websphere ilog brms

WebSphere ILOG BRMSStephane MarouaniSales and Operations Manager, IBM ILOG A/NZ

Make change work for youIBM Insight Forum 09®

Wh t I illWhat I will coverThe Needs and Pains for ChangesgUnderstanding Business Rule ManagementHow BRMS and BPM work togethergExamplesConclusionCo c us o

Make change work for youIBM Insight Forum 09®

IBM WebSphere Software

CEO Worr About Change

83%

CEOs Worry About Change

83%Expect substantial or

very substantial

T i l

very substantial change

The change

Triples98%

gap

s98%Plan business model

h

Source: IBM Global CEO Study 2008

changes


Th Eff t f O i ChThe Effects of Ongoing Change

Reduces organizational agilityReduces organizational agilityDifficulties in responding to evolving business conditions

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

Increases load on ITKeeping applications/systems updated & current across the enterprise consumes time and resources


Business Decisions are Everywhere… yWe need to add an eligibility check to

Let’s create a special promotion for our best

Commissions / RoyaltiesCommissions / RoyaltiesUpUp--sell/Crosssell/Cross--sell offersell offer

meet the requirements of the new regulation.

customers.

UnderwritingUnderwriting Tax calculationTax calculationCompliance ScreeningCompliance Screening

Documentation RequirementsDocumentation Requirements

Commissions / RoyaltiesCommissions / Royalties

Fraud assessmentFraud assessment

ConfigurationConfiguration

BillingBilling

Accounting DispositionAccounting Disposition

Benefit calculationBenefit calculation

EligibilityEligibility PricingPricingProduct SelectionProduct Selection

Can we automateCan we automate approvals for this type

of order?

And Changing Frequently


Business Changes drive IT AgilityBusiness Changes drive IT AgilityBusiness Rules are everywhere

Issues

• Rules are hidden in code or isolated within the organization

• Changes are hard to track and

ApplicationsDocuments

Changes are hard to track and maintain over time

• Rules used by systems have to be programmed and require IT resources• Duplication and multiple versions of

the same rules• Lack of auditability, traceability

ProcessesPeople

• Decision changes cannot be easily tested or simulated


Th d i i i t iThe decision intensive process

Streamlined processStreamlined process

works fine today…

• Until

•New Product•New Product

•New Policy

•New Regulation

N P i i R l / M d l•New Pricing Rules / Model

•New Scoring Rules / Tables g /

• …


Th d i i i t iThe decision intensive process

Streamlined workflow

works fine until…

‘ ’Your ‘streamlined’ process in x months


The nightmare intensive processThe nightmare intensive process

Streamlined workflow

works fine until…

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

IBM WebSphere SoftwareIBM WebSphere Software

Introducing gBusiness Rules Management


Facilitating Change with BRMSFacilitating Change with BRMSOperational decisions correspond to business policies and business rules

Business Rule Management System

Rules areRules are Defined, Analyzed

and Maintained

User Tools

ApplicationsDocuments

Rules are Managed

User Tools

R l

Managed and Stored

Rule Repository

ProcessesPeople

Rules are Deployed, Executed

and Monitored

Rule ServerRule Server


V i N d A th O i tiVarying Needs Across the OrganizationI need easy,

efficient and reliable I need a

comprehensivepolicy change

delivery

comprehensive rules development and maintenance

environment

Line of Business Business Partner

Development Rule DeveloperRule Modeler

Business Analyst Business PartnerPolicy ManagerLine of Business

Manager

Business Analyst

Production IT Administrator

/

I need performance,scalability, monitoring

andSystem/Ops Manager andreliability of operations


Comprehensive Environments for Every UserComprehensive Environments for Every User IBM ILOG JRules

Rule StudioRule Studio R l T SR l T S

Rule Scenario ManagerRule Scenario ManagerRule StudioRule Studio Rule Team ServerRule Team Server

Developers Business UsersDevelopers Business Users

Rule Execution ServerRule Execution Server

Administrator©2009 ILOG, An IBM Company


Intuitive Rule Authoring English Like Syntax


Intuitive Rule Authoring Decision Tableg


Intuitive Rule Authoring Decision Treeg


Rule Solutions for Office Rule editing in MS Word


MS W d Edi iRule editing in MS ExcelRule Solutions for Office

MS Word Editingg


Benefits of WebSphere ILOG BRMSBenefits of WebSphere ILOG BRMSReduced lead

times for changesMore personalized li t i t titimes for changes

Reduced time to create or update product promotions

client interactions10x improvements in

acceptance of cross-sell offersp p pfrom weeks to hours

(retail)

acceptance of cross-sell offers (retail banking)

BRMS

Internal/external compliance

Business – IT alignment

Support of regulations that vary by customer

location and product line

Reduced new policy implementation by 50%

(financial services)(insurance)


BRM and BPM working togetherBRM and BPM working together


DNA of the Agile Enterpriseg pProcess Mgmt Rules MgmtDescribes the “how” of the core activities of the enterprise

Determines the “what” of enterprise activityactivities of the enterprise

Combines automatable and human elementsIs fundamentally concerned with operational efficiency of the

activityIs focused on automating decisionsIs fundamentally concerned with the operational intelligence of the

operational efficiency of the organization

organization


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

d i i l imanage decision logic

Streamline and stabilize processes by externalizingStreamline and stabilize processes by externalizing decision logic

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

Enable automation of complex, variable decisions

Effectively manage large and evolving sets of rules


Ch O I t A hChange Once, Impact AnywhereBRMSBusiness

Systems

User Tools

Rule RepositoryRule Repository

ExecutionServer

Transparent Transparent Decision ServiceDecision Service

Business Processes Business Decisions


Simplifying Business ProcessesSimplifying Business ProcessesBusiness Policy Externalization Agile BPM

ValidationValidation Rules

EligibilityEligibility Rules

PricingPricing RulesBusiness RulesRules


E lExamples


BRMS Usage Across IndustriesBRMS Usage Across Industries

Banking Insurance Capital Markets

Public Sector

• Loan Origination• Credit Decisioning• Sales Advisory• Payments

• Claims Processing• Underwriting• Quoting• Rating

• Automated Trading• Trade Order

Management• Accounting

• Claims Processing• Entitlement and

Benefit calculation• Fraud DetectionPayments

• AccountingRating

• Commissioningg

• Compliance KYC / AML

• On Boarding

Fraud Detection and Management

• Screening and Targeting

Telecom

• Offer Configuration

Transportation and Travel

• Promotions

Retail

• Online

Manufacturing

• Production quality• Offer Configuration• Order

Management• Fraud Detection

and Management

Promotions Management

• Loyalty Programs• Customer Service• Billing

Online recommendation

• Campaign Management

• Order

• Production qualitycontrol

• Order Management

• Billingg• Loyalty Programs• Network Monitoring

Billing• Contract

ManagementManagement

• Pricing

Billing• Contract

Management

26 © ILOG, All rights reserved


ILOG BRMS BPM E lILOG BRMS-BPM ExamplesCustomer Process Results

Vision Service Plan (VSP) Healthcare Claims • Speed to market gain over 50%Vision Service Plan (VSP) Healthcare Claims Processing

Speed to market gain over 50%• Changes to business rules now

implemented in days• Achieved significant productivity gain on

1M l i d thl b i1M+ claims processed on a monthly basis

Bank of the West Commercial Loan Origination

• 93% improvement for application approval (15 days to 1)

• Greater control & easier audits driving i ifi t t isignificant cost savings

Junta de Castilla y León Government Social Benefits

• Better service delivered to the citizens: clear & consistent application processing

Eligibility • Transparency & auditability of all scoring, eligibility & computation rules

• Rapid response to changes in central or regional government policiesregional government policies

27 ©2009 ILOG, An IBM Company

Entreprises are h ngr for Change

28

Entreprises are hungry for Change

IBM ILOG BRMS :

1. Brings Agility to your processes

2. Reduce lead time to change

3 Align Business and IT3. Align Business and IT

4. Reduce Cost of Compliancep

Questions

IBM Insight Forum 09®

Make change work for you