Detecting Opportunities and Threats with Complex Event Processing: Case Studies in Predictive Customer Interaction Management and Fraud Detection, February 27, 2007 FINAL DRAFT 2, 8th Annual Japan\'s International Banking & Securities System Forum, Tim Bass, CISSP, Principal Global Architect, Director

1. Detecting Opportunities and Threats with Complex Event Processing: Case Studies in Predictive Customer Interaction Management and Fraud Detection February 27, 2007 FINAL DRAFT 2 8th Annual Japan's International Banking & Securities System Forum Tim Bass, CISSP Principal Global Architect, Director

6. CEP Brings Two Kinds Of Business Benefits Ref: Roy Schulte, Gartner, First Event Processing Symposium, 2006 2. Complex-Event Processing (CEP) for Earlier and Better Insight Order Entry Manufacturing Shipping 1. Event-Driven Architecture (EDA) for Flexibility and Maintainability

7. Detecting Opportunities and Threats with Complex Event Processing (CEP)

8. TIBCO BusinessEvents™ Overview BusinessEvents™ Solutions Space Data: Events & Databases -Real-Time & Historical Data Models: Statistical Financial Optimization Comms: Pub/Sub Messaging Queues Topics UIs Knowledge: Facts & Rules

9. Reference Architecture An Enterprise View of Complex Event Processing 24 EVENT PRE-PROCESSING EVENT SOURCES EXTERNAL . . . LEVEL ONE EVENT TRACKING Visualization, BAM, User Interaction CEP Reference Architecture DB MANAGEMENT Historical Data Profiles & Patterns DISTRIBUTED LOCAL EVENT SERVICES . . EVENT PROFILES . . DATA BASES . . OTHER DATA LEVEL TWO SITUATION DETECTION LEVEL THREE PREDICTIVE ANALYSIS LEVEL FOUR ADAPTIVE BPM

10. Summary of Complex Event Processing Flexible SOA and Event-Driven Architecture

11. Bloor Report on Event Processing Event Processing and Decision Making Automated Operational Decisions Automated Predictive Decisions Human Predictive Decisions Human Operational Decisions Decision Latency Event Complexity Process Complexity Pattern Matching and Inferencing Anti-Money Laundering Credit-Card Fraud Exchange Compliance Database Monitoring Algorithmic Trading Trade Desk Monitoring Customer Interaction Order Routing RFID Tariff Look-Up Rail Networks Search & Rescue Baggage Handling Liquidity Management

16. On-Line Fraud Detection Use Case Architecture and Capacity Planning Approx. 12,000 Hits Per Second During Peak Period Across the Three Sites – One Instance Of TIBCO BusinessEvents™ Capable of Handling Maximum Hits Overall 100 Million Hits Handled Between 3PM – 4 PM Peak Approx. 250 Million Hits Per Day Across the Three Sites Session Info Three Server Farms ~600-700 Application Servers

17. “ No Code” Custom User Interface Studio TIBCO’s Enterprise RTView™ or General Interface™

24. Case Study: Bank Employee Interface TIBCO’s General Interface™ (AJAX Web Development)

25. PCIM High Level Conceptual Architecture

27. Where TIBCO BusinessEvents™ Helped. Collection, Normalization Metric of Managed Objects, Normalized Non-Contextual Events Metadata Repository Event Management, Correlation, Aggregation, Inference and Analysis Correlated, Analyzed, Contextual Dialogue Events Rules, Knowledge, Patterns, Models Visualization, Reporting, Alert Management Application Interface Feeds Visualization: Dialogue Metrics Agents Synthetic Warehouse Visualization: Sales Process View vCI Dialogue Manager Inference Engine DWH Product Marketing Semantic Model Events Rules Design Environment State Model Middleware

29. TIBCO BusinessEvents™ Awards 2006 Best Complex Event Processing Software Winner: TIBCO 2006 Event Processing General Purpose Gold Award Winner

30. Additional Reading

32. Thank You! Tim Bass, CISSP Principal Global Architect, Director Emerging Technologies Group [email_address] Event Processing at TIBCO