© Amit Mitra & Amar Gupta Build business components to facilitate Speed Power Deliver World Class Business Systems Components to customers in support of

© Amit Mitra & Amar Gupta

Build business components to facilitate

Speed Power

Deliver World ClassBusiness SystemsComponents to

customers’ in supportof their need forspeed, agility and

power, in a dynamicbusiness environment,constantly pressured

by change andinnovation

Agility

• Agile business processes• Speedy business processes • Power in the marketplace• Compressed Systems Development

Timelines with fewer resources


“The basic economic resource is no longer capital, nor natural resources, nor labor.

It is, and will be Knowledge. Value is now created by ‘productivity’ and ‘innovation’, both applications of

knowledge to work”- Peter Drucker in Post Capitalist Society

Business Components will encapsulate knowledge of the corporation’s business rules

• EXACTING MARKET EXPECTATIONS– Quality of products and services

– Response time compression

– Ease of doing business

• ACCELLERATING COMPETITION– Technology drivers

– Risk Drivers

• NEED INNOVATION– New opportunities, threats

– Technology, e/m-commerce drivers

– Global & new markets

– Evolving regulations & guidelines

• ADAPT TO MOVING TARGETS– Reduce time to market

– Scalable, Nimble business processes

• TARGETTED PRODUCTS– Niche/granular market segments

– Customized products & services

• RESOURCE CRISIS– Staff availability

– Staff retention

– Staff Learning/leverage

• CUST. LOYALTY/RETENTION

• STAFFING COST

• INFORMATION GLUT

• SYSTEMS OBSTACLE TO CHANGE– Lost time = missed opportunity

– Defects and operational failure = lost custom

• MANAGE DIVERSITY– Customer risk/ change aversion

– Legacy & New products, platforms, services

– Plethora of product, service platform configurations

– No/limited control of operating environments

» Dictated by Market forces & customers’ legacy, cost & business drivers

– Proliferating interfaces between ever increasing numbers of stakeholders, business partners and processes

• CHAOS & COMPLEXITY

31.1% of projects get cancelled before they ever get completed, 52.7% projects overrun their initial estimates by an average of 189%

- Survey of 8380 firms in Application Development Trends, Jan 1995

Only 18% of I/T spending produced value in 1998

- Howard Rubin in CIO EnterpriseNov 15 1998


THE PROBLEM• CHANGE FACILITATION

• BUSINESS THRIVES ON CHANGE– INTENSE COMPETITION

– INCREASING REGULATION

– NEW OPPORTUNITIES, THREATS

• SYSTEMS– OBSTACLE TO CHANGE

– MULTIPLICITY OF IMPACT

– COST

• LOST TIME & MISSED OPPORTUNITY

• THE SOLUTION– REFLECT FACTS ABOUT THE REAL WORLD IN SYSTEMS AS THEY

ARE REPRESENTED IN THE REAL-WORLD

– BUSINESS MODEL

4© Amit Mitra & Amar Gupta

TECHNOLOGY RULES

INTERFACE RULES(HUMAN & AUTOMATION)

INFORMATIONLOGISTICS

BUSINESSRULES

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Capture common business patterns in components of real-world knowledge and meaning- Reusable business configurations to facilitate business (re)engineering and innovation

Optimize Technology Platform Performance

- Opportunities for improving platform performance, platform reliability and technology standards

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SPECIFICATIONComponent

Performance optimized component for select platforms

ACTIVE PROTOTYPING

COMPONENTS

ACTIVE PRODUCTION

COMPONENTS

Component

Business Opportunityor

Environmental Change

Process automation Opportunities

- Automated instruments and sensors

- Screens& Reports- Potential for re-engineering presentation, format, accuracy and timing of information

Usually Customized for each organization

-Potential automated data mapping facility

-Potential for re-engineering flow, and availability of information

Our ApproachOur Scope

BUSINESS

TECHNOLOGY RULES



BUSINESSRULES

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Business Rules

Business Opportunityor

Environmental ChangeUsually specific to an

organization

Well entrenched industry standards available, to which organizations often add custom rules

Well entrenched industry & vendor specific standards

Encapsulate and normalize common business patterns in Knowledge artifacts

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POLICIES, LEGISLATION,REGULATION

PROCESS ANDWORKFLOW

INFORMATIONTECHNOLOGY

“Consider that an enterprise is a thinking entity…many of these thoughts exist as business rules”- Barbara von Halle in the20th Century

"Verily, knowledge is of these three: the firm sign, the just duty, and the established practice.- Prophet Mohammed in the7th Century

BUSINESSSTRATEGYPRODUCT /

SERVICEOFFERING

PHYSICALINFRASTRUCTURE

ORGANIZATION/PEOPLE

What is a Business Rule?

What is a Business

Knowledge?


ABSTRACT BUSINESS RULES



RESOURCE FEED & WORK PRODUCT

UNLOADING MECHANISMS

RESOURCES &WORK PRODUCTS

IMPLEMENTATION MECHANISMS

“PURE” ABSTRACT BUSINESS RULES

BUSINESS PROCESS AUTOMATION MECHANISMS THAT DO NOT DIRECTLY INVOLVE INFORMATION PROCESSING

BusinessRules

BusinessProcess

AutomationRules

ProcessDefinition

Business(re) definition

Any rule that connects business meanings to technology

ANDIs visible to EITHER applications programmers or users

FUNCTIONAL FEATUREAny rule that connects business meanings to technology

ANDIs visible to BOTH applications programmers and users


“PURE” ABSTRACT BUSINESS RULES

“New employees must be oriented.” “New employees must be oriented within one month of joining the firm.” “New employees will be allowed two working days to get oriented.” “A physical object must be located in a single geographical place at any given moment in

time.” “All products will be considered untested when they are first acquired” (a rule about an

initial condition of a business object. We will revisit initial conditions again in section 2 of this chapter.)

“Each product will be considered saleable only after it has been tested.” “Send shipment” “Take customer order”

RESOURCE FEED & WORK PRODUCT

UNLOADING MECHANISMS

RESOURCES &WORK PRODUCTS


MECHANISMS THAT DO NOT DIRECTLY INVOLVE INFORMATION PROCESSING

“Send shipment on a truck.”■ The truck, a mechanism for implementing “Send Shipment,” does not directly involve

information. ■ Shipment is a real world business concept and Truck, a real world object, hence “Send

shipment on a truck” is a business, not business process automation, rule.“Bake Cookie in Oven.”

■ The oven, a mechanism for implementing the real world abstract process “Bake Cookie,” does not directly involve information.

■ Cookie, Oven and “Bake Cookie” are all real world objects, hence “Bake Cookie in Oven” is a business rule.

× “YYY Database management systems will assign a default zero value to all numeric fields” is a rule about an initial condition, but not a business rule because it is a rule imposed by a technology platform (the database management system) and not the real world of business.

×“Accumulate telephone call records in the message file” is not a business rule because it involves information movement from the telephone switch to a file.

× “Key customer order into the order entry screen” is a business process automation, not business, rule because it is an assertion about the information capturing mechanism for implementing a business rule.

NOTBUSINESS

RULES

BUSINESS RULES




BUSINESS PROCESS AUTOMATION

Source of information: Files, records, data elementsDestination of information: Files, records, data elementsRecords & Data elements transported, stored or stagedRetention periods, storage media, volumes, growth, and security of information stored or stagedInitial condition of any or all of these items (Initial conditions apply to objects in all layers of the Architecture of Knowledge)Relationships between any of the following: data flows, data stores, initial conditions of these items, retention periods, storage media, volumes, growth, and security of information stored or staged.

FACTS ABOUT BUSINESS INFORMATION FLOW & AVAILABILITY(visible to users or applications programmers)

“Store orders in order file,” and “Store unmatched customers’ telephone usage in exception file” are rules about where to store information.

“Match customer on order entry screen with customer in customer file” and “Obtain customer credit rating from S&P” are rules about data flow/sourcing.

“Store customer telephone call records file on disk” and “Store customer telephone call records four 10 ten years old in tape files” are a rules about storage media that belongs to this layer.

“Preserve customer telephone call for 10 years” is a rule about availability of data that belongs to this layer. “YYY Database management systems will assign a default zero value to all numeric fields.” is a rule about an initial

condition of stored business information that maps to quantitative domains imposed by choice of a technology platform (the database management system), not the real world. It relates real world business information to the technology platform. Hence it is a rule of Business Process Automation. It belongs to the information logistics layer because it is a rule about the initial condition of business data.

“An employee’s security clearance in the personnel file must match that in the departmental security clearance file” is a relationship between data stores.

EXAMPLES

INFORMATION LOGISTICS





×“If memory overflows, dump its contents to disk.”

–Both computer memory and disk are parts of the technology platform.

–The rule does not refer to any business information. Refers to flow of information among technology objects internal to the platform that executes software.

–Therefore it is not a rule of Business Process Automation.

× “Store the last three orders in the screen buffer area.”

–Although orders are business information, the Screen Buffer Area is internal to the technology platform.

–Movement to and from, and storage of information in, buffer areas is transparent to application programmers

–Therefore this is a technology rule

–(if this is not transparent to application programmers, it will belong to the Business Process Automation layer, but not be a functional feature of data flow because programmers would hide this technical complexity from users).

? Assume a nationally distributed radar network is tracking air traffic.

–An “airplane” business object in the system reflects each airplane in the air.

–The information system is physically distributed across nodes of a computing network that runs the application on computers located at each major airport and dynamically optimizes resource use by moving processes and data between nodes.

? QUESTION: Business Process Automation or Technology rule? “Move the business object that represents an airplane in the information system to the node that is nearest to the physical airplane at any given time”

■ The rule involves flow of business information between nodes. ■ Nodes are information technology objects. ■ The rule connects a business concept (airplane) to a technology concept (network node)

ANSWER: Technology rule:

–Information movement between nodes is automatic

–Invisible to applications programmers and users.

–Moves information between technology platforms

EXAMPLES OF RULES THAT ARE NOT INFORMATION LOGISTICS RULES





RULES OF INFORMATION EXCHANGE BETWEEN INFORMATION SYSTEMS AND EXTERNAL ACTORS: PEOPLE, INSTRUMENTS, ROBOTS, SENSORS, EFFECTORS, OTHER INFORMATION SYSTEMS

INTERFACERULES

Interface schedule and timing– Batch timing, schedule for refreshing business information being presented at the interface (update cycles),

information exchange failures, faults and other anomalous events, availability of the interface and time-outs Responsibility/Approvals for the interface and its operation Interfacing file layout, interfacing record layout, interfacing data elements, corresponding formats and

units of measure (if any), encryption Security, including access permission or denial rules (there could be several kinds of permission –to

know an item exists, to see its contents and to update its contents) Presentation of information to a human or automated actor, such as Accuracy, Format (including size

limitations), Units of measure, Sort sequences, screens, reports etc. Terminal devices/Special equipment specifications File audit & control specifications (such as record balancing or check digit processing) File or information transfer methods Relationships between any of these





“Key orders into order entry screen” and “Scan item with wand” are interface rules because they describe mechanisms for capturing business information.

“Display service location on a map” and “Show stock prices in fractional format” are interface rules because they are rules about business data presentation and formatting at the system’s human interfaces.

“Highlight all data entry errors in red,” and “The twenty fifth line of the screen will be reserved for error messages” are interface rules because they are rules about human interface standards (screens and data presentation formats).

“Report revenues to the nearest $1000” is an interface rule because it is a rule about the accuracy with which business information must be presented to an actor (human or not.)

“Allow only subscribers access to stock prices” is an interface rule because data access rules are rules about an actor’s (human or not) interface to business information stored in the system.

“Update customers’ S&P credit ratings at Close of Business every day” is an interface rule because it is a rule about timing of an interface to an S&P business data source.

RULES OF INFORMATION EXCHANGE BETWEEN INFORMATION SYSTEMS AND EXTERNAL ACTORS: PEOPLE, INSTRUMENTS, ROBOTS, SENSORS, EFFECTORS, OTHER INFORMATION SYSTEMSINTERFACE

RULES

“Present order data in customer number sequence” is an interface rule rule about presenting business information to a human or automated actor . “Present the Welcome Screen at the Start of Business every day” and “Generate report at Close of Business” are interface rules because they are

rules about the timing of human interfaces. “The system must be continuously available 24 hours a day, 7 days a week” is also an interface rule because it is a rule about the timing of the

interface from an actor’s perspective.Assume that a depository markets a software product for buying and selling financial instruments it holds in trust. Customers who install the

software must be activated to allow them to access information on financial instruments held by the depository. In this system “Activate New Customer” is an interface rule of Business Process Automation because it is a rule about enabling, i.e. setting the condition, of a human interface to make it available to customers.

“Scan barcode” is an interface rule because it is a rule about the format for presenting business information to the application“Convert barcode to EBCDIC characters” is an interface rule because it is a rule about format conversion of business information.“Commit information when the user hits the enter button” and “Commit the record on confirmation that the transmission is complete” are interface

rules because they involve business information transfer methods.“Alphanumeric fields in XX database Management systems cannot be larger that 1024 characters” is an interface rule because:

– It relates a business information formatting constraint to a technology platform (DBMS)–Is a functional feature (visible to users and application programmers).

SMS is a data transfer technology for cellular telephones and wireless hand held devices. The rule “SMS messages cannot exceed 160 characters” is a (business process automation) interface rule because it is visible to both users and applications programmers of devices that support SMS.

“Send batched transactions in compressed format,” is an interface rule because it is a rule about the format in which business information must be presented to another system and is visible to application programmers.





SOME INTERFACES ARE INTERNAL TO TECHNOLOGY PLATFORMS

EXAMPLES OF RULES THAT ARE NOT INTERFACE RULES“Disallow access to memory addresses 1 to 5000.” Memory addresses are internal to

the working of the technology platform“Accept information in GSM format” is an interface rule in the technology layer

because– It is a rule about the format in which data must be presented to the wireless

device that belongs to the technology layer (GSM is a standard for sending data in wireless telephony).

– The rule is a communication protocol internal to the design of the technology platform: the wireless device..

“Convert the signal from CDMA to GSM format” is a rule about format conversion that belongs to the technology layer because it is internal to the technology platform– CDMA and GSM are two different standards for wireless telephony.

Communications softwareModem RequirementsTransmission RatesFile blocking factors and other technology dependent rules

transparent to application programmers and usersLine characteristics & protocols●Communications protocols●RULES ABOUT THESE WILL BE TECHNOLOGY RULES


TECHNOLOGY RULES

TECHNOLOGY PLATFORM CONSTRAINTS & PERFORMANCE RULES

EXAMPLES OF TECHNOLOGY RULES “If memory overflows dump its contents to disk” is a technology rule because it refers to technology

concepts internal to the platform for executing software. “Disallow access to memory addresses 1 to 5000” is a technology rule because it is internal to the

technology platform for executing application software. “Model ZZZ computers will physically execute only one thread at a time” is a technology rule because

it is a rule about processes internal to the technology platform. “The platform must have at least 256 MB of RAM to run the trading system” and “The trading system

must be run on Windows 98 operating system” are technology rules because they are relationships between objects that are internal to the working of the technology platform: RAM is computer hardware, and both Windows 98 and Trading System are computer software.

EXAMPLES OF RULES THAT ARE NOT TECHNOLOGY RULES

To download stock prices in real time, you must have a DSL modem. –Stock price is business information. –This rule describes an interface mechanism required to access Stock Price, hence it is an interface rule.

To watch the concert in real time, you must install streaming media software and a T1 communications line.

–Concert is business information. –T1 communication line is a technology concept–This rule describes an interface mechanism required to access Concert, hence it is an interface rule.

16© Amit Mitra & Amar Gupta

TECHNOLOGY RULES



BUSINESSRULES

Vision

Proce

ssEve

nts

Value

Policy

/Stra

tegy

Excep

tions

Capture common business patterns in components of real-world knowledge and meaning- Reusable business configurations to facilitate business (re)engineering and innovation

Optimize Technology Platform Performance

- Opportunities for improving platform performance, platform reliability and technology standards

Bu

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BUSINESSPATTERNS

DATA MOVEM

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PERFO

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Process automation Opportunities

- Automated instruments and sensors

- Screens& Reports- Potential for re-engineering presentation, format, accuracy and timing of information

Usually Customized for each organization

-Potential automated data mapping facility

-Potential for re-engineering flow, and availability of information

BUSINESS RULES


INTERFACERULES

TECHNOLOGYRULES

A single Business Rule may be implemented by one or more information flows

Each information flow may support one or more interfaces

Each Interface may be realized by one or more platforms/technologies

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•Small new market •Well established market

•A few new customers •Many customers

•A few low value orders •High volume, repeat orders

•Firm is relatively unknown •Firm is well known, has a good reputation

•Orders usually taken during sales calls to customers’ offices

•Most customers place orders by phone

•Orders keyed into salesmen’s laptop computers

•Consolidated in a PC at the branch office at COB

•Emailed once a week to head office

•Orders keyed into PCs located in call center

•No customer validation against master file •Orders validated against S&P rating on master file

•Checked against availability of items on inventory file

•Inventory is reserved for the customer on the inventory master file

– If items unavailable off the shelf, call center gives the customer fulfillment date; customer may decline order

•Orders stored on the order master file–Order confirmation notice mailed to customer

•Declined orders put in Declined Orders file–Management reviews declined orders monthly

–Reviews opportunity, reasons for lost orders.

Business Rule = Take Order Business Rule = Take Order

BU SIN ESS

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IN FO RM ATION

LOGISTIC SINTERFACE RULE S(Huma n &Automation)

T ECH NO LOG Y

R UL ES

A s ingl e business ru le

may be imple ment ed by oneor more information f lows

E ach i nformation flow m ay

suppor t one or m or e interfaces(hum an or auto mation)

Each interface may be

rea li zed by on e or m orepla tforms /technologies

BUS IN ESS PR O CES S A U TO MA TIO N

INFORMATION

LOGISTICS

A BUSINESS EXAMPLE

Documents

© Amit Mitra & Amar Gupta Build business components to facilitate Speed Power Deliver World Class Business Systems Components to customers in support of