Enhancing Business Process Management with Business Rules · Manage end-to-end business rules...

Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent.© 2009 Fair Isaac Corporation. 1

Enhancing Business Process Management with Business RulesBlaze Advisor Webinar Series

September 23rd, 2009

Carole Ann MatignonVP, Product ManagementTwitter.com/CMatignon

© 2009 Fair Isaac Corporation. Confidential.2

Ability to Anticipate situations like thisAbility to Anticipate situations like this

As well as ability to React swiftlyAs well as ability to React swiftly

Competitive Survival depends onCompetitive Survival depends on

© 2009 Fair Isaac Corporation. Confidential.3

Pattern-Based Strategy4 Key Elements

TransparencyThe demonstration of corporate health and strategic use of transparency for

differentiation

Operational tempo advantageA focus on disciplines, activities,

technologies and resources that gives organizational leaders the mechanisms and controls they need to understand

how to enable consistent and repeatable organizational change in response to

changing patterns

Performance-driven cultureA focus on disciplines, activities,

technologies and resources that enables an organization to monitor leading indicators of change, and to use

performance to enable change through the alignment of organizational

resources to strategic performance metrics

Pattern seekingA focus on disciplines, activities,

technologies and resources that expose signals that may lead to a pattern that

will have a positive or negative impact on strategy or operations

Reference: Gartner, Introducing Pattern-Based Strategy, ID Number: G00168553, August 2009

© 2009 Fair Isaac Corporation. Confidential.4 © 2009 Fair Isaac Corporation. Confidential.4

Survival of the Fittest Pattern-Based Strategies & BPM

© 2009 Fair Isaac Corporation. Confidential.5

How does BPM relate to Pattern-based Strategy?

» Process Agility» Optempo Advantage» Transparency

» Business Activity Monitoring» Pattern Seeking» Performance-Driven Culture

© 2009 Fair Isaac Corporation. Confidential.6

But When More Exceptions Happen

We end up with Dirty Flows

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Data is missing

Application is Pre-approvedSilver

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Gold

Rate & Price

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Except in CA, VA and CO, where Medical Statement needs to be

reviewed for Applicants older than 65

Except for Renewal, where we can look up the details in our internal system

Except for Classic Cars

Except for Applicants with a risk score below 600 which need to be

declined automatically

Except for Luxury Cars that incur an additional premium in some

states

Except for Driver less than 25

Except when Parking on the Street is in neighborhood with slope > 30%

© 2009 Fair Isaac Corporation. Confidential.7

“Too Much Information Kills the Information”

Reference: Canary Wharf Traffic Lights, London

© 2009 Fair Isaac Corporation. Confidential.8

Pace of Change

» Processes evolve faster than code

» Business Rules changes even more frequently» Up to millions of business rules» Several daily changes in many

cases

» How do we synchronize those updates into Production?» Some may imply organizational

change» Some may imply changes in paper

forms distributed to brokers and resellers

» Some may be imposed by regulation

© 2009 Fair Isaac Corporation. Confidential.9 © 2009 Fair Isaac Corporation. Confidential.9

Survival of the Fittest The Missing Ingredient

© 2009 Fair Isaac Corporation. Confidential.10

Liberate your Business Rules from your Processes

» Define roles clearly» BRMS is responsible for capturing

and maintaining the business rules that make DECISIONS

» BPM is used to turn those decisions into ACTIONS by stringing those decisions together and routing the documents to the appropriate actor – a Rating system, a Fulfillment Service, a Storage area

» The Service-Oriented nature of those technologies make it a simple IT task» Business Rules deploy as a Service» Processes invoke Services natively

An IT Match Made in Heaven

© 2009 Fair Isaac Corporation. Confidential.11

A Simple Analogy

» BRMS is the Brain» It does not DO anything» It sits there and, when exposed with

relevant data, can make a decision

» BPM is the Nervous System» It carries information (Documents)

from the organs (Departments) to the Brain

» It transmit decisions taken in the Brain to the involved organs for a coordinated response

It is getting colder, I just turned the AC on, it’s normalIt is getting colder, it is getting late too, I need a jacket

Go to the closet, pick the black jacket that matches my outfit and put it on

© 2009 Fair Isaac Corporation. Confidential.12

What is Decision? What is Process?

AutoPolicy

AutoPolicy

Countr

y or S

tate i

s not

valid

Data is missing

Application is Pre-approvedSilver

Bronze

Gold

Rate & Price

IssuePolicy

Except in CA, VA and CO, where Medical Statement needs to be

reviewed for Applicants older than 65

Except for Renewal, where we can look up the details in our internal system

Except for Classic Cars

Except for Applicants with a risk score below 600 which need to be

declined automatically

Except for Luxury Cars that incur an additional premium in some

states

Except for Driver less than 25

Except when Parking on the Street is in neighborhood with slope > 30%

© 2009 Fair Isaac Corporation. Confidential.13

Achieving the Perfect Balance for maximum Agility and Governance

AutoPolicy

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Form Validation Rules

IssuePolicy

Knock Out Rules

Decline

Ask for Data

Tier Placement & Rating Rules

Get Credit Score

© 2009 Fair Isaac Corporation. Confidential.14 © 2009 Fair Isaac Corporation. Confidential.14

Survival of the Fittest Pattern-based Strategy & BRMS

© 2009 Fair Isaac Corporation. Confidential.15

Pattern-Based Strategy4 Key Elements

TransparencyThe demonstration of corporate health and strategic use of transparency for

differentiation

Operational tempo advantageA focus on disciplines, activities,

technologies and resources that gives organizational leaders the mechanisms and controls they need to understand

how to enable consistent and repeatable organizational change in response to

changing patterns

Performance-driven cultureA focus on disciplines, activities,

technologies and resources that enables an organization to monitor leading indicators of change, and to use

performance to enable change through the alignment of organizational

resources to strategic performance metrics

Pattern seekingA focus on disciplines, activities,

technologies and resources that expose signals that may lead to a pattern that

will have a positive or negative impact on strategy or operations

Reference: Gartner, Introducing Pattern-Based Strategy, ID Number: G00168553, August 2009

© 2009 Fair Isaac Corporation. Confidential.16

Optempo Advantage: Empower Business UsersLet them Speak “Business”

Decision Trees

Decision Tables

Scorecards

Templates

© 2009 Fair Isaac Corporation. Confidential.17

Optempo Advantage: Empower Business UsersTrack and Control Change

» Effective dates and “as of” execution capability

» Versioning» At rule level» At ruleset or project level

» Version History display» Change log» Comparison

» Rule promotion

» Queries

» Diff Queries with Visual Compare

» User-defined Management Properties

» Available» IDE» Rules Maintenance Application

© 2009 Fair Isaac Corporation. Confidential.18

Transparency: Manage End-to-End Business Rules LifecycleAccording to Governance Imperatives

» Rule verification» Rules are complete, coherent» Based on static analysis

» Rule validation» Rules behave as expected » Based on test data

» Lifecycle management» Rules are promoted to test then production» Based on predefined processes, manual

approval…

© 2009 Fair Isaac Corporation. Confidential.19

Pattern Seeking: Increase Strategy Performance

» Predict behavior likelihood» Combine domain expertise with

empirical knowledge» Pinpoint “at risk” population

» Likely to fraud» Likely to defect» Likely to churn» Likely to accept an upsell offer» Likely to repay

» Leverage those scores in cut-off business rules

© 2009 Fair Isaac Corporation. Confidential.20

Pattern Seeking: Increase Strategy Performance

» Optimize» Too many alternative options to

consider» Objective solution ranking—“best”» Some examples

» Product configuration» Scheduling» Planning

» More unusual examples» NFL scheduling

» Combine business rules and optimization routines» Eligibility then allocation

© 2009 Fair Isaac Corporation. Confidential.21

Performance-driven Culture: Decision Improvement

Test

Simulation

ImpactAnalysis

PredictiveModels

StrategyOptimization

Decision OptimizerAbility to predict the impact of decisions on bottom-lineAbility to inject additionalexternal conditions that may influence customer

behaviorRun optimization routines

to improve decision strategies based on

constraints and objectives

Decision SimulatorAbility to run what-ifscenarios based on data warehouse or

production dataInspect risks and

opportunities using reporting tools

Blaze AdvisorAbility to verify

that the rules behaveas expected

Run regression tests

SmoothTransition

Decision LevelOperational Tactical Strategic

Precision

© 2009 Fair Isaac Corporation. Confidential.22

Performance-driven Culture: Increase Confidence in Strategy Performance

» Prove with live evaluation» Champion / Challenger

strategy orchestration» Test-drive strategies

in production

» Decision Performance Management» Monitoring / alerting» Dynamic adaptation

Champion

Challenger

80%

20%

© 2009 Fair Isaac Corporation. Confidential.23 © 2009 Fair Isaac Corporation. Confidential.23

Collections

Governance

PrecisionKeep Your Job

Confidence

Agility

Debt

Cool New Technology

Hostile Take-Over

Cost

Headcount

Uncertainty

Transparency

Fraud

Compliance

Regulations

Stimulus Package

Speed

Improvement

© 2009 Fair Isaac Corporation. Confidential.24

Pattern-based StrategyBRMS Value-added Benefits

1.Empower business users Optempo AdvantageBecause of new regulations, competitive threats, different economic conditions, businesses must react fastTraditional IT implementation adds delays in time-to-market

2.Manage end-to-end business rules lifecycle TransparencyTime-to-production is heavily dependent on lifecycle processesCost of “bad decisions” is a luxury that businesses cannot afford

3.Increase strategy performance Pattern SeekingPrecisely predicting customer behavior can prevent operational costs down the road and improve customer satisfactionComparing all possible strategy alternatives is not always practical

4.Increase confidence in strategy performance Performance-drivenDeploying a new strategy introduces risk Deciding which strategy to deploy is often based on gut feel

© 2009 Fair Isaac Corporation. Confidential.25 © 2009 Fair Isaac Corporation. Confidential.25

Upcoming Webinars & Events

Business Rule Lifecycle Managementwith Blaze Advisor

October 7And many others – approx. every 2 weeks

Register at: www.fico.com/events

Gartner Business Process Management Summit 2009

October 5-7, 2009Hyatt Regency Grand Cypress – Orlando, FL

Gartner Symposium ITExpo 2009October 18-22, 2009

Walt Disney World Dolphin, Orlando, FL

Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent.© 2009 Fair Isaac Corporation. 26

THANK YOU

Carole-Ann Matignon+1 408 535 1691caroleannmatignon@fairisaac.com