the future of it all

1Copyright © 2008 BIZRULES

The Future of IT All

Rolando HernandezEnterprise Rules Architect

CEO, [email protected]

www.BizRules.comwww.VisibleKnowledge.com


ComplyComplyWITH CONSTANTLY CHANGING REGULATIONS SustaiSustai

nn A KNOWLEDGE-BASED WORLD

ArchitecArchitectt

SYSTEMS THAT WORK, CHANGE, AND LAST

Retain & ShareRetain & ShareTHE KNOWLEDGE OF RETIRING BABY BOOMERS

PreventPreventBUSINESS MISTAKES AutomateAutomate

KNOWLEDGE WORK

ModernizeModernizeLEGACY SYSTEMS

LeverageLeverageRULE-BASED AND KNOWLEDGE-BASED SYSTEMS AND STOP ‘HARD-CODING’ DATA-BASED SYSTEMS

AlignAlignIT SYSTEMS WITH BUSINESS STRATEGY

The Future of IT All is…

The Future of IT is… Aligning IT Systems with Business Strategy

DATA

DP - Data Processing

BATCH DATA PROCESSING

Accounting Automating

Magnetic Tape/Flat FileHierarchical Database

COBOLInternet e-Mail

DATA-BASED SYSTEMS Rules hard-wired in code, stored procedures, or triggers

Mainframe Era1970’s

INFORMATIONMIS - Management Information Systems

ONLINE TRANSACTION

PROCESSING (OLTP)TransactingReporting

NetworkingRelational DatabaseClient/Server LAN

Object-Oriented Systems

Expert System (ES)

Rulebase

RULE-BASED SYSTEMS Simplistic, Externalized, Declarative Rules; Shallow/broad scope of reasoning

PC Revolution1980’s

KNOWLEDGE

IT - Information Technology

ONLINE ANALYTICAL

PROCESSING (OLAP)Analyzing

Warehousing Decision Support

MiningDecision Support

Multidimensional Database

CRM & SCM

Knowledge Management (KM)Business Rule Engine (BRE)

Knowledge Base

Windows (Microsoft) WWW URL HTTP

KNOWLEDGE-BASED SYSTEMSComplex rules; Deep/narrow scope of reasoning

World Wide Web1990’s

INTELLIGENCE

IT - Intelligent Technology

ONLINE DECISION PROCESSING (OLDP)

SearchingDecisioning

AdvisingComplying

RecommendingSchedulingOptimizingDiagnosing

Troubleshooting

Business IntelligenceA.I. Artificial Intelligence

Real-Time Decisioning System

BPM & BRMBusiness Rule Mgmt System

Web BrowserSearch Engine (Google)

INTELLIGENT SYSTEMS

2000’sWireless WebSmart Phone

?

Answering?

QA Technology

Answer Engine

?

Semantic Web2010’s

The Future of IT All is…

Copyright © 2008 BIZRULES


The Future of IT = Data + Rules + Knowledge

Data-Based System

Rule-Based System

Knowledge-Based System

Can process Data Data Rules

DataRules

Knowledge

Can output InformationInformation

Decisions Real-Time Decisions

InformationDecisionsAnswers

Expert AdviceRecommendations

Commonly implemented

using

“Hard-coded rules”Procedural languages

“Rule-based” Declarative languages

Deterministic

Fuzzy Logic, CBR,Probabilistic reasoning,other AI/ES techniques

Ideal for IT/System rulesApplication rules

Simplistic business rules Complex business rules

Best for these types of

applications

TransactingReporting

(Traditional information systems)

Decisioning Compliance

AdvisingProduct selectionRecommendingTroubleshooting

Intelligence Capability Not intelligent Shallow logic

Broad domainsDeep Logic

Narrow domain


The Future of IT is… separating Rules from Code & Data

Operating Environment



Database EngineDatabase EngineApplications

Rules EngineApplications

Applications

DATA

EmergingCurrentClassic

CODERULES

CODERULES

CODE

RULES

DATA DATA


e.g. DATA

ENTERPRISE ARCHITECTURE - A FRAMEWORK

Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer

SYSTEMMODEL(LOGICAL)

TECHNOLOGYMODEL(PHYSICAL)

DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)

Sub-Contractor

FUNCTIONINGENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data EntityReln = Data Relationship

e.g. Semantic Model

Ent = Business EntityReln = Business Relationship

List of Things Importantto the Business

ENTITY = Class ofBusiness Thing

List of Processes theBusiness Performs

Function = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/SetsProc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Stmt

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business ProcessI/O = Business Resources

List of Locations in which the Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business LocationLink = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressesLink = Protocols

e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-condition

Means = Step

e.g. Rule Design

End = ConditionMeans = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business ObjectiveMeans = Business Strategy

List of Business Goals/Strat

Ends/Means=Major Bus. Goal/Critical Success Factor

List of Events Significant

Time = Major Business Event

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component CycleTime = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business EventCycle = Business Cycle

List of Organizations

People = Major Organizations

e.g. Work Flow Model

People = Organization UnitWork = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = UserWork = Screen Format

e.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

Planner

Owner

to the BusinessImportant to the Business

What How Where Who When Why

John A. Zachman, Zachman International (810) 231-0531

SCOPE(CONTEXTUAL)

Architecture

e.g. STRATEGYENTERPRISE

e.g. Business Plan

TM

Reprinted by permission – www.zifa.comEnterprise Architecture – A Framework™ ©John A. Zachman, Zachman International (810) 231-0531

Enterprise Architecture – A FrameworkTM

The Future of IT is… separating rules, code, data, and processes


e.g. DATA


Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer




Sub-Contractor









e.g. Semantic Model








e.g. System Design


e.g. Program


e.g. FUNCTION














e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING



End = Sub-condition

Means = Step

e.g. Rule Design















e.g. SCHEDULE













e.g. ORGANIZATION

Planner

Owner




SCOPE(CONTEXTUAL)

Architecture


e.g. Business Plan

TM


The Future of IT is… Aligning IT Systems with Business Strategy

Management Intention

Informal or Detailed Description

Detailed Logical Definition

Detailed Technical Specification

Implementation

Enterprise Decision


The Future of IT is… Preventing Business Mistakes

Business Rule #3Mislead Customer into paying higher price

?

SecretIntranet Price

Decide which price to give

Customer

Intranet Price > Internet Price

BestBuy.comInternet PriceIntranet Price <=

Internet Price

Business Rule #2Always give customer the lowest advertised price

?

SecretIntranet Price

Decide which price to give

Customer

Intranet Price < Internet Price

BestBuy.comInternet PriceIntranet Price >=

Internet Price

BEST BUY ® Mission, Goals, and StrategyPric ing PolicyBusiness Rule #1

“Best Buy's policy is to always honor the lowest advertised price, whether from its Internet site or from a competitor.”

+ This business rule clearly shows alignment to corporate strategy.+ This is the high quality rule described by the pricing strategy.+ This rule shows integration between online and retail stores.+ This rule offers reusability – the same rule can be implemented online and in the store.+ This rule shows transparency.+ This rule reduces operations costs because it’s easy to follow.+ This rule demonstrates regulatory compliance.+ This picture is worth a thousand words.+ This rule builds Customer Trust Management.+ This is a “Best Buy” type of rule.+ This rule is easy to approve, assess, test, and certify. + This rule improves governance and controllership.

- This business rule is clearly not aligned to corporate strategy.- This poor quality rule is prescribed by some salespeople.- This rule shows discontinuity and inconsistency between online and retail stores.- This store rule cannot be reused online because it lacks transparency.- This rule increases operations costs because it’s hard to explain and justify.- This rule raises questions about regulatory compliance.- You need a thousand words to explain this picture.- This rule destroys customer confidence and trust.- This rule is a public relations nightmare.- This rule may be illegal.- This is a “bait & switch” type of rule.- This rule should never have been approved. - This rule raises questions about whether proper rules, processes, and controls are in place.

BIZRULES® Analysisof Best Buy Pric ing Rules

Source: BIZRULES Blog 3/16/2007 www.BizRules.com


e.g. DATA


Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer




Sub-Contractor









e.g. Semantic Model








e.g. System Design


e.g. Program


e.g. FUNCTION














e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING



End = Sub-condition

Means = Step

e.g. Rule Design















e.g. SCHEDULE













e.g. ORGANIZATION

Planner

Owner




SCOPE(CONTEXTUAL)

Architecture


e.g. Business Plan

TM


TMThe Future of IT is… Aligning Decisions with Rules, Policies and Regulations

Salespeople decide which price to give

customer

Unknown Under

investigation

Unknown Under

investigation

Policy is Clear

Policy is Clear