1. RC DSIG / SBVR Organization-directed Rules: Design Goals W3C RIF WG Cannes, 27 February 2006 Donald Chapin, John Hall, Said Tabet

2. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules2 Disclaimer The presenters represent: –The OMG’s Regulatory Compliance Domain Special Interest Group (RC DSIG) –The OMG’s “Semantics of Business Vocabulary and Rules” (SBVR) task force There are other OMG interests in the RIF, not addressed in this presentation

3. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules3 Organization-directed Rules Are about real things in the business: –Customers and employees are people, cars are the real cars rented to customers May be executed by people or by automated processes: –“Car must not be handed over to a driver who appears intoxicated” –“Penalty charge must be applied to a rental if the car is returned late” May be about the organization’s information systems –“Report of average emission levels by engine size must be produced quarterly for EU Directive 2001/81/EC”

4. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules4 Decision Support Tool Business Rules CustomerEmployee Business Policy Maker Customers Employees Cars Fact Base Organization Rules Procedures for people in the business applies to Automated Rules System Database Schema IT Rules applies to Transformations / mappings

5. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules5 SBVR Business Rule Start with concepts (definitions) and terms to express them: –rental car: car that is owned by EU-Rent and is rentable –rental, driver, … Associate them with fact types: –rental has driver, car is assigned to rental Add an obligation or necessity: –It is obligatory that each rental has driver –Each rental must have driver Add qualifications and quantifications, where needed: –Each rental must have at most 4 drivers

6. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules6 Decision Support Tool RIF Interfaces Automated Rules System Transformations/mappings – outside the scope of the RIF RIF Client RIF Server RIF Client RIF Server RIF The RIF stops here Org Rules IT Rules

7. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules7 Regulated Enterprise Domain Consultant Use Case IT Solutions Interpreted Regulations S Regulator Corporate HQ IT Solutions Interpreted Regulations Operating Company IT Solutions Interpreted Regulations Local Domain Consultant Interpreted Regulations IT Solutions C SC S S C C SS S C RIF Server RIF Client

8. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules8 Regulated Enterprise Domain Consultant Use Case IT Solutions Interpreted Regulations S Regulator Corporate HQ IT Solutions Interpreted Regulations Operating Company IT Solutions Interpreted Regulations Local Domain Consultant Interpreted Regulations IT Solutions C SC S S C C SS S C RIF Server RIF Client Each rental must be insured for 3 rd -party liability 3 rd -party liability insurance must be built into rental charge Rule set for electronic signatures for insurance schedules National rule set for tax calculation on aggregated insurance National rule set for spreading insurance risk across multiple insurers

9. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules9 Regulated Enterprise Domain Consultant Use Case part 2 Interpreted Regulations C Regulator Corporate HQ Interpreted Regulations Operating Company Interpreted Regulations Local Domain Consultant Interpreted Regulations SCS C S C RIF Server RIF Client Rule to be approved – corporate-wide impact Rule to be considered – industry-wide impact Rule to be considered – industry-wide impact within country

10. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules10 Design Goals Interchange all the kinds of rules used by organizations –SBVR rule systems as an interchange target –Business meaning is preserved in the interchange –Rules about rules Adopted fact base standard Distinction between organization things and IT artefacts Restricted Higher Order Predicate Logic (Henkin semantics) Four modal operators - not modal logic Rule-sets

11. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules11 Design Goals Interchange all the kinds of rules used by organizations –SBVR rule systems as an interchange target –Business meaning is preserved in the interchange –Rules about rules Adopted fact base standard Distinction between organization things and IT artefacts Restricted Higher Order Predicate Logic (Henkin semantics) Four modal operators - not modal logic Rule-sets Restricts quantifiers to range over only individuals and those predicates (or functions) that are specified in the business domain (universe of discourse).

12. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules12 RIF RDB RIF adopted fact base standard SBVR Concepts & Facts RIF Interchange Concepts (boxes and lines). Tables, columns and Foreign Keys Definitions and Structural Business Rules Actionable Rules Operative Business Rules Definitional Rules Actionable Rules Definitional Rules RDF? DS Tool Human Procedures IT Rules Simplified Example formulated using DB Triggers, Production Rules Domains, Integrity Rules

13. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules13 Fact base Basis for rules: –For structuring the meaning of the rules –To interchange the fact base for all the target rules systems Concept definitions: –Fundamental, e.g. “contract” –Categorization by specialization, e.g. “rental”, “one-way rental”, “round- trip rental” Fact types: –Binary, e.g. “rental has driver”, “rental car is assigned to rental” –Unary, e.g. “car is available”, “rental is open” –N-ary (perhaps indirectly), e.g. “car is moved on date from sending branch to receiving branch" Enriched by structural rules, e.g.: –Necessary characteristic, e.g. for “round-trip rental, return branch must be pick-up branch” –Fact type cardinality constraint, e.g. “rental must have at most 4 drivers” RDF?

14. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules14 Real things and IT artefacts Organization rules are often about real- world things of interest to the business May include rules about IT systems Need metadata to distinguish

15. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules15 Enforcement Rules for people may not always be obeyed – have to be enforced Need rules about rules “If a given rule is not obeyed, then the following penalty must be applied” –Drunk handover rule: “No car may be handed over to a driver who appears to be intoxicated” –“If the drunk handover rule is broken, then the employee responsible must be fired and reported to the police”

16. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules16 Rules about rules For business operation, there is a more general need for rules about rules: “If smoking is prohibited in a company building, then ‘no smoking’ notices must be displayed in each language in common use in that building”

17. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules17 Modal operators Structural rules (alethic): –Necessity and possibility Operative rules (deontic): –Obligation and permission Just these operators (and their negations), not full alethic/deontic logic

18. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules18 Rule sets Traceability from: –Influences on enterprise: regulation, competition, environment, workforce … –Business decisions: goals, objectives, strategies, tactics, business policies … Relationships (conflicts, overlaps) at higher level than individual rules Cascade across distributed organizations – global, regional, national, local … Mapping to IT solutions

19. RC DSIG / SBVR W3C RIF WG Cannes, Feb 2006UCR Design Goals: Organization-directed Rules19 Summary It should not matter to the RIF that the ‘rules engine’ it talks to is a tool + a person The requirements for support of organization- directed rules in addition to fully-automated rules do not seem onerous The business benefits are large: –Improve quality of automated rules systems - better fit with business intent –Basis for semantic web business applications –Important part of end-to-end audit trail for compliance