WebSphere ILOG BRMS
  Stephane Marouani
  Sales and Operations Manager, IBM ILOG A/NZ


IBM Insight Forum 09              Make change work for you
                                                             ®
What
     Wh t I will cover
             ill
        The Needs and Pains for Changes
                                     g
        Understanding Business Rule Management
        How BRMS and BPM work together
                                   g
        Examples
        Co c us o
        Conclusion




IBM Insight Forum 09       Make change work for you
                                                      ®
IBM WebSphere Software



CEOs Worry
CEO Worr About Change

                                           83%
                                    Expect substantial or
                                      very substantial
                                          change
                                        The change
                                         Triple
                                         T i l
                                            gap

                                           s
                                          98%
                                    Plan business model
                                          changes
                                           h
Source: IBM Global CEO Study 2008
IBM WebSphere Software



The Eff t f Ongoing Change
Th Effects of O i Ch

            Reduces organizational agility
               Difficulties in responding to evolving business
               conditions



            Reduces employee productivity
               Manual intervention required to deal with
               complexities of operations


            Increases load on IT
               Keeping applications/systems updated &
               current across the enterprise consumes time
               and resources
IBM WebSphere Software

Business Decisions are Everywhere…
                           y
  We need to add an                                      Let’s create a special
  eligibility check to                                   promotion for our best
meet the requirements                                         customers.
of the new regulation.
                                                  Up-sell/Cross-
                                                  Up-sell/Cross-sell offer
                     Commissions / Royalties
                                                           Compliance Screening
         Underwriting          Tax calculation
                                                  Documentation Requirements
       Billing          Fraud assessment

                       Configuration             Accounting Disposition
       Eligibility                 Pricing
                                                 Product Selection
                     Benefit calculation
                                                                  Can we automate
                                                                approvals for this type
                                                                      of order?

                      And Changing Frequently
IBM WebSphere Software


Business Changes drive IT Agility
                  Business Rules are everywhere


                                                   Issues

                                    • Rules are hidden in code or isolated
                                              within the organization
                                         • Changes are hard to track and
                                                maintain over time
                      Documents
   Applications                       • Rules used by systems have to be
                                    programmed and require IT resources
                                    • Duplication and multiple versions of
                                                  the same rules
                                        • Lack of auditability, traceability
                                     • Decision changes cannot be easily
    People          Processes                  tested or simulated
IBM WebSphere Software



 The d i i
 Th decision intensive process
             i t   i

Streamlined process
works fine today…
           • Until
             •New Product
             •New Policy
             •New Regulation
             •New P i i R l / M d l
              N   Pricing Rules Model
             •New Scoring Rules / Tables
                        g
           • …
IBM WebSphere Software



The d i i
Th decision intensive process
            i t   i




              Streamlined workflow
              works fine until…




      Your ‘
           ‘streamlined’ process in x months
                       ’
IBM WebSphere Software


The nightmare intensive process




                 Streamlined workflow
                  works fine until…




               Your ‘streamlined’ process in x months
                Your ‘streamlined’ process in x years
IBM WebSphere Software




        Introducing
                  g
Business Rules Management
IBM WebSphere Software


  Facilitating Change with BRMS
Operational decisions correspond to business policies and business rules

                                                 Business Rule Management System


                                                                      Rules are
                                                                       Defined,
                                                                      Analyzed
                                                                         and
                                                      User Tools
                                                                      Maintained


                         Documents
       Applications
                                                                       Rules are
                                                                       Managed
                                                                      and Stored
                                                    Rule Repository


                                                                      Rules
                                                                      R l are
        People         Processes                                      Deployed,
                                                                      Executed
                                                                        and
                                                                      Monitored
                                                      Rule Server
IBM WebSphere Software



   Varying Needs Across th Organization
   V   i N d A          the O   i ti
     I need a                                     I need easy,
  comprehensive                              efficient and reliable
rules development                                policy change
 and maintenance                                     delivery
   environment




   Development
  Rule Developer
   Rule Modeler                                  Line of Business
 Business Analyst                                Business Partner
                                                  Policy Manager
                                                 Line of Business
                                                     Manager



                   Production        I need performance,
                IT Administrator    scalability, monitoring
              System/Ops Manager
                     /                         and
                                   reliability of operations
IBM WebSphere Software


 Comprehensive Environments for Every User
                 IBM ILOG JRules




                 Rule Scenario Manager
   Rule Studio
                                               Rule T
                                               R l Team Server
                                                        S


Developers                                       Business Users



                  Rule Execution Server

                                      Administrator
                  ©2009 ILOG, An IBM Company
IBM WebSphere Software

Intuitive Rule Authoring   English Like Syntax
IBM WebSphere Software


Intuitive Rule Authoring
                       g          Decision Table
IBM WebSphere Software


Intuitive Rule Authoring
                       g   Decision Tree
IBM WebSphere Software

Rule Solutions for Office   Rule editing in MS Word
IBM WebSphere Software


Rule Solutions for Office               Rule editing in MS Excel
                                                   g
                      MS Word Editing
                         W d Edi i
IBM WebSphere Software


Benefits of WebSphere ILOG BRMS
   Reduced lead                          More personalized
 times for changes                       client i t
                                          li t interactions
                                                      ti
   Reduced time to create or                  10x improvements in
 update p
  p     product p promotions            acceptance of cross-sell offers
    from weeks to hours                        (retail banking)
           (retail)




                                 BRMS

  Internal/external                         Business – IT
     compliance                              alignment
   Support of regulations that                Reduced new policy
      vary by customer                     implementation by 50%
  location and product line                  (financial services)
         (insurance)
IBM WebSphere Software




BRM and BPM working together
IBM WebSphere Software

 DNA of the Agile Enterprise
             g         p
Process Mgmt          Rules Mgmt
Describes the “how” of the core   Determines the “what” of enterprise
activities of the enterprise      activity
Combines automatable and          Is focused on automating decisions
human elements
                                  Is fundamentally concerned with the
Is fundamentally concerned with   operational intelligence of the
operational efficiency of the     organization
organization
IBM WebSphere Software



Why S
Wh Separate Process & Rules Management?
         t P          R l M          t?
Increase business agility by allowing business users to
manage d i i l i
        decision logic

Streamline and stabilize processes by externalizing
decision logic

Enable re-use of decisions across different processes,
applications and systems
 pp               y

Enable automation of complex, variable decisions

Effectively manage large and evolving sets of rules
IBM WebSphere Software



Change Once, Impact Anywhere
Ch     O     I    tA    h
                      Business                                BRMS
                      Systems



                                                   User Tools




                                                 Rule Repository




                                                  Execution
                          Transparent
                                                  Server
                          Decision Service


 Business Processes                          Business Decisions
IBM WebSphere Software


Simplifying Business Processes
  Business Policy Externalization                     Agile BPM



       Validation
       Validation Rules

                          Eligibility Rules
                                  Eligibility




                          Business
                          Rules
                                                Pricing
                                                   Pricing Rules
IBM WebSphere Software




Examples
E    l
IBM WebSphere Software


     BRMS Usage Across Industries
                                                              Capital                  Public
         Banking                Insurance
                                                              Markets                  Sector
     • Loan Origination      • Claims Processing         • Automated Trading      • Claims Processing
     • Credit Decisioning    • Underwriting              • Trade Order            • Entitlement and
     • Sales Advisory        • Quoting                     Management               Benefit calculation
     • Payments              • Rating                    • Accounting
                                                                    g             • Fraud Detection
     • Accounting            • Commissioning             • Compliance KYC /         and Management
                                                           AML                    • Screening and
                                                         • On Boarding              Targeting


                             Transportation
         Telecom                                                 Retail            Manufacturing
                               and Travel
     • Offer Configuration   • Promotions                • Online                 • Production quality
     • Order                   Management                  recommendation           control
       Management            • Loyalty Programs          • Campaign               • Order
     • Fraud Detection       • Customer Service            Management               Management
       and Management
                 g           • Billing                   • Order                  • Billing
     • Loyalty Programs      • Contract                    Management
                                                                                  • Contract
     • Network Monitoring      Management                • Pricing                  Management




26                                       © ILOG, All rights reserved
IBM WebSphere Software



   ILOG
Customer       BRMS-BPM E
               BRMS BPM Examples
                     Process l
                             Results

Vision Service Plan (VSP)   Healthcare Claims • Speed to market gain over 50%
                            Processing        • Changes to business rules now
                                                implemented in days
                                              • Achieved significant productivity gain on
                                                1M+ l i
                                                1M claims processed on a monthly b i
                                                                      d           thl basis



Bank of the West            Commercial Loan       • 93% improvement for application approval
                            Origination             (15 days to 1)
                                                  • Greater control & easier audits driving
                                                    significant cost savings
                                                     i ifi    t    t    i

Junta de Castilla y León    Government            • Better service delivered to the citizens:
                            Social Benefits         clear & consistent application processing
                            Eligibility           • Transparency & auditability of all scoring,
                                                    eligibility & computation rules
                                                  • Rapid response to changes in central or
                                                    regional government policies


27                                 ©2009 ILOG, An IBM Company
28

           Entreprises are h ngr for Change
                           hungry
           IBM ILOG BRMS :
                  1. Brings Agility to your processes
                  2. Reduce lead time to change
                  3.
                  3 Align Business and IT
                  4. Reduce Cost of Compliance
                                       p



                                                            Questions

IBM Insight Forum 09             Make change work for you
                                                                             ®

iLOG - how to make your business processes smarter using business rules

  • 1.
    WebSphere ILOG BRMS Stephane Marouani Sales and Operations Manager, IBM ILOG A/NZ IBM Insight Forum 09 Make change work for you ®
  • 2.
    What Wh t I will cover ill The Needs and Pains for Changes g Understanding Business Rule Management How BRMS and BPM work together g Examples Co c us o Conclusion IBM Insight Forum 09 Make change work for you ®
  • 3.
    IBM WebSphere Software CEOsWorry CEO Worr About Change 83% Expect substantial or very substantial change The change Triple T i l gap s 98% Plan business model changes h Source: IBM Global CEO Study 2008
  • 4.
    IBM WebSphere Software TheEff t f Ongoing Change Th Effects of O i Ch Reduces organizational agility Difficulties in responding to evolving business conditions Reduces employee productivity Manual intervention required to deal with complexities of operations Increases load on IT Keeping applications/systems updated & current across the enterprise consumes time and resources
  • 5.
    IBM WebSphere Software BusinessDecisions are Everywhere… y We need to add an Let’s create a special eligibility check to promotion for our best meet the requirements customers. of the new regulation. Up-sell/Cross- Up-sell/Cross-sell offer Commissions / Royalties Compliance Screening Underwriting Tax calculation Documentation Requirements Billing Fraud assessment Configuration Accounting Disposition Eligibility Pricing Product Selection Benefit calculation Can we automate approvals for this type of order? And Changing Frequently
  • 6.
    IBM WebSphere Software BusinessChanges drive IT Agility Business Rules are everywhere Issues • Rules are hidden in code or isolated within the organization • Changes are hard to track and maintain over time Documents Applications • Rules used by systems have to be programmed and require IT resources • Duplication and multiple versions of the same rules • Lack of auditability, traceability • Decision changes cannot be easily People Processes tested or simulated
  • 7.
    IBM WebSphere Software The d i i Th decision intensive process i t i Streamlined process works fine today… • Until •New Product •New Policy •New Regulation •New P i i R l / M d l N Pricing Rules Model •New Scoring Rules / Tables g • …
  • 8.
    IBM WebSphere Software Thed i i Th decision intensive process i t i Streamlined workflow works fine until… Your ‘ ‘streamlined’ process in x months ’
  • 9.
    IBM WebSphere Software Thenightmare intensive process Streamlined workflow works fine until… Your ‘streamlined’ process in x months Your ‘streamlined’ process in x years
  • 10.
    IBM WebSphere Software Introducing g Business Rules Management
  • 11.
    IBM WebSphere Software Facilitating Change with BRMS Operational decisions correspond to business policies and business rules Business Rule Management System Rules are Defined, Analyzed and User Tools Maintained Documents Applications Rules are Managed and Stored Rule Repository Rules R l are People Processes Deployed, Executed and Monitored Rule Server
  • 12.
    IBM WebSphere Software Varying Needs Across th Organization V i N d A the O i ti I need a I need easy, comprehensive efficient and reliable rules development policy change and maintenance delivery environment Development Rule Developer Rule Modeler Line of Business Business Analyst Business Partner Policy Manager Line of Business Manager Production I need performance, IT Administrator scalability, monitoring System/Ops Manager / and reliability of operations
  • 13.
    IBM WebSphere Software Comprehensive Environments for Every User IBM ILOG JRules Rule Scenario Manager Rule Studio Rule T R l Team Server S Developers Business Users Rule Execution Server Administrator ©2009 ILOG, An IBM Company
  • 14.
    IBM WebSphere Software IntuitiveRule Authoring English Like Syntax
  • 15.
    IBM WebSphere Software IntuitiveRule Authoring g Decision Table
  • 16.
    IBM WebSphere Software IntuitiveRule Authoring g Decision Tree
  • 17.
    IBM WebSphere Software RuleSolutions for Office Rule editing in MS Word
  • 18.
    IBM WebSphere Software RuleSolutions for Office Rule editing in MS Excel g MS Word Editing W d Edi i
  • 19.
    IBM WebSphere Software Benefitsof WebSphere ILOG BRMS Reduced lead More personalized times for changes client i t li t interactions ti Reduced time to create or 10x improvements in update p p product p promotions acceptance of cross-sell offers from weeks to hours (retail banking) (retail) BRMS Internal/external Business – IT compliance alignment Support of regulations that Reduced new policy vary by customer implementation by 50% location and product line (financial services) (insurance)
  • 20.
    IBM WebSphere Software BRMand BPM working together
  • 21.
    IBM WebSphere Software DNA of the Agile Enterprise g p Process Mgmt Rules Mgmt Describes the “how” of the core Determines the “what” of enterprise activities of the enterprise activity Combines automatable and Is focused on automating decisions human elements Is fundamentally concerned with the Is fundamentally concerned with operational intelligence of the operational efficiency of the organization organization
  • 22.
    IBM WebSphere Software WhyS Wh Separate Process & Rules Management? t P R l M t? Increase business agility by allowing business users to manage d i i l i decision logic Streamline and stabilize processes by externalizing decision logic Enable re-use of decisions across different processes, applications and systems pp y Enable automation of complex, variable decisions Effectively manage large and evolving sets of rules
  • 23.
    IBM WebSphere Software ChangeOnce, Impact Anywhere Ch O I tA h Business BRMS Systems User Tools Rule Repository Execution Transparent Server Decision Service Business Processes Business Decisions
  • 24.
    IBM WebSphere Software SimplifyingBusiness Processes Business Policy Externalization Agile BPM Validation Validation Rules Eligibility Rules Eligibility Business Rules Pricing Pricing Rules
  • 25.
  • 26.
    IBM WebSphere Software BRMS Usage Across Industries Capital Public Banking Insurance Markets Sector • Loan Origination • Claims Processing • Automated Trading • Claims Processing • Credit Decisioning • Underwriting • Trade Order • Entitlement and • Sales Advisory • Quoting Management Benefit calculation • Payments • Rating • Accounting g • Fraud Detection • Accounting • Commissioning • Compliance KYC / and Management AML • Screening and • On Boarding Targeting Transportation Telecom Retail Manufacturing and Travel • Offer Configuration • Promotions • Online • Production quality • Order Management recommendation control Management • Loyalty Programs • Campaign • Order • Fraud Detection • Customer Service Management Management and Management g • Billing • Order • Billing • Loyalty Programs • Contract Management • Contract • Network Monitoring Management • Pricing Management 26 © ILOG, All rights reserved
  • 27.
    IBM WebSphere Software ILOG Customer BRMS-BPM E BRMS BPM Examples Process l Results Vision Service Plan (VSP) Healthcare Claims • Speed to market gain over 50% Processing • Changes to business rules now implemented in days • Achieved significant productivity gain on 1M+ l i 1M claims processed on a monthly b i d thl basis Bank of the West Commercial Loan • 93% improvement for application approval Origination (15 days to 1) • Greater control & easier audits driving significant cost savings i ifi t t i Junta de Castilla y León Government • Better service delivered to the citizens: Social Benefits clear & consistent application processing Eligibility • Transparency & auditability of all scoring, eligibility & computation rules • Rapid response to changes in central or regional government policies 27 ©2009 ILOG, An IBM Company
  • 28.
    28 Entreprises are h ngr for Change hungry IBM ILOG BRMS : 1. Brings Agility to your processes 2. Reduce lead time to change 3. 3 Align Business and IT 4. Reduce Cost of Compliance p Questions IBM Insight Forum 09 Make change work for you ®