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
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© SAP 2008 / SAP TechEd 08 / BPM101 Page 3
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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 4
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 !!
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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
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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
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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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 8
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
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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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 10
Agenda
© SAP 2008 / SAP TechEd 08 / BPM101 Page 12
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
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
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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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 15
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
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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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 22
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
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
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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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 24
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)
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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
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© SAP 2008 / SAP TechEd 08 / BPM101 Page 27
Agenda
© SAP 2008 / SAP TechEd 08 / BPM101 Page 29
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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© SAP 2008 / SAP TechEd 08 / BPM101 Page 30
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
© SAP 2008 / SAP TechEd 08 / BPM101 Page 31