1. Make Smarter Business Decisions ILOG Business Rule Management System BRMS

2. Service Oriented Finance Needs Immediate Changes With rules you can make changes quickly without re-programming or re-deploying your process.We need to make animmediate policychange!Business Expert IBM03 Make smarter business decisions ILOG Business Rule Management 2 System 3. Rules Can Be Used For Two Purposes 1. Add flexibility by externalizing switches in your process Simple changes to rules cause changes in process behavior Examples: Threshold values, conditional parameters, and calculations Rules can be changed immediately while the process is running, without re-programming or re-deploying the process WebSphere Process Server provides this support 2. Capture expert knowledge to automate what would otherwise be amanual decisionTypically involves the knowledge of many business expertsTypically requires the definition of thousands of rulesApproximates artificial intelligence to make automatic decisions WebSphere ILOG JRules provides this support 03 Make smarter business decisions ILOG Business Rule Management 3System 4. WebSpheres Service ComponentArchitecture Enables Both Kinds Of Rules ProcessSCA SCA Flow Reference Interface InvokerNodes Externalizes process switches Local WPS Rule ConnectorWPS Rules EngineRemoteILOGILOG SCA Adapter Rules EngineCaptures business expertise03 Make smarter business decisions ILOG Business Rule Management4 System 5. Demo: WebSphere Process Server RulesOld Rule Credit > 700 Credit < 600 ScoreScore We need the flexibility to Yes Investigate No tighten credit criteria. New Rule Credit > 775 Credit < 725 ScoreScoreYes Investigate NoBusiness Expert03 Make smarter business decisions ILOG Business Rule Management5 System 6. Service Oriented Finance Also Needs To Capture Business Expertise We need to capture our business expertise inWith WebSphere ILOG JRules order to price lifeyour teams of experts can insurance policies quickly create and manage thousands and effectively.of rules. Those simple rules are great, but they cant handle this requirement. Business Expert IBM03 Make smarter business decisions ILOG Business Rule Management 6 System 7. Whose Expertise Do We Need To Capture?Sub-Level Rules Teams Lifestyle Team Medical Team Discount TeamPolicy TeamHigher Level Rules TeamsRisk Assessment Team Pricing Team$ Policy Price 03 Make smarter business decisions ILOG Business Rule Management7System 8. What Rule Sets Do We Need To CalculateThe Price Of A Life Insurance Policy? Profession Medical history Regular checkups Term amount Hobbies Family history Non-smoker Variable or flat rate Driving record Health status form Gym membership Health rating Geography Nurse Visit Multiple policies AgeLifestyle TeamMedical Team Discount Team Policy Team Medical condition Revenue targets Lifestyle Competition Actuarial tables Market share Rate lock-in period GeographyRisk Assessment Team Pricing Team $ Policy Price03 Make smarter business decisions ILOG Business Rule Management8System 9. Example Of The Complexity Of The Medical Teams Rules Sets1. Over 350 medical conditions to track2. Invoke rules for certain combinationsof conditions3. Invoke rules for medical patterns4. Statistically track all the latestmortality data for certain medicalconditions5. Daily updates with new medicalstatistics 03 Make smarter business decisions ILOG Business Rule Management9System 10. Demo: WebSphere ILOG JRules Orchestrates Rule DependenciesEach team has a rule projectWebSphere ILOG JRules orchestrates rule dependenciesacross projects and teamsThe orchestration specifies the order in which rule sets areevaluated 03 Make smarter business decisions ILOG Business Rule Management 10System 11. ILOG JRules Captures Expertise As Business Rules For Re-Use In Business ProcessesWe need to calculaterates for term lifeMedical Pricinginsurance,Rule Rule Rule Rule considering multiple Business Processesfactors.invoke business rules Request:Request: Evaluate RuleEvaluate Rule Experts create business rulesand save them in the RulesResponse:RepositoryResult A business processRules Rulesinvokes a rule set as aRepositoryEngine reusable service and the Rules Engine sends the RULE RULESETRULE RULE result to the process.SET ILOG JRules Repository captures business rules in rule sets03 Make smarter business decisions ILOG Business Rule Management 11 System 12. ILOG JRules Is:Business Rules Management SystemLifecycle managementCreate, modify, test, and deploy rulesBRMSSearching, action, and reportingGovernanceProject access and permission controlVersioning, baseline, and history comparisonQuality assurance analysis Oracle, Microsoft, and JBoss cant do this!03 Make smarter business decisions ILOG Business Rule Management12System 13. ILOG JRules Allows The Team To Create, Modify, Test, And Deploy Business RulesAll I have to dois capture myexpertise in abusiness rule! Ill test your rulesIll set up theto ensure thatenvironmentthey do what youand define Business Expertsay they shouldyour ruleinterfacesDeveloperRule TesterIll make sure thatyour rules dontconflict with others,then deploy them Administrator 03 Make smarter business decisions ILOG Business Rule Management13System 14. Demo: Creating A Business Rule With ILOG JRulesILOG JRules uses a natural language approach, so adeveloper is not necessary to create a rule03 Make smarter business decisions ILOG Business Rule Management 14 System 15. ILOG JRules Makes It Easy To Search, Act, And Report On Large Rule SetsBased on their role and permissions, team members canwork with rules throughout their lifecycle:Create custom queries to easily find rules among thousandsin the repositoryCreate, copy, edit, delete, or move rules using a browser-based user interfaceGenerate reports on rules that allow business experts andarchitects see at a glance rule logic, interfaces, and projects03 Make smarter business decisions ILOG Business Rule Management 15 System 16. What Is The Importance Of Rule Governance?Project access and permission controlTeams have access only to their projectsOnly specified roles can change rulesVersioning, baseline, and history comparisonExperts can create versions of rulesExperts control which versions are in force Quality Assurance analysisEnsure that rules created by different teams do not conflictwith each other 03 Make smarter business decisions ILOG Business Rule Management 16System 17. Governance Allows Teams To Function SmoothlyRULERULE RULE RULE RULE RULE Well done!ILOGRulesRepositoryAdministrator03 Make smarter business decisions ILOG Business Rule Management17 System 18. Demo: ILOG JRules Provides Role Separation And Checks To Ensure Rule QualityTeams create pricing rules in a single repositoryThe administrator runs a quality assurance check todetect the conflictThe administrator generates a rule report to show theteams where the conflict liesCorporate Pricing TeamLocal Pricing Team I found a ILOGrule conflict! Rules RepositoryAdministrator 03 Make smarter business decisions ILOG Business Rule Management 18System 19. Travelers Insurance Captured BusinessExpertise With WebSphere ILOG JRulesThe Challenge 83% of processes for small commercial policies required intervention by agents to evaluate data and make decisions Long processing times due to manual intervention caused partners to request fewer quotes With ILOG JRules Fewer policies need agent intervention because rules allow process decision steps to be automated Number of quotes per agent increased 26% due to automated processes Currently have 40,000 rules, and are planning to handle 200,000 rules Currently averaging 3,000 new / changed rules per month 03 Make smarter business decisions ILOG Business Rule Management 19System 20. SummaryBusiness rules capture business expertise to automatebusiness process stepsMake the business as strong as your smartest expertsILOG JRules can manage thousands of rules developed byteams of business expertsBusiness rules can add flexibility by allowing businessvalues to change at runtime, without re-developing and re-deploying the processes in which they are usedWebSphere Process Servers built-in capability allowsdevelopers to create rules that become reusable servicecomponents 03 Make smarter business decisions ILOG Business Rule Management 20System