Business Rules at Play Telecom, Banking, Insurance: coping with change while making better business...
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Transcript of Business Rules at Play Telecom, Banking, Insurance: coping with change while making better business...
Business Rules at PlayTelecom, Banking, Insurance: coping with change while making
better business decisions faster
Emmanuel SchweitzerTechnical Sales Specialist, [email protected]
Version 2.0 EN
Agenda
• ILOG and Business Rules in a Nutshell– WebSphere ILOG Product Portofilo– What are Business Rule and why are they useful for you?
• Telecommunications: Loyalty at SFR– An agile point-based rewards system
• Retail Banking: Risk Management– Streamlining behavioural risk management at a large retail bank
• Insurance: Commissioning– Streamlining commission payments at several insurances
• Conclusion
4
How can clients increase productivity and allocate
resources more efficiently?
How can clients embrace change, empower people and drive greater profits?
How do clients, respond to challenges
in today’s business climate?
How can clients make business processes more dynamic yet manageable?
Powerful Business Rule Management System
Advanced Suite of Optimization Tools
Innovative Visualization Tools
Efficient Supply Chain Management
Adapt and respond dynamically, automating process-based decisions with business rule management
Produce the best possible action plans & schedules, enhancing abilities to explore alternatives, understand trade-offs, and respond to changes in business operations
Transform insight into action, enhancing collaboration for smarter role-based business decisions
Optimize supply chains, design & planning tools for improved efficiency and productivity
WebSphere ILOG Portfolio
WebSphere ILOG
Issues
• Rules are hidden in code or isolated within the organization
• Changes are hard to track and maintain over time
• Rules used by systems have to be programmed and require IT resources
• Duplication and multiple versions of the same rules
• Lack of auditability, traceability
• Decision changes cannot be easily tested or simulated
• Rules are hidden in code or isolated within the organization
• Changes are hard to track and maintain over time
• Rules used by systems have to be programmed and require IT resources
• Duplication and multiple versions of the same rules
• Lack of auditability, traceability
• Decision changes cannot be easily tested or simulated
Decisions used in operations = “business rules”
Where Business Rules Exist
ApplicationsDocuments
ProcessesPeople
Business change drives IT agility
Where Business Rules Exist
ApplicationsDocuments
ProcessesPeople
Business Rule Management System
Rules are Defined, Maintained and Simulated
Rules are Deployed, Executed and Monitored
Rules are Managed and Stored
Rule Repository
User Tools
Rule Server
The Smarter Approach: Facilitating Change with BRMS
8
Design
Construct
Test
Analyze
Author
Validate
Manage and Monitor
Deploy
Platform upgrade
Change Request
Deploy
Analyze
Author
Validate
Deploy
Change Request
Analyze
Author
Validate
Deploy
Rule Management Lifecycle
Design
Construct
Test
Deploy
Software Development Lifecycle
Change Request
Analyze
Author
Validate
Deploy
Functional enhancements
> 4-6 months
< 1 month
Rule and Software Development Lifecycles
BRMS Success at SFR – Loyalty Management
Situation
Aging legacy Campaign management and loyalty solution Strong Quality of Service constraints
8 million loyalty accounts, contribution to Mobile Renewal program Multi-channel approach required
56% owned by Vivendi, 44% by Vodafone 18 million clients with 34% market share and 8.6 billion revenue (2006) Retention and churn management a major goal for SFR in a mature market
ARPU
ARPU
TimeTimeService activationService activation Service deactivationService deactivation
Client RevenueClient Revenue
Client lifetimeClient lifetime
AcquisitionAcquisition
RetentionRetentionProspectProspect ProspectProspect
BRMS Success at SFR – Loyalty Management
Goals
Create a robust IT system to support SFR loyalty program’s growth objectives
Revamp the SFR point system engine enabling it to meet new business requirements
Support for new programs for earning and burning points
Reward clients based on their value: € points Reward clients based on their loyalty: years points Promote new usage types
– Burn of points for trials of new services– Burn of points for terminal renewal
Segment high value customers and push specific loyalty events and campaigns– GCR Status segmentation– Statutory advantages– Targeted marketing and communication campaigns
Need for a robust and lasting solution– 8 million accounts with a target of 20– Up to 15.000 terminal renewals per day– Multi-channel (Self-care, Customer Service, Distributors)
New usage– New populations (prepaid, corporate)– Aggregation at multiple levels (group, client, line)– New point accrual means
BRMS Success at SFR – Loyalty Management
Solution
« Garantie Carré Rouge » loyalty program implemented
BRMS solution based on 80 rules developed Cap Gemini & ILOG
ILOG consulting for requirements gathering, modeling, architecture & performance audits
Vs. packaged solution– Turnkey, in use with other clients, matter expertise as editor and integrator…– Imposed roadmap, proprietary data model, no source code/black box, cost and delay
9 month till delivery, about 1 year till production use– Software editor present at all phases of the project– Use of third party for integration
Attention points– Performance tests and tuning– Change management for the authoring/maintenance of the rule base and associated parameters
Point EnginePoint Engine
GUI ModuleGUI Module Purging ModulePurging Module Reporting ModuleReporting Module
Rule EngineRule Engine
Batch ModuleBatch Module Business Services ModuleBusiness Services Module Mail OrderMail Order
WAP/WEBWAP/WEBV&SV&S
GCRGCRGingerGinger
GCCPGCCP
ORIANORIAN DWHDWHCRMCRM
SAPSAP
CegedimCegedim
TIMORTIMOR
BRMS Success at SFR – Loyalty Management
Benefits
Flexibility of BRMS approach
Solution 30% cheaper than package
Development and deployment time (- 2/5 months) quicker than package
Si Il y a un événement de facturation sur la ligneAlors Créditer la ligne de 10 points par euro de type Standard de durée 36 mois
Si Il y a un événement de facturation sur la ligneAlors Créditer la ligne de 10 points par euro de type Standard de durée 36 mois
Definitions set ‘billing event’ to a billing event in the events of the lineWhen the type of ‘billing event’ is in { « voice », « SMS », « MMS » }Then Credit the line with ( 10 * the price of ‘billing event’ ) points of type Standard and duration 36 months
Definitions set ‘billing event’ to a billing event in the events of the lineWhen the type of ‘billing event’ is in { « voice », « SMS », « MMS » }Then Credit the line with ( 10 * the price of ‘billing event’ ) points of type Standard and duration 36 months
• One of the 5 Retail Banks in Europe
– Deployed for 13,000 users
– 9 million customer accounts• Private individuals
• Small businesses
• Behavioural Risk Management project– Improve customer advisor productivity
– Better risk detection and management
– Automate action recommendations
Success in Risk Management – Major Retail Bank
• “High risk customer profile” process:
• Benefits:– Manage 200 risk management profiles in 7 categories
– Allow business users to manage & understand the risk profiles
– Gain 1 hour/day/advisor
Get High Risk ProfilesWhen logging in
4,000,000 events on9,000,000 accounts4,000,000 events on9,000,000 accounts
NightNight
400,000 High Risk profiles about 5% of customers400,000 High Risk profiles about 5% of customers
Advisor’s working dayAdvisor’s working day
Get explanationsAnd actions plan
13,000 advisors2,500 branches13,000 advisors2,500 branches
50,000 letters per day
50,000 letters per day
Get list of lettersFor a customer
Update actions plan
Success in Risk Management – Major Retail Bank
Application Architecture
BackendBackendDataflows
Counterpartconsolidation
Risk Situation Handling Batch
Event generationRule Service
Event generationRule Service
Situation HandlingRule Service
Situation HandlingRule Service
Data Access
Rule Execution Server
Follow-up Servlet
Interactive follow-upRule Service
Interactive follow-upRule Service
Data Access
Rule Execution Server
AdvisorWorkplace
AdvisorWorkplace
Risk Database
Counterpartindicators
Counterpartindicators EventsEvents Risk situationsRisk situations
Rule RepositoryRule Repository
Rule ExecutionServer
RuleAppsRuleApps
Rule TeamServer
ScenarioRepositoryScenario
Repository
Rule ScenarioManager
• 7 Rule Services sharing 400 business rules – 3 Batch programs (6,700 events/sec)
– 4 TPs (1 Transaction < 10 ms)
• Deployed on WebSphere 6.1 on z/OS USS– Online using Web Contained and CICS Transaction
Gateway
– Batch written in Java with JDBC Binding
Copyright© 2008 - ILOG, Inc., All Rights Reserved
Technical, SOA Architecture
App. 9 monthsApp. 9 months
Overall phasing
Client ProgramClient Program
Program Kick-offProgram Kick-off Design & SpecsDesign & Specs IntegrationIntegration Validation/UATValidation/UATOther phasesOther phases
BRMS Sub-projectBRMS Sub-project
Kick-offKick-off Design andSpecs
Design andSpecs ImplementationImplementation Assembly and
sub-validationAssembly andsub-validation
Assistanceto IntegrationAssistance
to Integration
App. 5 monthsApp. 5 months
I E C T
Business Rules for Commissioning
• Commission networks in growth and competitive markets• Steer the network
– Commissioning, over-commissioning, bonuses
– Sales campaigns: product launch, promotions,…
• Manage general and specific contractual provisions– Attach rules to contracts, products or networks
– Commission throughout the life-cycle of a contract (different events)
• Create a link between commissions and their calculation components– Conformity and SOX
– Amount verification, validation and explanation
• Reduce errors in commissioned amounts and enhance brand image with distributors
CalculationPreparation Validation
• Data enrichment
• Eligibility
• Grouping
• Formulas, rates, scopes
• Conditions and priorities
• Over-commissionning
• Global Validation
• Identifying singularities and notification
• Payment Orders generation
Where Rules Apply in the Process
Events to becommissionned
Business Rules Capabilities for commissioning
• Make rules understandable by business staff– Express rules in a business language and in dedicated design
environments
• Centralize the management of rules in a repository– Defines hierarchies and priorities– Group rules– Control the execution flow
• Change swiftly rules in production• Audit and analyze the impact of rules and their
interaction• Simulate rules and perform « what if » scenarios
Illustration: Audit for more controlCheck
Business Partner
Compute Pension
Commission
Compute Savings
Commission
Compute Life
Commission
VAT Computation
General Ledger
Assignment
Goals
Standardize on one commissioning Decision Service for all Business Lines Improve Time to market – service initiative Commissioning : capital asset Improve Tracability and auditability
Benefits
Better Commissioning change management Improve process time better services External network retention customer retention less failures improved service quality Extended process automation
Solution
BRMS part of the new software architecture JRules for Commissioning Services with 1st Pilot in Dec 07 Dvpt incremental com services, on a 3 years plan Set-up BRMS task force in parallel (Underwriting, Claims, ...)
Situation
Generali France: 14.2 B€ vs Generali Group 64 B€ Classic organisation by Business Line ( life, non-life, health,..) Deployment of a new software architecture 17 different commissioning applications/modules
Success at Generali – CommissioningInsurance
Conclusion• Applicability of technology to all decisioning logic • Fastest time to business value and lowest total cost of ownership• Empowerment for business teams and IT teams• Synchronised full life-cycle management of all business rules and decision logic
• Next steps– Check IBM’s website for more material :http://www.ibm.com/software/websphere/products/business-rule-management/
– Discuss your business case one on one, illustrate with appropriate references
– Build a solution outline together through a Discovery Workshop
Emmanuel Schweitzer