Business rules in decision management systems

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This webinar focuses on business rules and on Business Rules Management Systems as a platform for Decision Management Systems. You will learn how a Business Rules Management System makes the agility …

This webinar focuses on business rules and on Business Rules Management Systems as a platform for Decision Management Systems. You will learn how a Business Rules Management System makes the agility and transparency you need possible and what the key components are for an effective Business Rules Management System. The power of business rules to support both policy and analytic rules and the role of decisions in effective business rules solutions will also be discussed.

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  • 1. The use of business rules in DecisionJames Taylor Management CEO Systems
  • 2. Real Decision Management Systems © Decision Management Solutions, 2011 1
  • 3. AGENDA 1 2 Introducing Decision Management Business Rules in Decision Management 3 Business Rules Management Systems Systems Systems 4 5 6 Policy and The Role of Questions and Analytic Rules Decisions in Wrap Up Business Rules Success
  • 4. Introducing DecisionManagement Systems
  • 5. A changing world Changing ScaleChanging Expectations Changing Interactions ©2012 Decision Management Solutions 4
  • 6. Needs Decision Management Systems Agile Analytic Adaptive ©2012 Decision Management Solutions 5
  • 7. 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 time ©2012 Decision Management Solutions 6
  • 8. Suitable decisions Repeatable Non trivial Measurable Candidate for business automation impact ©2012 Decision Management Solutions 7
  • 9. 3 Steps to Decision Management Discover Build Improve ©2012 Decision Management Solutions 8
  • 10. Business Rules inDecision Management Systems
  • 11. Business rules “ … statements of the actions you should take when certain business conditions are true. ” ©2012 Decision Management Solutions 10
  • 12. What can you do with business rules in DMS? Automate ClaimsPersonalize the experience Detect fraud Create loyalty Target Cross-Sells And more… ©2012 Decision Management Solutions 11
  • 13. Why Manage Business Rules Reduce Costs • Fewer resources, less time to change decisions • Lower fines, legal costs from bad decisions • Reduced IT costs to implement decisions Improve Decision Making • Clear policies and procedures • Consistently applied across channels, systems • Increased accuracy from business users control Business Agility • More rapid response to business threats • Fewer missed opportunities • Faster time to market ©2012 Decision Management Solutions 12
  • 14. Most business rules are unmanageablepublic 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); } }} ©2012 Decision Management Solutions 13
  • 15. Clarity and transparency are needed If customer is GoldCustomer and Home_Equity_Loan_Value is more than $100,000 then college_loan_discount = 0.5% If member has greater than 3 prescriptions and prescription’s renewal_date is less than 30 days in the future then set reminder=“email” If patient’s age is less than 18 and member’s coverage is “standard” and member’s number_of_claims does not exceed 4 then set patient’s coverage to “standard” ©2012 Decision Management Solutions 14
  • 16. Business RulesManagement Systems
  • 17. Neither code nor end user tools work Volume ©2012 Decision Management Solutions 16
  • 18. What Makes a BRMS Compelling Design Transparency Execution Transparency Agile Compliance Collaboration Platform for analytics ©2012 Decision Management Solutions 17
  • 19. Decision Logic Management Decision Making Logic Technical Rule Management Verification and Testing Validation Non-technical Rule Management Impact Analysis Rule Repository Deployment Decision Service Data Management Runtime Rule Package Data Store Generated Code Business Rules Engine Logging Operational Data Store ©2012 Decision Management Solutions 18
  • 20. Policy and analytic rules
  • 21. Decision logic has many sources Decision ©2012 Decision Management Solutions 20
  • 22. Three kinds of analytic rules Risk Fraud Opportunity © Decision Management Solutions, 2011 21
  • 23. The role of decisions ineffective business rules solutions
  • 24. Build decision-making components Operational Systems Decision Analytic Systems ©2012 Decision Management Solutions 23
  • 25. Process rules are not decision rulesFlow control, routingAnalyst/IT ownershipGoverned as part of the processLifecycle dependent on process Business lifecycle Process Rules Business Process Decision Point Business decision making Tasks Analyst/LOB Manager ownership Governed by the business Independent lifecycle Decision Rules After Gladys Lam, BRSolutions ©2012 Decision Management Solutions 24
  • 26. Enterprise rules drive decision rules Business Process Business Rules Process Rules Business Process Rules Business Process Rules Decision Rules Decision Rules Decision Rules Decision Rules Rule Management Enterprise Rule Repository Rule Management Rule Management ©2012 Decision Management Solutions 25
  • 27. Business Rules and Decision Services ©2012 Decision Management Solutions 26
  • 28. Help the business to manage decisions I want to relax my underwriting policy I want to be able to promote a new product combination So you business-types want to be able to change your business rules? I need to add the new regulations No… ©2012 Decision Management Solutions 27
  • 29. Essential elements in rule management One size does not fit all Not all business rules are managed the same way Develop rule management one decision at a time Identify patterns for approval, governance BUSINESS rule management Link decisions to business priorities, organization Describe decisions in business terms, business focus Impact analysis is critical Business owners won’t make changes without it Show the business impact of decisions ©2012 Decision Management Solutions 28
  • 30. Questions?
  • 31. Decision Management Systems What if you could make your systems active participants in optimizing your business? What if your systems could act intelligently on their own? Decision Management Systems can do all that and more. This book shows how to integrate operational and analytic technologies to create more agile, analytic, and adaptive systems. Discount Code: TAYLOR4389For more information about this new release, visitwww.decisionmanagementsolutions.com/book ©2012 Decision Management Solutions 30
  • 32. Advice: Find decision-making rules Analyze and manage the business rules that underpin your operational decisions ©2012 Decision Management Solutions 31
  • 33. To Decision Management Systems ©2012 Decision Management Solutions 32
  • 34. Learn more Webinars Workshop in Berlin Predictive Analytics and Decision Management Decisions and Decision April 11, 7am PT/16:00 CET Management June 4 and 5, 2012 Report on platform Berlin, Hotel Alexander Plaza technologies Identifying decisions decisionmanagementsolutions.com/ Design of decisions decision-management-technology Managing decision logic Decisions in systems Getting started Details at http://www.enterprise-design.eu ©2012 Decision Management Solutions 33
  • 35. James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 9 years championing Decision Management and developing Decision Management Systems ©2012 Decision Management Solutions 34
  • 36. Thank You James Taylor, CEOjames@decisionmanagementsolutions.com 35