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© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com
Introduction to The Decision Model
Larry GoldbergMay 24th, 2011
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 2
Who is KPI?
Publications
Thought LeaderThe Decision Model
Business Logic Framework linking Business with Technology
Business Process ManagementBusiness Decision Management
Business Rule ManagementEnterprise Architecture
Business AnalysisRequirements
Testing
ServicesFirstSTEP
Service to create unambiguous, and complete
Requirements
KPISTEPService to perceive, organize
and manage Business Processes and Rules with
Decision Models
STEPmentMentoring of clients to
achieve self-reliance with Center of Excellence
Training & Certification
ExperienceFinancial Services
Insurance
Healthcare
Government
Utilities
Transportation
Telecommunication
Energy
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 3
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 4
“Big Ball of Mud”Foote & Yoder
SoftwareSystemsSoftwareSystems
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 5
Separation of ConcernsComponent Based Application Architecture
Ken Orr
Security Component
Workflow Component
Transaction Component
Presentation Component
Base Application
Reporting/BI Component
Database Component
BusinessLogic
BusinessLogic
What happens tobusiness logic today?
Business rules
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 6
BusinessLogic
BusinessLogic
Business Rule Documentation
Business Process Model
All Too Familiar? Is this Acceptable?
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 7
BusinessLogic
BusinessLogic
Business Process ModelDecision Shape
How
Does this look better?
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 8
BusinessLogic
BusinessLogic Where did the business rules
go?
What
Decision Model
Rule Family
Rule Family Table
Atomic Logic Statement
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 9
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 10
Definition of Business Logic
Business Logic is the means by which the business derives conclusions from conditions.
The simplest case is the evaluation of a single condition, leading to a single conclusion.
Person likelihood of defaulting on a loan is high
Person credit rating is less than 650
Condition Conclusion
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 11
What is an Atomic Piece of Business Logic?
• One and only one conclusion fact type, such as:– Person likelihood of defaulting on a loan– Claim’s eligibility for payment– Student’s eligibility for financial aid packages
• As many conditions as needed, even zero• All conditions ANDed together• No Ors, ELSEs, BUTs, OTHERWISEs (these have
created the chaos in current systems!)
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 12
Why are Atomic Pieces Good?
• Ultimate simplicity• Everyone reduces conditions and conclusions to
exactly the same pieces• Rigorous principles lead to assembling the pieces
in one and only one way• Easy to SEE errors and omissions• Extremely easy to validate and maintain• Extremely easy to implement in technology
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 13
The Rule Family is a Two Dimensional Table
Conditions ConclusionPerson Credit Score Person Employment
HistoryPerson Other Loans Amount
Person Likelihood of Defaulting on a Loan
Is less than 650 Is Unstable Is High Is High
Is greater than 720 Is Low
Is less than 720 Is Unstable Is Low Is Medium
PersonCredit Score
< 650 PersonEmployment History
Is Unstable PersonOther Loans Amount
Is HighAND
AND
AND
AND
PersonLikelihood of Defaulting on a Loan
Is High
Multiple Logic Statements that Look Like This:
Become Two Dimensional Tables called Rule Families Like This:
Rule Families are Tables that Conform to Rigorous Principles
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 14
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
Conditions Conclusion
We start by discovering the conclusion in the sentence or paragraph
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 15
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We see that the conclusion is “A person is highly likely to default on a loan”
Conditions Conclusion
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 16
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We recast the conclusion into a conclusion fact type: Person Likelihood of Defaulting on a Loan, and we assign it a value of “High”
Conditions ConclusionPerson Likelihood of Defaulting on a Loanis High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 17
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
Next we look for conditions that cause us to reach that conclusion
Conditions ConclusionPerson Likelihood of Defaulting on a Loanis High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 18
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We see that a “person who has a credit score below 650” is one of the conditions that lead to the conclusion
Conditions ConclusionPerson Likelihood of Defaulting on a Loanis High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 19
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We recast “Person Credit Score” into a fact type, and we assign an operator “is less than” and value “650” to it in this row
Conditions ConclusionPerson Credit Score Person Likelihood of
Defaulting on a LoanIs less than 650 is High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 20
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We identify the next condition leading to the conclusion
Conditions ConclusionPerson Credit Score Person Likelihood of
Defaulting on a LoanIs less than 650 is High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 21
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
Conditions ConclusionPerson Credit Score Person Employment
HistoryPerson Likelihood of Defaulting on a Loan
Is less than
650 is Unstable is High
We recast Person Mortgage Situation into a fact type, add a new column for this new header, and we assign the value “Poor” to this row
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 22
Simple Rule Family
“A person who has a credit score below 650, an unstable employment history and a high Other loans assessment is highly likely to default on a loan.”
We identify a “high Other loans assessment” as the third condition leading to the conclusion
Conditions ConclusionPerson Credit Score Person Employment
HistoryPerson Other Loans Assessment
Person Likelihood of Defaulting on a Loan
Is less than 650 is Unstable is High is High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 23
Where Do We Get the Condition Values?
• Starting with the first condition, we ask where its values come from: a web page or a file? Is it raw, stored data? Is it the result of execution logic?
• Person Credit Score comes from an outside service, simply raw data.• The value for Person Employment History is an internal judgment or
decision. It comes from evaluating other conditions, such as:– Person Years at Current Employer – Person Number of Jobs in the Past Five Years.
• What to do?
Conditions ConclusionPerson Credit Score Person Employment
HistoryPerson Other Loans Amount
Person Likelihood of Defaulting on a Loan
Is less than 650 Is Unstable Is High is High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 24
Two Rule Families• We create another Rule Family, this one with conclusion column for
Person Employment History• This conclusion is known as an Interim Conclusion because it need
not be stored, it is a conclusion-in-flight (during execution)• This Rule Family comes to a conclusion about a Person Employment
History based on two conditions: Person Years at Current Employer and Person Number of Jobs in Past Five Years.
• These two Rule Families are naturally linked together with an “inferential relationship”
Conditions ConclusionPerson Years at Current Employer
Person Number of Jobs in Past Five Years
Person Employment History
Conditions ConclusionPerson Credit Score Person Employment
HistoryPerson Other Loans Amount
Person Likelihood of Defaulting on a Loan
Is less than 500 Is Unstable Is High is High
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 25
Decision Model Principles
• Structural Principles – Structural simplicity• Declarative Principles – Declarative structure• Integrity Principles – Optimal logical integrityThese Principles ensure that:
• The Decision Model is aligned with its business purpose
• There are no errors in its logic• It can execute in any technology (current and future)
The Principles introduce Normalization.
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 26
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 27
Every Decision Model Starts with a Business Decision
“Business decision: a conclusion a business arrives at through business logic which is worth managing.”
The underlined words (Calculate, Estimate, Determine, Assess, Validate) are “Decision Words”
Fact Type Business Decision Claim Payment Amount Estimate the claim payment amount
Claim Payment Eligibility Determine Claim Payment Eligibility
Customer Likelihood of Loan Default Determine Customer Likelihood of Loan Default
Insurance Policy Renewal Method Determine insurance policy renewal method
Inventory Item Minimum Stock Level Assess the Inventory Item minimum stock level
Loan Prequalification Determine loan prequalification requirements for a customer
Person BMI (Body Mass Index) Calculate Person BMI
Vendor Performance Index Calculate the Vendor Performance Index
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 28
Determine Policy
Renewal Method Decision Model
Notation
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 29
Determine Policy
Renewal Method Decision Model
NotationPolicy Renewal Method
Policy Pricing Within BoundsPolicy Underwriting Risk
Manual Underwriting Indicator
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 30
Policy Renewal MethodPolicy Pricing Within Bounds
Policy Underwriting RiskManual Underwriting Indicator
Policy Pricing Within BoundsPolicy Discount
Policy Tier
Determine Policy
Renewal Method Decision Model
Notation
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 31
Policy Renewal MethodPolicy Pricing Within Bounds
Policy Underwriting RiskManual Underwriting Indicator
Policy Pricing Within BoundsPolicy Discount
Policy Tier
Determine Policy
Renewal Method Decision Model
Notation
Conditions Conclusion
Pattern Policy Tier Policy Discount
Policy Pricing Within Bounds
1 ≤ 1 Is No2 ≤ 1.5 > 10% Is No2 ≤ 2 > 20% Is No2 ≤ 2.6 > 22% Is No2 > 1 ≤ 0% Is Yes2 > 1.5 ≤ 20% Is Yes2 > 2 ≤ 22 Is Yes1 > 2.6 Is Yes
Conditions Conclusion
PatternPolicy Underwriting
RiskPolicy Pricing Within
BoundsManual Underwriting
Indicator Policy Renewal Method 1 Is Nonstandard Is Manual Renewal Process2 Is No Is Manual Renewal Process3 Is On Is Manual Renewal Process4 Is Standard Is Yes is Off Is Automatic Renewal Process
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 32
Policy Underwriting RiskInsured Major Ownership Change
Insured Major Location Change Policy Annual Premium
Policy Discontinued Agent
Insured Major Ownership Change
Insured Minority StockholderInsured Majority Stockholder
Insured Board ChangeInsured CEO Change
Insured Major Location Change
Insured Location Zip-5 Insured Location Occupied Square Footage
Insured Location Construction
Policy Discount
Policy Grade Package Grade
Package Discount Location State Category
When is it Finished?How Big Are They?
Policy Renewal MethodPolicy Pricing Within Bounds
Policy Underwriting RiskManual Underwriting Indicator
Policy Pricing Within BoundsPolicy Discount
Policy Tier
Determine Policy
Renewal Method
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 33
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
Option 1
Option 2
Option 3:Rule Pattern
1 is Low is Good = "A"1 is Low is Bad = ?1 is High is Good = ?1 is High is Bad = ?
Conditions Conclusion
Person's DebtPerson's Employment
HistoryPerson's Credit
Rating
Process ModelDecision Rule Family TableDecision Model Diagram
The Decision Model Difference in Process Models
PersonDebt
PersonEmployment History
PersonCredit Rating
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 35
Simplify the Models, Improve the Solution, Now You Know How
Before After
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 36
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 37
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 38
FirstSTEP
• A Framework• A Methodology
– Step 1: Validate Scope.– Step 2: Outline Models– Step 3: Visualize the target scope.– Step 4: Iterate & Complete the
Models.– Step 5: Repackage and Present a
Holistic Requirements Deliverable.
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 39
FirstSTEP Scope
• Use the framework* to create scope:
List of ThingsImportant to the Business
List of Processes that the Business Performs
List of Locations in whichthe Business Operates
List of Organizations importantto the Business
List of Events /CyclesSignificant to the Business
List of Business Goals/Strategies
Decisions
SWOTAnalysis
*The Zachman Framework is a copyright of John Zachman and Zachman International
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 40
Selection of Models
ConceptualData Model
Fact Type Glossary
Business Process Model
Business Use Cases
Network Diagrams
Logistic System
Context Diagram
Workflow Model
Governance Model
StateDiagram
Master Schedule
Event Sequence Diagram
Business Motivation Model
Decision Model
Visualization
*The Zachman Framework is a copyright of John Zachman and Zachman International
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 41
Application Visualization
• Business analysts, product managers & UE professionals assemble visualizations of possible solutions
• Business and IT stakeholders “test drive” & provide feedback in rapid, interactive explorations
• Discussions are more focused & engaging
• Visualization dramatically improves communication between business & IT
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 42
Decision
Business Motivation Model
Decision Model:business rules and
business logic
Process Model
Use Cases
SOA Components
Business Requirements & Test Cases
Vocabulary Models:Glossary/Semantic ModelLogical Data ModelObject Model
Enterprise
Business Unit
Function Function
Business Unit
Function
Organization Model
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 43
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 44
What is Sapiens DECISION?Business Decision Management System:• Sapiens DECISION is an enterprise level Business Decision Management
System that implements The Decision Model
• Sapiens DECISION enables– Sharing of business logic throughout the enterprise and beyond– Complete separation of business logic– Business user empowerment – Traceability from the business objectives and motivations through to the
implementation– Comprehensive glossary support– Extensive testing capabilities– Full life cycle support
• Sapiens DECISION deploys The Decision Model to a BRMS (rules engine) for production execution and may include an integrated rules engine
44
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 45
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 46
Graphical Modeling
Rule Family Table
Development
Traceability, Audit & Impact
AnalysisEnforcement of Decision Model
Principles
Robust Glossary Function
Governance & Versioning
Reporting & Analytics
Enterprise Support
Testing & Automated Test
Case Generation
Connectivity
Sapiens DECISION Functionality
46
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 47
Graphical Modeling using theDecision Model Notation
Sapiens DECISION supports user-friendly creation and maintenance of graphical decision models
Enables business users to model decisions before having the detailed rule logic
47
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 48
Rule Family TablesRule Family Tables are created from the graphical model, allowing users to populate, manipulate and manage rule families
48
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 49
Robust Glossary FunctionGlossary of fact types and domains is automatically created from The Decision Model diagram for easy business user reference
49
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 50
Advanced Decision Model Methodologies in Sapiens DECISION• Sapiens DECISION incorporates the very latest Decision
Model methodologies on an exclusive basis:– ViewGroups – enable the enterprise to be fully modeled and
support customized views in unique business contexts– Glossary hierarchies – provide enterprise capability with
federated glossaries and both centralized and federated glossary management
– Decision Views – customized logic within decision models for specific purposes (e.g., customers, geography, regulatory regimes) while still sharing common logic
– Rule Family Views – reusability of customized logic across decision views
– List Fact Types – expand the flexibility of The Decision Model– Messaging – add unlimited messaging capability in the
deployment environment
50
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 51
Sapiens DECISION Roadmap 1
• Release 1 – Immediate Availability• Ready to build enterprise scale decision base:
– Internet-based Application– Enterprise capable– Source Documents– Decision View Support– Rule Family Build– Model checking – enforcing The Decision Model principles– Graphics support– Impact Analysis– Versioning– Audit– Governance– Security– Interface to deployment environments– Built in rules engine
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 52
Sapiens DECISION Roadmap 2
• Release 2 – Available Q3 - Q4 2011• BDMM Level 4 Capability
– Enhanced Decision View support– Full Rule Family View support– Enhanced Rich Internet Interface– Process enabled governance– Business Change Document management– Whiteboard analysis– Cell Wizards– Rich Glossary Support – Communities– ViewGroups for business context– Enhanced impact analysis– Enhanced reporting– Advanced Query for complex searches and impact analysis– Enhanced Model checking– Automated deployment packaging– Enhanced Interfaces to deployment environments– Business Decision Messages– Decision Catalogue Printing
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 53
Sapiens DECISION Roadmap 3
• Release 3 – Available Q2 2012• Beyond BDMM Level 4
– Inline testing and test script development– Enhanced Business Change Document management– Extended business context capability for mass customization– Business Communities– User defined objects and forms, with graphics support– Automated document parsing and analysis– Smart Business Decision messages– Enhanced Decision Catalog printing– User defined Interfaces to deployment environments– Automated generation of Decision Services– Integration with BPMS tools
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 54
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 55
Real World Testimonial• “The Decision Model’s principles and normalization rules give us confidence
we can get repeatability and consistency amongst business analysts when performing rules analysis.
• In addition, the structural integrity of the Decision Model makes the technology implementation straightforward
• IT and Operations have agreed to use our decision model as business requirements for business logic changes – this will greatly speed up the change process
• In addition, the use of a COTS BRMS solution will allow us to take advantage of additional capabilities over time, such as enhanced testing and decision-warehousing capabilities.“
• From policy to automation reduced by 30% in time, while delivering 66% more changes
Mark Pettit, Freddie Mac, Operations Management Group, MIT IQIS, July 15, 2010
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 56
Project #1: 3 Months
Business Motivations– Increase customer satisfaction– Improve Data Quality– Reduce errors in critical
transaction– 98% error-free by Q4 2011– 100% error-free by 2012– Reduce risk of transactions
(delinquent contracts)– No way to measure before
because 98% rules were scattered across multiple systems
Challenges, Deliverables– Policies described error-free
conditions, had to discover error conditions
– “overloaded” fact types– Policies had logic errors– First Decision Model = 38 hours– Customized view = 5 hours– “High” complexity
• 12 Rule Families in first Decision View• 7 Rule Families in customized view• 24 fact types in all• Some fact type values not available
– 5 other decision models, one with 70 Rule Families
– Largest Decision View = 300 Rule Families, 44 pages
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 57
Project #2: Process Improvement
• Entire Project Completed in 3 Months• Updated Process Models• Decision Models:
– Number of Decision View: 40 (approx.)– Number of Rule Family Views: 700 (approx.)
• Glossary:– Total Number of Fact Types: 1,400 (approx.)– Number of Persistent Fact Types: 750 (approx.)– Number of Interim Fact Types: 650 (approx.)
• Built and tested custom rules engine and messaging system
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 58
Project #3: Process Improvements
• Before The Decision Model:– 200 transactions with errors 90 hrs– 200 transactions without errors 30 hrs
• After The Decision Model:– 200 transactions with errors 3 mins 30 secs (with
error messages and step by step instructions on how to correct each error)
– 200 transactions without errors 3 mins 30 secs
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 59
Project #3: How?
• There is no longer any room for misinterpretation of the Business Logic requirements
• The business logic is easy to understand and available for everyone to see
• The business logic can be updated without changing the process and visa versa
• Business logic can be changed in the system within two business days
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 60
Project #3: Statistics• 5 Decision Views
– 95 Rule Family Views • 10 Weeks
– Decision Views created in approximately 5 weeks• Included two iterations of validation• Iterative Improvements were added through the project based on analysis
– Decision Views were implemented in Code and tested in approximately 5 weeks
• New plans will reduce this time• Business rules engine will be ready to run as a service early next year
• 30-60 Hours of Testing– 2,200 test cases created in approximately 2 weeks– Most test cases were created in automated fashion– A new release takes 30 minutes to 2 hours to test
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 61
Agenda
• Current State: Business Rules • The Decision Model Bottom Up• The Decision Model Top Down• Impact on Business Analysis• FirstSTEP – A Requirements Framework• Technology to Enable Decision Management• Real World Testimony & Case Studies• The Ways We Can Help• How to Learn More
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 62
(3 weeks)(3 weeks)
The Ways we can Help
Off-Site5 weeks
Off-Site5 weeks
On-1 weekOn-
1 weekOff-Site5 weeks
Off-Site5 weeks
On-1 weekOn-
1 week
KPISTEP Target Project
Skills and Knowledge TransferSkills and Knowledge Transfer
STEPmentPilot
Fixed priceTime boxed
Increment 2(3 Months)Increment 2(3 Months)
Increment n(3 Months)Increment n(3 Months)
Fixed priceTime boxed
Fixed priceTime boxed
Increment 1(3 Months)Increment 1(3 Months)
Fixed priceTime boxed
Environment for Managing Decisions
Training Certification Mentoring
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 63
Value Proposition
• Unambiguous, traceable and complete Requirements
• Most rapid approach to capturing business logic• Straight through processing from requirements
to automation• Significant simplification of business process• Innovative improvement in and governance of
business decisions, data quality and data transformation services
• Continuous change in an agile world
© 2010 Knowledge Partners International LLC ●www.kpiusa.com ● www.thedecisionmodel.com 64
How to Learn MoreVisit www.kpiusa.com
• FREE PRIMER• Updated Events• Download White Papers• News
Become a member of the open LinkedinThe Decision Model Group
Read our articles and buy our books
Join our presentations
Contact uswww.enterprise-design.euwww.rulemanagement.comwww.TheDecisionModel.com
Try It Yourself:Ask for “free” Visio and Excel [email protected]
Discuss with us how to apply The Decision Model for your Requirement or Business Rules project.