How to React Faster to Business Operations Challenges · How to React Faster to Business Operations...

© 2009 IBM Corporation

®

TAN Kiat ShiSenior Technical SpecialistIBM Websphere

How to React Faster to Business Operations ChallengesOptimization & Business Rules Management System

October 16, 2009

IBM Software Group - WebSphere

© 2009 IBM Corporation2

IBM Websphere ILOG Product Suite

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 better 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



Our core Technologies

BRMSAutomating Policies

ODMSPlanning & Scheduling

ENTERPRISE DATAENTERPRISE DATATransactional Data

Resources DataInventory Data

Capacity Data

IF Loan to Valueis greater than 80%

THEN request Private Mortgage Insurance

Minimize Salary CostMaximize Shift Assignments

Minimize Allocation Unfairness

Diagrams Charts Maps GanttDashboards

VISUALIZATION – Advanced Graphics


®

IBM ILOG Optimization Solution



What is Optimization?

�Optimization = maximizes resource efficiency

� Examples:– Finding the optimal routes for a Transportation Company.– Scheduling Airline Crews– Optimizing a Financial Portfolio



Optimizing Resources

Resources Examples of choices to make

Capital Allocate

People Acquire, schedule, assign, train

Time Allocate

Equipment Acquire, schedule, locate

Facilities Locate, schedule

Vehicles Acquire, route, schedule

Raw Material Acquire, assign

Resources have required limits

Keywords: Buy, sell, schedule, assign, staff, plan, create, locate



Technology Overview



Financial Services

Utilities, Energy & Natural

Resources

TelecomRetail and Healthcare

Transportation & Logistics

Manufacturing

• Depot/warehouse location

• Fleet assignment

• Network design

• Vehicle routing & scheduling

• Vehicle & container loading

• Crew & driver scheduling

• Maintenance scheduling

• Plant location

• Plant layout

• Supply chain management

• Production planning

• Detailed scheduling

• Combinatorial auctions for procurement

• Portfolio optimization and rebalancing

• Portfolio in-kinding

• Trade crossing

• Loan pooling

• Product/price recommendations

• Supply portfolio planning

• Power generator scheduling

• Distribution planning

• Water reservoir management

• Mine operations

• Timber harvesting

• Product configuration

• Space management

• Pricing & promotions optimization

• Workforce scheduling

• Marketing campaign optimization

• Network capacity planning

• Routing

• Adaptive network configuration

• Antenna and concentrator location

• Equipment and service configuration

• Field technician dispatching

From Strategic Planning to Real-Time Detailed Scheduling

Industry Applications



Over 200 of the Global 1000 use ILOG

TransportationGovernment & Defense


© 2009 IBM Corporation10/26/2009 10

Use cases in Hong Kong

� MTR – Driver Scheduling� KMB – Driver Scheduling� Hospital Authority – Nurse Scheduling� HIT – Container Port operation� MTL – Visualization of port operations� HACTL – Operation optimization for Super Terminal One� River Trade Terminal – Visualization of port operations� Civil Aviation Department– Scheduling of Air traffic

controllers� PCCW – Technician Dispatching� PCCW – E-learning platform using BRMS� All the universities in Hong Kong – CPLEX for researches,

teachings and studies


© 2009 IBM Corporation10/26/2009

11

Return on Investment（ ROI）

2 Chilean Forestry firms Timber Harvesting $20 mil/yr + 30% fewer trucks

UPS Air Network Design $87m/2yrs + 10% fewer planes

South African Defense Force/Equip Planning $1.1 bil/year

Motorola Procurement Mgmnt $100-150 mil/year

Samsung Electronics Semiconductor Mfg 50% reduction in cycle times

SNCF (French RR) Scheduling & Pricing $16m/yr rev + 2% lower op ex

Continental Airlines Crew Re-scheduling $40 mil in one year

AT&T Network Recovery 35% reduction spare capacity

Grant Mayo van Otterloo Portfolio Optimization $4 mil/year

INFORMS Edelman Award for CPLEX Customers


®

Business Rules Management System



Business Needs are Dynamic…We need to add a

validation step to meet the requirements of the new regulation.

Let’s create a special promotion for our best customers.

Can we automate approvals for this

type of order?

Benefit calculationBenefit calculation

Fraud Fraud assessmentassessment

EligibilityEligibility PricingPricing

UnderwritingUnderwriting

ConfigurationConfiguration

Tax calculationTax calculation

BillingBilling

Product SelectionProduct Selection

Accounting DispositionAccounting Disposition

Compliance ScreeningCompliance Screening

Documentation RequirementsDocumentation Requirements

Commissions / RoyaltiesCommissions / RoyaltiesUpUp--sell/Crosssell/Cross --sell offersell offer



Business Rules in Organizations

SpreadsheetsDatabases

ManualProcesses Monolithic

Applications

Mainframe

Can get quite largeCan get quite large Are scattered everywhereAre scattered everywhere Are subject to changeAre subject to change



Challenges for a Change Request

• Changes are costly, resource and time-intensive

• Rules are hidden in code

•Most changes have to be programmed –costly

• Lack of consistency• No central management of rules

• No reuse of rules

• Gap between and business analysts & IT administrators

•Business rules knowledge fades over time

• Lack of auditability

• No easy way to test/simulate the change

© ILOG, All rights reserved15



Applications

Mainframe

Business Rules in the Enterprise



Business Rule Management System

Rules are monitored

and managed

Rules are deployed

and executed

Rules are extracted

and stored

Business Rule Management System

© ILOG, All rights reserved 16



Applications

Mainframe

Rule Repository

User Tools

Rule Engine



BRMS Benefits



BRMS across Industries

© ILOG, All rights reserved 18



Use cases in the Public Sector



Wide Range of Applications

� Claims Processing– The United States Department of Veterans Affairs uses JRules to automate healthcare

eligibility, enrollment, and case management.

� Entitlement and Benefit Calculation– District of Columbia residents can now go online to see whether they qualify for

healthcare programs.

� Fraud Detection and Management– In the 1st year of the new Identification Service, the Taxation Administration Service of

Mexico increased the total real tax collection by 8%+

� Information Dissemination and Interactive Services– Hospitals, state employees, and clinical providers now have access to real-time patient

information of the 25+ million US veterans and their families.

� Screening and Targeting� C4ISR and Mission Planning for Defense



Use cases in Government

• National Assembly

for Wales CAPM (UK)

• National Health

Service – National Care Records (UK)

• Indra Sistemas (Sp.)

• Air Force – Global Transportation Network 21st Century (US)• National Health Service –National Care Records (UK)• Department of Homeland Security – Customs and Border Protection –Automated Commercial Environment (US)

Dynamic BPM Compliance Mgt

• Department of Work and

Pensions (UK),

• Government of the District of Columbia HSMP (US)• State of California SAWS (US)•State of Minnesota DEED UIM (US) • State of Virginia SCHIP (US)

• Veterans Affairs Health Administration Center (US)

Interactive Services



Use cases in Defense

• Air Force Theatre Battle Management Core Systems • Air Force National Air & Space Intelligence Center

• Army Theatre High Altitude Area Defense Missile

• DoD's Joint Operational Support Airlift Center (JOSAC) Scheduler's Decision Support System

Defense

•Department of Homeland Security – Customs and Border Protection –Automated Commercial Environment

• Department of Homeland Security – Coast Guard –Deepwater Systems

• Guardia Civil – Sistema Integrado de Vigilencia Exterior (Sp.)

Homeland Security



District of ColumbiaHuman Services Modernization Program

• Integrated and automated eligibility determination engine accessible online through one-stop interactive website that presents options in a dynamic questionnaire

How

Goa

ls

• Complex regulations

• Over 40 different government programs

• Citizens get funneled in the wrong programs costing $M to DC

Bef

ore

• 99.5% of accuracy• Real time one-stop eligibility

determination for over 20 programs• Cost effective and simplified business

rules management

Afte

r� Improved service to citizens through one-stop-shop service available to government services,

non-profits, social workers, and citizens

Ben

efits

• Improve customer service and streamline application and follow up processes

• Channel clients to the proper medical benefits program



City of Chicago Health Event Surveillance System (CHESS)

• Central repository that enables consistent application of health event rules across

the enterpriseHow

Goa

ls

• Multiple legacy systems

• Data redundancy

• Paper-based reporting

� Fragmented information and limited alerting capabilities

Bef

ore

• Single system• Data quality and timeliness• Early warning system that correlates

data from multiple sourcesAfte

r� Dramatic improvement of public health response’s effectiveness, by identifying early on critical

signs of epidemics (e.g. avian flu)

Ben

efits

• Improve timeliness of disease reporting and surveillance information• Early warning system

• City of Chicago's response to the NEDSS (National Electronic Disease Surveillance System) driven by CDC



� Leverage SOA to support all SAT service areas� Use a BRMS to handle taxation rules change & complexity

Sol

utio

nS

ituat

ion

� Be reactive to legislative changes

� Improve taxpayers’ experience

� Lower costs & increase flexibility of the collection processes Goa

ls

� During the first year of the new Identification service, the total real tax collection grew

by 8%+

� The income tax collection increased by 12%+

� Cut tax collection cost 10%

� Increased number of taxpayers in SAT database 35%+

Ben

efits

� More than 18 millions transactions per year in SAT databases

� More than 25 million contributors

� Expensive & inconvenient tax collection system

SAT Tax Management - MexicoAgile Tax Management Using BPMS & ILOG BRMS



A journey to SingaporeA journey to Singapore



ILOG OPTIMIZATION - ROSTERINGILOG OPTIMIZATION - ROSTERING



ILOG VISUALIZATION

- SUPERVISIONILOG VISUALIZATION

- SUPERVISIONILOG OPTIMIZATION

– ROSTERINGILOG OPTIMIZATION

– ROSTERINGILOG BRMS

– CARGOCLEARANCE

ILOG BRMS

– CARGOCLEARANCE



ILOG BRMS – INTERLLIGENT TRANSPORTILOG BRMS – INTERLLIGENT TRANSPORT



ILOG VISUALIZATION – SUPERVISION & CONTROLILOG VISUALIZATION – SUPERVISION & CONTROLILOG OPTIMIZATION – PLANNING & SCHEDULINGILOG OPTIMIZATION – PLANNING & SCHEDULING



ILOG VISUALIZATION

ILOG BRMS

ILOG OPTIMIZATION

ILOG VISUALIZATION

ILOG BRMS

ILOG OPTIMIZATION



ILOG OPTIMIZATION – TIMETABLINGILOG OPTIMIZATION – TIMETABLING

ILOG BRMS – STUDENT POSTINGILOG BRMS – STUDENT POSTING



ILOG OPTIMIZATION

- PRICINGILOG VISUALIZATION

– MONITORING & CONTROL

ILOG OPTIMIZATION

- PRICINGILOG VISUALIZATION

– MONITORING & CONTROL



ILOG OPTIMIZATION

– ROSTERING & DISPATCHILOG OPTIMIZATION

– ROSTERING & DISPATCH



ILOG BRMS – RANKING & PROMOTIONSILOG BRMS – RANKING & PROMOTIONS



ILOG BRMS – ELIGIBILITY & ENTITLEMENTILOG BRMS – ELIGIBILITY & ENTITLEMENT



IBM ILOGtouching every citizen’s live…

IBM ILOGtouching every citizen’s live…



Thank YouThank YouThank YouThank You

How to React Faster to Business Operations Challenges · How to React Faster to Business Operations...

Documents

Transcript of How to React Faster to Business Operations Challenges · How to React Faster to Business Operations...