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Building flexible, easy to change and rock-
[   solid applications with BRFplus decision
    services
    Carsten Ziegler, James Taylor
[ Learning Points
  Learn how the empowerment of business experts is built
   into SAP applications

  See how to achieve continuous decision and process
   improvement

  Get step-by-step instructions on how to apply this
   approach in your systems




Real Experience. Real Advantage.                            2
[ Presenters
  Carsten Ziegler – SAP
         SAP-wide Business Rules Architect
         Chief Product Owner BRFplus
  James Taylor – Decision Management Solutions
         CEO, Decision Management Solutions
         Leading expert in Decision Management and
          the application of Business Rules




Real Experience. Real Advantage.                      3
[ Agenda
     Presenters
     Challenges in Enterprise Systems
     The Decision Service Management Approach
     Decision Service Management with BRFplus
     ROI
     Best Practices and Learnings




Real Experience. Real Advantage.                 4
[
“      Once you pour electronic concrete,
       it’s hard to get out.       ”
       Shell


            “ There is no such thing as a
                     temporary solution. Don’t put
                     in things you don’t want to     ”
                     keep.
Real Experience. Real Advantage.
[ Enterprise Applications

                                           Report
                                       but don’t learn
      Wait
 rather than act
                          Local
                          exceptions
                          Global
                          standards           Built to last,
            Escalate rather                  not to change
            than empower
Real Experience. Real Advantage.                               6
[ To improve they must make more decisions


                              Manual                                       Not Made
   Before                                         Managed

       After                                                               Not Made
                             Manual
                                                  Managed

                                 New


Reproduced from Smart (Enough) Systems, Prentice Hall 2007   Larger boxes represent more decisions, by volume

   Real Experience. Real Advantage.                                                                        7
[ Decisions




                                   Making choices
                                   or selections and
                                   taking action
Real Experience. Real Advantage.                       8
[ Candidate decisions
     Determine if a customer is eligible for a benefit
     Validate the completeness of an invoice
     Calculate the discount for an order
     Assess the risk of a transaction
     Select the terms for a loan
     Choose which claims to Fast Track

  These are decision words
    The system must answer a question each time


Real Experience. Real Advantage.                          9
[ Problem 1: Waterfall does not work for decisions



  Standard methodology for implementation and change projects
  Assumes a phased/waterfall approach:
         Blueprint > Realization > Testing > Productive use

 Problems
      Assumes you know everything when you start, though you don’t
      No structure for ongoing optimization after go-live
      What you learn in realization cannot be fed back into your blueprint
       (particularly bad for decision-making!)




Real Experience. Real Advantage.                                              10
[ Decisions are high change components
 Regulations change               Change to keep eligibility decisions compliant

 Policies change                  Change validation to track new data
   requirements

 Competitors change               Change the discount to remain competitive

 Markets change                   Change the assessment to manage risk
 Consumer behavior changes                 Change to keep selecting the right
   deal terms

 Fraudsters adapt                 Change the routing to focus on new fraud




Real Experience. Real Advantage.                                                    11
[ Automation vs. Agility or Business vs. IT
   Automation: Full                        Semi                           No




                                                                   Business
                                                                     Expert
                                                             Business     Business
                                                              Expert        Analyst

    Hard-coded decisions           Decisions in documents   Decisions as tacit knowledge


   Agility: Low                             Medium             High


    Questions
        What are my costs for changes?
        How to gain transparency for business users?
        How to enforce policies in business operations?
        How do operations scale?
        How to ensure process quality?
        How to achieve legal compliance?

Real Experience. Real Advantage.                                                           12
[ Problem 2: Decisions, and rules, are not processes
                            Age<21
                                     Accept low-risk
                                       applicant




                            21<=Age<50
                                     Process
                                   medium-risk
                                     applicant




                            Age>50
                                     Decline high-
                                     risk applicant




Real Experience. Real Advantage.                       13
[ Problem 2: Decisions, and rules, are not processes

                         Age<21
                                        Accept low-risk
                                          applicant

                                   Previous Heart Attack,
                                   Existing Cancer                        Decline high-
                                                                          risk applicant
                         21<=Age<50




                                                             Process
                                                            medium-risk
                                    Good Medical Record      applicant


                         Age>50




Real Experience. Real Advantage.                                                           14
[ Problem 2: Decisions, and rules, are not processes

                         Age<21
                                        Accept low-risk
                                          applicant

                                   Previous Heart Attack,
                                   Existing Cancer                                                 Decline high-
                                                                                                   risk applicant
                         21<=Age<50




                                                                                      Process
                                                                                     medium-risk
                                   Good Medical Record                                applicant


                         Age>50                                           1 or fewer Claims               Multiple Claims
                                            New Customer




                                                            Long-standing Customer




Real Experience. Real Advantage.                                                                                            15
[ Problem 2: Decisions, and rules, are not processes

                         Age<21                              No Class I or II sports
                                                                                       Accept low-risk
                                                                                         applicant

                                   Previous Heart Attack,           Class II sport
                                   Existing Cancer                                                                   Decline high-
                                                                                                                     risk applicant
                         21<=Age<50



                                                                      Class I sport
                                                                                          Process
                                                                                         medium-risk
                                    Good Medical Record                                   applicant


                         Age>50                                            1 or fewer Claims             Multiple Claims
                                            New Customer



                                                            Long-standing Customer




Real Experience. Real Advantage.                                                                                                      16
[ Embedding decisions cause process complexity

                         Age<21                              No Class I or II sports
                                                                                       Accept low-risk
                                                                                         applicant

                                                                    Class II sport
                                   Previous Heart Attack,                                                            Decline high-
                                   Existing Cancer                                                                   risk applicant
                         21<=Age<50



                                                                      Class I sport
                                                                                          Process
                                                                                         medium-risk
                                    Good Medical Record                                   applicant


                         Age>50                                               1 or fewer Claims          Multiple Claims
                                            New Customer



                                                            Long-standing Customer




Real Experience. Real Advantage.                                                                                                      17
[ Separate decision, simpler process
                                              Low risk
                                                            Process low-
                                                            risk applicant
                                              Medium risk
                                                             Process
                  Determine
                                                            medium-risk
                 applicant type                              applicant
                                              High risk
                                                            Process high-
                                                            risk applicant


                   Class I         Class II                                  New         #
     Age           sports          sports       Heart Attack? Cancer?        Customer?   Claims   Action

     <21           N               N                                                              Low Risk

     <21                           Y                                                              High Risk

     <21           Y               N                                                              Medium Risk

     21 - 50                                    Y                                                 High Risk

     21 - 50                                                    Y                                 High Risk

     21 - 50                                    N               N                                 Medium Risk

     >50                                                                     Y                    High Risk

     >50                                                                     N           <2       Medium Risk

     >50                                                                     N           >1       High Risk
Real Experience. Real Advantage.                                                                                18
[ Process rules are not decision rules

 Flow control,
   routing
 IT ownership                                Business
 Governed as part                            Process
 of the process                               Rules
 Lifecycle
 dependent on
      Business
 process lifecycle
        Process                                         Decision Point

                                   Tasks
                                                                 Business decision
                                                                   making
                                                                 Business-side
                                                                 ownership
                                           Decision Rules        Governed by the
                                                                   businessGladys Lam, BRSolutions
                                                                         After

Real Experience. Real Advantage.                                 Independent lifecycle 19
[ Separating processes and decisions adds agility




Real Experience. Real Advantage.
[ Problem 3: Change and Transport Management
 (CTS)
 Development                               Quality Assurance                 Productive
 System (DEV)                              System (QAS)                      System (PROD)

     CTS is a set of tools and a methodology
                implement changes in DEV, transport changes to QAS, and upon success transport to
      PROD
     CTS supports transport of customizing and repository objects
                code, database/dictionary definitions
  CTS locks customizing and repository from changes in PROD
Problem - one size does not fit all
     Downtime required
     CTS and working in the development system requires technical support
     Master data needs to be replicated into DEV
     Mandatory artificial classification of all artifacts into Customizing , repository
      and application data (master data and transactional data) with strict change
      management; no changes of customizing in PROD



Real Experience. Real Advantage.                                                                    21
[ Missed Opportunities

                                                          Missed Opportunities
                                                          Open Change Requests

Go-Live Initial Scope              Go-Live Delta Scope


 Traditional Approach
      Waterfall process with release cycles: spec, design, code
      Same change management for all objects (DB, UI, decision logic)
      High costs also for small changes

 Questions
     How long will it take to get a requirement implemented when the cut-off
       date passed by?
     Will there be another project for my requirements in the future?
     What will be the costs of the project and who will have to pay for it?
     What will happen if the implemented decisions are outdated?
Real Experience. Real Advantage.                                                 22
[ Agenda
     Presenters
     Challenges in Enterprise Systems
     The Decision Service Management Approach
     Decision Service Management with BRFplus
     ROI
     Best Practices and Learnings




Real Experience. Real Advantage.                 23
[ Suitable Decisions
Banking: Relationship based Pricing,     Education: Fee Calculations,              Healthcare: Claims, Patient
    Scorecards, Credit Decisioning              Course Selections                    Monitoring, Fraud Detection




   Logistics and Shipping:               Public Sector: Tax Calculations,         Insurance: New Products,
Parts Management, Duties Calculations,    Customs Duties, Land Regulations,   Claims Settlement, Agent Commissions
         Pricing Calculations                 License Fee Calculations




   Real Experience. Real Advantage.                                                                                24
[ These decisions involve many kinds of rules…



                                   Decision




Real Experience. Real Advantage.                 25
[ …none of which are manageable




public class Application {
private Customer customers[];
private Customer goldCustomers[];
...
public void checkOrder() {
 for (int i = 0; i < numCustomers; i++) {
   Customer aCustomer = customers[i];
   if (aCustomer.checkIfGold()) {
    numGoldCustomers++;
    goldCustomers[numGoldCustomers] = aCustomer;
    if (aCustomer.getCurrentOrder().getAmount() > 100000)
     aCustomer.setSpecialDiscount (0.05);
   }
 }
}




 Real Experience. Real Advantage.                           26
[ Alternatives to business rules
 Explicitly coded within application or database
 Pros                              Cons
 • Familiar to IT                  • IT department must be involved
                                     in any change
 • Simplifies development and      • Little re-use of logic across
   testing processes                 multiple decisions


 Parameterized in tables or configuration files
 Pros                               Cons
 • Decreases cost of change         • Use of parameters can decrease
                                      readability
 • No business/IT collaboration     • Assumes kinds of changes can
                                      be exhaustively specified

Real Experience. Real Advantage.                                      27
[ A BRMS like BRFplus is compelling because
     Design Transparency
     Execution Transparency
     Agile Compliance
     Collaboration
     Platform for analytics

                              Formula




Real Experience. Real Advantage.              28
[ From Missed to Realized Opportunities

                                                               Realized Opportunities
                                                                Changes implemented
                                                                with decision services



Go-Live Initial Scope              Go-Live Delta Scope


  Decision Service Management Approach
       Clear separation of decisions from processes (agile but robust systems)
       Domain experts own and change implemented decisions
       Permanent and incremental decision optimizations




Real Experience. Real Advantage.                                                     29
[ Agenda
     Presenters
     Challenges in Enterprise Systems
     The Decision Service Management Approach
     Decision Service Management with BRFplus
     ROI
     Best Practices and Learnings




Real Experience. Real Advantage.                 30
[ Decision Service Approach: Customer Landscape
                    Managed System




                                          Connector
                    1
                    e.g. Business Suite                Decision Service
                                                       Manager
                    Managed System




                                           Connector
                    2
                    e.g. CRM

  Decision Service Manager
       Extremely low hardware requirements
       Requires NetWeaver 7.0 Enhancement Package 3 or NetWeaver 7.3
         Enhancement Package 1

  Managed Systems
      Existing servers with customer business applications
      No Upgrade required, works with NetWeaver 6.40 or higher (>6 years
       old)
      Any number of managed systems can be connected with the Decision
       Service Manager (RFC)
Real Experience. Real Advantage.
[ Decision Service Approach: Modeling
        Managed System




                                   Connector
        1
                                                Decision Service Manager

        Managed System

                                    Connector
        2




  Decision Service Modeling with BRFplus
       Central creation, test and management of all rules and decisioning logic
       Service implemented in rulesets using decision tables, trees, text rules,
         formulas
       Transparency - no code but graphical modeling
       Access to all relevant data in the managed systems (e.g. master data
         used in value help of decision table rules)
Real Experience. Real Advantage.                                                    32
[ Decision Service Approach: Deployment
        Managed System




                                   Connector
        1
                                                Decision Service
                                                Manager
        Managed System

                                    Connector
        2




  Decision Service Deployment
       Deployment describes the transfer of the decision service into one or
         many managed systems
       Hot deployment - immediate use with no downtime for deployment
       Activity periods - deploy today with as-of usage timepoint
       Overview about all decision services in all systems, deployment
         statistics
Real Experience. Real Advantage.                                                33
[ Decision Service Approach: Use
        Managed




                                   Connector
        System 1
                                                     Decision Service
                                                     Manager
        Managed System

                                    Connector
        2




  Decision Service Use
       Local execution of generated code, mass-enabled
                  Best performance
                  No dependency on Decision Service Manager
          Execution traces (inputs, result, decision path for decisioning analytics
           or legal compliance)


Real Experience. Real Advantage.                                                       34
[ Decision Service Approach: Continuous
 Improvement
        Managed System




                                   Connector
        1
                                                Decision Service
                                                Manager
        Managed System

                                    Connector
        2                                           Optimize




  Decision Service Optimization
       Super-fast change cycles in the hand of the domain experts:
                                     Analyze, Optimize, Implement
       Automated business decisions with full transparency for better decision
         quality
       Immediate ROI

Real Experience. Real Advantage.                                                  35
[ Decision Service Approach                                                    BW




                                                                                              Connector
             ERP



                                   Connector
                                                    Decision Service
                                                                                                          Non-
                                                    Manager                     Web Service
                                                                                                          SAP



               CRM
                                        Connector




                                                                                Custom




                                                                                                          Connector
                                                        SRM                     App


                                                                   Connector


  Decision Service enabled customer system landscape
       Deployment of one service into multiple systems
       Reuse of decision services and single rules, decision tables, etc.
       Non-SAP systems connected by web service
Real Experience. Real Advantage.                                                                                      36
[ Agenda
     Presenters
     Challenges in Enterprise Systems
     The Decision Service Management Approach
     Decision Service Management with BRFplus
     ROI
     Best Practices and Learnings




Real Experience. Real Advantage.                 37
[ The ROI of Decisions and Business Rules
 1. Increased Business Value
 2. Increased Development Efficiency
 3. Increased Maintenance Efficiency



 And in that order!




Real Experience. Real Advantage.            38
[ Business Value
  Reduced losses from more accurate fraud decisions
  Reduced fines from demonstrable compliance with
   regulations
  Quicker time to market with new products or services
  More competitive pricing scheme
  Productivity of business staff increases
  Redeployment of assets when staff no longer need to do
   repetitive decision-making
  Reduced time to value for new systems functionality with
   benefits of a system being realized sooner
  Reduced costs or losses while waiting for a change to a
   system such as rework caused by out of date system
   behavior.
Real Experience. Real Advantage.                              39
[ Development Efficiency
  Increased specification productivity as business analysts
   are involved directly
  Improved developer productivity—adding 1 business
   analyst can eliminate the need for multiple programmers
  Reduced re-work as there is an improved quality of
   business rules
  Reuse of previously developed logic because it is easier
   to see opportunities for reuse and to take advantage of
   them when logic is in rules in a repository




Real Experience. Real Advantage.                               40
[ Maintenance Efficiency
  Reduced effort to find where to make a required change
  Reduced effort to understand the existing code so the
   right change can be made
  Reduced effort to make the change
  Reduced effort to test the change to confirm it works
  Reduced effort to deploy the change




Real Experience. Real Advantage.                            41
[ Agenda
     Presenters
     Challenges in Enterprise Systems
     The Decision Service Management Approach
     Decision Service Management with BRFplus
     ROI
     Best Practices and Learnings




Real Experience. Real Advantage.                 42
[ Best Practice: Begin with the Decision in mind
                                   Find the decisions that
                                   matter to your business
                                   and focus on them as well
                                   as your processes.




Real Experience. Real Advantage.                               43
[ Best Practice: Business Ownership




                        Decisions have owners.
                        So have decision services.

                        Decision services are the
                        responsibility of business-side
                        experts.

Real Experience. Real Advantage.                          44
[ Best Practice: 3 Steps to Decision Management

                                   Discover
                                   Build
                                   Improve




Real Experience. Real Advantage.                  45
[ Key Learnings
  Focusing on Decisions improves Enterprise Applications
  Decisions are different and not the same as Processes or
   Rules
  Managing Decision Services creates agility and business
   value
  BRFplus delivers Decision Services optimized for
   SAP/ABAP applications
  Use BRFplus Decision Services whenever one of the
   following is true:
         Decisions are value drivers
         Decisions are likely to change over time
         Configuration with customizing tables will become too
          complex
Real Experience. Real Advantage.                                  46
[
                           Thank you for participating.
                                          Please remember to complete and return your
                                                  evaluation form following this session.
                                    For ongoing education on this area of focus, visit the
                                    Year-Round Community page at www.asug.com/yrc
                                                                                             ]
                                                   [   SESSION CODE:
                                                       2414




Real Experience. Real Advantage.                                                             47

More Related Content

Building Flexible, Easy to Change, and Rock-Solid Applications with BRFplus Decision Services

  • 1. Building flexible, easy to change and rock- [ solid applications with BRFplus decision services Carsten Ziegler, James Taylor
  • 2. [ Learning Points  Learn how the empowerment of business experts is built into SAP applications  See how to achieve continuous decision and process improvement  Get step-by-step instructions on how to apply this approach in your systems Real Experience. Real Advantage. 2
  • 3. [ Presenters  Carsten Ziegler – SAP  SAP-wide Business Rules Architect  Chief Product Owner BRFplus  James Taylor – Decision Management Solutions  CEO, Decision Management Solutions  Leading expert in Decision Management and the application of Business Rules Real Experience. Real Advantage. 3
  • 4. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and Learnings Real Experience. Real Advantage. 4
  • 5. [ “ Once you pour electronic concrete, it’s hard to get out. ” Shell “ There is no such thing as a temporary solution. Don’t put in things you don’t want to ” keep. Real Experience. Real Advantage.
  • 6. [ Enterprise Applications Report but don’t learn Wait rather than act Local exceptions Global standards Built to last, Escalate rather not to change than empower Real Experience. Real Advantage. 6
  • 7. [ To improve they must make more decisions Manual Not Made Before Managed After Not Made Manual Managed New Reproduced from Smart (Enough) Systems, Prentice Hall 2007 Larger boxes represent more decisions, by volume Real Experience. Real Advantage. 7
  • 8. [ Decisions Making choices or selections and taking action Real Experience. Real Advantage. 8
  • 9. [ Candidate decisions  Determine if a customer is eligible for a benefit  Validate the completeness of an invoice  Calculate the discount for an order  Assess the risk of a transaction  Select the terms for a loan  Choose which claims to Fast Track  These are decision words  The system must answer a question each time Real Experience. Real Advantage. 9
  • 10. [ Problem 1: Waterfall does not work for decisions  Standard methodology for implementation and change projects  Assumes a phased/waterfall approach:  Blueprint > Realization > Testing > Productive use Problems  Assumes you know everything when you start, though you don’t  No structure for ongoing optimization after go-live  What you learn in realization cannot be fed back into your blueprint (particularly bad for decision-making!) Real Experience. Real Advantage. 10
  • 11. [ Decisions are high change components  Regulations change Change to keep eligibility decisions compliant  Policies change Change validation to track new data requirements  Competitors change Change the discount to remain competitive  Markets change Change the assessment to manage risk  Consumer behavior changes Change to keep selecting the right deal terms  Fraudsters adapt Change the routing to focus on new fraud Real Experience. Real Advantage. 11
  • 12. [ Automation vs. Agility or Business vs. IT Automation: Full Semi No Business Expert Business Business Expert Analyst Hard-coded decisions Decisions in documents Decisions as tacit knowledge Agility: Low Medium High Questions  What are my costs for changes?  How to gain transparency for business users?  How to enforce policies in business operations?  How do operations scale?  How to ensure process quality?  How to achieve legal compliance? Real Experience. Real Advantage. 12
  • 13. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant 21<=Age<50 Process medium-risk applicant Age>50 Decline high- risk applicant Real Experience. Real Advantage. 13
  • 14. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant Previous Heart Attack, Existing Cancer Decline high- risk applicant 21<=Age<50 Process medium-risk Good Medical Record applicant Age>50 Real Experience. Real Advantage. 14
  • 15. [ Problem 2: Decisions, and rules, are not processes Age<21 Accept low-risk applicant Previous Heart Attack, Existing Cancer Decline high- risk applicant 21<=Age<50 Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing Customer Real Experience. Real Advantage. 15
  • 16. [ Problem 2: Decisions, and rules, are not processes Age<21 No Class I or II sports Accept low-risk applicant Previous Heart Attack, Class II sport Existing Cancer Decline high- risk applicant 21<=Age<50 Class I sport Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing Customer Real Experience. Real Advantage. 16
  • 17. [ Embedding decisions cause process complexity Age<21 No Class I or II sports Accept low-risk applicant Class II sport Previous Heart Attack, Decline high- Existing Cancer risk applicant 21<=Age<50 Class I sport Process medium-risk Good Medical Record applicant Age>50 1 or fewer Claims Multiple Claims New Customer Long-standing Customer Real Experience. Real Advantage. 17
  • 18. [ Separate decision, simpler process Low risk Process low- risk applicant Medium risk Process Determine medium-risk applicant type applicant High risk Process high- risk applicant Class I Class II New # Age sports sports Heart Attack? Cancer? Customer? Claims Action <21 N N Low Risk <21 Y High Risk <21 Y N Medium Risk 21 - 50 Y High Risk 21 - 50 Y High Risk 21 - 50 N N Medium Risk >50 Y High Risk >50 N <2 Medium Risk >50 N >1 High Risk Real Experience. Real Advantage. 18
  • 19. [ Process rules are not decision rules Flow control, routing IT ownership Business Governed as part Process of the process Rules Lifecycle dependent on Business process lifecycle Process Decision Point Tasks Business decision making Business-side ownership Decision Rules Governed by the businessGladys Lam, BRSolutions After Real Experience. Real Advantage. Independent lifecycle 19
  • 20. [ Separating processes and decisions adds agility Real Experience. Real Advantage.
  • 21. [ Problem 3: Change and Transport Management (CTS) Development Quality Assurance Productive System (DEV) System (QAS) System (PROD)  CTS is a set of tools and a methodology implement changes in DEV, transport changes to QAS, and upon success transport to PROD  CTS supports transport of customizing and repository objects code, database/dictionary definitions  CTS locks customizing and repository from changes in PROD Problem - one size does not fit all  Downtime required  CTS and working in the development system requires technical support  Master data needs to be replicated into DEV  Mandatory artificial classification of all artifacts into Customizing , repository and application data (master data and transactional data) with strict change management; no changes of customizing in PROD Real Experience. Real Advantage. 21
  • 22. [ Missed Opportunities Missed Opportunities Open Change Requests Go-Live Initial Scope Go-Live Delta Scope Traditional Approach  Waterfall process with release cycles: spec, design, code  Same change management for all objects (DB, UI, decision logic)  High costs also for small changes Questions  How long will it take to get a requirement implemented when the cut-off date passed by?  Will there be another project for my requirements in the future?  What will be the costs of the project and who will have to pay for it?  What will happen if the implemented decisions are outdated? Real Experience. Real Advantage. 22
  • 23. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and Learnings Real Experience. Real Advantage. 23
  • 24. [ Suitable Decisions Banking: Relationship based Pricing, Education: Fee Calculations, Healthcare: Claims, Patient Scorecards, Credit Decisioning Course Selections Monitoring, Fraud Detection Logistics and Shipping: Public Sector: Tax Calculations, Insurance: New Products, Parts Management, Duties Calculations, Customs Duties, Land Regulations, Claims Settlement, Agent Commissions Pricing Calculations License Fee Calculations Real Experience. Real Advantage. 24
  • 25. [ These decisions involve many kinds of rules… Decision Real Experience. Real Advantage. 25
  • 26. [ …none of which are manageable public class Application { private Customer customers[]; private Customer goldCustomers[]; ... public void checkOrder() { for (int i = 0; i < numCustomers; i++) { Customer aCustomer = customers[i]; if (aCustomer.checkIfGold()) { numGoldCustomers++; goldCustomers[numGoldCustomers] = aCustomer; if (aCustomer.getCurrentOrder().getAmount() > 100000) aCustomer.setSpecialDiscount (0.05); } } } Real Experience. Real Advantage. 26
  • 27. [ Alternatives to business rules Explicitly coded within application or database Pros Cons • Familiar to IT • IT department must be involved in any change • Simplifies development and • Little re-use of logic across testing processes multiple decisions Parameterized in tables or configuration files Pros Cons • Decreases cost of change • Use of parameters can decrease readability • No business/IT collaboration • Assumes kinds of changes can be exhaustively specified Real Experience. Real Advantage. 27
  • 28. [ A BRMS like BRFplus is compelling because  Design Transparency  Execution Transparency  Agile Compliance  Collaboration  Platform for analytics Formula Real Experience. Real Advantage. 28
  • 29. [ From Missed to Realized Opportunities Realized Opportunities Changes implemented with decision services Go-Live Initial Scope Go-Live Delta Scope Decision Service Management Approach  Clear separation of decisions from processes (agile but robust systems)  Domain experts own and change implemented decisions  Permanent and incremental decision optimizations Real Experience. Real Advantage. 29
  • 30. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and Learnings Real Experience. Real Advantage. 30
  • 31. [ Decision Service Approach: Customer Landscape Managed System Connector 1 e.g. Business Suite Decision Service Manager Managed System Connector 2 e.g. CRM Decision Service Manager  Extremely low hardware requirements  Requires NetWeaver 7.0 Enhancement Package 3 or NetWeaver 7.3 Enhancement Package 1 Managed Systems  Existing servers with customer business applications  No Upgrade required, works with NetWeaver 6.40 or higher (>6 years old)  Any number of managed systems can be connected with the Decision Service Manager (RFC) Real Experience. Real Advantage.
  • 32. [ Decision Service Approach: Modeling Managed System Connector 1 Decision Service Manager Managed System Connector 2 Decision Service Modeling with BRFplus  Central creation, test and management of all rules and decisioning logic  Service implemented in rulesets using decision tables, trees, text rules, formulas  Transparency - no code but graphical modeling  Access to all relevant data in the managed systems (e.g. master data used in value help of decision table rules) Real Experience. Real Advantage. 32
  • 33. [ Decision Service Approach: Deployment Managed System Connector 1 Decision Service Manager Managed System Connector 2 Decision Service Deployment  Deployment describes the transfer of the decision service into one or many managed systems  Hot deployment - immediate use with no downtime for deployment  Activity periods - deploy today with as-of usage timepoint  Overview about all decision services in all systems, deployment statistics Real Experience. Real Advantage. 33
  • 34. [ Decision Service Approach: Use Managed Connector System 1 Decision Service Manager Managed System Connector 2 Decision Service Use  Local execution of generated code, mass-enabled  Best performance  No dependency on Decision Service Manager  Execution traces (inputs, result, decision path for decisioning analytics or legal compliance) Real Experience. Real Advantage. 34
  • 35. [ Decision Service Approach: Continuous Improvement Managed System Connector 1 Decision Service Manager Managed System Connector 2 Optimize Decision Service Optimization  Super-fast change cycles in the hand of the domain experts: Analyze, Optimize, Implement  Automated business decisions with full transparency for better decision quality  Immediate ROI Real Experience. Real Advantage. 35
  • 36. [ Decision Service Approach BW Connector ERP Connector Decision Service Non- Manager Web Service SAP CRM Connector Custom Connector SRM App Connector Decision Service enabled customer system landscape  Deployment of one service into multiple systems  Reuse of decision services and single rules, decision tables, etc.  Non-SAP systems connected by web service Real Experience. Real Advantage. 36
  • 37. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and Learnings Real Experience. Real Advantage. 37
  • 38. [ The ROI of Decisions and Business Rules 1. Increased Business Value 2. Increased Development Efficiency 3. Increased Maintenance Efficiency And in that order! Real Experience. Real Advantage. 38
  • 39. [ Business Value  Reduced losses from more accurate fraud decisions  Reduced fines from demonstrable compliance with regulations  Quicker time to market with new products or services  More competitive pricing scheme  Productivity of business staff increases  Redeployment of assets when staff no longer need to do repetitive decision-making  Reduced time to value for new systems functionality with benefits of a system being realized sooner  Reduced costs or losses while waiting for a change to a system such as rework caused by out of date system behavior. Real Experience. Real Advantage. 39
  • 40. [ Development Efficiency  Increased specification productivity as business analysts are involved directly  Improved developer productivity—adding 1 business analyst can eliminate the need for multiple programmers  Reduced re-work as there is an improved quality of business rules  Reuse of previously developed logic because it is easier to see opportunities for reuse and to take advantage of them when logic is in rules in a repository Real Experience. Real Advantage. 40
  • 41. [ Maintenance Efficiency  Reduced effort to find where to make a required change  Reduced effort to understand the existing code so the right change can be made  Reduced effort to make the change  Reduced effort to test the change to confirm it works  Reduced effort to deploy the change Real Experience. Real Advantage. 41
  • 42. [ Agenda  Presenters  Challenges in Enterprise Systems  The Decision Service Management Approach  Decision Service Management with BRFplus  ROI  Best Practices and Learnings Real Experience. Real Advantage. 42
  • 43. [ Best Practice: Begin with the Decision in mind Find the decisions that matter to your business and focus on them as well as your processes. Real Experience. Real Advantage. 43
  • 44. [ Best Practice: Business Ownership Decisions have owners. So have decision services. Decision services are the responsibility of business-side experts. Real Experience. Real Advantage. 44
  • 45. [ Best Practice: 3 Steps to Decision Management Discover Build Improve Real Experience. Real Advantage. 45
  • 46. [ Key Learnings  Focusing on Decisions improves Enterprise Applications  Decisions are different and not the same as Processes or Rules  Managing Decision Services creates agility and business value  BRFplus delivers Decision Services optimized for SAP/ABAP applications  Use BRFplus Decision Services whenever one of the following is true:  Decisions are value drivers  Decisions are likely to change over time  Configuration with customizing tables will become too complex Real Experience. Real Advantage. 46
  • 47. [  Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc ] [ SESSION CODE: 2414 Real Experience. Real Advantage. 47

Editor's Notes

  1. Big systems implementations tend to be “electronic concrete”. In particular you can’t easily change the logic in those systems. You can add process management across and within them, but many business processes are actually pretty stable – it is the decisions within them that are constantly changing. For instance, your order to cash process does not change but your pricing decision does. Identifying the decisions in your applications and processes explicitly and then automating them using business rules allows you to develop a system that is both robust and flexible.IT systems are notorious for lasting longer than expected. They rapidly evolve from “temporary solutions” to permanent ones. Those who think business rules are overkill often tell me that “this code isn’t going to change” and “it will always be easy for someone to change this code” despite decades of evidence that this is not the case. Instead of assuming it won’t change or that making changes will be easy, companies would do better assuming that they will need to change the logic in their systems more often than they think and that the people making the changes won’t be those who wrote it originally. The ease with which business rules can be changed and re-deployed and the greater clarity of business rules syntax make this work. Assuming that your systems will be permanent, and making sure that critical flex points in the system are easy to change (because they are externalized as rules-based decision services) will ensure that your have permanence with flexibility.
  2. Decisions involve choices, selecting from alternatives and are critical to how we run our organizationsBetter decisions means making more effective, more profitable choices from those available – choices that improve what will happen in the future
  3. much of a typical mainframe system is static, works fine and needs no maintenance. Often only a small portion of the system is responsible for much of the maintenance work. My suggestion would be to find the COBOL that represents business decisions such as a pricing engine (what price is this product for this customer), eligibility logic (is this customer eligible for this offer or service), approval rules (can this claim be auto-approved) and replace those parts of the application with Decision Services.
  4. Lack of centralization (difficult reuse) + customers avoid updates (because of applicability for complete server with application stack -&gt; retests) -&gt; stuck in older technology
  5. So making decisions correctly will be hard unless we can pull all these rules together.Given this is how rules often look to start with, this is clearly going to be hard.But rules also change…Because your business policies doBecause your competitors doBecause the law doesBecause stock levels doBecause your services and products doBecause your customers doBecause your customers’ needs doSo we need something that will let us collect, manage and update the business rules that drive our decisions
  6. Increased business value is the largest and most compelling business benefit that can be realized from the use of a business rules management system such as BRFplus. These benefits are driven by improved effectiveness and efficiency in decision-making and by improved responsiveness as BRFplus frees business users from the tyranny of the IT work queue for changes. One company developed a BRFplus based system to determine appropriate carriers for 25,000 shipments per hour, replacing the emailing and management of large numbers of Excel spreadsheets.
  7. Find the decisions that matter to your business and understand themDon’t start with your data, start with the decisions you need to improveStart with the definition of decision services - purpose and service interface (facts required)-&gt; needssupportfrom IT (wheretoputtheservicecall)
  8. Discover and Model DecisionsDesign and Implement Decision ServicesMonitor and Improve Decisions