BPM 101 Overview of Business Rules Management with SAP NetWeaver CE.pdf

Rajagopalan Narayanan, SAP NetWeaver PM, Business Rules ManagementSoumya Chatterjee, SAP NetWeaver PM

BPM 101 Overview of Business Rules Management with SAP NetWeaver CE

© SAP 2008 / SAP TechEd 08 / BPM101 Page 2

Disclaimer

This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.


Agenda

1. What is Business Rules Management?1.1. What are Business Rules?1.2. Conventional Methods for Enforcing Business Rules.1.3. Typical Customer Challenges with Conventional Methods1.4. Attacking These Challenges with Business Rules Management1.5. BRM in the Real World – A Real World Case Study

2. SAP NetWeaver Business Rules Management2.1. Technical Building Blocks of NW BRM2.2. Value Proposition for Customers2.3. Roadmap for Business Rules Management

3. Using SAP NetWeaver BRM3.1. Technical Usage Scenarios Overview3.2. Using BRM with SAP NetWeaver BPM3.3. Using BRM from ABAP Applications

4. Q & A

What are Business Rules?

What are Business Rules?Business Rules represent the corporate policies, business guidelinesPolicies and Guidelines drive business decisionsBusiness Rules are owned by Business, not by IT

Interest Rate Calculation – An Example


Examples from Across Industries

Telecom Content Based Customizable Billing

Insurance New Products, Claims Settlement, Agent Commissions

Mortgage Eligibility, Pricing, Underwriting

Logistics & Shipping Parts Management, Duties Calculations, Pricing Calculations

Public Sector Tax Calculations, Customs Duties, Land Regulations, License Fee Calculations

Stock Exchanges Alert Engines

Education Fee Calculations, Course Selections

CRM Quotations, Campaigns, Discounts, Recommendations, Pricing, Cross Sell

HealthCare Claims, Patient Monitoring, Fraud Detection

Banking Relationship based Pricing, Scorecards, Credit Decisioning

Rules are Ubiquitous. Rules are Everywhere !!


Types of Business Rules – A Compilation

Validation Rules Claim Validation, Loan Application Validation

Rate Calculation Rules

Computation of Taxes, Interest Rates, Sales Commissions, Premiums, Bonuses, Duties

Decision Rules Is Applicant Eligible for a Loan ProductCan this good be cleared by Customs?

Recommendation Rules

Marketing Promotions, Medical Recommendations, Online Product Chooser

Personalization Rules Website Personalization, Product Personalization , Relationship Personalization

Internationalization & Localization Rules

International Products e.g. Maintaining similar Insurance products across countriesCross border Custom Duties

Exceptions and Special Rules

Exceptions, Special Accounts , Special Arrangements, etc.

Optimization and Configuration Rules

Product Configuration, Deal Configuration


Enforcing Business Rules – Conventional Methods

Rules inside Code

Business User

Business Expert

Business Analyst (BA)

Rules as Tacit Knowledge

No/Semi AutomationAutomated Enforcement

Rules In Documents


Typical Customer Challenges

Zero visibility into business decisionsCritical business rules are locked in code or databasesBusiness has no visibility into how systems take decisions

Change resistant IT systemsBusiness rules can be very volatileHardwired business rules make change difficult for ITUnacceptably long testing and change cycle timesHigh costs of correction and rework

Inefficient and Costly Human ExpertsNeed to maintain a pool of trained expertsContinuous training and hiring costsVery complex rules and error prone & time consuming human decision making

Scattered knowledgeBusiness rules not centrally managedScattered across code, manuals and as tacit knowledgeInadequate, ambiguous and inconsistent business rules across the EnterpriseHigh risk of compliance violation


Enter Business Rules Management …

With BRM You Get

Externalize critical business rules Agile and maintainable Systems

Model executable complex business rules

Automate key business decisions

(Centrally) manage business rules Consistent application of corporate policy and government regulations

Business Users can model and manage critical business rules

Visibility, accountability and Error free Business

Flexible & agile Business SystemsFaster turnaround times for changeReduced Cost for Change

Precise & Informed DecisioningImproved Visibility for the BusinessPositive Improvement in Quality

Visible, Flexible and Informed Decisioning – With BRM


Case : Leading Truck Manufacturer

CompanyFortune 500 companyLeading truck engine manufacturer

ChallengesWarranty Claims process took 1 week to process a warranty (now takes 6 hours)Several parts were not even sent to suppliers.Due to complex warranty arrangements with suppliers

BenefitsCost Reduction of up to 1.87 million USDReduction in IT Personnel CostsReduction in Inventory Storage LossesReduction in losses arising out of Unrecovered Claims

Business RulesContracts Management – Liability AssessmentClaims Processing – Settlement RulesProduct Returns – Q Inspection RulesReports Generation

Major Process ChallengesHard coded rules – Low VisibilityLoss of Domain & Application KnowledgeSlow Turnaround Times


Agenda





4. Q & A

SAP NetWeaver Business Rules Management - Building Blocks

RulesManager

Rules Analyzer

RulesComposer

Rules Repository

Rules Engine

SAP NetWeaver Composition Environment Key Features

Rules Modeling & ImplementationBusiness user-friendly rich rule formatsSupport for multiple data models for rules implementationData model independent business vocabularies

Rule Testing & RefinementRules validation, testing & refinementOptimization, simulation, ‘What If’s’ and analysis

Rule ExecutionHigh performance rules engineReusable Rules Services

End-to-End Change ManagementBusiness user rules management interfaceRules versioning & repository servicesPermissions, access control & governance


Rule Representation Formats

FCL Handling Rates – Decision Table

Credit Score Fee Calculation – Rule Flow

Patient Billing Rules – If Then Rules

Classic If-Then Rules (Inference Rules/ Production Rules)Decision Tables – Score Cards and Tabular RulesRule Flows – Complex, Modular Rule Execution Sequences


BRM – Accelerate & Complement BPM

BRM

Rules accelerates BPMClear decoupling of process logic from decision logicAccelerated process efficiency with automated decisioningReusable business rules servicesRules based correlations for real-time business events

End-to-End Rules ConsumptionBy composite applications

Business process compositesService & event compositesUIs & situational composites

By system-to-system processesBy human-centric processesBy ABAP business applications


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Value Proposition

Precise and informed decision automationFlexible IT SystemsImproved Visibility for the BusinessKnowledge Centralization

Delivering Value Across the Business Process Platform

Actionable and integrated rules & process analysis

Rules services for end-to-end consumptioncollaborative business user rules management

Rapid modeling and deployment of rules- enabled composites & business processes

VALUE CURVE


SAP NetWeaver Business Rules Management – Roadmap Highlights

2008

Integrated Composition Experience

2010Themes do not correspond to releases

End-to-end Business

Rules Support

Advanced BRM

Rules Management

SAP NetWeaver Composition Environment (CE) delivers Business Rules Composition

Integrated Business Rules Modeling for pure composite applications and composite business processes

Rules made available across the application stack from the Composition Environment extending to the ABAP Business Applications

Automate critical rule based decisions involving compliance & regulations, pricing, etc.

Support complex business decision sequences modeling like ‘under-writing’, etc.

Integrated support for refinement and validation of business rules

End-to-End rules change management

Informed decision automation and justification capabilities

Enable business user participation and collaboration towards rules authoring and tactical change management

Future Releases

Rule based responses to business events in real-time business scenarios like fraud detection, SLA monitoring.

Advanced rules analysis capabilities towards alignment with business goals through simulations and replays

Advanced BRM capabilities

Business rules modeling for Business Analysts

Business Efficiency

Rules Composition

2009© SAP 2008 / SAP TechEd 08 / BPM101 Page 21

Agenda





4. Q & A

Technical Usage Scenarios - Overview

Rules Modeling

Integrated Rules & Process ModelingIndependent Rules ModelingModel in Rules ComposerWider Consumption across Applications

Model in Process ComposerFor Consumption By a Business Process

Rules Consumption

Composites

Composite Services & EventsComposite ApplicationsUI CompositesSituational Composites

JEE Clients

As a Stateless Session BeanAs a Rules Service

ABAP Applications

Through ABAP ConnectorDirect consumption of Rules Service

Business Processes

Composite Business ProcessGuided ProceduresSystem2System Processes.

Web Service

Web Service EJB

Rules Connector

Web Service


SAP NW BRM & SAP NW BPM – Integration Overview

ProcessComposer

ProcessDesk

Process Server

Rules in BPM – Some Use cases

Complex rule based Decisions (Pricing, Credit Decisions etc.)Responsibility Determination ( Rule based Task Assignment)Recognition of Business EventsRouting Rules (Receiver Determination)Parameter Thresholds & Tolerance (Constraint Rules)

Many Ways to Model Rules

Model with Rules Composer & use as a Rules ServiceModel in the Context of a Business Process

And, Many Ways to Integrate

Rules Services through an Automated ActivityUse Rules as Mapping TransformsUse Rules through EJB FunctionsUse Rules from Human Task User InterfacesUse Rules as Gateway Conditions


Business Rules in a Warranty Claim Process – An Example


ABAP Applications Using SAP NetWeaver BRM (Java)

How can ABAP applications use the Java Rule Engine?

Options for Customers

Use BRF Plus (A Pure ABAP Rules Framework)Use NetWeaver BRM as a Web ServiceUse NetWeaver BRM through BRF Plus (ABAP-Java Rules Connector)


Design Time - Modeling Rules on Backend Data

Identify Sources of Data Definition in ABAPData Dictionary

Database TablesStructureData Element (e.g. ID)BusinessObject (e.g SalesOrder)

Generate Data Definitions in BRF plusImport data definitions from backendAuto Generate Context in BRF Plus

A Context is a logically grouped collection of business terms onwhich rules will be written, AKA business vocabulary

Export Data Definitions as XSDGenerate XSD from Context in BRF PlusCreate BRF plus expression for connecting to java BRM

Model Rules in NW BRM using XSDImport XSD in Java BRMGenerate Business Terms from XSDWrite Rules on Business Terms

1

3

2

4


Backend Calling Java Rules Engine


Agenda


1. What is Business Rules Management?1.1. What are Business Rules?1.2. Conventional Methods for Enforcing Business Rules.1.3 Typical Customer Challenges with Conventional Methods1.4 Attacking These Challenges with Business Rules Management1.5 BRM in the Real World – A Real World Case Study

2. SAP NetWeaver Business Rules Management2.1 Technical Building Blocks of NW BRM2.2 Value Proposition for Customers2.3 Roadmap for Business Rules Management

3. Using SAP NetWeaver BRM3.1 Technical Usage Scenarios Overview3.2 Using BRM with SAP NetWeaver BPM3.3 Using BRM from ABAP Applications

4. Q & A

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Further Information

Related Workshops/Lectures at SAP TechEd 2008

SAP Public Web:SAP Developer Network (SDN): www.sdn.sap.com/irj/sdn/nw-rules-management

Session ID Title Session Type

BPM 260 The ABC's of Modeling and Using Business Rules in SAP NetWeaver CE

2 Hour Hands-on

BPM 262 How to Use Business Rules With Business Process Management 2 Hour Hands-on

BPM 100 Business Process Management with SAP NetWeaver CE: Overview and Outlook

1 Hour Lecture

BPM 201 Build the Business Rules Once and Let the End User (Business) Manage Them

1 Hour Lecture

COMP208 BRF plus for ABAP – The Framework for Business Rules 1 Hour Lecture

COMP210 Colgate-Palmolive Central Master Data Management Application 1 Hour Lecture


https://www.sdn.sap.com/irj/sdn/nw-rules-management

© SAP 2008 / SAP TechEd 08 / <Session ID> Page 32

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