WebSphere ILOG Business Rule Management System DRMS Overview

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© 2010 IBM Corporation

December 2009

WebSphere ILOG Business Rule
Management System (BRMS) Overview

© 2010 IBM Corporation

2

Agenda


Value Proposition of a Business Rule Management System (BRMS)


Synergies of BRMS and Business Process Management


Why WebSphere ILOG BRMS


What’s New in WebSphere ILOG BRMS 7.1

© 2010 IBM Corporation

3

Vast majority of CEOs experience the New Economic Environment
as distinctly different

More volatile

Deeper/faster cycles, more risk

More uncertain

Less predictable

More complex

Multi
-
faceted, interconnected

Structurally different

Sustained change

Not at all/to a limited extent

To a large/very large extent

To some extent

18%

13%

69%

21%

14%

65%

22%

18%

60%

21%

26%

53%

The New Economic Environment

Source: IBM Global CEO Study 2010

© 2010 IBM Corporation

4

Business Decisions are Everywhere…


We need to add an
eligibility check to meet
the requirements of the
new regulation.

Let’s create a special
promotion for our
best customers.

Can we automate
approvals for this type
of order?

And They Change Frequently

Benefit calculation

Fraud assessment

Eligibility

Pricing

Underwriting

Configuration

Tax calculation

Billing

Product Selection

Accounting Disposition

Compliance Screening

Documentation Requirements

Commissions / Royalties

Up
-
sell/Cross
-
sell offer

© 2010 IBM Corporation

5



Issues


Rules are hidden in code or isolated
within the organization


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


Decision changes cannot be easily
tested or simulated

The traditional (ad hoc) approach of
dealing with rule changes leads to…


Reduced organizational agility


Reduced employee productivity


Increased load on IT

Where Business Rules Typically Exist

Applications

Processes

People

Documents

Traditional Approach for Managing Decision Change

© 2010 IBM Corporation

6

Where Business Rules Typically Exist

Applications

Processes

People

Documents

B
usiness
R
ule
M
anagement
S
ystem

Rules are
Defined,
Analyzed and
Maintained

User Tools

Rules are
Stored
and
Shared

Rule Repository

Rules are
D
eployed,
Executed and
Monitored

Rule Server

Manage and Automate Decision Logic with BRMS


Eliminate decision silos


Make decision logic
accessible to Business and IT


Implement fine
-
grained,
context
-
specific logic

© 2010 IBM Corporation

7

Benefits of a BRMS Approach


Reduce time and resources
required to deploy changes


Author and maintain rules using
non
-
technical language


Express decision logic with
increased precision


Make decisions based on
specific context


Increase decision automation


Improve visibility and
understanding of how decisions
control systems


Lower maintenance costs;
respond quickly to change


Business experts can manage
and validate decision logic


Increase profitability of product,
pricing and promotional offerings


Customize decisions when
possible, standardize if needed


Improve process efficiency


Ensure compliance; enable
sharing/re
-
use of decision logic

What does it enable?

What is the value?

BRMS

© 2010 IBM Corporation

8

Telecommunications software provider

BRMS for order management

Business need:

Telecommunications companies commonly lease
lines or services from one another. Services orders:


Can be high in volume


Must adhere to complex rules and standards to be processed
accurately and efficiently.


Must be perfectly configured before they can be accepted and
service provided.

Solution:

Telecom provider has preloaded a set of rules covering
regulations; solution is customized with customer
-
specific rules.


Rules are used for validating data and automating order processing.


WebSphere® ILOG JRules BRMS provides an intuitive environment
for authoring and deploying rules, and a central repository for storing
rules outside the application.


Both business and IT personnel can update the rules, accelerating
the implementation of new policies and regulations.

Benefits:



Automated order processing


Faster service delivery


Ensured compliance


Industry
:
Telecommunications


Solution
:
Exchange Path


Deployment country:

Worldwide


Product
:

WebSphere® ILOG JRules BRMS

“I really appreciated the
architecture of IBM WebSphere
ILOG JRules. I could see that it
would
allow us to better deal
with the many changes that occur
during the order management
process

in telecommunications.
This architecture
lets us deliver
timely updates and be more
responsive to our customers
.




Telecommunications provider

© 2010 IBM Corporation

9

Agenda


Value Proposition of a Business Rule Management System (BRMS)


Synergies of BRMS and Business Process Management


Why WebSphere ILOG BRMS


What’s New in WebSphere ILOG BRMS 7.1

© 2010 IBM Corporation

10

IBM and Business Rule Management

WebSphere ILOG BRMS is the IBM technology for creating,
maintaining and implementing decision services…

Provides a convenient
communication channel
between IT and business teams

Allows for easy implementation
and reuse of business rules
across the enterprise

Offers flexible options for
progressive IT modernization

© 2010 IBM Corporation

11

Process Management

Rules Management


Defines and orchestrates the end
-
to
-
end process


Combines automation with user interaction


Is fundamentally concerned with
operational
efficiency

of the organization


Defines and executes specific decision points in processes
and applications


Is focused on automating and improving decisions


Is fundamentally concerned with the
operational
intelligence

of the organization

DNA of the Agile Enterprise

© 2010 IBM Corporation

12

Process Improvement with BRMS


Processes are too complex to maintain


Streamline processes by externalizing decision logic


Cost per transactions is too high


Increase decision automation


Update times are too long


Business users can manage decision lifecycle


Business and IT can easily collaborate for deployment of new rules


Business policies are not shared across processes or
applications


Manage business policies as an enterprise asset

Copyright© 2008
-

ILOG, Inc., All Rights Reserved

© 2010 IBM Corporation

13

WebSphere

ILOG BRMS

User Tools

Orchestrated Processes

Automated Business
Decisions

Transparent

Decision Service

BRMS Brings Enhanced Agility for BPM

Rule Repository

Execution Server


Streamline processes


Facilitate change


Re
-
use decision assets


Maximize automation


Improve governance

© 2010 IBM Corporation

14

Flexibility, Scalability of a BRMS + BPM Approach

Critical for a long
-
term process improvement progra
m


Different roles can drive process
and rules management


Implementation can be done in parallel or staged
according to priorities


Change once, apply everywhere


Ensure decision consistency when required by
policies or regulations


Decision changes tend to be more frequent


Externalizing rules allows processes to remain
more stable and streamlined


P
rocess

improvement team: process owners,
analysts, developers


Policy managers & analysts (e.g., pricing,
eligibility, risk/compliance specialists)

Process and decision changes
can have separate lifecycles and
governance requirements

Decision services can be shared
and reused across processes and
other applications

Processes and decision services
can be deployed independently

© 2010 IBM Corporation

15

Business challenge:


Spain’s passage of a law promoting care and autonomy for dependent
people compelled the agency to reengineer its IT systems to comply with
new regulations, as well as provide better service to citizens.

Benefits:



Faster delivery of social benefits with improved transparency of
decisions related to the benefits process


Rapid compliance with new legislation


Business user access to rules


What
-
if simulation of policy changes


History of rules

Spanish Regional Government administers social services with WebSphere ILOG BRMS

Solution:


Implementation of a centralized, process
-
oriented management system for
granting benefits, automating the agency’s work and shortening services
delivery. The new system is based on:


IBM FileNet® Business Process Manager as its business process
management (BPM) system.


WebSphere® ILOG JRules® BRMS for the development, deployment
-
execution and maintenance of the business rules governing the decisions
to be taken in the process.

Castilla y León Social Services Agency


Industry
:
Government


Solution
:
Social benefits eligibility


Deployment country
:
Spain


Products:

o
IBM WebSphere® ILOG JRules®

o
IBM FileNet® P8 Platform

“We identified the
business rule
management system as a key
component for improving the
agility of our IT architecture in
order to cope with regulatory and
internal policy changes
. We chose
IBM WebSphere ILOG JRules
because of the depth of its
functionality, robustness, ease of
use and integration.”



Project Director, Social Services Management

© 2010 IBM Corporation

16

Agenda


Value Proposition of a Business Rule Management System (BRMS)


Synergies of BRMS and Business Process Management


Why WebSphere ILOG BRMS


What’s New in WebSphere ILOG BRMS 7.1

© 2010 IBM Corporation

17

WebSphere ILOG BRMS: What Makes Us Better




The most complete BRMS solution


A comprehensive, collaborative solution

that meets the needs of all stakeholders
involved in managing decisions across the organization, and fits the widest range of
enterprise architectures.




Superior decision governance capabilities


Easy, safe and predictable management of decision logic

throughout its entire lifecycle,
from initial development and deployment, through monitoring and maintenance due to
ongoing change.




Recognized BRMS leadership


More than just technology
, IBM provides the services, expertise and community that
allow organizations to achieve long
-
term success in their use of BRMS.

© 2010 IBM Corporation

18

Most Complete BRMS Solution

Value: everything needed to build,
deploy and maintain rule
-
based
applications; fits the widest range of
enterprise architectures.


Specific,
comprehensive environments

for all business rule stakeholders


Flexible rule authoring

capabilities


Multi
-
locale rule management support,
fully localized rule language


Configurable interfaces
, embeddable components, comprehensive APIs


Robust,
scalable and configurable rule execution



Comprehensive platform support

fits into the enterprise IT stack

© 2010 IBM Corporation

19

Superior Decision Governance

Value: easy, safe and predictable rule management


Enterprise rules repository

provides central source of “truth”


Complete
rule management

environment
for business users


Role
-
based

controls


Comprehensive decision insight capabilities

(user
-
configurable navigation,
queries and reports, rule analysis, version comparisons, rule testing and simulation)

What is the impact of this
change?”

What was changed in the
latest revision?

Who approved the change
for deployment?”

© 2010 IBM Corporation

20

Recognized BRMS Leadership

Value: ensuring success for implementing enterprise software
solutions through our
ability to support the customer
.



Strongest worldwide presence


Technology leadership


Industry
-
leading methodology
and best practices


Best community support


#1 in market share



More customers, with
representation across every
major industry

© 2010 IBM Corporation

21

Examples of Customer BRMS Applications

Banking


Loan Origination


Credit
Decisioning


Sales Advisory


Payments


Accounting

Insurance


Claims Processing


Underwriting


Quoting


Rating


Commissioning

Capital
Markets


Automated Trading


Trade Order
Management


Accounting


Compliance KYC /
AML


On Boarding

Public
Sector


Claims Processing


Entitlement and
Benefit calculation


Fraud Detection
and Management


Screening and
Targeting

Telecom


Offer Configuration


Order
Management


Fraud Detection
and Management


Loyalty Programs


Network Monitoring

Transportation
and Travel


Promotions
Management


Loyalty Programs


Customer Service


Billing


Contract
Management

Retail


Online
recommendation


Campaign
Management


Order
Management


Pricing

Manufacturing


Order
Management


Billing


Contract
Management


© 2010 IBM Corporation

22

Top 5 U.S. transportation and logistics company

Transport services centralized billing

Business need:


This transport services company operates out of more than 300
sites in the U.S., Canada and Mexico; the company depends
heavily on their IT systems to meet contract provisions in its
billing and payroll systems.

Solution:



Centralization of multiple systems in order to ensure
consistency and compliance.


Using the WebSphere® ILOG JRules BRMS,
in just
nine months

the company created a flexible contracts
management environment.

Benefits:



Increased revenue through billing of contractual activities
that were being missed with manual systems


More accurate payroll management through automation


Faster billing cycles and more comprehensive invoices
derived from rules for rate management


Centralized rule repository ensures enterprise
-
wide
compliance with corporate and industry regulations


Industry
:
Logistics


Solution
:
Billing and payroll


Deployment country:

North
America


Product
:

IBM® WebSphere® ILOG JRules

“IBM WebSphere ILOG JRules
has been a great investment for
us. It
gives us compliance

with
Sarbanes
-
Oxley and automates
where only manual processes
were used.

Operating efficiency
is up and missing dollars are
coming in.
We have visibility into
our business that we never had
before
.




T
ransport services company

© 2010 IBM Corporation

23

BRMS

Benefits of WebSphere ILOG BRMS

Reduced lead

times for changes

Fast, reliable updates of
customer loyalty offers, deployed
directly by business users

(retail.)

Internal/external
compliance


Support of regulations that
vary by customer

location and product line

(insurance)


More personalized
client interactions

Automated, interactive
screening for over 40 different
government programs
(local gov.)

Business


IT
alignment

Business user control of rules
r
educed new policy
implementation by 50%

(pension admin.)

© 2010 IBM Corporation

24

Agenda


Value Proposition of a Business Rule Management System (BRMS)


Synergies of BRMS and Business Process Management


Why WebSphere ILOG BRMS


What’s New in WebSphere ILOG BRMS 7.1


© 2010 IBM Corporation

25

Line Of Business

Production

Development

WebSphere ILOG Business Rules Product Family

Design

Manage

Share

Deploy

JRules BRMS

Rule Studio

(Eclipse
-
based)

Decision Validation

Services

Rules for COBOL

Rule Execution

Server for Java

Rules for .NET BRMS

Rule Studio

(Visual Studio
-
based)

Common Usage

Rule Execution

Server for .NET

Rule Team

Server

Rule Repository

Transparent

Decision Services

Rule Solutions

for Office

Enterprise
-
wide

© 2010 IBM Corporation

26

Rule Management for Business Users



Web
-
based collaborative environment


Easy
-
to
-
Use, Easy
-
To
-
Learn


Powerful Governance Capabilities

What’s New


Intellirule editor support


Interactive, contextual rule editor currently
available in Rule Studio and Rule Solutions
for Office


Quick edit feature for Rule Solutions
for Office ruledocs


Allows editing of individual rules/decision
tables in MS Word and Excel without
requiring user to go through the publish
process


New analysis capability


Check project completeness

looks for gaps
in rulesets and complements the existing
project consistency analysis

© 2010 IBM Corporation

27

Guided Rule Editing in Microsoft Office


Extends rule maintenance across the organization


“Ruledocs” have full understanding of object model and rule syntax


Integrated with Rule Team Server

What’s New


Ruleflow editing in MS Word


Webdav support for RSO ruledocs

© 2010 IBM Corporation

28


Meets the needs of business and IT


Test rules before deploying


Assess business impact of changes

Business User Testing and Simulation

What’s New


Champion


Challenger reports


Side
-
by
-
side graphical comparisons of
different runs of a simulation scenario


Testing sample for Rules for .NET


Sample shows .NET developers how to
build test scenarios that allow business
users to use MS Excel as a testing
mechanism

© 2010 IBM Corporation

29


Eclipse and Visual Studio
-
based IDEs


Comprehensive app development capabilities


Source code control integration

Rule Studio for .NET

Rule Studio for Java

Rule Management for IT/Development

What’s New


Support for Eclipse 3.4 (RS Java)
allows shell sharing with WID, WBM,
RSA and Rational Developer for z


Incorporate rule
-
based scorecards
as part of a decision service (RS
Java)


Selective push synchronization with
Rule Team Server


Sample for creating test suites in
Excel (RS .NET)

© 2010 IBM Corporation

30

Managed Rule Execution


Centralized management of deployed rules


Highly scalable, configurable rule engine


Runs on widest range of platforms

What’s New


Ruleset caching configuration to
improve execution performance


Define the lifespan of cached rulesets


Eliminates unneccessary parsing of
rulesets after idle time or when dealing
with large numbers of rulesets


Additional usage statistics for
administrators


.NET engine deployment for
JRules apps

© 2010 IBM Corporation

31

BRMS for Legacy Applications

Rules are
generated as
COBOL copybook
for execution in
IMS, CICS, batch

B
usiness
R
ule
M
anagement
S
ystem

Rules are
Defined
,
Analyzed and
Maintained

User Tools

Rules are
Stored
and
Shared

Rule Repository


Increased agility for management of automated business
decisions in COBOL applications


Improved visibility of decision logic


Enables progressive application modernization strategy

What’s New


Enhanced ability to import, verbalize and manage
the business model for the COBOL project


Additional JRules rule authoring capabilities for
generation of COBOL code


Improved error reporting of authored rules to
ensure COBOL code generation is correct

© 2010 IBM Corporation

32

Line Of Business

Production

Development

Design

Manage

Share

Deploy

Create with Confidence


Eclipse or Visual Studio
-
based IDEs; easily extend rule projects to Web
-
based rule management environment


Customizable natural language and graphical rule authoring

Change with Confidence


Web
-
based environment provides centralized access to rules and governed
rule management


Integrated business user testing and simulation


Guided authoring through Web environment or Microsoft Office Word/Excel

Deploy with Confidence


Integrated monitoring and management of production rule applications


Cross
-
platform decision services for SOA deployment


Decision Warehouse for improved compliance auditing and reporting

Share with Confidence


Rule repository provides single source of truth


Role
-
based access control of business policies


WebSphere ILOG BRMS 7.1


Manage Rules with Confidence

Enterprise
-
wide

© 2010 IBM Corporation

33

Australian Health Insurance Fund

Straight Through Processing (STP) for Health Insurance Claims

Business need:


The company
needed a claims assessment module that could
process thousands of claims per day, while supporting new
offers, regulations and business demands.

Solution:


Selected the IBM® WebSphere® ILOG Rules for .NET BRMS:


Business users can directly access the rules and implement
policy changes in less than a day.


Rules for .Net provides a fast, highly scalable rule engine
capable of real
-
time performance.

Benefits:



Faster implementation time


Transparent business policies


Direct rule access for business users


Improved regulatory compliance


Industry
:
Insurance,

Healthcare


Solution
:
Claims Processing


Deployment country:

Australia


Product
:

IBM® WebSphere® ILOG Rules
for .NET

“WebSphere ILOG BRMS was the
right strategy. Not only have we
realized our vision of straight
-
through processing
, WebSphere
ILOG Rules for .NET has
enabled
us to become a leader in the field
of claims automation
.



CIO, Australian Health Insurance Fund


© 2010 IBM Corporation

34

ILOG BRMS Benefits



Implementing change in a way that is easy, safe and
predictable



Reducing the time and cost required to develop and
maintain operational systems that are affected by
change



Providing a way for IT and Business functions to work
collaboratively on defining and updating the decision
logic that drives operational systems



Increasing the visibility of how systems use and are
affected by decision logic

© 2010 IBM Corporation

Q&A