© 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
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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
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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
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IBM ILOG Optimization Solution
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What is Optimization?
�Optimization = maximizes resource efficiency
� Examples:– Finding the optimal routes for a Transportation Company.– Scheduling Airline Crews– Optimizing a Financial Portfolio
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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
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Technology Overview
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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
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Over 200 of the Global 1000 use ILOG
TransportationGovernment & Defense
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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
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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
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®
Business Rules Management System
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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
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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
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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
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SpreadsheetsDatabases
ManualProcesses Monolithic
Applications
Mainframe
Business Rules in the Enterprise
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Business Rule Management System
Rules are monitored
and managed
Rules are deployed
and executed
Rules are extracted
and stored
Business Rule Management System
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SpreadsheetsDatabases
ManualProcesses Monolithic
Applications
Mainframe
Rule Repository
User Tools
Rule Engine
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BRMS Benefits
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BRMS across Industries
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Use cases in the Public Sector
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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
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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
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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
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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
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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
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� 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
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A journey to SingaporeA journey to Singapore
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ILOG OPTIMIZATION - ROSTERINGILOG OPTIMIZATION - ROSTERING
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ILOG VISUALIZATION
- SUPERVISIONILOG VISUALIZATION
- SUPERVISIONILOG OPTIMIZATION
– ROSTERINGILOG OPTIMIZATION
– ROSTERINGILOG BRMS
– CARGOCLEARANCE
ILOG BRMS
– CARGOCLEARANCE
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ILOG BRMS – INTERLLIGENT TRANSPORTILOG BRMS – INTERLLIGENT TRANSPORT
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ILOG VISUALIZATION – SUPERVISION & CONTROLILOG VISUALIZATION – SUPERVISION & CONTROLILOG OPTIMIZATION – PLANNING & SCHEDULINGILOG OPTIMIZATION – PLANNING & SCHEDULING
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ILOG VISUALIZATION
ILOG BRMS
ILOG OPTIMIZATION
ILOG VISUALIZATION
ILOG BRMS
ILOG OPTIMIZATION
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ILOG OPTIMIZATION – TIMETABLINGILOG OPTIMIZATION – TIMETABLING
ILOG BRMS – STUDENT POSTINGILOG BRMS – STUDENT POSTING
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ILOG OPTIMIZATION
- PRICINGILOG VISUALIZATION
– MONITORING & CONTROL
ILOG OPTIMIZATION
- PRICINGILOG VISUALIZATION
– MONITORING & CONTROL
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ILOG OPTIMIZATION
– ROSTERING & DISPATCHILOG OPTIMIZATION
– ROSTERING & DISPATCH
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ILOG BRMS – RANKING & PROMOTIONSILOG BRMS – RANKING & PROMOTIONS
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ILOG BRMS – ELIGIBILITY & ENTITLEMENTILOG BRMS – ELIGIBILITY & ENTITLEMENT
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Singapore Customers
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IBM ILOGtouching every citizen’s live…
IBM ILOGtouching every citizen’s live…
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Thank YouThank YouThank YouThank You
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