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

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 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


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


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


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


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
• …


The d i i
Th decision intensive process
i t i

Streamlined workflow
works fine until…

Your ‘
‘streamlined’ process in x months
’


The nightmare intensive process

Streamlined workflow
works fine until…

Your ‘streamlined’ process in x months
Your ‘streamlined’ process in x years


Introducing
g
Business Rules Management


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


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


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


Intuitive Rule Authoring English Like Syntax


Intuitive Rule Authoring
g Decision Table


Intuitive Rule Authoring
g Decision Tree


Rule Solutions for Office Rule editing in MS Word


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


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)


BRM and BPM working together


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


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


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


Simplifying Business Processes
Business Policy Externalization Agile BPM

Validation
Validation Rules

Eligibility Rules
Eligibility

Business
Rules
Pricing
Pricing Rules


Examples
E l


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


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

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

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