Rule Standards                   ILOGDaniel Selman, Product Manager
Agenda • The problem space • The compliance use case • Conclusions                 Copyright © 2005 by   2
Traditional Software and Change               … are incompatible                             Internal process             ...
Dynamic Markets • Mergers and Aquisitions • Industry regulation    • BASEL, HIPAA, SOX etc.    • From governments    • Fro...
Complex Deployments                         Indirect Channels                          Front-Office                       ...
Business Benefits of Business Rules           Reduced IT labor costs         Impact                      Business Value Bu...
Compliance                                                                         Automated Controls       Internal Polic...
Automated Controls           Usage Scenario       Enrich or clean Data                                                    ...
Compliance Rule Templates                                              Case handling rule sample   Policy rule sample     ...
Compliance                Architecture   Rules         Compliance           Rules       RulesManagement         Rules     ...
Business Rules Standardisation               Status and ILOG involvement •   Modelling BR: standardisation activities at O...
Conclusions • Strong standards will…   • Drive industry adoption – particularly in     govenment   • Simplify deployments ...
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European Business Rules Conference 2005 : Rule Standards

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Overview of the need for rule standards and the efforts that are underway.

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  • Hello. My name is [YOUR NAME]. I am an Account Manager at ILOG. Over the next 10 minutes I am going to introduce you to JRules, ILOG’s flagship business rule management system, and why it matters to you. To set the stage, let’s talk for a minute about change. Change is inevitable and everywhere. It comes from inside and outside the company. Inside – internal policy, organization changes Outside –offerings of the competition, customer demands, regulatory bodies The pace of change is accelerating. How well you respond to change drives: - competitiveness - profitability - even survival Common problems in response to change are: Agility of response Takes too long to respond to changes in business environment Response to change is not consistent across the enterprise Quality of response Communication between business and IT divisions is not accurate Effectiveness of response to change is hard to determine Control over response Hard to balance security needs with collaboration needs
  • Compliance is about external or internal regulations…
  • What do we mean by managing business rules across the enterprise? We mean JRules can reach across all touchpoints and all applications. Wherever a company touches its customers, partners and suppliers, business rules will be concentrated. This includes call centers, web self-service portals, direct and indirect sales channels. These touchpoints are driven in part by the people that populate them, and in part by the applications that automate them. Inside and alongside applications are also where business rules are concentrated, be those applications front-office, mid-office or back-office. JRules can help you manage all these business rules.
  • While the ROI focus has been on reducing IT costs, Gartner also says that the real benefits of managing business rules come from business-related value. From the same study we just talked about, Gartner identified five areas where business rule management has a positive impact. These are: business agility, decision making, revenue opportunities, customer satisfaction, and regulatory compliance. BRM increases business agility by speeding time to market and reframing mindsets on the business side of the company. By decreasing the time and effort to make business rule changes, BRM facilitates the rapid propagation of these changes from desktop to deployment. Once business analysts and policy managers realize that the bottleneck for getting a rule changed is no longer IT, they will rise to new levels of efficiency. BRM improves the quality of decision making by providing a mechanism for exploring “what-if” scenarios around business rule changes. Imagine being able to simulate the effect of a pricing policy change on revenues. Or being able to determine the effect on approval ratios for mortgage applications of new eligibility rules prior to deployment. These are all possible applying BRM. BRM increases revenue opportunities by supporting more - and more complex - pricing and service strategies. It improves customer satisfaction by enabling higher levels of customization for product and service offerings. And BRM enhances the quality of regulatory compliance by supporting greater visibility to regulatory bodies and enabling easier change processes. BRM makes it possible to trace the implementation of regulations as business rules across business applications.
  • Here is a list of data compliance applications
  • A typical usage scenario of a data compliance solution at the runtime level Input data are processed by the rules engine The data might be modifed or cleaned optimatically. A compliance Event is generated to report a fault or a breach in regards to the deployed rules. Similar Compliance events are aggregated into cases that are processed to be handled manually or stored as report.
  • Here is an overview of the technical architecture and the flow of information.
  • European Business Rules Conference 2005 : Rule Standards

    1. 1. Rule Standards ILOGDaniel Selman, Product Manager
    2. 2. Agenda • The problem space • The compliance use case • Conclusions Copyright © 2005 by 2
    3. 3. Traditional Software and Change … are incompatible Internal process Competition Regulation Market Crisis Business Software Change is guaranteed Copyright © 2005 by 3
    4. 4. Dynamic Markets • Mergers and Aquisitions • Industry regulation • BASEL, HIPAA, SOX etc. • From governments • From trade regulatory bodies • Trading partner exchange • Telco local carriers • Regional offices • Affilates • Franchises • Parts supply, complex orders • Personal privacy rules? Copyright © 2005 by 4
    5. 5. Complex Deployments Indirect Channels Front-Office Across Applications Across Touchpoints Direct Sales Middle-Office Self Service Back-Office Direct Mail Call Center Accounting E-mail @ JRules Mobile Other Applications Copyright © 2005 by 5
    6. 6. Business Benefits of Business Rules Reduced IT labor costs Impact Business Value Business Agility • Faster reactive and proactive time to market • Business users empowered to create & manage rules previously hard-coded Decision Making • Test rule-based scenarios at lower cost Revenue Opportunities • Greater product pricing and service flexibility allowing incremental revenue streams Customer Satisfaction • More customizable service offerings Regulatory Compliance • Greater visibility to regulatory bodies and easier change processes Source: Gartner Research Copyright © 2005 by 6
    7. 7. Compliance Automated Controls Internal Policies Automated Controls ILOG Compliance  Fraud Detection Solution Accelerator Reference code Rules Templates  Financial controls Object Model Add-ons Project Mgt Resources  Data cleansing Professional Services Reference Technical Guidance Architecture  Forms/Transactions Validation Project Plan Template Application Integrations ooT gn py o o P d pa R CRM, ERP EAI, BPM i t t r i  Data Validation & routing DB and OS/ Abstraction RDBMS JDO / JCA Application Specific Codel ILOG Products  Eligibility Regulations (HIPAA, SOX, Patriot Act, IAS, etc.) Copyright © 2005 by 7
    8. 8. Automated Controls Usage Scenario Enrich or clean Data Manual Processing Automated Control Data Validation Events and Cases Exceptions Report Copyright © 2005 by 8
    9. 9. Compliance Rule Templates Case handling rule sample Policy rule sample Copyright © 2005 by 9
    10. 10. Compliance Architecture Rules Compliance Rules RulesManagement Rules Repository Reporting Console Edition XML Compliance Events Web Report Middleware Data source Compliance XML Rules Compliance XML Data Engine Case Web Forms Modified Middleware Data Data source Reference Input Data Output Copyright © 2005 by 10
    11. 11. Business Rules Standardisation Status and ILOG involvement • Modelling BR: standardisation activities at OMG • Production Rules Representation meta-model • Drafted by Fair Isaac (editor), IBM, ILOG, LibRT, Pega Systems (joined Nov. 05), RuleML • Business Rules Management meta-model • Decision to issue RFP pending • Business Semantics of Business Rules meta-model • ILOG monitors the activity; not actively involved in drafting the meta-model • Executing BR: standardisation activities within the JCP • JSR 94 (Java API for Rule Engines) released in August 04 • Integrated by SUN into the JDK; now in maintenance mode • Daniel Selman (ILOG) is the current specification lead • Sharing and exchanging BR: standardisation activities at WC3 • ILOG hosted and co-chaired W3C workshop on Rules Languages for Interoperability • 27-28 April 2005, Washington, DC • First step towards a Rules Representation activity in the W3C Copyright © 2005 by 11
    12. 12. Conclusions • Strong standards will… • Drive industry adoption – particularly in govenment • Simplify deployments • Promote vendor competition • Enable rule/policy exchange • Create a 3rd-party tools market • But… it is a difficult problem! • PRR is making good progress Copyright © 2005 by 12

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