

Rule: A library card may be used to check-out a book only if the book is owned by a library for which the card is authorized.

Library Fact Model

Business Rules encompass ...

Terms typically 100s

Factstypically 10X Terms

Rulestypically 10X Facts

librarycard

assessmentperson

borrower

book

librarian

library

is used to check-out

worksfor

makes

owns

is made for

borrower type

holdsis charged

against

is authorized for

organization

fee amount

is ownedby


Legend

= Term (+ Definition)

= Fact

= Category


BRS


An ASSESSMENT is a specific monetary charge against a Library Card for a violation of a book-lending rule.

A BOOK is any document, publication or work in any media that is held by or available through a Library.

A BORROWER is a Person or Organization of interest to a Library that can potentially borrow Books.

A BORROWER TYPE is the category of a Borrower -- i.e., Person or Organization.

A FEE AMOUNT is the total amount of an Assessment.

A LIBRARIAN is a certified professional who can work in a Library in an official capacity.

A LIBRARY is a repository of Books and/or a lender of Books to Borrowers.

A LIBRARY CARD is an agreement between a Borrower and a Library indicating that the parties agree to abide by the Library’s book-lending rules.

An ORGANIZATION is legal entity that can act independently of particular persons.

A PERSON is an individual who acts in his own behalf.

Defining Terms: The Concepts Catalog (Glossary)


BRS


Example 1

Rule: The account-id and password must be included in the acknowledgment letter if the publication is QA Forum.

Questions: Which account-id and password?

What acknowledgement letter?

What does publication have to do with it?

How is QA Forum related in any way to account-id and password?

What does the fact model have to say about it?

AWOL Facts: CConfusiononfusion


BRS


Including Facts Eliminates CConfusiononfusion

Revised Rule: The account-id and password for a subscription must be included in the acknowledgment letter sent for that subscription if the type of the publication for which the subscription is taken is QA Forum.

shipmentis scheduled for

accountholds

payment

is applied to

order

customer

is placed by

subscription

experthandbook

monthly newsletter

type

is taken for

Q&A forum

is sent for

results from

request forpayment

is madefor

account-idpassword

request date

acknowledg-ment letter

publication


BRS


Example 2

Rule: An order may be scheduled for a shipment only if payment for that order has been received.

Question: Do the facts support the rule?


AWOL Facts: IImpossibilitympossibility


BRS


Rule: An order may be scheduled for a shipment only if payment for that order has been received.

Answer: Payments are applied to accounts, not individual orders. The rule as currently expressed is impossible to support.

Inspecting Facts Avoids IImpossibilitympossibility

is scheduled for

holds

is applied to

customer

is placed by

subscription

experthandbook

monthly newsletter

publication

publication type

is taken for

Q&A forum


is sent for

account-idpassword

request date

results from

request forpayment

is madefor

payment

account

shipmentorder


BRS


AWOL Facts: NNonsenseonsense

Example 3

Rule: A request for payment must not be made after 3 months from the request date.

Questions: How can a request for payment be made 3 months after the date of the request?!

Different request?

Different kind of date?



BRS


Including Facts Avoids NNonsenseonsense

Revised: A request for payment for a subscription must not be made after 3 months from the request date of the subscription.

shipmentis scheduled for

accountholds

payment

is applied to

order

customer

is placed by

experthandbook

monthly newsletter

publication

publication type

is taken for

Q&A forum


is sent for

results from

is madefor

request forpayment

subscription

account-idpasswordrequest date


BRS

Bloopers

English Language Signs in Foreign CountriesEnglish Language Signs in Foreign CountriesOn a poster at Kencom …“Are you an adult that cannot read? If so, we can help.”

On an Athi river highway, the main road to Mombasa, leaving Nairobi …“Take notice: When this sign is under water, this road is impassable.”

Cocktail lounge, Norway …“Ladies are requested not to have children in the bar.”

The box of a clockwork toy made in Hong Kong …“Guaranteed to work throughout its useful life.”

In a city restaurant …“Open seven days a week and weekends.”

In a cemetery ... “Persons are prohibited from picking flowers from any but their own graves.”


BRS


Article 4. Declarative, Not Article 4. Declarative, Not Procedural Procedural 4.1. Rules should be expressed declaratively in natural-language sentences for the business audience.

4.2. If something cannot be expressed, then it is not a rule.

4.3. A set of statements is declarative only if the set has no implicit sequencing.

4.4. Any statements of rules that require constructs other than terms and facts imply assumptions about a system implementation.

4.5. A rule is distinct from any enforcement defined for it. A rule and its enforcement are separate concerns.

4.6. Rules should be defined independently of responsibility for the who, where, when, or how of their enforcement.

4.7. Exceptions to rules are expressed by other rules.

A business language for rules.

Example: BRS RuleSpeakR


BRS

BRS RuleSpeakR

Example:No driving without a license.

… Not ambiguous!


BRS

BRS RuleSpeakR

Rules about RulesA Rule Statement must include one of the following “rule words” …

must … or must not(or should or should not)

only … (especially only if)A Rule Statement adds a “rule word”

to terms and facts.A rule must remove a degree of freedom.

If it doesn’t, it can be expressed as a Permission Statement.

Reference: Principles of the Business Rule Approach, Ronald G. Ross, Addison-Wesley, 2003, Part III. Available via www.BRSolutions.com


BRS

Article 5. WellArticle 5. Well--Formed Formed Expression, Not Ad HocExpression, Not Ad Hoc5.1. Business rules should be expressed in such a way that they can be validated for correctness by business people.

5.2. Business rules should be expressed in such a way that they can be verified against each other for consistency.

5.3. Formal logics, such as predicate logic, are fundamental to well-formed expression of rules in business terms, as well as to the technologies that implement business rules.


Business people express and validate business rules …before IT gets involved.


BRS

Real-Life – Business Vocabulary & Business Rules

Rules embedded in multiple documents.

Rules inconsistent from one document to another.

Inconsistencies often discovered by customers.

Serious customer service problems.

Endless effort spent in problem resolution.

Case StudyInsurance Eligibility


BRS

Harvest rules from various sources.

Identify issues in the meaning of the source material.

Establish a Fact Model with consistent definitions.

Restate the rules in a consistent format using standard vocabulary.

Drill-down on issues, gaps and conflicts in the rules.

Solution ...


Step 1. Develop Business Rules Based on a Develop Business Rules Based on a Structured Business Vocabulary Structured Business Vocabulary


BRS

Conduct facilitated sessions to review and resolve issues, gaps and conflicts.

Organize vocabulary and rules for easy retrieval, analysis and update.

Establish governance for change management.

Solution ...


Step 2. Resolve issues


BRS


Harvest rules from various sources.


BRS


What is it?

Product?

Company?

Ineligible for what?

Policy offered by the company?

Where are the other criteria?

Ending When?

Expiration Date of Policy?

Date of Application?

What does “prior” mean?

No lapses before the most recent period of “30 months or more”?

Identify issues in the meaning of the source material.


BRS

date listed

classifiesperson

driver

[policyholder] holds


policy

[listed driver] covers

issues

product

policy type

company

is based on

[in-force policy]

ProtectorReliance

~~

is held by

is issued by

listing of driver

is covered by

expiration date

cancellation date

Establish a Fact Model …


BRS


Establish a Fact Model with consistent definitions.


BRS


The Eligibility Based on Evidence of Insurance of aCandidate of an Application who is an Uninsured Non-Driver must be eligible, non-binding for the CompanyProtector and the Company Reliance.

The Category of a Candidate Based on Evidence of Insurance must be Uninsured Non-Driver if all the following are true for the Application of the Candidate:

It is not accompanied by Acceptable Evidence of Insurance.

It is accompanied by an affidavit that swears no driving.

Restate the rules in a consistent format … RuleSpeakR.

Reference: Principles of the Business Rule Approach, Chapters 8-12.


BRS


Restate the rules in a consistent format using standard vocabulary.


BRS


Drill-down to identify issues, gaps and conflicts in the rules.


BRS


Article 8. For the Sake of the Article 8. For the Sake of the Business, Not Technology Business, Not Technology 8.1. Rules are about business practice and guidance; therefore, rules are motivated by business goals and objectives and are shaped by various influences.

8.2. Rules always cost the business something.

8.3. The cost of rule enforcement must be balanced against business risks, and against business opportunities that might otherwise be lost.

8.4. ‘More rules’ is not better. Usually fewer ‘good rules’ is better.

8.5. An effective system can be based on a small number of rules. Additional, more discriminating rules can be subsequently added, so that over time the system becomes smarter.

Rules have a business context and motivation.

Core business rules (or policies or governing rules) are the cutting edge of business strategy.


BRS

The BRG Motivation Model

The Business Motivation ModelBusiness Governance in a

Volatile WorldRelease 1.3, 2007

by the Business Rules Groupwww.BusinessRulesGroup.org

A Brief History …2000 - Original Release: “Organizing Business Plans – The Standard Model for Business Rules Motivation”

2005 - Release 1.1: “The Business Motivation Model ~ Business Governance in a Volatile World”

2005 - Adopted as OMG standard

2007 (September) - Completed OMG’sfinalization processFor OMG version, see:http://www.omg.org/technology/documents/br_pm_spec_catalog.htm


BRS

Ensure cost-efficientoperations

Provide efficient customerservice

Support an efficient CollisionRepair Industry

Maintain a close relationshipwith Collision Repair Industry

Repair and claims data should be transferred electronicallyto the Collision Repair Industry

Expectation that the corporation willmaintain infrastructure at the body shops

Body shops should be reponsible for their ownsystems and infrastructures

Road estimators will use dial up to accessclaims information

Dial-up access is not available at thebody shop

Dedicated line for dial-up must be part ofaccrediation package

Auto Insurance Sample Policy Charter (segment) … Auto Insurance

BRS Policy Charter

Reference: “Business Knowledge -- Packaged in a Policy Charter,” by Gladys S.W. Lam, available on www.BRCommunity.com, May/June, 1998


BRS

BRS Policy Charter

Unify discount schemes across four distinct lines of business, never before integrated or aligned.

Offer products over the Web to an expanded customer base.

Create a new business vision for awards, along with high-level workflow and related policies and rules.

Case StudyPharmaceutical

Discount Schemes


BRS

Facilitated session with L.O.B. management and support staff.

Scheduled for 3 half-day sessions.

By the end of the first day, support staff dismissed.

By the end of the third day, an extra day requested.

Solution ...

BRS Policy Charter

Step 1. Establish Business Strategy & Establish Business Strategy & Core Business Rules (Policy Charter)Core Business Rules (Policy Charter)


BRS

Step 2. Harvest RulesSolution ...

BRS Policy Charter

Conducted business vocabulary workshop.

Captured rules from existing documentation.

Conducted operational re-think workshops based on Policy Charter to improve/integrate terminology, rules and workflows.

Rapid initiation (within 6 weeks) of large-scale platform implementation.


BRS

Two Years Later …

Solution ...

BRS Policy Charter

The company determined the project saved approximately £45 million ($80 million).

The Project Director received a world-wide, internal award for the project.


BRS

Bloopers

Military RulesMilitary Rules“Aim towards the enemy.” - instruction printed on U.S. Army rocket launcher

“When the pin is pulled, Mr. Grenade is not our friend.” – U.S. Marine Corps

“Cluster bombing from B-52s is very, very accurate. The bombs are guaranteed to always hit the ground.” - USAF ammo troop

“A slipping gear could let your m203 grenade launcher fire when you least expect it. That would make you quite unpopular in what's left of your unit.” – U.S. Army's magazine of preventive maintenance

“It is generally inadvisable to eject directly over the area you've just bombed.” –USAF manual

“Try to look unimportant; the enemy may be low on ammo.” – U.S. Army infantry journal

“Tracers work both ways.” – U.S. Army ordnance

“Five-second fuses only last three seconds.” – U.S. Army infantry journal

“Never tell the platoon sergeant you have nothing to do.” - unknown Marine recruit

“Don't draw fire; it irritates the people around you.” – U.S. Army infantry journal

“If you see a bomb technician running, try to keep up with him.” - USAF ammo troop


BRS


Article 9. Of, By and For Article 9. Of, By and For Business People, Not IT Business People, Not IT PeoplePeople9.1. Rules should arise from knowledgeable business people.

9.2. Business people should have tools available to help them formulate, validate and manage rules.

9.3. Business people should have tools available to help them verify business rules against each other for consistency.

Business rules are about business … the connection to business people is key!


BRS

What Rule Engines Are About

Today ...A Closer Look at …The Requirements Process

Functionality

Design &Prototyping

Testing

Implementation

“Requirements”

– No separation of business logic from functional requirements.

– Complex implementation cycle driven by IT.

Business Workers

IT


BRS

Application

Platform


Functional Requirements& Use Cases

FunctionalityDelivered

1. Separation of Business Logic from Functional Requirements

Rule Engine

(BRMS)

Business Workers

RuleRuleRepositoryRepository

BusinessLogic

IT


BRS

ITApplication

Platform

Rule Engine

(BRMS)


2. Business Logic Outsourced Toward Business People


Business Workers

IT


BRS

Rule Engine

(BRMS)


Rule #1

Rule #2

Rule #3

Rule #4

Rule #5

Rule traces for run-time results3. White-Box Logic +

Decision Audit Trails


Business WorkersIT


BRS


What Rule Management is About

Managing Your GuidanceSingle-sourced (no matter how many times “published”)Versions trackedInterpretations trackedUsage and context trackedVocabulary is controlled

The (Automated) Rule Book …

“…“… Rules apply across processes and procedures. There should Rules apply across processes and procedures. There should be one cohesive body of rules, enforced consistently across be one cohesive body of rules, enforced consistently across all relevant areas of business activity.all relevant areas of business activity.

Business Rules Manifesto (2.3) – www.BusinessRulesGroup.org

Reference: Business Rule Concepts, (Second Edition), Chapter 3.

Fingertip Business

Rules!


BRS

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Business Rule Capture

Business Rule Capture


Rule ValidationRule ValidationRule EngineRule Engine



Rule Analysts

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Tools for Business People & Business Analysts


BRS


Example:Regardless of anything to the contrary in this booklet, if your medical insurance terminates for any reason including death, you … may elect within 30 days … to continue such medical insurance.From the booklet “Group Insurance for I-14 Employees”Consolidated Group Trust, The Hartford

… Impossible Rules


BRS


The Problem of Semantic Impurities The Problem of Semantic Impurities ……

An order over $1,000 must not be accepted on credit without a crAn order over $1,000 must not be accepted on credit without a credit checkedit check..An order over $1,000 may be accepted on credit only with a crediAn order over $1,000 may be accepted on credit only with a credit check.t check.

Linguistic Equivalences Linguistic Equivalences

Modal Equivalences Modal Equivalences

Logical EquivalencesLogical Equivalences

SubsumationsSubsumations

ConflictsConflicts

A permanent employee must receive a salary.A permanent employee must receive a salary.An employee who is permanent must receive a salary.An employee who is permanent must receive a salary.

A highA high--risk customer must not place a rush order. risk customer must not place a rush order. A rush order must not be placed by a highA rush order must not be placed by a high--risk customer.risk customer.

A rush order must have a destination.A rush order must have a destination.An order must have a destination.An order must have a destination.

A shipment must include more than 1 order.A shipment must include more than 1 order.An outAn out--ofof--state shipment may include only 1 order.state shipment may include only 1 order.


BRS


Article 10. Managing Article 10. Managing Business Logic, Not Business Logic, Not Hardware/Software Hardware/Software PlatformsPlatforms10.1. Business rules are a vital business asset.

10.2. In the long run, rules are more important to the business than hardware/software platforms.

10.3. Business rules should be organized and stored in such a way that they can be readily redeployed to new hardware/software platforms.

10.4. Rules, and the ability to change them effectively, are fundamental to improving business adaptability.

200019901980

1970

1960

1950

1940

1930What business are you in?!


BRS

The Business Rules Approach: Summary

Governing Rules

Operating Rules

Automated Rules

Managing the Business

Operating the Business

Running the Systems

Retaining Corporate Memory –Traceability, Accountability, Transparency


BRS

The Business Rules Approach: Summary

"Lord, keep my "Lord, keep my memory green." memory green."

Charles DickensCharles Dickens

~~~~

Thank You!Thank You!

Business Rule

Capture

Business Rule

Capture


Rule EngineRule Engine



Rule Analysts

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Rule ValidationRule Validation

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brs business rules from a – z: what you need to know · brs business rules from a – z: what you...

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