Overview of SAP NetWeaver Business Rules Management with SAP NetWeaver Composition Environment Michael Hill Product Manager SAP Technology Group Market Development and Enablement SAP Labs, LLC
Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. SAP 2009 / SAP TechEd 08 / BPM101 Page 2
Agenda 1. Introduction 1.1. What are Business Rules? 1.2. Enforcing Business Rules 1.3. Typical Customer Challenges with Conventional Methods 1.4. Solving these Challenges with Business Rules Management 1.5. BRM in the Real World A Real World Case Study 2. SAP NetWeaver Business Rules Management Offers 2.1. Easier implementation of Complex Business Rules 2.2 Tight integration with BPM 2.3 Reusable Rules! 3. SAP NetWeaver BRM as Technology 3.1 Building Blocks 3.2 Business Rules & BPM A Deep Dive 4. Demo 5. SAP NetWeaver BRM Scope and Roadmap SAP 2009 / SAP TechEd 08 / BPM101 Page 3
What are Business Rules? What are Business Rules? Business Rules represent the constraints on behavior of the business The policies and guidelines which drive business decisions Business Rules are owned by LoB and not by IT. Example - Interest Rate Calculation Example for IT Rules Database Constraints Object Model Rules SAP 2009 / SAP TechEd 08 / BPM101 Page 4
Examples from Across Industries Rules are Ubiquitous. Rules are Everywhere!! Telecom Insurance Mortgage Logistics & Shipping Public Sector Stock Exchanges Education CRM HealthCare Banking Content Based Customizable Billing New Products, Claims Settlement, Agent Commissions Eligibility, Pricing, Underwriting Parts Management, Duties Calculations, Pricing Calculations Tax Calculations, Customs Duties, Land Regulations, License Fee Calculations Alert Engines Fee Calculations, Course Selections Quotations, Campaigns, Discounts, Recommendations, Pricing, Cross Sell Claims, Patient Monitoring, Fraud Detection Relationship based Pricing, Scorecards, Credit Decisioning SAP 2009 / SAP TechEd 08 / BPM101 Page 5
Types of Business Rules A Compilation Validation Rules Rate Calculation Rules Decision Rules Recommendation Rules Personalization Rules Internationalization & Localization Rules Exceptions and Special Rules Claim Validation, Loan Application Validation Computation of Taxes, Interest Rates, Sales Commissions, Premiums, Bonuses, Duties Is Applicant Eligible for a Loan Product? Can this good be cleared by Customs? Marketing Promotions, Medical Recommendations, Online Product Chooser Website Personalization, Product Personalization, Relationship Personalization International Products e.g. Maintaining similar Insurance products across countries, Cross border Custom Duties Exceptions, Special Accounts, Special Arrangements, etc. Optimization and Configuration Rules Product Configuration, Deal Configuration SAP 2009 / SAP TechEd 08 / BPM101 Page 6
Enforcing Business Rules Conventional Methods Automated Enforcement Rules inside Database No/Semi Automation Rules as Tacit Knowledge Triggers Sales Commissions Premium Calculations Stored Procedures Business User Business Expert Business Analyst Rules inside Code Rules In Documents SAP 2009 / SAP TechEd 08 / BPM101 Page 7
Typical Customer Challenges Zero visibility into business decisions Critical business rules are locked in code or databases Business has no visibility into how systems take decisions Change resistant IT systems Business rules can be very volatile Hardwired business rules make change difficult for IT Unacceptably long testing and change cycle times High costs of correction and rework Inefficient and Costly Human Experts Need to maintain a pool of trained experts Continuous training and hiring costs Very complex rules and error prone & time consuming human decision making Scattered knowledge Business rules not centrally managed Scattered across code, manuals and as tacit knowledge Inadequate, ambiguous and inconsistent business rules across the Enterprise High risk of compliance violation SAP 2009 / SAP TechEd 08 / BPM101 Page 8
Enter Business Rules Management With BRM Externalize critical business rules Model executable complex business rules (Centrally) manage business rules Business Users can model and manage critical business rules You Get Agile and maintainable Systems Automate key business decisions Consistent application of corporate policy and government regulations Visibility, accountability and Error free Business Visible, Flexible and Informed Decisioning With BRM Flexible & agile business systems Faster turnaround times for change Reduced cost for change Precise & informed decision making Improved visibility for the business Positive improvement in quality SAP 2009 / SAP TechEd 08 / BPM101 Page 9
Case : Leading Truck Manufacturer (Case Study from YASU) Company Fortune 500 company Leading truck engine manufacturer Challenges Warranty Claims process took 1week to process a warranty. Several parts were not even sent to suppliers due to complex warranty arrangements with suppliers Business Rules Contracts Management Liability Assessment Claims Processing Settlement Rules Product Returns Q Inspection Rules Reports Generation Major Process Challenges Hard coded rules Low Visibility Loss of Domain & Application Knowledge Slow Turnaround Times Benefits Cost reduction of up to 1.87 million USD Reduction in process time by 80% Reduction in IT personnel costs Reduction in inventory storage losses Reduction in losses arising out of unrecovered claims SAP 2009 / SAP TechEd 08 / BPM101 Page 10
Agenda 1. Introduction 1.1. What are Business Rules? 1.2. Enforcing Business Rules 1.3. Typical Customer Challenges with Conventional Methods 1.4. Solving these Challenges with Business Rules Management 1.5. BRM in the Real World A Real World Case Study 2. SAP NetWeaver Business Rules Management Offers 2.1. Easier implementation of Complex Business Rules 2.2 Tight integration with BPM 2.3 Reusable Rules! 3. SAP NetWeaver BRM as Technology 3.1 Building Blocks 3.2 Business Rules & BPM A Deep Dive 4. Demo 5. SAP NetWeaver BRM Scope and Roadmap SAP 2009 / SAP TechEd 08 / BPM101 Page 11
Easy implementation of Complex Business Rules Rich rule formats Classic if-then rules (inference rules/ production rules) Decision tables score cards and tabular rules Natural language-like rules representations Support for multiple data models for rules implementations Seamless navigation from process to rules through integrated process & rules modeling This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 12
Rule Representation Formats If Then Rules Simple english like statements joined with and/or Priorities for specifying sequence of execution Rule overrides to declare mutually exclusive rules Decision Tables Tabular representation of Rules Easier to relate for Business Users with Spreadsheet like structure Integration with Microsoft Office Excel (NW 7.2) Powerful features like returning multiple rows of values, dynamic invocation of decision table etc This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
Business Rules Refinement Rules Refinement and Alignment Business rules testing for Business Analysts Business rules refinement and validation throughout rules lifecycle Business rules refinement towards optimization Application UI Simulate Rules Analyze Rules Optimize Rules SAP 2009 / Page 14
Tight integration with NetWeaver BPM Rules accelerates BPM BRM Clear decoupling of process logic from decision logic Accelerated process efficiency with automated decisioning Reusable business rules services Rules based correlations for real-time business events Rules in BPM Some Use cases Complex rule based decisions (Pricing, Credit Decisions etc.) Responsibility determination (Rule based task assignment) Recognition of business events Routing rules (receiver determination) Parameter thresholds & tolerance (constraint rules) SAP 2009 / SAP TechEd 08 / BPM101 Page 15
Reusable Rules Rules Modeling Independent Rules Modeling Model in Rules Composer Wider consumption across applications Integrated Rules & Process Modeling Model in Process Composer For consumption by a business process Composites Composite Services & Events Composite Applications UI Composites Situational Composites Web Service Rules Connector Rules Consumption Web Service ABAP Applications Through ABAP Connector Direct consumption of Rules Service Business Processes Web Service EJB JEE Clients Composite Business Process Guided Procedures System2System Processes. As a Stateless Session Bean As a Rules Service SAP 2009 / SAP TechEd 08 / BPM101 Page 16
Agenda 1. Introduction 1.1. What are Business Rules? 1.2. Enforcing Business Rules 1.3. Typical Customer Challenges with Conventional Methods 1.4. Solving these Challenges with Business Rules Management 1.5. BRM in the Real World A Real World Case Study 2. SAP NetWeaver Business Rules Management Offers 2.1. Easier implementation of Complex Business Rules 2.2 Tight integration with BPM 2.3 Reusable Rules! 3. SAP NetWeaver BRM as Technology 3.1 Building Blocks 3.2 Business Rules & BPM A Deep Dive 4. Demo 5. SAP NetWeaver BRM Scope and Roadmap SAP 2009 / SAP TechEd 08 / BPM101 Page 17
SAP NetWeaver Business Rules Management - Building Blocks Rules composer Rules engine Process Rules management Desk Key Features Rules Modeling & Implementation Business user-friendly rich rule formats Support for multiple data models for rules implementation Data model independent business vocabularies Rules Composer Rule Testing & Refinement Validation of business rules Testing & refinement of rules based on test results Report generation for rule invocations Rules Composer, Manager Rule Execution High performance rules engine Stateless EJB Engine Rete-based Inference & Sequential Engines End-to-End Change Management Web-based rules maintenance by business analysts Rules versioning & repository services Permissions, access control & governance Rules Repository, Rules Manager This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
Business Rules & BPM A Deep Dive Process composer Process server Process desk Desk Various ways of modeling rules: Model with rules composer and use as a rules service Model in the context of a business process And, many ways to integrate: Rules services through an automated activity Use rules as mapping transforms Use rules through EJB functions Use rules from human-task user interfaces Use rules as gateway conditions SAP 2009 / SAP TechEd 08 / BPM101 Page 19
Agenda 1. Introduction 1.1. What are Business Rules? 1.2. Enforcing Business Rules 1.3. Typical Customer Challenges with Conventional Methods 1.4. Solving these Challenges with Business Rules Management 1.5. BRM in the Real World A Real World Case Study 2. SAP NetWeaver Business Rules Management Offers 2.1. Easier implementation of Complex Business Rules 2.2. End to End Change Management 2.3 Tight integration with BPM 2.4 Reusable Rules! 3. SAP NetWeaver BRM as Technology 3.1 Building Blocks 3.2 Business Rules & BPM A Deep Dive 4. Demo 5. SAP NetWeaver BRM Scope and Roadmap SAP 2009 / SAP TechEd 08 / BPM101 Page 20
Investment Approval Process (IAP) SAP 2007 / Page 21
Demo SAP NetWeaver Business Rules Management SAP AG 2009 / Klaus Kreplin / Page 22
Agenda 1. Introduction 1.1. What are Business Rules? 1.2. Enforcing Business Rules 1.3. Typical Customer Challenges with Conventional Methods 1.4. Solving these Challenges with Business Rules Management 1.5. BRM in the Real World A Real World Case Study 2. SAP NetWeaver Business Rules Management Offers 2.1. Easier implementation of Complex Business Rules 2.2. End to End Change Management 2.3 Tight integration with BPM 2.4 Reusable Rules! 3. SAP NetWeaver BRM as Technology 3.1 Building Blocks 3.2 Business Rules & BPM A Deep Dive 4. Demo 5. SAP NetWeaver BRM Scope and Roadmap SAP 2009 / SAP TechEd 08 / BPM101 Page 23
Future Direction Business Rules Management FOCUS AREAS RAPID RULE DEVELOPMENT CONSUMABILITY ENTERPRISE READINESS BUSINESS VALUE Easier and quicker change management Business cyclesreason Increased integration capability and reduced TCO. Reuse rule components across applications RELEASE PLAN 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SAP NetWeaver 7.2 Wave 2 Wave 3 DETAILS Rapid rule development 2009 Wave 2 Sequential and Flow rule modeling options Model complex rules using drag and drop capability Rule testing capability PLANNED Wave 3 Enhanced and expressive rules language Improved rule testing and debugging capabilities Provide rule engine improvements VISION Analytics for what-if scenarios Capabilities to model and represent rule-based event correlations Consumability of Rules Enterprise readiness Tighter integration with Business Process Management Rules available across application stack from CE to ABAP business applications Integrated with SAP life cycle management tools Business user interface for rule management at runtime Rich design time integration with Galaxy Provide lean consumption of Rules Generic extension point of Rules for other components Provide localization for Rules Historical invocation capability Improved re-usability Rule based responses to business events Integration with ESR This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
Business Rules Management Scope of 7.11 High performance Inference Rule Engine Tightly integrated with BPM Rules on XML Schemas and Java Objects Support for simple If-Then Rules Support for Decision Tables with powerful features like dynamic invocation, other conditions etc Ability to create Definitions to hold intermediate values Assign Priorities and Preconditions to Rules Rules to be consumed as a Stateless EJB or Web service by other applications This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 25
Business Rules Management Overview of 7.2 Features Rules composer Rules engine Process Rules management Desk Support for designing complex rules using Flow Rulesets Integration of decision tables with Microsoft Office Excel Enumeration types to restrict input of few parameters Simple menu driven facility to generate a web service for a Ruleset Rule testing of rules written on XSDs Web interface with access control mechanism for Business Users to change and manage Rules Version management of Rules HTML Reports of Rulesets This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 26
Rule Representation Formats Flow Rules Rules laid out in a flow like structure Complex rules can be modeled using Gateways to branch out into different paths Rule scripts to hold a set of actions If-then rules Decision tables Other flows and rule sets Capability to iterate through flow elements until some condition is satisfied Easier to get an overview of the rule implementation This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
New features introduced in BRM 7.2 HTML Report Generation - Rules Composer will provide a capability to generate a printable report for Ruleset and Decision Tables. Web Service Generation - Simple menu driven facility in Rules Composer to provision a web service for a Ruleset written on XML schema Integration with Excel Documents - Rules Composer will provide a capability to export a Decision Table to a spreadsheet. Check Consistency - Rules are checked for consistency like overlapping conditions in rules, missing ranges in decision table etc. Compare with DTR rules and runtime rules - Rules Composer will provide the capability to compare different versions of Rulesets in the DTR in a text format Logging - Logging of Engine Execution Events with Business Logging This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 28
Rules Manager - Experience Show Usages Rules manager allows business users to find usage of a decision table or a definition. It is easier to track the affect of changes using this feature. Check Consistency of Rules Rules manager provides consistency checker feature to check syntactic properties of rules and decision tables It can be used to make checks like rule consumption, overlapping conditions and missing ranges in decision tables This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 29
Rules Manager - A Preview Rules Manager A web based business user interface to help business analyst manage, review and change rules. Provides Access Management and Traceability Role Based Activity Role based access can be specified to various BRM entities for different users using the SAP NetWeaver Administrator. Permissions can vary from Edit to Read. Different access permissions can be given to different entities of a rules project. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 30
Rules Manager - Experience Modifying Rules Rules manager allows the business user to create, edit and manage If-Then Rules and Decision Tables Create different types of actions Set Static or Dynamic Action values Modify existing Conditions. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 31
Rules Manager - Experience Viewing Version History Rules manager shows version history of rules projects. Business users can also compare different versions where they can see modified, added and deleted If-Then rules and decision tables. Report Generation Business users can generate reports of Rulesets, rules and decision tables. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 32
End-to-End Change Management End-to-end development support using the Eclipse based Rules Composer Web based collaborative business user interface with role based access to manage and deploy business rules at runtime Manage access permissions using SAP NetWeaver Administrator Version management Business rules reports & rules traceability This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 33
New features introduced in BRM 7.2 Effectivities - Date Effectivity can be used to specify the time period during which a rule is effective, and can thereby be executed. Enumerations - Aliases can be restricted to take only a specific set of values using Enumeration Types of the same data type Common Definitions - Capability of creating definitions at Project level that can be used in all the Rulesets of the project Rule Overrides - A Rule Override helps resolve conflict between two satisfied If-Then rules by suppressing execution of lower priority rule Rule Testing - Testing for Rules in Rules & process Composer written on XML Schemas. No Java Code required for testing rules on XML This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP 2009 / SAP TechEd 08 / BPM101 Page 34
Resources on the Web for NW BRM Business Rules Home Page on SDN https://www.sdn.sap.com/irj/sdn/nw-rules-management The Rules Tutorial Center ~30 ready to run Demos/Videos/Tutorials https://www.sdn.sap.com/irj/sdn/nw-rulesmanagement?rid=/webcontent/uuid/f066ec08-474b-2b10-4a97-b66d605de037 The Business Rules Management Forum on SDN https://www.sdn.sap.com/irj/sdn/forum?forumid=359&start=0 Technical Articles & White Papers on SDN https://www.sdn.sap.com/irj/sdn/articles-rulesmanagement-all
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