1. <Insert Picture Here>
From Legislation to Execution
Modernizing the citizen interaction with Oracle Policy Automation
Tamas Kramer
Sales Executive, Policy Automation, Central & Eastern Europe
Bucharest, November 3, 2010
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The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle‟s
products remains at the sole discretion of Oracle.
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Dynamic legislation drives the need to automate policies
Freedom of information is increasing the
pressure from customers and citizens to
prove compliance with policies and
standards
Budgetary
pressures force
efficiencies
Costly IT projects and resource-intensive
call centres are expected to innovate, and
deliver more with less
Accountability
requires
transparency
Security, geopolitical and financial events
drive frequent legislative changes and high
expectations of enforcement
Making accurate and consistent decisions
is difficult when finely targeted policies are
needed to deliver the best outcomes
Policy
complexity is
growing
Legislative
changes are
accelerating
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What does Oracle Policy Automation do?
• An engine for making complex decisions and calculations based
on a set of rules
• Users create their rules in their natural language using
Microsoft Word
Microsoft Excel
Microsoft Visio
• The rules are kept separate from any application code
- Easier to test and maintain
- The rules look like the source documents
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What is policy?
Legislation
Policy
Interpretation
Policy can be interpreted
as:
A company/public body’s
interpretation of their
legislative obligations
Rules created by the
company/public body which
are allowed under legislation
and drive how the
company/public body function
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Policy Automation: Mission & History
20 years as a
proven EPA leader
Mission
is to “Optimize
Enterprise Policy
Automation” (EPA)
Customers include the world‟s largest government agencies and
global 1,000 financial services, insurance and commercial
customers
Consistently recognized as a leader by industry analysts
Customers and revenue from across North America, EMEA, Asia-
Pacific, and Australia
Patented technology automates legislation and policy using natural
language rather than programming language, with multiple
languages already supported
Designed for rapid creation of industry content that can be easily
configured for an organization's unique requirements
Standard, pre-built integrations with leading enterprise application
vendors
Government agencies use Haley to serve tens of millions of
citizens
Tier 1 commercial banks use Haley to serve millions of customers
Global insurers use Haley to automate tens of thousands of daily
claims transactions
Dynamic self-service applications and high-volume enterprise
automation based on complex policy and legislation
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The Public ROI from Policy Automation
Key Operational Levers
• Faster Implementation of
Government Policy
• Heavy Political cost of making
errors
• Complexity is hard to explain to
constituents
• Automated decision making
• (self service )
• Lesser paid staff can do more
• Reduced errors and appeals
• Drastically reduced implementation
costs
• Open and transparent decisions
• Understand the impact of policy
change
• Reduce red tape for citizens and
businesses
Value DriversObjective
Return On
Public
Investment
Social ROI
Financial ROI
Political ROI
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Policy Automation Customers
Financial Services
and Insurance
Government Other
American Fidelity (US)
Countrywide (US)
Credit Suisse (Switzerland)
UBS (Switzerland)
BUPA (UK, Ireland)
NASD (US)
United Healthcare (US)
HealthMarkets (US)
American International Assurance (US)
Farm Bureau Financial Services (US)
British American Tobacco (UK)
Motosport (US)
Cisco (US)
Intel (US)
AT&T (US)
Toyota Motor Corp (US)
Internal Revenue Service (US)
Govt of British Columbia (Canada)
Montana DMV (US)
HM Revenue & Customs (UK)
Home Office (UK)
Ministry of Defence (UK)
Dept Trade and Industry (UK)
Dept of Social Security (Sweden)
Westchester County (US)
ICF Road Home (US)
50+ Local Councils (UK)
Small Business Service (UK)
Dept of Statistics (Netherlands)
Dept of Defence (Australia)
Dept of Veterans‟ Affairs (Australia)
Dept of Immigration (Australia)
NSW Government (Australia)
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Business
users create
the content
Unique tools
check rules
& show
implications
Quick, high
performance
deployment
• Business people write rules in Natural Language and therefore
no cost or risk associated with translation by IT
• Manage rules with business tools like Microsoft Word, Excel,
Visio reduces training requirement and allows for agility with
updates
• Policy Isomorphism providing confidence in and visibility of rules
• In-built simulation and scenario modelling gives capacity to
analyse and test policy and rule outcomes
• Detailed determination reporting documents how conclusions
were reached for audit purposes
• Automated and interactive rule testing to ensure that
deployments give correct results
• Fully SOA-enabled out-of-the-box providing low cost flexibility
• Integrated with Siebel
• High performance inference engine with Temporal Reasoning
architecture
Policy Automation Value Proposition
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• Dramatically improves time-to-market
for changes to policies and rules
• Simplifies development and
maintenance
• Ensures accuracy and consistency in
complex decisions and
determinations
• Reduces the burden on IT resources
• Assesses the impact of changes in
policy on customers and citizens
through “what if” scenarios
• Provides full audit-trail capability
The Resulting Key Benefits
Policy
Documents
Modelling
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Key Enabler: Policy Isomorphism (Patented)
13
The Source
Legislation or
Policy
Executable Document in Natural
Language that Business users can
understand and modifyCopy, Paste, Markup
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Key Enabler: Dynamic interactive interviews
14
Asks least number
of questions in
most logical order
to finalize a
determination
Questions
automatically
created from
source document
without need
for any
programming
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Key Enabler: Determination Reporting
15
Positive and
Negative
statements
automatically
created to explain
determination
Can be used to
build the content
for a letter of
advice or audit
Natural language
engine provides
personalization
and pronoun
substitution
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Key enabler: Temporal Reasoning(Patent Pending)
• Efficiently handle changes in:
– Eligibility, e.g. a change in minimum age, which takes affect on a certain date
– Rates, e.g. quarterly increase of a benefit rate
– Customer circumstances, e.g. number of children, marital status
• Benefits of the Oracle Policy Modeling approach to temporal
reasoning:
– Accurate calculation of payments even when notification is retrospective
– Expressing time-based logic is simple and concise
– Optimal performance, without forgoing transparency or decision audits
Annual
rate
increase
Annual
rate
increase
Annual
rate
increase
Claimant is
married
New childPay riseNew
child
New
eligibility
rules come
into effect
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Key Enabler: Business User Regression Testing
Clearly define and communicate
expected behavior for complex
scenarios
Ensure that between policy
versions only expected
differences occur
Instantly run 100s or 1000s
of test cases, and drill into
report results
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Key Enabler: Policy Visualization
Quickly find
dependencies
across sections,
and claimant data
Clearly identify
base data needed
for decision
making purposes
Find orphaned
sections of
legislation, and
identify unused
data items
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Key Enabler: Outstanding Performance
• Patented high-speed Linear Inferencing algorithm
– Faster than Rete which is widely used within BRE industry
– Better exploits modern CPU architectures
– More space efficient (stateless)
– Well suited to batch/transactional processing scenarios
• Results of benchmarking:
– Over 1 million premise evaluations/sec
– Using dual CPU Sun Fire 280R
0
0.5
1
1.5
2
2.5
3
0 2000 4000 6000 8000 10000 12000
# concurrent users
Averageresponsetime
(secs)
Oracle Web Determinations on 8 CPU Sun server
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Key Enabler: Multi Lingual capability
Model rules in your native
language in Word or Excel
Easily add new verbs as
needed
Integrate natural language
questions into any application
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Delivering rapid benefits to Dentists in Sweden
Challenges
• Implement new Dental Reform legislation in tight timescales
• Deliver new Dental benefits calculations and improve Fraud detection
• Complete in parallel with modernisation of Legacy back office systems
Results
• New legislation delivered in four months
• Highly scalable and performant solution
• Success achieved by „externalising‟ rules from core applications
• Business users built and now own the rules
• Benchmark for future modernisation projects
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Veterans’ Entitlements
Overview
• Department of Veterans‟ Affairs is
responsible for providing funding to former
Australian soldiers and service personnel
• It approves and provides funding for a
number of purposes, including
– Healthcare
– Pensions
– Home renovations
Challenges
• Highly critical Auditor General report on
veteran compensation payments
• Lengthy claim process: 6 months with
only 2 days or so work on each claim
(veterans dying before processing)
• Up to 12 staff members involved in
processing each claim
• Senior staff needed to approve claims
• Legislation allowed subjectivity and
discretion by assessors
• Assessments were inconsistent and
open to appeal
Results
• 60% more claims in 60% less time
• 80% productivity improvements
• Appeals reduced by 30% (cost of appeals
previously half the total cost)
• Reduction in the processing staff by 1 / 3
• Reduced reliance on senior staff / doctors
• Administrative savings alone of more than
$2m per annum
Solution
• Haley‟s technology enabled a
comprehensive re-engineering of the
compensation claims policy and process
• Solution delivered a system that guides
assessors through the rules governing more
than 250 medical conditions
• System enabled single assessor
processing, end to end
• Personalised evidence-gathering
questionnaires tailored to the client‟s
medical circumstances and service history
• Determination of rates of payments, if any
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Social Security Bank
Sociale Verzekeringsbank (SVB) is the organization that implements national insurance schemes in the Netherlands.
SVB makes sure that you, your children or your parents receive child benefit, AOW pension or Anw survivor benefit
correctly and on time. They have been doing this for more than a century, by order of the government. Some 4.9
million clients count on SVB.
SVB initiated a huge Customer Program called "Ten for Service“ with 3 key business drivers:
1) Enhance Customer Service with one integral customer view
2) Improve efficiency (reduction of 700 FTE out of 3.000 FTE) by less administrative paperwork
3) Become more adaptive and agile by centralising social service policies into one business rule engine
Products:
Siebel Public Sector Case Management, Oracle Policy Automation (Haley), Siebel Universal Customer Master (MDM),
Oracle Contact Center Anywhere, Siebel Public Sector E-Support, SOA suite for Oracle Middleware, Weblogic Suite,
OBI EE+.
Why Oracle:
Total Social Security solution footprint, proven track record in Social Security worldwide, vendor stability and viability
but also Haley as proven Policy Automation solution was clearly a key differentiator!
The Competition:
IBM bidding Websphere and BeInformed Business Rule Engine,
Logica bidding Tibco, Microsoft Sharepoint Portal and BeInformed Business Rule Engine
Accenture & Ordina were bidding Oracle (Siebel) and Beinformed Business Rule Engine
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Family and Normative Benefits Management
Hungarian State Treasury / Ministry of Finance
• Hungarian State Treasury is a central
budgetary agency whose major area of
operation comprise the execution and
control of the central budget,
management and allocation of funds
• Managing benefits for over a million
families, more than 1.7 million children,
530,000 cases per annum
• Managing normative benefits for
10,000+ schools and social institutions,
3,120 municipal authorities
The Background The Issue
Separate legacy systems operating
with:
• No consistency across the
departments –no accurate
visibility on payments and
benefits paid to families and
institutions
• Financial and operational
inefficiencies while working under
a very strong budgetary pressure
• Too complex benefit eligibility
rules
• Difficult to follow changes in
legislation
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The Solution The Benefit
• Interactive systems designed to
reflect complex legislative and
associated policies
• Path of life approach in the whole
application process (including
electronic archive)
• Automated judgment of claims
• Standardized and 360˚ view of cases
• Electronic data exchange with other
functions and organizations
(including harmonization of
processes with EU member states)
• Integrated Siebel CRM Public Sector
Case Management and OPA front-
end solution, with DB, WL, SOA, BI
and UPK
• Meet the objectives of the New
Hungarian Development Plan and
the IT Strategy of the Ministry of
Finance
• Integrated central registry of
individual and institutional
claimants
• Introduce on-line and proactive
customer services for the entire
lifecycle of all kinds of benefits
• Government channels to
standardize eligibility processes
and improve visibility of allocation
of funds
• Get prepared for the EU2012
directives for electronic
communications across
governments and services
Family and Normative Benefits Management
Hungarian State Treasury / Ministry of Finance (ctd)
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Tax and Revenues
Overview
• Department is responsible for Tax
revenues from 58M UK residents
• It also processes Tax credit claims and
is responsible for all UK ports plus
associated Customs procedures.
Challenges
• Inaccurate and inconsistent advice
being provided by staff
• Drive to reduce costs and increase use
of technology
• Complexity of legislation and frequency
of changes required.
• Reduce time to market for new
applications
• Improve the Citizen interaction
experience
• Closing the tax gap through efficient tax
collection
Results
• Up to Ten times quicker deployment
• First project saved £3M+
• Significant Call Centre headcount savings
• Increased Self Service usage
• Policy Automation part of five year
strategic plan.
Solution
• Improved accuracy consistency and
transparency of determinations by staff
• Quicker deployment of legislative changes
and new applications
• Business now owns policies and has
greater flexibility and control.
• Solutions deployed across multiple
channels including Self service
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Policy Automation goes mobile!
•Light rules on a mobile device, extends Siebel capabilities
•Java or .net version
•Rollout to 50 BAT Countries globally
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Example Outcomes with Oracle Policy Automation
Improved Agility and Customer Service with Reduced IT Project Costs
Area Without
OPA
With
OPA
Net
Benefit
%
Benefit
Business Rule Capture 200 days 20 days 180 days 90%
Logic Updates 90 days 3 days 87 days 97%
Call Center Training 60 days 5 days 55 days 95%
Business Logic Implem. $1M* $200K* 800K* 80%
Processing days / case 30 3 27 95%
Call Center calls / case 4 1 3 75%
Error Rate / 1000 cases 50 24 26 52%
Appeal Rate / 100 cases 5 3 2 45%
Source: OPA customer interviews. 2000-2009.
*Relative expenditure figures based on customer side-by-side study vs. other implementation techniques
Improved
Agility
Improved
CustomerService
LowerIT
ProjectCosts
Higher
Quality
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Summary: The Policy Automation Difference
• Handling business logic that requires:
• Modelling complex legislation, policy, regulation in a portable
Microsoft Office Document
• Temporal logic or data changes
• Frequent rule changes or updates
• Business rules managed in English or other languages
• While delivering:
• Explanations for how decisions were reached
• Interactive decision guidance
• Compatibility, integration and high performance
• Incomparable rule authoring lifecycle productivity
• Strong testing and maintainability
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Oracle Policy Automation
OPA Product Components and Architecture
Oracle Policy
Modelling
Oracle Web
Determinations
Oracle Determinations
Engine
Oracle Determinations
Server
CRM, Portal
HR, ERP
Middleware / Native Web
Services / Java / .NET
Other
Database
Oracle Policy Automation
Connector for Siebel
Oracle Policy Automation
Connector for SAP JCo
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Is one of the 5 leaders in Business Rules...
Haley has leading
solutions for
business analysts
across all verticals
Source: Forrester, “The Forrester Wave™: Business Rules Platforms, Q2 2008,” April 8, 2008.
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...but unique in Determinations
Haley’s eligibility
determinations
technology is
recognized as
unique as well as
being a leader
Source: Forrester, “The Forrester Wave™: Business Rules Platforms, Q2 2008,” April 8, 2008.