Building flexible, easy to change and rock-[   solid applications with BRFplus decision    services    Carsten Ziegler, Ja...
[ Learning Points  Learn how the empowerment of business experts is built   into SAP applications  See how to achieve co...
[ Presenters  Carsten Ziegler – SAP         SAP-wide Business Rules Architect         Chief Product Owner BRFplus  Jam...
[ Agenda     Presenters     Challenges in Enterprise Systems     The Decision Service Management Approach     Decision...
[“      Once you pour electronic concrete,       it’s hard to get out.       ”       Shell            “ There is no such t...
[ Enterprise Applications                                           Report                                       but don’t...
[ To improve they must make more decisions                              Manual                                       Not M...
[ Decisions                                   Making choices                                   or selections and          ...
[ Candidate decisions     Determine if a customer is eligible for a benefit     Validate the completeness of an invoice ...
[ Problem 1: Waterfall does not work for decisions  Standard methodology for implementation and change projects  Assumes...
[ Decisions are high change components Regulations change               Change to keep eligibility decisions compliant P...
[ Automation vs. Agility or Business vs. IT   Automation: Full                        Semi                           No   ...
[ Problem 2: Decisions, and rules, are not processes                            Age<21                                    ...
[ Problem 2: Decisions, and rules, are not processes                         Age<21                                       ...
[ Problem 2: Decisions, and rules, are not processes                         Age<21                                       ...
[ Problem 2: Decisions, and rules, are not processes                         Age<21                              No Class ...
[ Embedding decisions cause process complexity                         Age<21                              No Class I or I...
[ Separate decision, simpler process                                              Low risk                                ...
[ Process rules are not decision rules Flow control,   routing IT ownership                                Business Govern...
[ Separating processes and decisions adds agilityReal Experience. Real Advantage.
[ Problem 3: Change and Transport Management (CTS) Development                               Quality Assurance            ...
[ Missed Opportunities                                                          Missed Opportunities                      ...
[ Agenda     Presenters     Challenges in Enterprise Systems     The Decision Service Management Approach     Decision...
[ Suitable DecisionsBanking: Relationship based Pricing,     Education: Fee Calculations,              Healthcare: Claims,...
[ These decisions involve many kinds of rules…                                   DecisionReal Experience. Real Advantage. ...
[ …none of which are manageablepublic class Application {private Customer customers[];private Customer goldCustomers[];......
[ Alternatives to business rules Explicitly coded within application or database Pros                              Cons • ...
[ A BRMS like BRFplus is compelling because     Design Transparency     Execution Transparency     Agile Compliance   ...
[ From Missed to Realized Opportunities                                                               Realized Opportuniti...
[ Agenda     Presenters     Challenges in Enterprise Systems     The Decision Service Management Approach     Decision...
[ Decision Service Approach: Customer Landscape                    Managed System                                         ...
[ Decision Service Approach: Modeling        Managed System                                   Connector        1          ...
[ Decision Service Approach: Deployment        Managed System                                   Connector        1        ...
[ Decision Service Approach: Use        Managed                                   Connector        System 1               ...
[ Decision Service Approach: Continuous Improvement        Managed System                                   Connector     ...
[ Decision Service Approach                                                    BW                                         ...
[ Agenda     Presenters     Challenges in Enterprise Systems     The Decision Service Management Approach     Decision...
[ The ROI of Decisions and Business Rules 1. Increased Business Value 2. Increased Development Efficiency 3. Increased Mai...
[ Business Value  Reduced losses from more accurate fraud decisions  Reduced fines from demonstrable compliance with   r...
[ Development Efficiency  Increased specification productivity as business analysts   are involved directly  Improved de...
[ Maintenance Efficiency  Reduced effort to find where to make a required change  Reduced effort to understand the exist...
[ Agenda     Presenters     Challenges in Enterprise Systems     The Decision Service Management Approach     Decision...
[ Best Practice: Begin with the Decision in mind                                   Find the decisions that                ...
[ Best Practice: Business Ownership                        Decisions have owners.                        So have decision ...
[ Best Practice: 3 Steps to Decision Management                                   Discover                                ...
[ Key Learnings  Focusing on Decisions improves Enterprise Applications  Decisions are different and not the same as Pro...
[                           Thank you for participating.                                          Please remember to comp...
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Building Flexible, Easy to Change, and Rock-Solid Applications with BRFplus Decision Services

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  • Big systems implementations tend to be “electronic concrete”. In particular you can’t easily change the logic in those systems. You can add process management across and within them, but many business processes are actually pretty stable – it is the decisions within them that are constantly changing. For instance, your order to cash process does not change but your pricing decision does. Identifying the decisions in your applications and processes explicitly and then automating them using business rules allows you to develop a system that is both robust and flexible.IT systems are notorious for lasting longer than expected. They rapidly evolve from “temporary solutions” to permanent ones. Those who think business rules are overkill often tell me that “this code isn’t going to change” and “it will always be easy for someone to change this code” despite decades of evidence that this is not the case. Instead of assuming it won’t change or that making changes will be easy, companies would do better assuming that they will need to change the logic in their systems more often than they think and that the people making the changes won’t be those who wrote it originally. The ease with which business rules can be changed and re-deployed and the greater clarity of business rules syntax make this work. Assuming that your systems will be permanent, and making sure that critical flex points in the system are easy to change (because they are externalized as rules-based decision services) will ensure that your have permanence with flexibility.
  • Decisions involve choices, selecting from alternatives and are critical to how we run our organizationsBetter decisions means making more effective, more profitable choices from those available – choices that improve what will happen in the future
  • much of a typical mainframe system is static, works fine and needs no maintenance. Often only a small portion of the system is responsible for much of the maintenance work. My suggestion would be to find the COBOL that represents business decisions such as a pricing engine (what price is this product for this customer), eligibility logic (is this customer eligible for this offer or service), approval rules (can this claim be auto-approved) and replace those parts of the application with Decision Services.
  • Lack of centralization (difficult reuse) + customers avoid updates (because of applicability for complete server with application stack -&gt; retests) -&gt; stuck in older technology
  • So making decisions correctly will be hard unless we can pull all these rules together.Given this is how rules often look to start with, this is clearly going to be hard.But rules also change…Because your business policies doBecause your competitors doBecause the law doesBecause stock levels doBecause your services and products doBecause your customers doBecause your customers’ needs doSo we need something that will let us collect, manage and update the business rules that drive our decisions
  • Increased business value is the largest and most compelling business benefit that can be realized from the use of a business rules management system such as BRFplus. These benefits are driven by improved effectiveness and efficiency in decision-making and by improved responsiveness as BRFplus frees business users from the tyranny of the IT work queue for changes. One company developed a BRFplus based system to determine appropriate carriers for 25,000 shipments per hour, replacing the emailing and management of large numbers of Excel spreadsheets.
  • Find the decisions that matter to your business and understand themDon’t start with your data, start with the decisions you need to improveStart with the definition of decision services - purpose and service interface (facts required)-&gt; needssupportfrom IT (wheretoputtheservicecall)
  • Discover and Model DecisionsDesign and Implement Decision ServicesMonitor and Improve Decisions
  • Building Flexible, Easy to Change, and Rock-Solid Applications with BRFplus Decision Services

    1. 1. Building flexible, easy to change and rock-[ solid applications with BRFplus decision services Carsten Ziegler, James Taylor
    2. 2. [ Learning Points  Learn how the empowerment of business experts is built into SAP applications  See how to achieve continuous decision and process improvement  Get step-by-step instructions on how to apply this approach in your systemsReal Experience. Real Advantage. 2
    3. 3. [ Presenters  Carsten Ziegler – SAP  SAP-wide Business Rules Architect  Chief Product Owner BRFplus  James Taylor – Decision Management Solutions  CEO, Decision Management Solutions  Leading expert in Decision Management and the application of Business RulesReal Experience. Real Advantage. 3
    4. 4. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and LearningsReal Experience. Real Advantage. 4
    5. 5. [“ Once you pour electronic concrete, it’s hard to get out. ” Shell “ There is no such thing as a temporary solution. Don’t put in things you don’t want to ” keep.Real Experience. Real Advantage.
    6. 6. [ Enterprise Applications Report but don’t learn Wait rather than act Local exceptions Global standards Built to last, Escalate rather not to change than empowerReal Experience. Real Advantage. 6
    7. 7. [ To improve they must make more decisions Manual Not Made Before Managed After Not Made Manual Managed NewReproduced from Smart (Enough) Systems, Prentice Hall 2007 Larger boxes represent more decisions, by volume Real Experience. Real Advantage. 7
    8. 8. [ Decisions Making choices or selections and taking actionReal Experience. Real Advantage. 8
    9. 9. [ Candidate decisions  Determine if a customer is eligible for a benefit  Validate the completeness of an invoice  Calculate the discount for an order  Assess the risk of a transaction  Select the terms for a loan  Choose which claims to Fast Track  These are decision words  The system must answer a question each timeReal Experience. Real Advantage. 9
    10. 10. [ Problem 1: Waterfall does not work for decisions  Standard methodology for implementation and change projects  Assumes a phased/waterfall approach:  Blueprint > Realization > Testing > Productive use Problems  Assumes you know everything when you start, though you don’t  No structure for ongoing optimization after go-live  What you learn in realization cannot be fed back into your blueprint (particularly bad for decision-making!)Real Experience. Real Advantage. 10
    11. 11. [ Decisions are high change components Regulations change Change to keep eligibility decisions compliant Policies change Change validation to track new data requirements Competitors change Change the discount to remain competitive Markets change Change the assessment to manage risk Consumer behavior changes Change to keep selecting the right deal terms Fraudsters adapt Change the routing to focus on new fraudReal Experience. Real Advantage. 11
    12. 12. [ Automation vs. Agility or Business vs. IT Automation: Full Semi No Business Expert Business Business Expert Analyst Hard-coded decisions Decisions in documents Decisions as tacit knowledge Agility: Low Medium High Questions  What are my costs for changes?  How to gain transparency for business users?  How to enforce policies in business operations?  How do operations scale?  How to ensure process quality?  How to achieve legal compliance?Real Experience. Real Advantage. 12
    13. 13. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant 21<=Age<50 Process medium-risk applicant Age>50 Decline high- risk applicantReal Experience. Real Advantage. 13
    14. 14. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant Previous Heart Attack, Existing Cancer Decline high- risk applicant 21<=Age<50 Process medium-risk Good Medical Record applicant Age>50Real Experience. Real Advantage. 14
    15. 15. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant Previous Heart Attack, Existing Cancer Decline high- risk applicant 21<=Age<50 Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing CustomerReal Experience. Real Advantage. 15
    16. 16. [ Problem 2: Decisions, and rules, are not processes Age<21 No Class I or II sports Accept low-risk applicant Previous Heart Attack, Class II sport Existing Cancer Decline high- risk applicant 21<=Age<50 Class I sport Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing CustomerReal Experience. Real Advantage. 16
    17. 17. [ Embedding decisions cause process complexity Age<21 No Class I or II sports Accept low-risk applicant Class II sport Previous Heart Attack, Decline high- Existing Cancer risk applicant 21<=Age<50 Class I sport Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing CustomerReal Experience. Real Advantage. 17
    18. 18. [ Separate decision, simpler process Low risk Process low- risk applicant Medium risk Process Determine medium-risk applicant type applicant High risk Process high- risk applicant Class I Class II New # Age sports sports Heart Attack? Cancer? Customer? Claims Action <21 N N Low Risk <21 Y High Risk <21 Y N Medium Risk 21 - 50 Y High Risk 21 - 50 Y High Risk 21 - 50 N N Medium Risk >50 Y High Risk >50 N <2 Medium Risk >50 N >1 High RiskReal Experience. Real Advantage. 18
    19. 19. [ Process rules are not decision rules Flow control, routing IT ownership Business Governed as part Process of the process Rules Lifecycle dependent on Business process lifecycle Process Decision Point Tasks Business decision making Business-side ownership Decision Rules Governed by the businessGladys Lam, BRSolutions AfterReal Experience. Real Advantage. Independent lifecycle 19
    20. 20. [ Separating processes and decisions adds agilityReal Experience. Real Advantage.
    21. 21. [ Problem 3: Change and Transport Management (CTS) Development Quality Assurance Productive System (DEV) System (QAS) System (PROD)  CTS is a set of tools and a methodology implement changes in DEV, transport changes to QAS, and upon success transport to PROD  CTS supports transport of customizing and repository objects code, database/dictionary definitions  CTS locks customizing and repository from changes in PRODProblem - one size does not fit all  Downtime required  CTS and working in the development system requires technical support  Master data needs to be replicated into DEV  Mandatory artificial classification of all artifacts into Customizing , repository and application data (master data and transactional data) with strict change management; no changes of customizing in PRODReal Experience. Real Advantage. 21
    22. 22. [ Missed Opportunities Missed Opportunities Open Change RequestsGo-Live Initial Scope Go-Live Delta Scope Traditional Approach  Waterfall process with release cycles: spec, design, code  Same change management for all objects (DB, UI, decision logic)  High costs also for small changes Questions  How long will it take to get a requirement implemented when the cut-off date passed by?  Will there be another project for my requirements in the future?  What will be the costs of the project and who will have to pay for it?  What will happen if the implemented decisions are outdated?Real Experience. Real Advantage. 22
    23. 23. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and LearningsReal Experience. Real Advantage. 23
    24. 24. [ Suitable DecisionsBanking: Relationship based Pricing, Education: Fee Calculations, Healthcare: Claims, Patient Scorecards, Credit Decisioning Course Selections Monitoring, Fraud Detection Logistics and Shipping: Public Sector: Tax Calculations, Insurance: New Products,Parts Management, Duties Calculations, Customs Duties, Land Regulations, Claims Settlement, Agent Commissions Pricing Calculations License Fee Calculations Real Experience. Real Advantage. 24
    25. 25. [ These decisions involve many kinds of rules… DecisionReal Experience. Real Advantage. 25
    26. 26. [ …none of which are manageablepublic class Application {private Customer customers[];private Customer goldCustomers[];...public void checkOrder() { for (int i = 0; i < numCustomers; i++) { Customer aCustomer = customers[i]; if (aCustomer.checkIfGold()) { numGoldCustomers++; goldCustomers[numGoldCustomers] = aCustomer; if (aCustomer.getCurrentOrder().getAmount() > 100000) aCustomer.setSpecialDiscount (0.05); } }} Real Experience. Real Advantage. 26
    27. 27. [ Alternatives to business rules Explicitly coded within application or database Pros Cons • Familiar to IT • IT department must be involved in any change • Simplifies development and • Little re-use of logic across testing processes multiple decisions Parameterized in tables or configuration files Pros Cons • Decreases cost of change • Use of parameters can decrease readability • No business/IT collaboration • Assumes kinds of changes can be exhaustively specifiedReal Experience. Real Advantage. 27
    28. 28. [ A BRMS like BRFplus is compelling because  Design Transparency  Execution Transparency  Agile Compliance  Collaboration  Platform for analytics FormulaReal Experience. Real Advantage. 28
    29. 29. [ From Missed to Realized Opportunities Realized Opportunities Changes implemented with decision servicesGo-Live Initial Scope Go-Live Delta Scope Decision Service Management Approach  Clear separation of decisions from processes (agile but robust systems)  Domain experts own and change implemented decisions  Permanent and incremental decision optimizationsReal Experience. Real Advantage. 29
    30. 30. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and LearningsReal Experience. Real Advantage. 30
    31. 31. [ Decision Service Approach: Customer Landscape Managed System Connector 1 e.g. Business Suite Decision Service Manager Managed System Connector 2 e.g. CRM Decision Service Manager  Extremely low hardware requirements  Requires NetWeaver 7.0 Enhancement Package 3 or NetWeaver 7.3 Enhancement Package 1 Managed Systems  Existing servers with customer business applications  No Upgrade required, works with NetWeaver 6.40 or higher (>6 years old)  Any number of managed systems can be connected with the Decision Service Manager (RFC)Real Experience. Real Advantage.
    32. 32. [ Decision Service Approach: Modeling Managed System Connector 1 Decision Service Manager Managed System Connector 2 Decision Service Modeling with BRFplus  Central creation, test and management of all rules and decisioning logic  Service implemented in rulesets using decision tables, trees, text rules, formulas  Transparency - no code but graphical modeling  Access to all relevant data in the managed systems (e.g. master data used in value help of decision table rules)Real Experience. Real Advantage. 32
    33. 33. [ Decision Service Approach: Deployment Managed System Connector 1 Decision Service Manager Managed System Connector 2 Decision Service Deployment  Deployment describes the transfer of the decision service into one or many managed systems  Hot deployment - immediate use with no downtime for deployment  Activity periods - deploy today with as-of usage timepoint  Overview about all decision services in all systems, deployment statisticsReal Experience. Real Advantage. 33
    34. 34. [ Decision Service Approach: Use Managed Connector System 1 Decision Service Manager Managed System Connector 2 Decision Service Use  Local execution of generated code, mass-enabled  Best performance  No dependency on Decision Service Manager  Execution traces (inputs, result, decision path for decisioning analytics or legal compliance)Real Experience. Real Advantage. 34
    35. 35. [ Decision Service Approach: Continuous Improvement Managed System Connector 1 Decision Service Manager Managed System Connector 2 Optimize Decision Service Optimization  Super-fast change cycles in the hand of the domain experts: Analyze, Optimize, Implement  Automated business decisions with full transparency for better decision quality  Immediate ROIReal Experience. Real Advantage. 35
    36. 36. [ Decision Service Approach BW Connector ERP Connector Decision Service Non- Manager Web Service SAP CRM Connector Custom Connector SRM App Connector Decision Service enabled customer system landscape  Deployment of one service into multiple systems  Reuse of decision services and single rules, decision tables, etc.  Non-SAP systems connected by web serviceReal Experience. Real Advantage. 36
    37. 37. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and LearningsReal Experience. Real Advantage. 37
    38. 38. [ The ROI of Decisions and Business Rules 1. Increased Business Value 2. Increased Development Efficiency 3. Increased Maintenance Efficiency And in that order!Real Experience. Real Advantage. 38
    39. 39. [ Business Value  Reduced losses from more accurate fraud decisions  Reduced fines from demonstrable compliance with regulations  Quicker time to market with new products or services  More competitive pricing scheme  Productivity of business staff increases  Redeployment of assets when staff no longer need to do repetitive decision-making  Reduced time to value for new systems functionality with benefits of a system being realized sooner  Reduced costs or losses while waiting for a change to a system such as rework caused by out of date system behavior.Real Experience. Real Advantage. 39
    40. 40. [ Development Efficiency  Increased specification productivity as business analysts are involved directly  Improved developer productivity—adding 1 business analyst can eliminate the need for multiple programmers  Reduced re-work as there is an improved quality of business rules  Reuse of previously developed logic because it is easier to see opportunities for reuse and to take advantage of them when logic is in rules in a repositoryReal Experience. Real Advantage. 40
    41. 41. [ Maintenance Efficiency  Reduced effort to find where to make a required change  Reduced effort to understand the existing code so the right change can be made  Reduced effort to make the change  Reduced effort to test the change to confirm it works  Reduced effort to deploy the changeReal Experience. Real Advantage. 41
    42. 42. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and LearningsReal Experience. Real Advantage. 42
    43. 43. [ Best Practice: Begin with the Decision in mind Find the decisions that matter to your business and focus on them as well as your processes.Real Experience. Real Advantage. 43
    44. 44. [ Best Practice: Business Ownership Decisions have owners. So have decision services. Decision services are the responsibility of business-side experts.Real Experience. Real Advantage. 44
    45. 45. [ Best Practice: 3 Steps to Decision Management Discover Build ImproveReal Experience. Real Advantage. 45
    46. 46. [ Key Learnings  Focusing on Decisions improves Enterprise Applications  Decisions are different and not the same as Processes or Rules  Managing Decision Services creates agility and business value  BRFplus delivers Decision Services optimized for SAP/ABAP applications  Use BRFplus Decision Services whenever one of the following is true:  Decisions are value drivers  Decisions are likely to change over time  Configuration with customizing tables will become too complexReal Experience. Real Advantage. 46
    47. 47. [  Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc ] [ SESSION CODE: 2414Real Experience. Real Advantage. 47

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