Introduction to The Decision                     Model                                    Larry Goldberg                  ...
Who is KPI?                                                                                     Services                  ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
“Big Ball of Mud”                          Foote & Yoder                            Software                            Sy...
Separation of Concerns              Component Based Application Architecture                                  Ken Orr     ...
Business                         All Too Familiar?  Logic                         Is this Acceptable?                     ...
Business  Logic                    Does this look better?                                      Business Process Model     ...
Business  Logic                       Where did the business rules                                          go?           ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
Definition of Business LogicBusiness Logic is the means by which the business derivesconclusions from conditions.The simpl...
What is an Atomic Piece of          Business Logic?• One and only one conclusion fact type, such as:    – Person likelihoo...
Why are Atomic Pieces Good?• Ultimate simplicity• Everyone reduces conditions and conclusions to  exactly the same pieces•...
The Rule Family is a Two                  Dimensional TableMultiple Logic Statements that Look Like This:Person   < 650   ...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessm...
Where Do We Get the Condition Values?                                 Conditions                                    Conclu...
Two Rule Families• We create another Rule Family, this one with conclusion column for  Person Employment History• This con...
Decision Model Principles• Structural Principles – Structural simplicity• Declarative Principles – Declarative structure• ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
Every Decision Model Starts with a             Business Decision“Business decision: a conclusion a business arrives at thr...
Determine                                         Policy                                        Renewal                   ...
Determine                                           Policy                                          Renewal               ...
Determine                                            Policy                                           Renewal             ...
Determine                                                              Policy                                             ...
Determine                                            Policy                                           Renewal             ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
Option 1                      The Decision Model Difference in Process                                     ModelsOption 2O...
Simplify the Models, Improve the        Solution, Now You Know How                Before                                  ...
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com   36
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
FirstSTEP• A Framework• A Methodology      – Step 1: Validate Scope.      – Step 2: Outline Models      – Step 3: Visualiz...
FirstSTEP Scope• Use the framework* to create scope:             List of      List of       List of     List of       List...
Selection of Models             Conceptual   Business     Network       Workflow     Master      Business             Data...
Application Visualization                                         • Business analysts, product                            ...
Organization Model  Business                                                    Enterprise  Motivation                    ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
What is Sapiens DECISION?Business Decision Management System:• Sapiens DECISION is an enterprise level Business Decision M...
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com   45
Sapiens DECISION Functionality                                                             Testing &                      ...
Graphical Modeling using the       Decision Model NotationSapiens DECISION supports user-friendly creation andmaintenance ...
Rule Family TablesRule Family Tables are created from the graphical model, allowingusers to populate, manipulate and manag...
Robust Glossary FunctionGlossary of fact types and domains is automatically created fromThe Decision Model diagram for eas...
Advanced Decision ModelMethodologies in Sapiens DECISION• Sapiens DECISION incorporates the very latest Decision  Model me...
Sapiens DECISION                                 Roadmap 1• Release 1 – Immediate Availability• Ready to build enterprise ...
Sapiens DECISION                                    Roadmap 2•    Release 2 – Available Q3 - Q4 2011•    BDMM Level 4 Capa...
Sapiens DECISION                                 Roadmap 3• Release 3 – Available Q2 2012• Beyond BDMM Level 4    –   Inli...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
Real World Testimonial•    “The Decision Model’s principles and normalization rules give us confidence     we can get repe...
Project #1: 3 MonthsBusiness Motivations                                 Challenges, Deliverables    – Increase customer s...
Project #2: Process                  Improvement• Entire Project Completed in 3 Months• Updated Process Models• Decision M...
Project #3: Process                  Improvements• Before The Decision Model:    – 200 transactions with errors  90 hrs  ...
Project #3: How?• There is no longer any room for  misinterpretation of the Business Logic  requirements• The business log...
Project #3: Statistics• 5 Decision Views    – 95 Rule Family Views• 10 Weeks    – Decision Views created in approximately ...
Agenda•    Current State: Business Rules•    The Decision Model Bottom Up•    The Decision Model Top Down•    Impact on Bu...
The Ways we can Help                                              Skills and Knowledge Transfer                  Training ...
Value Proposition• Unambiguous, traceable and complete  Requirements• Most rapid approach to capturing business logic• Str...
How to Learn MoreVisit www.kpiusa.com                                 Become a member of                                  ...
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Introduction to the Decision Model - Larry Goldberg

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Larry Goldberg, Managing Partner of Knowledge Partners International, LLC (KPI), delivera a thought provoking session on "The Decision Model: Aligning Business and Technology", a technology independent model based on the inherent structure of business logic .

Published in: Technology, Business

Introduction to the Decision Model - Larry Goldberg

  1. 1. Introduction to The Decision Model Larry Goldberg May 24th, 2011© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com
  2. 2. Who is KPI? Services Experience FirstSTEP Service to create unambiguous, and complete Financial Services Requirements Insurance Thought Leader KPISTEP Service to perceive, organize Healthcare and manage Business Processes and Rules with The Decision Model Decision Models Business Logic Framework linking Government Business with Technology STEPment Utilities Mentoring of clients to Business Process Management Business Decision Management achieve self-reliance with Business Rule Management Transportation Center of Excellence Publications Enterprise Architecture Training & Certification Business Analysis Telecommunication Requirements Testing Energy© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 2
  3. 3. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 3
  4. 4. “Big Ball of Mud” Foote & Yoder Software Systems© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 4
  5. 5. Separation of Concerns Component Based Application Architecture Ken Orr Security Workflow Transaction Business rules Component Component Component Presentation Base Component Application Business Reporting/BI Database Logic Component Component What happens to business logic today?© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 5
  6. 6. Business All Too Familiar? Logic Is this Acceptable? Business Rule Documentation Business Process Model© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 6
  7. 7. Business Logic Does this look better? Business Process Model Decision Shape How© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 7
  8. 8. Business Logic Where did the business rules go? Decision Model What Rule Family Rule Family Table Atomic Logic Statement© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 8
  9. 9. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 9
  10. 10. Definition of Business LogicBusiness Logic is the means by which the business derivesconclusions from conditions.The simplest case is the evaluation of a singlecondition, leading to a single conclusion. Condition ConclusionPerson credit rating is Person likelihood ofless than 650 defaulting on a loan is high © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 10
  11. 11. What is an Atomic Piece of Business Logic?• One and only one conclusion fact type, such as: – Person likelihood of defaulting on a loan – Claim’s eligibility for payment – Student’s eligibility for financial aid packages• As many conditions as needed, even zero• All conditions ANDed together• No Ors, ELSEs, BUTs, OTHERWISEs (these have created the chaos in current systems!) © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 11
  12. 12. Why are Atomic Pieces Good?• Ultimate simplicity• Everyone reduces conditions and conclusions to exactly the same pieces• Rigorous principles lead to assembling the pieces in one and only one way• Easy to SEE errors and omissions• Extremely easy to validate and maintain• Extremely easy to implement in technology © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 12
  13. 13. The Rule Family is a Two Dimensional TableMultiple Logic Statements that Look Like This:Person < 650 A Person Is Unstable A Person Is High Person Is HighCredit N Employment N Other Likelihood ofScore D History D Loans Defaulting on a Amount LoanBecome Two Dimensional Tables called Rule Families Like This: Conditions Conclusion Person Credit Score Person Employment Person Other Loans Person Likelihood of History Amount Defaulting on a Loan Is less than 650 Is Unstable Is High Is High Is greater than 720 Is Low Is less than 720 Is Unstable Is Low Is MediumRule Families are Tables that Conform to Rigorous Principles © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 13
  14. 14. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion We start by discovering the conclusion in the sentence or paragraph © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 14
  15. 15. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion We see that the conclusion is “A person is highly likely to default on a loan” © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 15
  16. 16. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Likelihood of Defaulting on a Loan is High We recast the conclusion into a conclusion fact type: Person Likelihood of Defaulting on a Loan, and we assign it a value of “High” © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 16
  17. 17. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Likelihood of Defaulting on a Loan is High Next we look for conditions that cause us to reach that conclusion © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 17
  18. 18. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Likelihood of Defaulting on a Loan is HighWe see that a “person who has a credit score below 650” is one of the conditions that lead to the conclusion © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 18
  19. 19. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Credit Score Person Likelihood of Defaulting on a Loan Is less than 650 is High We recast “Person Credit Score” into a fact type, and we assign an operator “is less than” and value “650” to it in this row © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 19
  20. 20. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Credit Score Person Likelihood of Defaulting on a Loan Is less than 650 is High We identify the next condition leading to the conclusion © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 20
  21. 21. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions Conclusion Person Credit Score Person Employment Person Likelihood of History Defaulting on a Loan Is less 650 is Unstable is High than We recast Person Mortgage Situation into a fact type, add a new column for this new header, and we assign the value “Poor” to this row © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 21
  22. 22. Simple Rule Family“A person who has a credit score below 650, an unstable employment history and ahigh Other loans assessment is highly likely to default on a loan.” Conditions ConclusionPerson Credit Score Person Employment Person Other Loans Person Likelihood of History Assessment Defaulting on a LoanIs less than 650 is Unstable is High is High We identify a “high Other loans assessment” as the third condition leading to the conclusion © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 22
  23. 23. Where Do We Get the Condition Values? Conditions Conclusion Person Credit Score Person Employment Person Other Loans Person Likelihood of History Amount Defaulting on a Loan Is less than 650 Is Unstable Is High is High • Starting with the first condition, we ask where its values come from: a web page or a file? Is it raw, stored data? Is it the result of execution logic? • Person Credit Score comes from an outside service, simply raw data. • The value for Person Employment History is an internal judgment or decision. It comes from evaluating other conditions, such as: – Person Years at Current Employer – Person Number of Jobs in the Past Five Years. • What to do?© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 23
  24. 24. Two Rule Families• We create another Rule Family, this one with conclusion column for Person Employment History• This conclusion is known as an Interim Conclusion because it need not be stored, it is a conclusion-in-flight (during execution)• This Rule Family comes to a conclusion about a Person Employment History based on two conditions: Person Years at Current Employer and Person Number of Jobs in Past Five Years.• These two Rule Families are naturally linked together with an “inferential relationship” Conditions Conclusion Person Years at Current Person Number of Jobs in Person Employment History Employer Past Five Years Conditions Conclusion Person Credit Score Person Employment Person Other Loans Person Likelihood of History Amount Defaulting on a Loan Is less than 500 Is Unstable Is High is High© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 24
  25. 25. Decision Model Principles• Structural Principles – Structural simplicity• Declarative Principles – Declarative structure• Integrity Principles – Optimal logical integrity These Principles ensure that: • The Decision Model is aligned with its business purpose • There are no errors in its logic • It can execute in any technology (current and future) The Principles introduce Normalization.© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 25
  26. 26. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 26
  27. 27. Every Decision Model Starts with a Business Decision“Business decision: a conclusion a business arrives at throughbusiness logic which is worth managing.”Fact Type Business DecisionClaim Payment Amount Estimate the claim payment amountClaim Payment Eligibility Determine Claim Payment EligibilityCustomer Likelihood of Loan Default Determine Customer Likelihood of Loan DefaultInsurance Policy Renewal Method Determine insurance policy renewal methodInventory Item Minimum Stock Level Assess the Inventory Item minimum stock levelLoan Prequalification Determine loan prequalification requirements for a customerPerson BMI (Body Mass Index) Calculate Person BMIVendor Performance Index Calculate the Vendor Performance Index The underlined words (Calculate, Estimate, Determine, Assess, Validate) are “Decision Words” © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 27
  28. 28. Determine Policy Renewal Method Decision Model Notation© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 28
  29. 29. Determine Policy Renewal Method Decision Model Notation Policy Renewal Method Policy Pricing Within Bounds Policy Underwriting Risk Manual Underwriting Indicator© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 29
  30. 30. Determine Policy Renewal Method Decision Model Notation Policy Renewal Method Policy Pricing Within Bounds Policy Underwriting Risk Manual Underwriting IndicatorPolicy Pricing Within Bounds Policy Discount Policy Tier © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 30
  31. 31. Determine Policy Renewal Method Decision Model Notation Policy Renewal Method Policy Pricing Within Bounds Policy Underwriting Risk Manual Underwriting Indicator Conditions Conclusion Policy Underwriting Policy Pricing Within Manual Underwriting Pattern Risk Bounds Indicator Policy Renewal Method Policy Pricing Within Bounds 1 Is Nonstandard Is Manual Renewal Process Policy Discount Policy Tier 2 Is No Is Manual Renewal Process 3 Is On Is Manual Renewal Process 4 Is Standard Is Yes is Off Is Automatic Renewal Process Conditions Conclusion Policy Pricing WithinPattern Policy Tier Policy Discount Bounds 1 ≤ 1 Is No 2 ≤ 1.5 > 10% Is No 2 ≤ 2 > 20% Is No 2 ≤ 2.6 > 22% Is No 2 > 1 ≤ 0% Is Yes 2 > 1.5 ≤ 20% Is Yes 2 > 2 ≤ 22 Is Yes 1 > 2.6 Is Yes © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 31
  32. 32. Determine Policy Renewal Method When is it Finished? How Big Are They? Policy Renewal Method Policy Pricing Within Bounds Policy Underwriting Risk Manual Underwriting IndicatorPolicy Pricing Within Bounds Policy Underwriting Risk Policy Discount Insured Major Ownership Change Policy Tier Insured Major Location Change Policy Annual Premium Policy Discontinued Agent Policy Discount Insured Major Ownership Change Insured Major Location Change Policy Grade Insured Minority Stockholder Insured Location Zip-5 Package Grade Insured Majority Stockholder Insured Location Occupied Square Footage Package Discount Insured Board Change Insured Location Construction Location State Category Insured CEO Change © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 32
  33. 33. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 33
  34. 34. Option 1 The Decision Model Difference in Process ModelsOption 2Option 3: Person Conditions Conclusion Credit Rating Rule Persons Employment Persons Credit Pattern Persons Debt History Rating 1 is Low is Good = "A" Person Person 1 is Low is Bad = ? Debt Employment History 1 is High is Good = ? 1 is High is Bad = ? Decision Model Diagram Decision Rule Family Table Process Model
  35. 35. Simplify the Models, Improve the Solution, Now You Know How Before After© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 35
  36. 36. © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 36
  37. 37. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 37
  38. 38. FirstSTEP• A Framework• A Methodology – Step 1: Validate Scope. – Step 2: Outline Models – Step 3: Visualize the target scope. – Step 4: Iterate & Complete the Models. – Step 5: Repackage and Present a Holistic Requirements Deliverable.© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 38
  39. 39. FirstSTEP Scope• Use the framework* to create scope: List of List of List of List of List of List of Things Processes Locations Organizatio Events Business Important that the in which ns /Cycles Goals/Strat to the Business the important Significant egies Business Performs Business to the to the Decisions Operates Business Business SWOT Analysis*The Zachman Framework is a copyright of John Zachman and Zachman International © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 39
  40. 40. Selection of Models Conceptual Business Network Workflow Master Business Data Model Process Diagrams Model Schedule Motivation Fact Type Model Logistic Governance Model Glossary Business System Model Event Decision Use Cases Sequence Model Context State Diagram Diagram Diagram Visualization*The Zachman Framework is a copyright of John Zachman and Zachman International© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 40
  41. 41. Application Visualization • Business analysts, product managers & UE professionals assemble visualizations of possible solutions • Business and IT stakeholders “test drive” & provide feedback in rapid, interactive explorations • Discussions are more focused & engaging • Visualization dramatically improves communication between business & IT© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 41
  42. 42. Organization Model Business Enterprise Motivation Business Business Unit Unit Model Function Function Function Vocabulary Models: Glossary/Semantic Model Decision Logical Data Model Object ModelUse Cases Decision Model: business rules and business logicProcess Model Business Requirements & Test Cases SOA Components © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 42
  43. 43. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 43
  44. 44. What is Sapiens DECISION?Business Decision Management System:• Sapiens DECISION is an enterprise level Business Decision Management System that implements The Decision Model• Sapiens DECISION enables – Sharing of business logic throughout the enterprise and beyond – Complete separation of business logic – Business user empowerment – Traceability from the business objectives and motivations through to the implementation – Comprehensive glossary support – Extensive testing capabilities – Full life cycle support• Sapiens DECISION deploys The Decision Model to a BRMS (rules engine) for production execution and may include an integrated rules engine © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 44 44
  45. 45. © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 45
  46. 46. Sapiens DECISION Functionality Testing & Rule Family Automated Test Table Case Development Generation Graphical Reporting & Modeling Analytics Connectivity Robust Traceability, Audit & Impact Governance & Glossary Analysis Versioning Function Enforcement of Decision Model Enterprise Principles Support© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 46 46
  47. 47. Graphical Modeling using the Decision Model NotationSapiens DECISION supports user-friendly creation andmaintenance of graphical decision modelsEnables business users to model decisions before having thedetailed rule logic © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 47 47
  48. 48. Rule Family TablesRule Family Tables are created from the graphical model, allowingusers to populate, manipulate and manage rule families © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 48 48
  49. 49. Robust Glossary FunctionGlossary of fact types and domains is automatically created fromThe Decision Model diagram for easy business user reference © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 49 49
  50. 50. Advanced Decision ModelMethodologies in Sapiens DECISION• Sapiens DECISION incorporates the very latest Decision Model methodologies on an exclusive basis: – ViewGroups – enable the enterprise to be fully modeled and support customized views in unique business contexts – Glossary hierarchies – provide enterprise capability with federated glossaries and both centralized and federated glossary management – Decision Views – customized logic within decision models for specific purposes (e.g., customers, geography, regulatory regimes) while still sharing common logic – Rule Family Views – reusability of customized logic across decision views – List Fact Types – expand the flexibility of The Decision Model – Messaging – add unlimited messaging capability in the deployment environment © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 50 50
  51. 51. Sapiens DECISION Roadmap 1• Release 1 – Immediate Availability• Ready to build enterprise scale decision base: – Internet-based Application – Enterprise capable – Source Documents – Decision View Support – Rule Family Build – Model checking – enforcing The Decision Model principles – Graphics support – Impact Analysis – Versioning – Audit – Governance – Security – Interface to deployment environments – Built in rules engine © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 51
  52. 52. Sapiens DECISION Roadmap 2• Release 2 – Available Q3 - Q4 2011• BDMM Level 4 Capability – Enhanced Decision View support – Full Rule Family View support – Enhanced Rich Internet Interface – Process enabled governance – Business Change Document management – Whiteboard analysis – Cell Wizards – Rich Glossary Support – Communities – ViewGroups for business context – Enhanced impact analysis – Enhanced reporting – Advanced Query for complex searches and impact analysis – Enhanced Model checking – Automated deployment packaging – Enhanced Interfaces to deployment environments – Business Decision Messages – Decision Catalogue Printing © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 52
  53. 53. Sapiens DECISION Roadmap 3• Release 3 – Available Q2 2012• Beyond BDMM Level 4 – Inline testing and test script development – Enhanced Business Change Document management – Extended business context capability for mass customization – Business Communities – User defined objects and forms, with graphics support – Automated document parsing and analysis – Smart Business Decision messages – Enhanced Decision Catalog printing – User defined Interfaces to deployment environments – Automated generation of Decision Services – Integration with BPMS tools © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 53
  54. 54. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 54
  55. 55. Real World Testimonial• “The Decision Model’s principles and normalization rules give us confidence we can get repeatability and consistency amongst business analysts when performing rules analysis.• In addition, the structural integrity of the Decision Model makes the technology implementation straightforward• IT and Operations have agreed to use our decision model as business requirements for business logic changes – this will greatly speed up the change process• In addition, the use of a COTS BRMS solution will allow us to take advantage of additional capabilities over time, such as enhanced testing and decision- warehousing capabilities.“• From policy to automation reduced by 30% in time, while delivering 66% more changes Mark Pettit, Freddie Mac, Operations Management Group, MIT IQIS, July 15, 2010 © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 55
  56. 56. Project #1: 3 MonthsBusiness Motivations Challenges, Deliverables – Increase customer satisfaction – Policies described error-free conditions, had to discover error – Improve Data Quality conditions – Reduce errors in critical – “overloaded” fact types transaction – Policies had logic errors – First Decision Model = 38 hours – 98% error-free by Q4 2011 – Customized view = 5 hours – 100% error-free by 2012 – “High” complexity – Reduce risk of transactions • 12 Rule Families in first Decision View • 7 Rule Families in customized view (delinquent contracts) • 24 fact types in all – No way to measure before • Some fact type values not available because 98% rules were – 5 other decision models, one with 70 scattered across multiple Rule Families systems – Largest Decision View = 300 Rule Families, 44 pages © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 56
  57. 57. Project #2: Process Improvement• Entire Project Completed in 3 Months• Updated Process Models• Decision Models: – Number of Decision View: 40 (approx.) – Number of Rule Family Views: 700 (approx.)• Glossary: – Total Number of Fact Types: 1,400 (approx.) – Number of Persistent Fact Types: 750 (approx.) – Number of Interim Fact Types: 650 (approx.)• Built and tested custom rules engine and messaging system © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 57
  58. 58. Project #3: Process Improvements• Before The Decision Model: – 200 transactions with errors  90 hrs – 200 transactions without errors 30 hrs• After The Decision Model: – 200 transactions with errors  3 mins 30 secs (with error messages and step by step instructions on how to correct each error) – 200 transactions without errors  3 mins 30 secs © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 58
  59. 59. Project #3: How?• There is no longer any room for misinterpretation of the Business Logic requirements• The business logic is easy to understand and available for everyone to see• The business logic can be updated without changing the process and visa versa• Business logic can be changed in the system within two business days © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 59
  60. 60. Project #3: Statistics• 5 Decision Views – 95 Rule Family Views• 10 Weeks – Decision Views created in approximately 5 weeks • Included two iterations of validation • Iterative Improvements were added through the project based on analysis – Decision Views were implemented in Code and tested in approximately 5 weeks • New plans will reduce this time • Business rules engine will be ready to run as a service early next year• 30-60 Hours of Testing – 2,200 test cases created in approximately 2 weeks – Most test cases were created in automated fashion – A new release takes 30 minutes to 2 hours to test © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 60
  61. 61. Agenda• Current State: Business Rules• The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 61
  62. 62. The Ways we can Help Skills and Knowledge Transfer Training Certification Mentoring Pilot KPISTEP Target Project STEPment Increment 1 Increment 2 Increment n (3 weeks) (3 Months) (3 Months) (3 Months) On- Off-Site On- Off-Site 1 week 5 weeks 1 week 5 weeks Fixed price Fixed price Fixed price Fixed price Time boxed Time boxed Time boxed Time boxed Environment for Managing Decisions © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 62
  63. 63. Value Proposition• Unambiguous, traceable and complete Requirements• Most rapid approach to capturing business logic• Straight through processing from requirements to automation• Significant simplification of business process• Innovative improvement in and governance of business decisions, data quality and data transformation services• Continuous change in an agile world © 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 63
  64. 64. How to Learn MoreVisit www.kpiusa.com Become a member of the open Linkedin• FREE PRIMER The Decision Model• Updated Events Group• Download White Papers• NewsRead our articles Join our presentationsand buy our booksContact uswww.enterprise-design.eu Try It Yourself:www.rulemanagement.com Ask for “free” Visio and Excel Templateswww.TheDecisionModel.com lgoldberg@kpiusa.com Discuss with us how to apply The Decision Model for your Requirement or Business Rules project.© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 64
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