HU Summer School 2016 - Business Process Management & IT
Rule-based Design
Managing complexity!
Rogier van de Wetering, PhD
The Open University of the Netherlands
August 8th 2016, Utrecht
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Short introduction
Professional experience
•
2015-now
Assistant Professor, Management,
Science & Technology, Open University
•
2005-2015
Manager at Deloitte Consulting
•
2010-2013
External lecturer, medical
informatics, Utrecht University
•
2007-2011
PhD research, Utrecht University
Education
•
PhD research (‘11), Faculty Mathematics & Computer
Sciences, Utrecht University (A Strategic PACS Maturity
Approach)
•
Information Sciences (‘05), Utrecht University, Melbourne
University
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The path we will follow this morning….
3
Formalizing
‘From natural
language to
relation
algebra’
10.00-10.50
BREAK
Practice
‘Do it yourself’
11.00-12.00
2
1
Rule-based Design
‘An introduction’
09.00-09.50
BREAK
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Rule-based Design
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Organizations can in essence be viewed as complex, adaptive sociotechnical systems
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Familiar Complex Adaptive System…
Adls, (2013), Charting the Changes [ONLINE]. Available at: http://s3-ap-southeast-2.amazonaws.com/adlsmedia/8725730/financialmarkets.jpg [Accessed 7 July 2016].
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Familiar Complex Adaptive System…
Shutterstock, (2013), Biomimicry [ONLINE]. Available at: https://s3-eu-west1.amazonaws.com/static.nextnature.net/app/uploads/2013/07/ant-bridge_2302146k-640x400.jpg [Accessed 29
June 2016].
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Technologies and practices that enable innovation and deal with
environmental turbulence
Open data ecosystem
Collaborative
networking
Data-driven
business model
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IT-enabled Dynamic
Capabilities
Cyber
security
Business Rules
Complex Adaptive Sytems
Robotics
Big data
Internet of
Things
Social networks
Cloud-computing
Digital strategy &
innovation
Adaptive Enterprise
Architectures
Watson
Mobile /
app
Business analytics
What do you really need to know about Rule-based Design
Better
communication
Design systems
and processes
Business/ITalignment
Rule-based Design
Make IT
manageable
Flexible
organization
Reduce
complexity
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Business Rules, some definitions:
1
Business rules represent the primary means by which an
organization can direct its business, defining the operative way to
reach its objectives and perform its actions (Wikipedia)
2
Statement that defines or constrains some aspect of the business... [which is]
intended to assert business structure, or to control or influence the behavior of
the business. It cannot be broken down or decomposed further into more
detailed business rules. (Business Rules Group)
3
Business rules formalize mutual agreements between stakeholders,
commitments of managers, rights and obligations of employees, etc.
into ‘laws’, intended to serve the purpose(s) of an organization
(Joosten)
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Business Rules: verifiable statements
Business rule definition:
“A business rule is a verifiable
statement that some stakeholders
intend to obey, within a certain
context.” ………as intended by the
Business Rules Manifesto
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Mantra of Business Rules Manifesto
Mantra:
“ Rules build on facts, and facts
build on concepts as expressed by
terms.”
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Mantra of Business Rules Manifesto
Client, Bill, Supplier, etc.
Mantra:
“ Rules build on facts, and facts
build on concepts as expressed by
terms.”
Bills are sent to
customers.
Every sent item (to a
customer) must be
billed.
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Question: Are these examples of ‘Rules’?
A. Our policies are transparent to the outside world
B. Rogier goes to bed in the evening and gets up in the
morning
C. E = mc2
D. Johan Versendaal went to the club last night
E. Pascal is an expert on BPM
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Rule examples
Banking and insurance
IT service desk
Every application gets a decision
Every (customer/client) call
involves at least one hardware- or
software component
Order management
Consumer business
An order contains no other kinds
of plant than the combined pick
orders
Every sent item must be billed
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Business Rules Manifesto: Principles of Rule Independence
Articles 1-5
Articles 6-10
1. Primary Requirements, Not
Secondary
6. Rule-Based Architecture, Not
Indirect Implementation
2. Separate From Processes, Not
Contained In Them
7. Rule-Guided Processes, Not
Exception-Based Programming
3. Deliberate Knowledge, Not A
By-Product
8. For the Sake of the Business,
Not Technology
4. Declarative, Not Procedural
9. Of, By, and For Business
People, Not IT People
5. Well-Formed Expression, Not
Ad Hoc
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10.Managing Business Logic, Not
Hardware/Software Platforms
Business rules can be used to manage and control business
processes
• Business rules actually define the business process
• Signal violations (in real time) and act to resolve them
• Business rules are sufficient as an instrument to design
compliant business processes and information systems
• The role of information technology is to help maintain
business rules
• If any rule is violated (perhaps temporarily), a computer can
signal that and prompt people to resolve the issue
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There are several important categories of business rules:
1
Condition-action-rule
2
34
Event-condition-action-rule
Imperative rules
5
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Computation / Derivation rule
Invariant rules
Business Rule Management; dealing with various challenges
Some challenges
Communicate
with right
stakeholders
Getting
stakeholders
to commit
Key
challenges
Balance
between
‘Rules’ and
‘People’
Alignment with
business goals
Complete and
consistent
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Rule-based Design draws on research on business rules, software
engineering, relation algebra, and design methodology
•
Puts functional requirements at the focal point of the design of business
processes and information systems
•
Elicit requirements from various audiences, helping these audiences to make
their wishes concrete
•
This requires communicative and advisory skills
•
Requirements engineer must interpret requirements to select or write business
rules
•
This requires technical insight in information systems that support business
processes
•
Requirements engineer must help stakeholders with solutions rather than
endless questions
•
Rule-based Design helps requirements engineers with tools that automate large
parts of the design process
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Rule-based Design vs workflow based approaches
•
Systems and people together form a system that lives by rules; this leads to
compliance
•
Business process management (BPM) is in fact also included: BPM is all about
handling cases
•
Cases are governed by a set of rules (e.g. the credit approval procedure)
•
When all rules are satisfied (no violations) the case is closed: rule based BPM!
•
There is a big difference: workflow based approaches derives actions from
workflow and process models
•
We define business rules declarative; invariant rules
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Within Rule based BPM any violation of a business rule may be used
to trigger actions
• If rules are found to be violated, the
detector signals a process engine
• The process engine distributes work
to people and computers, who take
appropriate actions
• Follows the Plan-Do-Check-Act cycle
• Actions are not specified, but derived!
• Use business rules to define business
processes
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The Rule-Based design approach has some important implications
•
You define the process
•
Common basis for data and process side of IS/IT
•
Requires formal method
•
System boundaries can be articulated
•
Functional behavior of the system is defined
•
Proof that the system meets specification
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Designer’s perspective for rule based process management
Design artifacts
IS development
environment
Rule base
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Rule Maturity: Five Steps to an Agile Enterprise
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10 min.
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Formalizing Business Rules
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A brief recap: what have we learned
Business Rules are verifiable statements
Rules build on facts, and facts build on concepts as
expressed by terms
There are various types of Rules
Actions are not specified
Systems and people together form a system that
lives by rules; this leads to compliance
Requires formal method
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Rulebased
Design
Concepts and relations
concept identifier verb concept identifier
Target
Source
Employer
works at
Employee
Shell
works at
Joris
HU
works at
Pascal
OU
works at
Rogier
Microsoft
works at
Johan
Mark Rutte
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Concepts and relations: a conceptual model
Relation
NO RULES
Concept
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Concepts and relations: an instance diagram
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Concepts and relations: : instance diagram of a composition
Actor possesses at
least one of the
Skills required for the
Role
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A client name and call identifier is entered. Are there any violations?
Rule 1: Every call must get an
acceptable response.
Rule 2: Every call is entered by
exactly one client.
Rule 3: Every call involves at
least one hardware- or software
component
Rule 4: Every response
describes at least one problem
solution that applies to at least
one component involved in the
call.
The engine will detect various violations
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Formalizing rules from Natural language to computer code
Normal sentence
Only plants in stock may be
ordered
From ‘Natural language’
For...(concept)...
Must (not)
be...(...)...if
if an Order is for a Species,
then some Stock exists such
that the
Order affects that Stock and
that Stock is of that Species
To ‘Semi-formal language’
(e.g. RuleSpeak and other CNLs)
IF..THEN..MUST
is_for affects ; is_of
To ‘Formal notation’
(using mathematical principles, e.g. relation algebra, predicate logic,
Boolean algebra, etc.)
To ‘Application’
(Script language)
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Founders of the calculus of relations; relation algebra
Augustus De Morgan
Ernst Schröder
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Charles Sanders Peirce
Alfred Tarski
Rules assertion within relation algebra
Left-expression Right-expression
..implies..
consequent
Set theoretic perspective
consequent
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Rules assertion within relation algebra
Specific case
General case
is_for
affects ; is_of
if an Order is_for a Species,
then some Stock exists such
that the Order affects that
Stock and that Stock is_of that
Species
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RS
•
•
•
IF ..R.. THEN..S..
R implies S
If something exist in R, then that
also must exist in S
RuleSpeak®: set of guidelines for expressing business rules in
concise, business-friendly fashion
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RuleSpeak®: some guidelines
•
Omitting a Rule Keyword is not good
Every Business Rule Statement should include “must” or “only”. (An order must indicate the customer who places it.)
•
“Can” is not good
A customer may purchase a pesticide from a supplier only if the supplier sells that pesticide)
•
Extra words for emphasis are not good
A shipment must have a status with no exceptions.
•
“To have” is often not good
A team must have a manager. => A team must be managed by a manager.
•
Starting with ‘if’ is not good
If an employee is retired, then he must not be assigned an employment counselor => A retired employee must not be
assigned an employment counselor.
•
Plural subjects are not good
Programmers must work on a system.
•
Actor subjects are frequently not good
A customer may make a withdrawal only if their account is active =>
A withdrawal for an account may be made only if the account is active
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DEMO using Ampersand method RAP2
http://is.cs.ou.nl/rap2/index.php
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10 min.
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Practice
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A brief recap: what have we learned
Relations
Rules
Business Rules are verifiable
statements
If something exist in R, then that
also must exist in S
Relation algebra / script language
Left-expression Right-expression
Formalizing
From ‘Natural language’
To ‘Semi-formal language’
..implies..
consequent
To ‘Formal notation’
To ‘Application’
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Assignment introduction for teams
1. Select a case (see next sheet)
2. Select a typical (simple) process (or sub-process)
3. Identify a business ‘problem’ (be creative!) – related to this process, or
as a result of executing this process
4. Define 3-4 concepts and their ‘atoms’ (Course: BPN, EA, RBD, ITgovernance, etc.)
5. Draw a conceptual diagram
6. Define some relations
7. Formulate a couple of ‘Rules’ (e.g. in natural language, CNL,
RuleSpeak, etc.) – Cycle chasing
We will work on this in teams of 4. After 30 minutes, the teams shortly
present their outcomes!
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Various cases, pick one!
2. Education: course registration
3. FSI: loan / mortgage approval
A) HR-process: Bonus payment
B) Order management: sending bill
IND: application decision making
Process / case
Industry
1. Healthcare: patient registration
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Q&A
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Further reading on adaptive principles, alignment and dynamic
capabilities
•
Van de Wetering, R., & Bos, R. (2016). A meta-framework for Efficacious
Adaptive Enterprise Architectures, in Proceedings of the International
Conference on Business Information Systems. 2016, Springer International
Publishing: Leipzig, Germany. [download] [download]
•
Van de Wetering, R. (2016). Modeling Alignment as a Higher Order Nomological
Framework, in Proceedings of the International Conference on Business
Information Systems. 2016, Springer International Publishing: Leipzig, Germany.
[download] [download]
•
Mikalef, P., Pateli, A., & Van de Wetering, R. (2016). IT flexibility and competitive
performance: The mediating role of IT-enabled dynamic capabilities, in the
Proceedings of the 24th European Conference on Information Systems (ECIS).
[download] [download]
•
Van de Wetering, R., & Batenburg, R. (2014). Towards a Theory of PACS
Deployment: An Integrative PACS Maturity Framework. Journal of Digital
Imaging, 27(3), 337-350. [download] [download]
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Contact
dr. R. (Rogier) van de Wetering
Assistant Professor
Faculty Management, Science & Technology
nl.linkedin.com/in/rvandewetering
twitter.com/drvandewetering
researchgate.net/profile/Rogier_Van_de_Wetering2
openuniversiteit.academia.edu/RVanDeWetering
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