ipma information process ing management association...

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© Business Rule Solutions, LLC. www.BRSolutions.com 281-217-9878

ipmaInformation Processing Management Association

The Business Connection… business rule method, process and technologies

Gladys S.W. LamPrincipal, Business Rule Solutions, LLCwww.BRSolutions.com604-228-8298

Principal, Business Rules Journalwww.BRCommunity.com

Reference:Principles of the Business Rule ApproachRonald G. Ross, Addison-W esley, 2003. Available via www.BRSolutions.com

“Capturing rules effectively is a matter of using the right model in the right way with the right people.”

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About Gladys S.W. Lam

Gladys S.W. Lam is a world-renowned authority on applied business rule techniques. She co-founded Business Rule Solutions, LLC (www.BRSolutions.com) with Ronald G. Ross, which has become the most recognized company world-wide for business rule methodology, publications, consulting services, and training. She is also co-founder and regular columnist of Business Rule Community (www.BRCommunity.com). BRCommunity.com isa vertical community for professionals working with business rules and related areas and is home of the Business Rules Journal. Ms. Lam is the co-creator of Proteus™, the BRS Business Rule Methodology, which is used by many companies world-wide. Ms. Lam is also the Executive Director of the Business Rule Forum, the premier international conference on business rules.

Ms. Lam is an internationally recognized expert on business rules and related techniques. She leads numerous large-scale companies in adopting the Business Rule Approach. She manages business rule projects that focus on the capture, analysis and management of business requirements including business rules. Ms. Lam speaks internationally at conferences and other professional events. She co-presents the Capturing Business Rules public seminar offered by DCI.

Ms. Lam manages multi-million dollar projects and is recognized internationally as an expert IT project manager. She advises top senior management of large companies on organizational issues and on IT solutions to business problems. She has extensive experience in various business contexts, including business process re-engineering, strategic IT planning, and managing and implementing information systems.

Ms. Lam is most recognized for her ability to identify the source of business issues, and for her effectiveness in developing pragmatic approaches to resolve these issues. She has also gained a reputation for fostering positive professional relationships with principals and support staff in projects.

Ms. Lam graduated from the University of British Columbia with a Bachelor of Science degree majoring in Computer Science.

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What does Business Rule Approach mean?

The Business Connection

The Business The Business ConnectionConnection

The Business Rule ApproachThe Business Rule Approach

Rule Independence

Rule Rule IndependenceIndependence

The Technologies

The The TechnologiesTechnologies

Rule Management

Tools

Rule Rule Management Management

ToolsTools

Rules EnginesRules Rules

EnginesEnginesWorkflow Engines

Workflow Workflow EnginesEngines

Rule Specification

Rule Rule SpecificationSpecification

Rule Management

Rule Rule ManagementManagement

Empowering the Business

Empowering Empowering the Businessthe Business

Business Model/ Business Rules

Business Model/ Business Model/ Business RulesBusiness Rules Rules

Analysis tools

Rules Rules Analysis Analysis

toolstools

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The Business Connection

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The Business Challenge

“A successful project is about putting these systems to the use the business stakeholders intended and seeing the value come back to the business”

A fresh look at Success….A fresh look at Success….

““A successful project is not simply getting a new system up and running”

IT The Business

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The Winning Solution

-The Business -

-IT -

“ In perfect harm ony”

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Diagnosing the Problem

ITBusiness

W orkers

The business needs to ...

+ M ake enhancem ents to business tactics.

+ Roll out new or m odified policies.

+ Com ply with ever-changing regulatory directives.

Business Logic

Applications

The business logic ...

+ Em bedded in application code.

+ Inaccessible to the business workers.

+ Requires IT involvem ent at every turn.

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The Winning Solution

Business

W orkers

Business Logic

“The Power of the Platform is “The Power of the Platform is No Longer the Issue.”No Longer the Issue.”

IT as Business Enabler

Re-EnfranchisedW orkers

RulePlatform

IT

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Proteus™

Methodology

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Focus on 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

CoreBusinessConcepts


Logical DataModel

Logical DataModel

RelationalDatabaseDesign


DatabaseSchema

DatabaseSchema

OperationalDatabase

OperationalDatabase

OperationalObject Code

OperationalObject Code

OperationalNetwork

OperationalNetwork

OperationalInterfaces

OperationalInterfaces

W HAT Data

HOW Process

W HERE Location

W HOW ork

W HEN Timing

W HY Motivation

W ork Queue & SchedulingDesigns

W ork Queue & SchedulingDesigns

W ork Queues & Schedules

W ork Queues & Schedules

OperationalW ork Queues& Schedules

OperationalW ork Queues& Schedules

RuleSpecifications

RuleSpecifications

RuleBase

RuleBase

OperationalRules

OperationalRules

InterfacesInterfacesNetworkNetworkSource Code

Source Code

InterfaceSpecifications

InterfaceSpecifications

TechnicalPlatform &

CommunicationsDesign

TechnicalPlatform &

CommunicationsDesign

ProgramSpecifications

ProgramSpecifications

Sponsor

System Model

DesignArchitect

TechnologyModel

TechnicalDesigner

DetailRepresentation

Specialist

FunctioningBus. Capacity

W orker

Copyright, Business Rule Solutions, LLC.

ProteusTM ... The BRS Methodology Architectural Products

Scope Mission& Goals

Mission& Goals

RuleBook/SRuleBook/S

Business Events

Business Events

PrincipalActors

PrincipalActors

BusinessLocations

BusinessLocations

MajorBusiness

Transformations

MajorBusiness

Transformations

BusinessMilestones

BusinessMilestones

OrganizationalW ork Model


BusinessConnectivity

Map


MapBusiness

Process Model

BusinessProcess Model

BRScriptsPlatform &

CommunicationsMap

Human Interface Designs

StateTransitionDiagrams

Policy Charter& RuleBook/B


Fact Model & Concepts Catalog


Business Model

Owner





BusinessMilestones

BusinessMilestones




Map


MapBusiness

Process Model


Business Events

Business Events

Mission& Goals

Mission& Goals

PrincipalActors

PrincipalActors

BusinessLocations

BusinessLocations

MajorBusiness

Transformations

MajorBusiness

Transformations



W HAT Data

HOW Process

W HERE Location

W HOW ork

W HEN Timing

W HY Motivation

Sponsor

Business Model

Owner

System Model

DesignArchitect

TechnologyModel

TechnicalDesigner


Specialist


W orker



Scope



Logical DataModel

Logical DataModel



DatabaseSchema

DatabaseSchema

OperationalDatabase

OperationalDatabase

W HAT Data



HOW Process

W HERE Location

W HOW ork

W HEN Timing

W HY Motivation

Scope

Sponsor

Business Model

Owner

System Model

DesignArchitect

TechnologyModel

TechnicalDesigner


Specialist


W orker



RuleSpecifications

RuleSpecifications

RuleBase

RuleBase

OperationalRules

OperationalRules

Mission& Goals

Mission& Goals

RuleBook/SRuleBook/S



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Business Rules: ROI

“The Business Perspective”“The Business Perspective”“The Business Perspective”

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

Senior IT Manager Fortune 100 Company

“(using the Business Rule Approach) impacts the bottom line in the reduction of time spent debugging or performing impact analysis. Rules can be changed quickly in production (within 10 minutes)”

Electronic Industry

“Earlier projects failed due to a lack of consensus. The Business Rule Approach allows us to think through the business processes before looking at technical solution. Our system implementation has never been this smooth.”

Chemical Industry

“...but the success makes it worth the effort!”

“The work is challenging”

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Business Model Deliverables

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High-Impact Sponsorship

Business-Driven Solutions

Rule Management & Rule Analysis

Rules for Process vs. Rules for Product/Service

ProteusTM ... The BRS Methodology

Review of Basic Principles

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Business M odel Steps ...

ProteusTM

1.Confirm Scope

1.Confirm Scope

5. Develop Business Milestones

5. Develop Business Milestones

4. Develop Terms and Facts

4. Develop Terms and Facts

3. DevelopW orkflows

3. DevelopW orkflows

2. Develop Business Tactics

2. Develop Business Tactics

10.Formulate

Product/ServiceRules

10.Formulate


9. Develop Product/Service Terminology

Model

9. Develop Product/Service Terminology

Model

11.Analyze


11.Analyze


6.Analyze BusinessRules

6.Analyze BusinessRules

7. AnalyzeProduct/Service

7. AnalyzeProduct/Service

8. CaptureExistingRules

8. CaptureExistingRules

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Scope

Mission

Goals

Business Events

Principal Actors

Major Business Transformations

Core BusinessConcepts

Business Locations

Policy Charter

Goals

Tactics

Risks

Core Business RulesBusiness Process

Triggers

Actors

Tasks

Fact Model

Terms

Facts

Business Rules

Business Rules Statements

are built using

guide

act as

provide boundaries for

Scope provides overall boundaries

ProteusTM MethodologyRelationships between Components

drive

Policy Charter sets direction

Fact Model establishes vocabulary

Business Rules guide behaviorBusiness Process transformsinputs into outputs

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Procedures

Prepare for Requirements Gathering Session

Conduct Requirements Gathering Facilitation Session

Analyze and Document Business Model

Prepare for Detailed Business Rule Analysis

Conduct Business Rule Facilitation Session

Analyze and Document Business Rules

Capture Product and Service Rules

ProteusTM

Procedures

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Policy Charter

Case Study: EU-RentAdapted with permission from

Model Systems Inc


Model Systems Inc

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Fact Model


Model Systems Inc


Model Systems Inc

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Concepts Catalog

is a rental for a car that has been returned to a branch.Closed Rental

is an upgrade that has been given to a customer for freeComplementary Upgrade

is an accounting device to group customers based on the organization they work for.Corporate Account

is the manufacturer's designated vehicle style (e.g. Buick Regal, Ford T-Bird, etc.).Car Model

is an organizational unit within EU-RentBusiness Unit

is a business unit that handles reservations.Call Center

is a vehicle owned by EU-Rent and offered for rent to EU-Rent's customers.Car

is a tier of car models made available for rental to customers (e.g. sub-compact, mid-size, luxury, etc.).

Car Group

DescriptionTerm Name

is an employee who is responsible for a branch.Branch Manager

is a business unit from which cars can be rented.Branch

is a car that has been prepared and is ready to be assigned to a rental.Available for Rental

is a rental assignment that has been done by the reservations systemAutomated Assignment

is a car that is currently allocated to a rental.Assigned to a Rental

is the billing address of the customer.Address

Term Report (Concepts Catalog)


Model Systems Inc


Model Systems Inc

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Rule by Term Rule by Term ReportAll

13) A loyalty program member who qualifies for the platinum loyalty program level may be assigned only to a priority reservations clerk who works in the call center.

Call Center

6 ) A complementary upgrade given for a rental assignment by a reservations clerk must be approved by a branch manager.26 )A rental with a rental charge greater than $2,000 must be approved by a branch manager.29)A branch manager must not be assigned to a loyalty program member.

Branch Manager

18) The threshold amount for the allowable number of changes to rental assignment must be computed as 10% of the total number of rental assignment in a calendar month at a branch.42) A customer must not pick up a car outside of the branch's business hours.

Branch

4) A car may be considered available for rental only if all of the following are true:- It has been cleaned.- The gas tank is full.- Oil and water have been topped up.- The tires are properly inflated.

Available for Rental

Rule StatementTerm Rule id


Model Systems Inc


Model Systems Inc

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Workflow


Model Systems Inc


Model Systems Inc

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Rules in Tasks by D esign D eliverable All Design Deliverable id: 1 Design Deliverable nam e: W orkflow Task Seq#: 0 Task nam e: 105 Verify custom er inform ation Task id: 1 Task description: The reservations clerk verifies that the inform ation on file is correct.

Seq. # Rule nam e Rule statem ent:

0 A custom er requesting a rental m ust hold a valid driver's license.

1 A reservation m ust be guaranteed by a credit card. 2 A credit card m ust not be classified as both "Am erican Express" and "V isa".

3 A credit card m ust not indicate m ore than one of the following: - The credit card is in the nam e of a corporate account. - The credit card is in the nam e of a custom er.

4 A rental m ay be guaranteed using a credit card in the nam e of a corporate account only if the custom er requesting the rental belongs to that corporate account.

Task Description


Model Systems Inc


Model Systems Inc

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Rule Listing

1. A customer requesting a rental must hold a valid driver's license.2. A reservation must be guaranteed by a credit card.3. A customer may request more than one rental only if the rental period of the rental do not overlap.4. A car may be considered available for rental only if all of the following are true:

- It has been cleaned.- The gas tank is full.- Oil and water have been topped up.- The tires are properly inflated.

5. A reservations clerk may change a rental assignment only if one of the following is true:- The change is within the same car group.- The change is to a different car group but is not a complementary upgrade.

6. A complementary upgrade given for a rental assignment by a reservations clerk must be approved by a branch manager.

7. The discount percentage for a discount scheme must not exceed 40% off the rental fee.8. A customer may be considered a loyalty program member only if they requested a minimum of three

rental within the last year.9. A rental requested by a loyalty program member must be given preference for a complementary upgrade

over a rental requested by a customer who is not a loyalty program member when the rental assignment is given.

10. A message from a customer must be returned within 15 minutes.11. A loyalty program member who qualifies for the platinum loyalty program level must be assigned to the

priority reservations clerk with the least number of current assignments when the customer signs up for the loyalty program.

Rule Listing ReportAll

Rule id Rule Statement


Model Systems Inc


Model Systems Inc

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“Decision points are the cross-roads of workflow … rule sets organize the decision logic.”

Rule Independencies

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The Basic Principles of the Business Rule Approach

The Business Rule Approach

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

2000199019801970

1960

1950

1940

1930

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

Reduce IT InvolvementEstablish TraceabilityMaintain Control

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The Basic Principles of the Business Rule Approach

The Business Rule Approach

1. Rules should be written and made explicit.2. Rules should be expressed in plain language.3. Rules should exist independent of procedures and workflows.4. Rules should build on facts, and facts should build on concepts as represented by terms.5. Rules should guide or influence behavior in desired ways.

6. Rules should be motivated by identifiable and important business factors.7. Rules should be accessible to authorized parties.8. Rules should be single-sourced.9. Rules should be specified directly by those people who have relevant knowledge. 10. Rules should be managed.

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

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BusinessMilestones

BusinessMilestones




Map


MapBusiness

Process Model


Using the Business M odel for Capturing Rules ...

Calculations & Trans-formations

Transport & Linkage

InteractionsTiming & Intervals

Decision-Making

What How Where Who When Why

Using the Business Model to Capture Rules

Consistency

Owner

RuleBook

RuleBook

Policy Charter

Policy Charter

Business Model

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The Technologies

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Bus

ines

s Voc

abul

ary

Supp

ort

Bus

ines

s Voc

abul

ary

Supp

ort

Business Rule Capture

Business Rule Capture

VisualizationVisualization

Rule ValidationRule ValidationRule EngineRule Engine

Business Rule Management

Business Rule Management

Rule Analysts

Bu s

i ne s

s Ru l

e W

ork f

low

Bu s

i ne s

s Ru l

e W

ork f

low

Rule VerificationRule Verification

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Rule Capture and Analysis

Business Vocabulary Support

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Rule Capture and Analysis

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Business Logic Verification

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Decision Table

BRS

Example adapted with permission from Corticon


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Rule Verification

BRS



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Rule VerificationCompressed from 12 to 7 rules

BRS

Rules 2&5 are duplicates

Rule 3 can subsume 6 & 8

Rule 4 can subsume 7 & 9



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Rule VerificationIdentify Ambiguity

BRS

Rules 6 & 7 are ambiguous



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Rule VerificationCheck Completeness

BRS

Added 6 missing rules



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Rethinking the Workflows

“The idea of not using a rule engine to run your rules …

... and an integrated workflow engine to run your procedures …

... will seem as strange in 5 years as not using a DBM S to m anage your data.”

Ronald G. Ross

Principal, Business Rule Solutions

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Business Rules: ROI

“The IT Perspective”“The IT Perspective”“The IT Perspective”

“38% less time to build, deploy and test. 58% less time to change the application.”

PegaRULES Process Commander Vs Java IDE: A Comparison of Developer Productivity

“ROI value was negative in the first 3 years. Breakeven by end of 4th year. 900-1,100% ROI by the 5th year. Overall ROI is estimated to be 170%."

"For every loss claim that CleverPath Aion eliminates, the company saves twenty to thirty thousand dollars."

California Department of Motor Vehicles (DMV) vehicle registration computation project using Blaze Advisor

David Bowler, Principal IT Specialist, Air Products

“...but the success makes it worth the effort!”

“The work is challenging”

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About the Business Rule Approach

Methodology and techniques.

Rule management tools.

Rule analysis tools

Expertise.

Guidelines for expressing rules.

Workflow engines.

Rule engines.

The Business Rule Approach is viable today

-Checklist of the Essential Ingredients -

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Capturing Business Rules: Summary

A business solution A business solution harnesses …harnesses …

•• The right peopleThe right people•• The right techniquesThe right techniques•• The right toolsThe right tools

for a failfor a fail--safe rapid safe rapid business rules project!business rules project!

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