Event driven enterprises

Logical Conclusions, Inc.

Business Event Driven
Enterprises Rule!
Presented by:
United States Brian Dickinson LCI England
for the
16001 Burro Drive Business Rules Forum 18 Honister Avenue
Fountain Hills, AZ 85268 Blackpool, Lancashire
Phone: (480) 836-8747 Las Vegas NV England FY3 9PF

Web: www.Logical-Inc.com
Email: Talk2us@Logical-Inc.com
COPYRIGHT © 2009, LOGICAL CONCLUSIONS, INC.
Business Rules talk All Rights Reserved Worldwide
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Talk Contents:
• The Concept of Events.
• What‟s an Event?
• Events make the World go around.
• What is an Event in the Business World?
• Conceptual view of an Event‟s response as a 3 tiered structure.
• How a Typical Enterprise has fragmented an Event Response.
• Beware the classical implementation groupings in an Enterprise.
• Old/Current/As-Is System Groupings.
• How did we get into this hysterical situation?
• An Enterprise Architecture view.
• “Engineering” an Enterprise.
• “Flavors” of Events.
• Every Enterprise has an “Event Horizon”.
• Undoing the fragmentation of Event partitions/responses.
• Resultant Event-Driven Partitioning across the whole enterprise.
• Event-Driven Partitioning helps eliminate Dead Data.
• Creating Seamless Business Boundaries.
• New Design - Implementing an Event-Driven Partition Team Approach.
• A Real World example of an Implemented Event-Driven Partition.
• Benefits of using Event-Driven Partitioning as an Implementation Structure.

All Rights Reserved Worldwide
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Business Rules talk

The Concept of Events.
There‟s a lot of “alphabet soup” regarding EVENTS in
the Information Systems technical literature:
EDA

•EDA - Event Driven Architecture
ESP EOA
•EOA - Event Oriented Architecture
•CEP - Complex Event Processing
•ESP – Event Stream Processing CEP
Also high level Services in Service
Oriented Architecture SOA are equivalent
to the concept of Event processing.
EVENTS
Definition of Event-driven architecture EDA from Wikipedia:
(EDA) is a software architecture pattern promoting the production, detection,
consumption of, and reaction to events.
The concept of Event processing is finally mainstream after being
around for decades but its not just the domain of Information Systems.
We believe becoming an Event Driven organization will set you apart
from your competitors, enabling you to be focused on your customers
and provide them with quality, timely solutions to their needs.
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Business Rules talk

What’s an Event?
An Event is: “Anything that happens beyond the area-of-study that
requires/produces a response inside the area-of-study". B Dickinson.
A basic premise before we go further - All systems we encounter have a fundamental
characteristic in common – they’re all Stimulus-Response mechanisms.

ANY
SYSTEM
Stimulus: “Something that incites into action or exertion.”(Webster’s dictionary)

Example of
ENVIRONMENTAL Example of
Stimulus/Response Grand Canyon ORGANIZATIONAL
system: Stimulus/Response
STORM Event – Stimulus RAIN – Response CANYON. system:

Example of
BIOLOGICAL
Stimulus/Response
system:

CUSTOMER NEED Event – Stimulus ORDER –
HAMMER BLOW Event – Stimulus PAIN – Response VOICE etc. Response – INVOICE & MATERIALS.

Each Stimulus arises from an EXTERNAL Event.
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represented
Events make the World go around.Customer as:
Clock Calendar

 
In one process view the world consists of a mass of things
(Events) happening through time. We select the ones we are Is
interested in.
Here are five examples of Events and their Stimuli: represented
Written
Verbal I gotta report Electronic as:
I think I‟ll
buy… GLOBAL Correspondence Transfer
Contact
this!

SYSTEM
BUSINESS
SYSTEM
01001101011001 Event 5 Is
Asteroid
11001101011011
represented
(External)
00100101100100
Sighting
Customer COMPUTER 10011100110101
TranCode 10. as:
Event 4 Order/ SYSTEM
Another
(External) Request Human Task Computer Task
DEPARTMENT
Event 2 OPERATION
(Internal)
I need to get
this to… Input Is
Pay-Per-
Click
Transaction represented
Inter COMPUTER as:
Office TRACKINGCabinent
File Database Event 3
Memo/ PROGRAM What‟s on (Internal)
this link?
Folder
Mouse Event 1 Is
Depending on our context of study, these Click represented
(Internal)

are all valid Events and their Stimuli.
as:5
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Event Time
Business Rules talk
Trigger

What is an Event in the Business World?
Every enterprise selects a set of Events that it wishes to respond to from the
outside world. The enterprise has no control over these EXTERNAL Customer
Events, it simply responds to the arrival of the stimuli from the Events.
Each external need to which we respond is called an “Event.”

An Event Partition.
AIRLINE BANK
Order/Request

Files,
I need to I need some Staff/Mgmt. Databases
go to… cash.
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Its tax I need to 
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Info. Desk
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buy…
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time.
Computer
Systems,
GOVERNMENT BUSINESS Programs
Customer Divisions,
Departments,
Offices, etc.

Response
In the business world the most important Events are initiated by whomever the
enterprise calls its “Customer.” COPYRIGHT © 2009, LOGICAL CONCLUSIONS, INC.
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Business Rules talk

Forming an Enterprise’s Core Business
We can conceptually view an enterprise‟s response to an Event as a 3
tiered structure.
First, each “Business” Event forms its own enterprise Business Core.
One Business Core
“Let‟s specialize in

Customer Wants To...
providing products
Mission and services, to our
customers, in the
area of...” “We need you to …”

Selected
Events

Most enterprises take on a limited set of
Business Events which they refer to as their core
Analysis competency.

Systems Design/
The customer imagines a quality
Implementation enterprise will satisfy their needs
seamlessly. After all, the enterprise Customers
depends on its customers to stay in
business.
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Business Rules talk

Forming the Event-Driven Business Policy Layer
Each enterprise creates its own Business Policy (rules for processing, data, and
controls) associated with each Event. This forms the Business Policy Layer
surrounding the Business Core.

This Business Policy Layer is where One Business Core
each enterprise gets to really
distinguish itself from its competition.
Mission
The detailed processing, data and Specific Business
controls specifies WHAT is activated Policy Layer
Selected
to satisfy the Event.
Events
Data Definition:

DATA (Nouns) REQUISITION =
REQUISITION ID +
Business associated REQUISITION DATE +
(REQUISITION DELIVERY DATE) +
Analysis {MATERIAL ID +
with the Event REQUISITION MATERIAL QUANTITY}
SUPPLIER ID = DATA ELEMENT
_________________________________
Process Specification:
PROCESSING
Systems Design/ IF REQ. DATE = 1 MONTH OLD
Implementation Send SUPPLIER NOTICE (Verbs)
Add to Overdue REQS.
ELSE associated
IF REQ. DATE > 7 Days
Note: There may be some rules that are dictated by Add REQ. ID to Late REQS. with the Event
entities beyond our enterprise, e.g. government laws and
regulations of affiliated organizations.
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Business Rules talk

Forming the Event-Driven Technology/Customer Interface Layer
To implement the Business Policy in the real world the enterprise adds a
Technology/ Customer Interface Layer for the Event.

The Technology Layer consists of One Business Core
human and/or computer devices
along with their support systems
designed to interact with the Specific Business
Mission customer and to deliver the goods Policy Layer
or services requested.

Selected
The Technology Layer
Events specifies HOW the Event is
implemented in the real Technology
world. Layer
Business
Procedures Production
Analysis Budgets, Plans, &
Manual/Computer Code
Schedules

Systems Design/ Our Customers
Implementation Interact with this Layer.

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Business Rules talk

Conceptual view of an Event’s response as a 3 tiered structure.
Each Event forms
The Event One Business Core
Identification
and its It‟s Policy Layer

Business Event
Captured information
Stimulus (from identifies “What”
the Event List). Business logic is
initiated by the
The detailed Event.
Data, Processes
and Controls It‟s Technology
Associated with Specific Layer identifies
the Event. “How” the policy
Business
is implemented.
The Technology Processing,
used to Procedures Data and controls
Production Budgets,
Manual/Computer Code Prob. unique to Org.
Implement the Databases/Files
Plans, & Schedules

Event response.
Not usually unique to an Org.
One structure per Technology to make the Business
Policy work in production.
Event E.G.
Customers interface with our business
•Cust. Deposit via this layer.
•Cust. Withdraw
•Cust. Transfer
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Business Rules talk

How a Typical Enterprise has fragmented an Event’s Implementation.
Unfortunately, the typical enterprise has not maintained the “cohesiveness” of
their Event responses and have allowed old departmental structures and
haphazard systems development efforts to fragment a response to their
customers.
Sales Stock Control Reporting
One Cohesive Event Department/ Department/ System
Response System System

? ?

CUSTOMER
CUSTOMER
“Look how they‟ve
fragmented my
business...”

Order Fulfillment
Accounts Department/
Department/ System
System
Fragmenting an Event Response in this way is known as
Founder. “Stove Pipe” partitioning.
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Business Rules talk

Beware the classical implementation groupings in an Enterprise.
Its all too common to see groupings of processes, data and controls
into historical, industrial age patterns.

Human system groupings: Computer system groupings:
•Divisions •Systems
•Branches •Subsystems
•Departments •Programs
•Jobs •Subroutines
•Tasks •Objects
What was the basis for these historical groupings?
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Business Rules talk

Old/Current/As-Is System Groupings.
Obviously the original groupings were based on human skills.
E.G. Accountants in Accounting, Sales people in Sales Dept.
But note: Historical groupings will perpetuate themselves (unless actively
changed) and can become “hysterical” groupings, for example:

I seem to
I have an know “Error - Not
accounting Believe me, I
accounting. can do more. on this
degree. (I Can Add & server.”
Subtract)

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Lead to…
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Lead to… Lead to…
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Computer Batch Computer On-Line Internet enabled
Manual Accounts Dept.
Accounts System Accounts System Accounts System…
Management
Timeline goals: “Automate this!” “Put this On-line!” “Put this on the Internet!”
Replace the above example with:
ORDER ENTRY, NEW ACCOUNTS , SCHEDULING, STOCK CONTROL, ACCOUNTS RECEIVABLE,
ACCOUNTS PAYABLE, GENERAL LEDGER, SHIPPING and BILLING SYSTEMS etc.
(Not to mention Management Structures.)
So many Computer systems followed the same grouping as the old Manual systems.
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Business Rules talk

How did we get into this hysterical situation?
The problem of perpetuating historical groupings/partitions stems from not
recognizing that humans, just like computers, are an aspect of technology –
i.e. an aspect of implementation. Implementation issues always get in the way
of a good Analysis of enterprises/departments/old systems etc.

“I‟m calling the
“They „re promoting me Information Systems
and giving me a budget.” Department for help.”

Bill Head
Accounts
Dept.

Unfortunately many old Information Systems people as well as Packaged Software Vendors
perpetuated old boundaries when they built and “sold” systems to department managers.
Information Systems (IS/IT) folks should build systems using Methodologies which recommend
analyzing and seeing through these old designs.
Formal methods such as Process Analysis, Information Analysis, Object Analysis produce
deliverables (e.g. models) partitioned by specific views (e.g. As Is, To Be etc).
We should not use historical groupings for new specifications within an Enterprise Architecture.

Using EVENTS to drive business partitioning allows us to see through
these old/outdated boundaries.
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Business Rules talk

An Enterprise Architecture view.
An Enterprise Architecture is a representation of „How you view your Business‟.
It utilizes distinct major specifications in order to capture all aspects of the
enterprise.

There are many ways to specify an enterprise:
•Business Process Architecture
A Process Model

•Business Information Architecture
An Information Model

•Human Implementation Architecture
A Control Hierarchy

•Systems Application Architecture
Software structure Model

•Technology Architecture
Each specification has it’s own sub-groupings and components.
Hardware structure Model.
Each one of these views can, and should, be based on the enterprise‟s Events.
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“Engineering” an Enterprise.
When we take a disciplined approach to specifying an enterprise we need to
capture and define many individual components within the major specifications.

Data Elements Relationships
Functional Processes/ (e.g. Customer Name) (e.g. Customer BUYS Product)
Controls
Procedures (e.g. At End-Of-Year …)
(e.g. Verify Customer Account)

Captured information
(Metadata – Data about Data)

Process Groupings Objects/Methods
(e.g. Process Customer Order) (e.g. File can:
Data Groupings State/Transitions New/Open/Delete…)
(e.g. Customer Order) (e.g. Wait state until card
inserted then…)
Defining these components is important but how we organize and
group them together is even more important.
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Business Rules talk

“Flavors” of Events.
We should structure our enterprise around Events but it‟s important to
differentiate between the kinds of Events that occur in and around an enterprise.

1. Business Events – those to which an
enterprise wishes to respond. These fulfill The most important
the enterprise‟s mission. They always for Business
originate at who or what is called a Customer. Process
SHIPPING 2. Dependent Events – those to which an Improvement.
CLERK
enterprise responds to be able to satisfy its
Delivered
Materials
Capturing these
TERIALS
CK LIST
Business Events. They usually come from
DELIVERY
VAN
three kinds of
vendors to the enterprise and are created Events enables
Materials
when part of a Business Event is outsourced. “data conservation”
INVOICE
3. Regulatory Events – those to which an (No Dead or
Invoice
CUSTOMER
enterprise is required to respond. They come Unnecessary stored
ICING from a government or business regulatory data) across the
GRAM
agency. whole enterprise.

These are usually internal
System Events – these are “invented” at design time and always related to
to support the implementation of the above Events. Human and computer
system issues.
Strategic Events – those that dictate the contents of the These are the
enterprise‟s policy. (These form the Meta Model.) responsibility of the
strategic policy makers.
117
Business Rules talk

Every Enterprise has an “Event Horizon”.
At a high level we can conceptually view and model an enterprise as a
„Black Box‟ that responds to a set of external Events.
We call this view an Enterprise Context Diagram.
Sample Enterprise Event Context Diagram and Event List.
The Enterprise Event
Horizon Event List:
CUSTOMER
PAYMENT
PROFIT & Business Event 1 :
LOSS
STATEMENT
Customer wants to Order
CUSTOMER
OWNER
our Products.
ORDER
CUSTOMER Business Event 2 :
ORDERED TAX Customer wants to pay
PRODUCT& DEADLINE
our Invoice.
CUSTOMER INVOICE The
RECEIPT
SHIPPING Enterprise CALENDAR
Business Event 3 :
CLERK
Delivered
DIVIDEND Dividend Period Arrives.
G
Materials PERIOD
MATERIALS
M PICK LIST SUPPLIER
DELIVERY
VAN
Dependent Event 1 :
Checked
Order
PAYMENT Supplier Delivers Material.
TAX
SUPPLIER
Materials
MATERIAL
DELIVERY REPORTS Regulatory Event 1 :
GOVERNMENT
Pick
List
INVOICE
Tax Deadline Arrives.
Invoice
CUSTOMER

When studying an enterprise we can use this Context Diagram and its Event stimuli
S
E
as a guide to further analyze and partition the enterprise‟s operations, as well as the
INVOICING
PROGRAM

specifications within the Enterprise Architecture.
118
Business Rules talk

Undoing the fragmentation of Event partitions/responses.
To produce a view/model that is not corrupted by any old designs we
should concentrate on capturing details of six components for each
Event response.
Thing
Thing Thing

The Source The Stimulus The Memory (Files) used
Thing Thing

Thing

to process the Event.
Thing

(initiator) of the resulting from the Thing Thing

Event. Event.
Who or what. Data or control.
Process Order:

For each MATERIAL ID
If MATERIAL AVAILABLE
Then Reduce Inventory By The Recipient
MATERIAL QUANTITY of the Response to
Else
Create BACK ORDER… the Event.
The Processing The Response Who or what.
initiated by the Event generated by the
Stimulus. Event.
The business policy. Data or control.
This view shows the enterprise‟s complete reaction to an Event.
Every Event will have a Source, Stimulus and associated Processing, however Stored Memory,
outgoing Response(s) and Recipient(s) are optional.

These six Event components form a functional, EVENT-DRIVEN, partitioned model–
one level below the Enterprise Context Diagram.
119
Business Rules talk

Resultant Event-Driven Partitioning across the whole enterprise.
An Event Partition consists of an End-To-End, set of components
required to COMPLETELY satisfy one need of a Customer. (A Definition.)
Similar to - Swim lanes/Value Chains/Services.
We can break down complex Event Partitions into more detail.
A sample lower level Process Model showing four Event Partitions:

Process
REGULATORY EVENT RESPONSE
CONTROL STIMULUS
Year End

Essential File Human
Customer
Process Spoken Interface
Order Process Process
BUSINESS EVENT Process
RESPONSE
STIMULUS
RECEPTIONIST SHIPPING
CLERK
Delivered
BUSINESS EVENT Essential CUSTOMER
File Input STOCK Materials
Process CHECKING MATERIALS
STIMULUS Order
PROGRAM Process DELIVERY


PICK LIST
Electronic Checked RESPONSE VAN
Process ORDER Check
Order
SCREEN Cust. Order

RESPONSE
Materials
Cust. Stock INVOIC
Pick
IDs List
Invoice
BUSINESS EVENT Essential File RESPONSE
STIMULUS Process Process
Process INVOICING
CUSTOMER MATERIALS
DATABASE DATABASE PROGRAM

RESPONSE Process

Note: Files are only needed at the intersection between Events. Therefore Event-Driven Partitions
can be implemented as separate systems/projects. COPYRIGHT © 2009, LOGICAL CONCLUSIONS, INC.
120
Business Rules talk

Event-Driven Partitioning helps eliminate Dead Data.
We can easily recognize “Dead/Unnecessary” data and files when the Event-Driven
Partitioned model is overlaid with the old design structures. We can also see how
unnecessary files slow down the response to a Customer.

Old Accounts Old Stock Control
Process
REGULATORY EVENT RESPONSE
CONTROL STIMULUS
Year End

Essential File Human
Customer
Process Spoken Interface
Order Process Process
BUSINESS EVENT Design
Process Design
Design RESPONSE
STIMULUS File File
File RECEPTIONIST SHIPPING
CLERK
Delivered
BUSINESS EVENT Essential CUSTOMER
File Input STOCK Materials
Process CHECKING MATERIALS
STIMULUS Order
PROGRAM Process DELIVERY


PICK LIST
Electronic Checked RESPONSE VAN

Design Process ORDER Check
Design
Order
Design
SCREEN Cust. Order

RESPONSE File File File
Materials
Cust. Stock INVOIC
Pick
IDs List
Invoice
BUSINESS EVENT Essential File RESPONSE
STIMULUS Process Process
Process INVOICING
CUSTOMER MATERIALS
DATABASE
Design
DATABASE PROGRAM
Design
RESPONSE Process File
File Design
Old Order Entry File Old Reporting

This overlay with a typical design indicates that more system boundaries will result
in more files and an increase in potential errors and inefficiencies.
121
Business Rules talk

Creating Seamless Business Boundaries.
By separating and modeling each Event-Driven Partition we can see the
minimum collection of components needed to fulfill a customer‟s need.

One un-fragmented Event Partition (Process Model). No old “design” File delays here!

Essential
File
Originating Process DATA Process
Stimulus

Process
DATA Process DATA

Process DATA Process
CUSTOMER CUSTOMER

Note: As much as Was part of Was part of Was part of Was part of
possible use data
stimuli to detect the old Order old old Stock old Order
processing‟s true Entry Accounting Control Fulfillment
flow. System System System System
This model also shows a more “natural” view of the essential business processing.
Adapting Newton‟s First Law of Motion: The customer‟s impetus (like a body in
motion) wants to stay in motion until impeded by some resistance (i.e., an
unnatural boundary). Its original driving force (the customer stimulus) gets lost
when dissipated through a series of false partitions.
122

New Design - Implementing an Event-Driven Partition Team Approach.
We can use each Event-Driven Partition as a “natural” structure for
implementation of new systems in our enterprise.
Resulting in true “FUNCTIONAL” units (Manual and/or Computer systems).
Implementation View: AND
•No typical errors between old
departments or computer systems
•fastest response to the customer
Business Event •easier maintenance/modification
Program/Objects

A Business Event Team 1 Metrics: …
Implementation Team 2 metrics: …
Team ID: Customer wants to purchase our Materials.

The Business Event implementation “Team” can:
 consist of one individual (with many “hats”) with one computer program/system
 be an empowered team of individuals with many reusable computer programs
 take on one or more implemented Event Partitions - depending on the size and
volume of an Event Partition
 be replicated for voluminous Events. COPYRIGHT © 2009, LOGICAL CONCLUSIONS, INC.
123
Business Rules talk

A Real World example of an Implemented Event-Driven Partition.
This “instance” of an Event-Driven Partition was
implemented in 7 minutes with an empowered Human
(carbon unit) and Computer (silicon unit) based team.
Process:
Arrive - Find part - Fit part... Invoice - Accept payment - Leave.
Silicon Broken
based unit refrigerator.

Carbon Another Silicon
based unit based unit
Satisfied Customer is taking the photos!
124
Business Rules talk

Benefits of using Event-Driven Partitioning as an Implementation Structure.
Implementing Whole Event-Driven Partitions may help us realize orders of
magnitude savings of time and money over our current systems and makes us
focus on being truly responsive to our customers.

An implementation example of a “fragmented” Event partition:
Delay here of Delay here of Delay here of CUSTOMER
CUSTOMER Mins./Hours/Days? Secs./Mins./Hours? Mins./Hours/Days?

 Computer
 Computer

System A System B
Minutes/Hours
Secs./Mins. Secs./Mins. Minutes/Hours

Response measured in ”Business Days”  or even Weeks.
An implementation example of a whole Business Event Compartment:

An Event Driven Implementation is:
Computer
•The most responsive to your customer
System •Easier to maintain
Minutes/Hours Secs./Mins.
•Easiest to Modify
•Even easier to build…
Response measured in Seconds/Minutes/Hours?
125
Business Rules talk

Logical Conclusions, Inc.

Presentation Created by:
Brian Dickinson

For questions on this presentation or for
information on Seminars and Consulting on
Event-Driven Enterprises
and
Business Process Management/Improvement
Please email me at:
Brian@Logical-Inc.com
Or
Call (480) 836-8747
United States England

16001 Burro Drive 18 Honister Avenue
Fountain Hills, AZ 85268 Web: www.Logical-Inc.com Blackpool, Lancashire
England FY3 9PF
Phone: (480) 836-8747

126

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