Rules within an Enterprise and their management with a BRMS DJ Des Jardins Technical Account Manger 630.389.9922 pdesjardins@ilog.com

What are Business Rules Example 1: IF a person is a senior citizen, THEN provide a 5% discount. Example 2: IF a person drives more than 150 miles a week to and from work, THEN add $25 to their auto insurance premium. Example 3: IF a customer invests less than $5000 THEN place the customer in the bronze level. IF a customer invests $5000 or more but less than $10,000, THEN classify the customer as silver. IF a customer invests more than $10,000, THEN consider the customer as gold. Policies & Procedures 11/19/2018 © ILOG, All rights reserved

Types of Business Rules Derivation rule: A rule that uses an algorithm to return a value. It can return any type of value that makes sense in the business context in which it is used. For example, a derivation rule may calculate a discount or compute the total price of an order. Constraint rule: A rule that confirms that an operation has met all of its obligations, and that a particular constraint or edit has been met. For instance, it may check that a value entered by an external user is within legal bounds. 11/19/2018 © ILOG, All rights reserved

? What do they “DO” Is this a valid application? What is the next step in the process? Is the loan approved? Rating? What is the “Risk”? What should the next question be in the questionnaire? Score? What is the price? What Discount should apply? 11/19/2018 © ILOG, All rights reserved

Implementation of Business Rules 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved Scorecard A scorecard is an executable implementation of a statistically based model for attributing a number (score) to a customer (or an account) which indicates the predicted probability that the customer will exhibit a certain behavior. 11/19/2018 © ILOG, All rights reserved

When Should Rules be Externalized Business logic volatility Turnaround times Regulatory compliance Visibility Complex processing Large number of Rules Reuse 11/19/2018 © ILOG, All rights reserved

Why Externalized Rules Explicit documentation of business practice decisions. Clearer understanding of application behavior Reuse of rules across business processes Increased consistency of business practices Decreased maintenance and testing costs Improved manageability of business practice decisions Increased confidence in predicting the business impact of changes Identify and correct conflicting business rules in different parts of the business 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved Business Rules Engine 11/19/2018 © ILOG, All rights reserved

Business Rules Management System BRMS Business Rules Management System 11/19/2018 © ILOG, All rights reserved

Address Needs of Enterprise Need secure, safe, easy, efficient and reliable policy change delivery 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved Components of a BRMS Developer Business Analyst Model Analyze Author Enterprise Rule Repository Policy Manager Validate Monitor System Administrator Test Execute Deploy Rule Administrator 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved BRMS 11/19/2018 © ILOG, All rights reserved

What to look for in a BRMS Authoring Plain English, Decision Table, Decision Tree Templates Managing Queries Smart Views Version Management Baseline Validating Syntactic Check Semantic Check Semantic Queries Auditing Version Management Baseline Query-based reporting Deploying Query base Extraction Rule service management Administration and configuration Authorization policies Rule Service Display Options 11/19/2018 © ILOG, All rights reserved

JRules - BRMS Need secure, safe, easy, efficient and reliable policy change delivery 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved JRules - BRMS Developers Business Users Rule Studio Rule Team Server Rule Scenario Manager Rule Execution Server Administrator 11/19/2018 © ILOG, All rights reserved

© ILOG, All rights reserved JRules - BRMS 11/19/2018 © ILOG, All rights reserved