Description
It explains the system with the help of loan approval process.
Business Rules Management Systems (BRMS)
1
Business Rules Management Systems
BRE: The concept BRE: The drivers BRE: The lifecycle
Q&A
2
BRE: The Concept
3
Some common everyday scenarios . . .
? Gold card customers have a limit of 20000; Silver 10000
? unless they have had an average daily balance of greater than 5000 for the previous 3 months
? If Market value drops by 10 million - Exit
? all index stocks
? Patients who spend more than 5 hours in surgery recovery will be considered more serious cases and will attract 10 more points of funding
? if mechanical ventilation is required
If we have a closer look at all of the above …
4
These policy defining decisions . . .
? Are owned by the business ? Are dynamic, can change frequently and have no time constraint
? They can change based on the competitor offerings ? They can change based on the organization’s strategy ? They can change based on the customer demands
? Are technology and system independent ? Such decisions can be delegated entirely outside of the system boundary ? These decisions are the CONTENT and NOT permanent systems infrastructure
5
Some more examples. . .
? Example 1:
? IF a person is a senior citizen, THEN provide a 5% discount ? In this case, the variable information includes:
? the age at which a person is considered to be a senior citizen the amount of the discount.
? Example 2:
? IF a person drives more than 150 miles a week to and from work, THEN add $25 to their auto insurance premium ? In this case, the values that might change are:
? the number of miles ? the amount of money to add to the premium
These are some typical examples of BUSINESS RULES
6
So what is a business rule?
? Anything under the ?Business Jurisdiction?
? which the business can enact, revise, and even discontinue
? Anything an organization uses to make an operational decision
? Such as: business policies, formulas and calculations, data validations, regulations
? Business rules are If-Then statements
? e.g: if the applicant has sufficient income, low debt and a good credit history, then grant the loan
? Some Definitions:
? A statement that defines or constrains some aspect of the business which is intended to assert business structure or to control or influence the behavior or the business? ? ?
(Business Rules Group)
?A formal and implementable expression of some user requirement? ?The practices, processes, and policies by which an organization conducts its business?
7
Business rules explained
? Business rules are the logical statements of what to do (what actions to take) in different situations ? Business rules define how to respond to data or events associated with a business transaction ?
IF
some conditions are fulfilled
THEN
take some actions
? Business rules embody your business logic and policies ? Some examples from the insurance domain:
? if applicant’s smoking is true then set applicant’s application_status to ?Scutinize? ? if applicant’s accidents exceeds 2 then set the pricing_factor of applicant’s application to 1.20
8
Business Rules Are Everywhere
? Business rules take many forms:
? ? ? ? Policies, practices, and procedures used in operational decisions Strategies based on historical data and business objectives Segmentation and decision trees Decision tables (look-up charts)
? Business rules are found in :
? The company policy manuals ? The lines of code in your IT applications
? COBOL, Java, C#, VB
? The departmental memos ? A piece of paper stuck to a cubicle wall ? The minds of the experienced employees
9
Some typical examples - BRM in Insurance
Improve risk assessment and streamline process with predictive modeling and rules management
Underwriting
Commission Calculations
Automated sales commission calculations based rules applied to various categories and variables: (e.g. dealer type, type of sale, contract terms, etc.)
Account Renewal Review
Increase account retention and target insured participants for intervention to maximize savings / reduce costs through automated review and re-pricing
Reduce losses from fraud, abuse and errors. Fraud
10
Some typical examples - BRM in Insurance
Ensure that new sales of insurance products meet customer suitability requirements. Incorporate factors of risk tolerance, term length, age, health, stated investment preferences. Comply with state laws regarding insurance sales. Avoid regulatory fines
Product Suitability
Regulatory Compliance
Rule based management of compliance with latest federal, state, industry and internal regulations. Product offering, replacement products, source of funds Rule based control of the entire claims process including call scripting, data acquisition and data validation. As policies or requirements change, IT systems can quickly be updated. Improve speed and consistency
Claims
Enterprise Decision Management
Provide universal rule engine and common decisioning platform across multiple organizations
11
BRE: The Drivers
12
Before the ?Rule Age…?
13
Drawbacks of this traditional approach
? Business Rules are defined/embedded in code ? Business Rule development is done by IT folks & not by business people ? Knowledge of business rules are available in minds of people or policy’s and procedures
? Scenario based testing is a time consuming task
? Changes require developers intervention ? Requires System downtime ? Not easy to reuse/standardize for the whole organization
14
The advent of the ?Rule Age…?
15
Organize, Standardize & Automate Rules
Policy Manuals Regulations
Enterprise Rules Repository
Legacy Systems
More of a business concept that a programming concept
Experienced Personnel
Helps business find, update, enforce, audit & analyse policies through 1 central location, consistently
16
Deliver Rules Consistently to All Channels
Web Self Service Automated Response Live Agent
Centralized Business Rules
Call Center
Email
Direct Mail
17
How a BRE tool fits in an application
Insurance premium is $3500
BRE Rule Repository
Rule Service
application server / web server
Underwriting Application
Enterprise Data
a decision is needed
“What is the premium for this life insurance policy ?”
user history, transaction records, available services, content
18
Advantages of this approach
? Control of business decisions lie with the business folks and not with the IT resources
? Helps define and document business decisions which can be reused across organizations
? Make organizations adaptable, agile & flexible
? Allow for easy management and maintenance with changes to be effected in only one place
Consistency Agility Reusability
19
Business rules: Then and now…
? The old school
? Business rules are written as procedural statements embedded in application code ? Each codified rule can only be executed in the program in which it is written ? Rule changes require reprogramming. A simple rule change can sometimes require extensive reprogramming ? Each application that uses a new or changed rule must be reprogrammed
? The new school
? Business rules are written in a rule language and stored and managed separately from application code ? Rules can be shared among multiple applications and processes ? Rule changes can be made quickly - sometimes by business users without programming skills
? Changes to the centralized rule store are available to all applications at once
The proponents of this new school are armed with a ?BRMS?
20
A BRMS…
We would like to take business rules from here… to here.
Business Rules
Business Rules Engine (BRE) / Business Rules Management System (BRMS) - A powerful framework for the rapid creation, deployment, and maintenance of business rule management systems?
Application Code
Application Code
? Separate the rules so that the business knows where to find them, can apply them
consistently
? Trace rules so that the business knows where the rules come from (policies), why
they exist (objectives) & where they are utilized (procedures, automation)
? Externalize rules so that the business knows what they are & can challenge them ? Position rules for change so that the business can be agile and change at the
desired pace
21
What then is a BRMS?
? A BRMS or Business Rule Management System is a software to manage and support the business rules of an organisation or enterprise ? A BRMS (business rules management system) can bridge the gap between the business and IT by giving control of the logic — and even the code — to business analysts ? A BRMS is an automated system in which the rules are separated, logically and perhaps physically from other aspects of the system and shared across data stores, user interfaces and other applications ? A BRMS is a system that includes facilities to enable:
? ? Full life cycle management and maintenance of business rules by business analysts Assured consistency by representing business knowledge uniformly with centralized control
?
Facilities for testing, scenario generation and impact analysis.
22
23
Why Use A BRMS?
? Separation of business rules from the applications that use them allows non-programmers to maintain business logic without modifying software.
? Reduces development time and significantly reduces maintenance and enhancement cost. Studies show that 15 to 50% of a typical annual IT budget is spent on making, testing, and implementing rule changes in applications.
? Increases flexibility and reduces time-to-market.
? Promotes visibility and understanding of business policies and procedures.
? Promotes consistent decision making.
? Forces order to the rules and policies that govern business.
24
What one can do with a BRE?
? Automating procedures for
? ? ? ? ? claims processing customer service management credit approval and limit management problem resolution sales
? Planning and scheduling of
? ? ? ? advertising timetables and meetings budgets product design and assembly
? Advice giving and decision support in such fields as
? ? ? ? benefits eligibility sales promotions and cross selling credit collection strategy marketing strategy
? Diagnosis and detection of
? ? ? ? ? medical conditions underwriting referrals fraud (e.g. telephone or credit card fraud) faults in machinery invalid and valid data
? Matching and recommending
? ? suitable products to clients strategies to investors
? Classification of
? ? ? customers products and services Risks
? Compliance with
? ? external and legal regulations company policy
25
Benefits to the business users
? Change is no longer unnecessarily disruptive and costly
? Business people are closer to the system specifications
? Business rules are documented and accessible through a repository, no longer hidden in code
? When error messages match to the business rules themselves, business people are able to act with complete knowledge, explanations, and business justifications behind a transaction
? Systems are delivered faster and for less cost
? Conclusions reached from data warehousing or data mining are more meaningful when you can associate them with active business rules
26
Applying The Right Tool At The Right Time
Go for a BRE if:
? Your application involves significant
decision making. ? Your rules are complex. ? ?
DON’T think of a BRE if:
? Your rules are mostly static and computational. Your rules are simple, even if numerous. Speed and throughput are more important than flexibility and maintenance cost. ? You do not have organizational commitment to rules technology and rulesbased management.
?
?
Your rules change frequently.
Your rules need to be shared across multiple applications and organizations.
?
You are in a volatile industry sector where
change is the norm or regulation is extensive and complex.
27
BPM & BRE Integration
? Rules can be invoked from any activity in a process
? Does not require duplication across process model
? Rules and Process can be versioned independently
? Rules Authoring and Modeling is a separate activity
28
BRE: The Lifecycle
29
There are various ways to express rules, depending on audience
Original Business Conversation or Statement or requirement Natural Language Business Expression Business Rules in Templates Programmed Business Rule
Example: Driver must be of appropriate age where appropriate age varies by state.
Example: A valid driver in NJ must be at least 17 years old or If a person’s age is less than 17 and the person lives in NJ, then the person is an invalid driver.
Example: If driver.stateof-residence-code = ?NJ? and driver.age >= 17 then driver.appropriate-ageflag = ?yes?
Example: BRE Engine
Rambling Or ?as they say it?
Discovery
Analysis
Design and Implementation
30
BRMS Lifecycle
Scope the Business Process
BR Architect/BR Analyst
Rule Discovery & Harvesting
Harvest Business Rules to Support Each Decision
BR Analyst & Business
Business Oriented
Technical Oriented
Rule Automation
Create or Modify Model(s) of Business Terms and Facts
BR Fact Modeler/BR Analyst
Document Process Model to the Decision Level
BP Modeler/BR Analyst
Create or Modify Glossary of Business Terms
BR (Glossary) Analyst
Design and Generate Code for Business Rules
BR Designer/Developer
Rule Analysis
Modify Glossary for Formal Terms
TR Analyst
Create or Modify Model of Formal Terms and Facts
TR Analyst
Perform Quality Analysis on Business Rules
BR Analyst
Formalize Business Rules
TR Analyst
Analyze Business Rules
BR Analyst & TR Analyst
Validate Business Rules for the Business
BR Analyst & Business
31
BRE Project Execution Lifecycle
? Create Business case: Identify Need for a BRE Initiation ? Factors used: Performance and Scalability, Cost and Architecture and Integration with other systems ? Identify the Rule Sources Rule Discovery ? Establish the rule guidelines ? Identify the business rules and the rule sets ? Create Rule Book/Repository Rule Modeling, Simulation & Optimization ? Model the rule logic ? Test the rules against sample data
Architecting/ Designing rules
? Design the data models (Entity Relationship model, Object Model, Class Diagram)
? Design the behavior models (Decision Tables, Decision Matrices) ? Design the rule architecture (Rule Types and the sequencing between rules)
Building the Rule Application
? Code the business rules and the interfaces
Testing the Rule Application
? Verify that the rules have been coded and captured correctly
Deployment & Training
? Deploy the rules ad test if they execute as they are supposed to in a real life scenario
32
BRMS Activity Framework
Business Analyst User (could be a person or system) Developer
Rules Harvesting
Run
Develop Rules
Rules Design
Rules Engine
Rules Application Development
Rule Authoring System
Rule Repository
33
Types of Business Rules
Derivation rule: A rule that uses an algorithm to return a value. It can return any type of value that makes sense in the business context in which it is used. For example, a derivation rule may calculate a discount or compute the total price of an order.
Constraint rule: A rule that confirms that an operation has met all of its obligations, and that a particular constraint or edit has been met. For instance, it may check that a value entered by an external user is within legal bounds. A ConstraintReturn object contains a boolean value so that if it is false, it can contain information that can be used to produce an external message explaining what constraint was not met.
Invariant rules: A rule that ensures that multiple changes made by an operation are properly related to one another.
Script rules: Scripts implement "micro-workflow" or electronic performance support. They are small, variable pieces of business process which can provide assistance to end-users to get the most from the application. 34
Different Terminology in Business Rule
Business Activity Rule : You write business rules in Business Action Language (BAL), which has four parts: definitions, if, then, and else. The conditions of the business rule are listed in the if part, and the actions to be performed are listed in the then and else parts. You define variables for the business rule in the definitions part.
35
Contd..
Decision Table Rule : Decision tables are rules composed of rows and columns. They are used to lay out in tabular form all possible situations that a business decision may encounter, and to specify which action to take in each of these situations.
36
Contd..
Decision Tree Rule : Decision trees are composed of branches that have a condition node as
their root, and end with actions. Decision trees allow you to manage a large set of rules with
some conditions in common but not all.
37
Contd..
Rule Flow Rule : A ruleflow is a representation of the application business logic. The ruleflow defines tasks and the connections needed to specify the flow between them. You specify how tasks are chained together: how, when, and under what conditions they will be executed.
38
Rule Repository – Business Users Perspective
39
Hello Customer
? Define a Simple Decision Table ? Customer Robinson is a married lady who calls our auto-answering service at 12:30 PM, we want to response with "Good Afternoon, Mrs. Robinson!"
40
Hello Customer – Business Solution
41
Medication Rules
? Define a Recommended Dosage
?
If the recommended medicine is ?amoxicllin, Cefuroxime, Levofloxcin
?
If patient is older than 60, 15
?
If Patient Creatinine Level is more than 1.4, 50
?
Recommended dose should be 500 mg every 24 hours for 14 days
?
Recommended dose should be 250 mg every 24 hours for 14 days
42
Medical Dosage – Business Solution
43
Thank You
44
Case Scenario: Loan Approval
S. No. 1 Events and Facts Peter Johnson applied for $50K loan Loan Status Rejected Comments Insufficient Income. But a bank manager found that their valuable client with the same address can be a guarantor $100K surplus is a sound proposition. But Conducting more detailed analysis, the manager notices a joint borrowing on Mr. Johnson file which is not with his wife
2
Joe & Dawn Johnson agreed to be Peter’s guarantors. They have a Housing Loan with Available Equity = $300K and Remaining Debt = $150K
Accepted
3
Joe Johnson and his partner Bill Smith (50/50) have a Business Loan for $200K with Available Equity $52K
Bill & Susan Smith have a Housing Loan with Available Equity = $240K and Remaining Debt = $150K Their son Tommy Smith has $50K loan secured by his parents
Accepted
The remaining $26K surplus still meets requirements. But Bill and Susan Smith have other facilities outstanding against their property as well as the business loan
Still a surplus. But a lending clerk also notices a secured personal loan in the name of Tommy Smith for $50K secured by his parents Available Equity $42K < $50K.The business debt would be $8,000 short on cover
4
Accepted
5
Rejected
45
46
A Web-based Front End: Loan Application
47
Rejected. Requests a Guarantor
48
Guarantying Security (Joe&Dawn Johnson)
49
Related Security (Joe Johnson &Bill Smith)
50
Related Security (Bill&Susan Smith)
51
Related Security (Tommy Smith)
52
No Related Securities Anymore
53
Peter Johnson’ Loan Application Declined ($8K less)
54
doc_654311057.pptx
It explains the system with the help of loan approval process.
Business Rules Management Systems (BRMS)
1
Business Rules Management Systems
BRE: The concept BRE: The drivers BRE: The lifecycle
Q&A
2
BRE: The Concept
3
Some common everyday scenarios . . .
? Gold card customers have a limit of 20000; Silver 10000
? unless they have had an average daily balance of greater than 5000 for the previous 3 months
? If Market value drops by 10 million - Exit
? all index stocks
? Patients who spend more than 5 hours in surgery recovery will be considered more serious cases and will attract 10 more points of funding
? if mechanical ventilation is required
If we have a closer look at all of the above …
4
These policy defining decisions . . .
? Are owned by the business ? Are dynamic, can change frequently and have no time constraint
? They can change based on the competitor offerings ? They can change based on the organization’s strategy ? They can change based on the customer demands
? Are technology and system independent ? Such decisions can be delegated entirely outside of the system boundary ? These decisions are the CONTENT and NOT permanent systems infrastructure
5
Some more examples. . .
? Example 1:
? IF a person is a senior citizen, THEN provide a 5% discount ? In this case, the variable information includes:
? the age at which a person is considered to be a senior citizen the amount of the discount.
? Example 2:
? IF a person drives more than 150 miles a week to and from work, THEN add $25 to their auto insurance premium ? In this case, the values that might change are:
? the number of miles ? the amount of money to add to the premium
These are some typical examples of BUSINESS RULES
6
So what is a business rule?
? Anything under the ?Business Jurisdiction?
? which the business can enact, revise, and even discontinue
? Anything an organization uses to make an operational decision
? Such as: business policies, formulas and calculations, data validations, regulations
? Business rules are If-Then statements
? e.g: if the applicant has sufficient income, low debt and a good credit history, then grant the loan
? Some Definitions:
? A statement that defines or constrains some aspect of the business which is intended to assert business structure or to control or influence the behavior or the business? ? ?
(Business Rules Group)
?A formal and implementable expression of some user requirement? ?The practices, processes, and policies by which an organization conducts its business?
7
Business rules explained
? Business rules are the logical statements of what to do (what actions to take) in different situations ? Business rules define how to respond to data or events associated with a business transaction ?
IF
some conditions are fulfilled
THEN
take some actions
? Business rules embody your business logic and policies ? Some examples from the insurance domain:
? if applicant’s smoking is true then set applicant’s application_status to ?Scutinize? ? if applicant’s accidents exceeds 2 then set the pricing_factor of applicant’s application to 1.20
8
Business Rules Are Everywhere
? Business rules take many forms:
? ? ? ? Policies, practices, and procedures used in operational decisions Strategies based on historical data and business objectives Segmentation and decision trees Decision tables (look-up charts)
? Business rules are found in :
? The company policy manuals ? The lines of code in your IT applications
? COBOL, Java, C#, VB
? The departmental memos ? A piece of paper stuck to a cubicle wall ? The minds of the experienced employees
9
Some typical examples - BRM in Insurance
Improve risk assessment and streamline process with predictive modeling and rules management
Underwriting
Commission Calculations
Automated sales commission calculations based rules applied to various categories and variables: (e.g. dealer type, type of sale, contract terms, etc.)
Account Renewal Review
Increase account retention and target insured participants for intervention to maximize savings / reduce costs through automated review and re-pricing
Reduce losses from fraud, abuse and errors. Fraud
10
Some typical examples - BRM in Insurance
Ensure that new sales of insurance products meet customer suitability requirements. Incorporate factors of risk tolerance, term length, age, health, stated investment preferences. Comply with state laws regarding insurance sales. Avoid regulatory fines
Product Suitability
Regulatory Compliance
Rule based management of compliance with latest federal, state, industry and internal regulations. Product offering, replacement products, source of funds Rule based control of the entire claims process including call scripting, data acquisition and data validation. As policies or requirements change, IT systems can quickly be updated. Improve speed and consistency
Claims
Enterprise Decision Management
Provide universal rule engine and common decisioning platform across multiple organizations
11
BRE: The Drivers
12
Before the ?Rule Age…?
13
Drawbacks of this traditional approach
? Business Rules are defined/embedded in code ? Business Rule development is done by IT folks & not by business people ? Knowledge of business rules are available in minds of people or policy’s and procedures
? Scenario based testing is a time consuming task
? Changes require developers intervention ? Requires System downtime ? Not easy to reuse/standardize for the whole organization
14
The advent of the ?Rule Age…?
15
Organize, Standardize & Automate Rules
Policy Manuals Regulations
Enterprise Rules Repository
Legacy Systems
More of a business concept that a programming concept
Experienced Personnel
Helps business find, update, enforce, audit & analyse policies through 1 central location, consistently
16
Deliver Rules Consistently to All Channels
Web Self Service Automated Response Live Agent
Centralized Business Rules
Call Center
Direct Mail
17
How a BRE tool fits in an application
Insurance premium is $3500
BRE Rule Repository
Rule Service
application server / web server
Underwriting Application
Enterprise Data
a decision is needed
“What is the premium for this life insurance policy ?”
user history, transaction records, available services, content
18
Advantages of this approach
? Control of business decisions lie with the business folks and not with the IT resources
? Helps define and document business decisions which can be reused across organizations
? Make organizations adaptable, agile & flexible
? Allow for easy management and maintenance with changes to be effected in only one place
Consistency Agility Reusability
19
Business rules: Then and now…
? The old school
? Business rules are written as procedural statements embedded in application code ? Each codified rule can only be executed in the program in which it is written ? Rule changes require reprogramming. A simple rule change can sometimes require extensive reprogramming ? Each application that uses a new or changed rule must be reprogrammed
? The new school
? Business rules are written in a rule language and stored and managed separately from application code ? Rules can be shared among multiple applications and processes ? Rule changes can be made quickly - sometimes by business users without programming skills
? Changes to the centralized rule store are available to all applications at once
The proponents of this new school are armed with a ?BRMS?
20
A BRMS…
We would like to take business rules from here… to here.
Business Rules
Business Rules Engine (BRE) / Business Rules Management System (BRMS) - A powerful framework for the rapid creation, deployment, and maintenance of business rule management systems?
Application Code
Application Code
? Separate the rules so that the business knows where to find them, can apply them
consistently
? Trace rules so that the business knows where the rules come from (policies), why
they exist (objectives) & where they are utilized (procedures, automation)
? Externalize rules so that the business knows what they are & can challenge them ? Position rules for change so that the business can be agile and change at the
desired pace
21
What then is a BRMS?
? A BRMS or Business Rule Management System is a software to manage and support the business rules of an organisation or enterprise ? A BRMS (business rules management system) can bridge the gap between the business and IT by giving control of the logic — and even the code — to business analysts ? A BRMS is an automated system in which the rules are separated, logically and perhaps physically from other aspects of the system and shared across data stores, user interfaces and other applications ? A BRMS is a system that includes facilities to enable:
? ? Full life cycle management and maintenance of business rules by business analysts Assured consistency by representing business knowledge uniformly with centralized control
?
Facilities for testing, scenario generation and impact analysis.
22
23
Why Use A BRMS?
? Separation of business rules from the applications that use them allows non-programmers to maintain business logic without modifying software.
? Reduces development time and significantly reduces maintenance and enhancement cost. Studies show that 15 to 50% of a typical annual IT budget is spent on making, testing, and implementing rule changes in applications.
? Increases flexibility and reduces time-to-market.
? Promotes visibility and understanding of business policies and procedures.
? Promotes consistent decision making.
? Forces order to the rules and policies that govern business.
24
What one can do with a BRE?
? Automating procedures for
? ? ? ? ? claims processing customer service management credit approval and limit management problem resolution sales
? Planning and scheduling of
? ? ? ? advertising timetables and meetings budgets product design and assembly
? Advice giving and decision support in such fields as
? ? ? ? benefits eligibility sales promotions and cross selling credit collection strategy marketing strategy
? Diagnosis and detection of
? ? ? ? ? medical conditions underwriting referrals fraud (e.g. telephone or credit card fraud) faults in machinery invalid and valid data
? Matching and recommending
? ? suitable products to clients strategies to investors
? Classification of
? ? ? customers products and services Risks
? Compliance with
? ? external and legal regulations company policy
25
Benefits to the business users
? Change is no longer unnecessarily disruptive and costly
? Business people are closer to the system specifications
? Business rules are documented and accessible through a repository, no longer hidden in code
? When error messages match to the business rules themselves, business people are able to act with complete knowledge, explanations, and business justifications behind a transaction
? Systems are delivered faster and for less cost
? Conclusions reached from data warehousing or data mining are more meaningful when you can associate them with active business rules
26
Applying The Right Tool At The Right Time
Go for a BRE if:
? Your application involves significant
decision making. ? Your rules are complex. ? ?
DON’T think of a BRE if:
? Your rules are mostly static and computational. Your rules are simple, even if numerous. Speed and throughput are more important than flexibility and maintenance cost. ? You do not have organizational commitment to rules technology and rulesbased management.
?
?
Your rules change frequently.
Your rules need to be shared across multiple applications and organizations.
?
You are in a volatile industry sector where
change is the norm or regulation is extensive and complex.
27
BPM & BRE Integration
? Rules can be invoked from any activity in a process
? Does not require duplication across process model
? Rules and Process can be versioned independently
? Rules Authoring and Modeling is a separate activity
28
BRE: The Lifecycle
29
There are various ways to express rules, depending on audience
Original Business Conversation or Statement or requirement Natural Language Business Expression Business Rules in Templates Programmed Business Rule
Example: Driver must be of appropriate age where appropriate age varies by state.
Example: A valid driver in NJ must be at least 17 years old or If a person’s age is less than 17 and the person lives in NJ, then the person is an invalid driver.
Example: If driver.stateof-residence-code = ?NJ? and driver.age >= 17 then driver.appropriate-ageflag = ?yes?
Example: BRE Engine
Rambling Or ?as they say it?
Discovery
Analysis
Design and Implementation
30
BRMS Lifecycle
Scope the Business Process
BR Architect/BR Analyst
Rule Discovery & Harvesting
Harvest Business Rules to Support Each Decision
BR Analyst & Business
Business Oriented
Technical Oriented
Rule Automation
Create or Modify Model(s) of Business Terms and Facts
BR Fact Modeler/BR Analyst
Document Process Model to the Decision Level
BP Modeler/BR Analyst
Create or Modify Glossary of Business Terms
BR (Glossary) Analyst
Design and Generate Code for Business Rules
BR Designer/Developer
Rule Analysis
Modify Glossary for Formal Terms
TR Analyst
Create or Modify Model of Formal Terms and Facts
TR Analyst
Perform Quality Analysis on Business Rules
BR Analyst
Formalize Business Rules
TR Analyst
Analyze Business Rules
BR Analyst & TR Analyst
Validate Business Rules for the Business
BR Analyst & Business
31
BRE Project Execution Lifecycle
? Create Business case: Identify Need for a BRE Initiation ? Factors used: Performance and Scalability, Cost and Architecture and Integration with other systems ? Identify the Rule Sources Rule Discovery ? Establish the rule guidelines ? Identify the business rules and the rule sets ? Create Rule Book/Repository Rule Modeling, Simulation & Optimization ? Model the rule logic ? Test the rules against sample data
Architecting/ Designing rules
? Design the data models (Entity Relationship model, Object Model, Class Diagram)
? Design the behavior models (Decision Tables, Decision Matrices) ? Design the rule architecture (Rule Types and the sequencing between rules)
Building the Rule Application
? Code the business rules and the interfaces
Testing the Rule Application
? Verify that the rules have been coded and captured correctly
Deployment & Training
? Deploy the rules ad test if they execute as they are supposed to in a real life scenario
32
BRMS Activity Framework
Business Analyst User (could be a person or system) Developer
Rules Harvesting
Run
Develop Rules
Rules Design
Rules Engine
Rules Application Development
Rule Authoring System
Rule Repository
33
Types of Business Rules
Derivation rule: A rule that uses an algorithm to return a value. It can return any type of value that makes sense in the business context in which it is used. For example, a derivation rule may calculate a discount or compute the total price of an order.
Constraint rule: A rule that confirms that an operation has met all of its obligations, and that a particular constraint or edit has been met. For instance, it may check that a value entered by an external user is within legal bounds. A ConstraintReturn object contains a boolean value so that if it is false, it can contain information that can be used to produce an external message explaining what constraint was not met.
Invariant rules: A rule that ensures that multiple changes made by an operation are properly related to one another.
Script rules: Scripts implement "micro-workflow" or electronic performance support. They are small, variable pieces of business process which can provide assistance to end-users to get the most from the application. 34
Different Terminology in Business Rule
Business Activity Rule : You write business rules in Business Action Language (BAL), which has four parts: definitions, if, then, and else. The conditions of the business rule are listed in the if part, and the actions to be performed are listed in the then and else parts. You define variables for the business rule in the definitions part.
35
Contd..
Decision Table Rule : Decision tables are rules composed of rows and columns. They are used to lay out in tabular form all possible situations that a business decision may encounter, and to specify which action to take in each of these situations.
36
Contd..
Decision Tree Rule : Decision trees are composed of branches that have a condition node as
their root, and end with actions. Decision trees allow you to manage a large set of rules with
some conditions in common but not all.
37
Contd..
Rule Flow Rule : A ruleflow is a representation of the application business logic. The ruleflow defines tasks and the connections needed to specify the flow between them. You specify how tasks are chained together: how, when, and under what conditions they will be executed.
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Rule Repository – Business Users Perspective
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Hello Customer
? Define a Simple Decision Table ? Customer Robinson is a married lady who calls our auto-answering service at 12:30 PM, we want to response with "Good Afternoon, Mrs. Robinson!"
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Hello Customer – Business Solution
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Medication Rules
? Define a Recommended Dosage
?
If the recommended medicine is ?amoxicllin, Cefuroxime, Levofloxcin
?
If patient is older than 60, 15
?
If Patient Creatinine Level is more than 1.4, 50
?
Recommended dose should be 500 mg every 24 hours for 14 days
?
Recommended dose should be 250 mg every 24 hours for 14 days
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Medical Dosage – Business Solution
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Thank You
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Case Scenario: Loan Approval
S. No. 1 Events and Facts Peter Johnson applied for $50K loan Loan Status Rejected Comments Insufficient Income. But a bank manager found that their valuable client with the same address can be a guarantor $100K surplus is a sound proposition. But Conducting more detailed analysis, the manager notices a joint borrowing on Mr. Johnson file which is not with his wife
2
Joe & Dawn Johnson agreed to be Peter’s guarantors. They have a Housing Loan with Available Equity = $300K and Remaining Debt = $150K
Accepted
3
Joe Johnson and his partner Bill Smith (50/50) have a Business Loan for $200K with Available Equity $52K
Bill & Susan Smith have a Housing Loan with Available Equity = $240K and Remaining Debt = $150K Their son Tommy Smith has $50K loan secured by his parents
Accepted
The remaining $26K surplus still meets requirements. But Bill and Susan Smith have other facilities outstanding against their property as well as the business loan
Still a surplus. But a lending clerk also notices a secured personal loan in the name of Tommy Smith for $50K secured by his parents Available Equity $42K < $50K.The business debt would be $8,000 short on cover
4
Accepted
5
Rejected
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A Web-based Front End: Loan Application
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Rejected. Requests a Guarantor
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Guarantying Security (Joe&Dawn Johnson)
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Related Security (Joe Johnson &Bill Smith)
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Related Security (Bill&Susan Smith)
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Related Security (Tommy Smith)
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No Related Securities Anymore
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Peter Johnson’ Loan Application Declined ($8K less)
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doc_654311057.pptx