Build business components to facilitate : Build business components to facilitate Agile business processes
Speedy business processes
Power in the marketplace
Compressed Systems Development Timelines with fewer resources
Slide2 : “The basic economic resource is no longer capital, nor natural resources, nor labor.
It is, and will be Knowledge. Value is now created by ‘productivity’ and ‘innovation’, both applications of knowledge to work”
- Peter Drucker in Post Capitalist Society
Business Components will encapsulate knowledge of the corporation’s business rules EXACTING MARKET EXPECTATIONS
Quality of products and services
Response time compression
Ease of doing business
ACCELLERATING COMPETITION
Technology drivers
Risk Drivers
NEED INNOVATION
New opportunities, threats
Technology, e/m-commerce drivers
Global & new markets
Evolving regulations & guidelines
ADAPT TO MOVING TARGETS
Reduce time to market
Scalable, Nimble business processes
TARGETTED PRODUCTS
Niche/granular market segments
Customized products & services RESOURCE CRISIS
Staff availability
Staff retention
Staff Learning/leverage
CUST. LOYALTY/RETENTION
STAFFING COST
INFORMATION GLUT
SYSTEMS OBSTACLE TO CHANGE
Lost time = missed opportunity
Defects and operational failure = lost custom
MANAGE DIVERSITY
Customer risk/ change aversion
Legacy & New products, platforms, services
Plethora of product, service platform configurations
No/limited control of operating environments
Dictated by Market forces & customers’ legacy, cost & business drivers
Proliferating interfaces between ever increasing numbers of stakeholders, business partners and processes
CHAOS & COMPLEXITY 31.1% of projects get cancelled before they ever get completed, 52.7% projects overrun their initial estimates by an average of 189%
- Survey of 8380 firms in Application Development Trends, Jan 1995 Only 18% of I/T spending produced value in 1998
- Howard Rubin in CIO Enterprise
Nov 15 1998
THE PROBLEM : THE PROBLEM CHANGE FACILITATION
BUSINESS THRIVES ON CHANGE
INTENSE COMPETITION
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
SYSTEMS
OBSTACLE TO CHANGE
MULTIPLICITY OF IMPACT
COST
LOST TIME & MISSED OPPORTUNITY
THE SOLUTION
REFLECT FACTS ABOUT THE REAL WORLD IN SYSTEMS AS THEY ARE REPRESENTED IN THE REAL-WORLD
BUSINESS MODEL
Our Approach : TECHNOLOGY RULES INTERFACE RULES
(HUMAN & AUTOMATION) INFORMATION
LOGISTICS Capture common business patterns in components of real-world knowledge and meaning
- Reusable business configurations to facilitate business (re)engineering and innovation Business Process Automation Technology Layer BUSINESSPATTERNS DATA MOVEMENT GUIs & FORMATTING
COMPONENTS PERFORMANCE OPTIMIZATION
COMPONENTS Component Performance optimized component for select platforms ACTIVE PROTOTYPING COMPONENTS ACTIVE PRODUCTION COMPONENTS Component Business Opportunity
or
Environmental Change Process automation Opportunities
- Automated instruments and sensors
- Screens& Reports
- Potential for re-engineering presentation, format, accuracy and timing of information Usually Customized for each organization
-Potential automated data mapping facility
-Potential for re-engineering flow, and availability of information Our Approach
Our Approach : TECHNOLOGY RULES INTERFACE RULES
(HUMAN & AUTOMATION) INFORMATION
LOGISTICS Capture common business patterns in components of real-world knowledge and meaning
- Reusable business configurations to facilitate business (re)engineering and innovation Business Process Automation Technology Layer BUSINESSPATTERNS DATA MOVEMENT GUIs & FORMATTING
COMPONENTS PERFORMANCE OPTIMIZATION
COMPONENTS Component Performance optimized component for select platforms ACTIVE PROTOTYPING COMPONENTS ACTIVE PRODUCTION COMPONENTS Component Business Opportunity
or
Environmental Change Process automation Opportunities
- Automated instruments and sensors
- Screens& Reports
- Potential for re-engineering presentation, format, accuracy and timing of information Usually Customized for each organization
-Potential automated data mapping facility
-Potential for re-engineering flow, and availability of information Our Approach
Our Scope : Our Scope BUSINESS TECHNOLOGY RULES INTERFACE RULES
(HUMAN & AUTOMATION) INFORMATION
LOGISTICS Business Rules Business Opportunity
or
Environmental Change Usually specific to an organization Well entrenched industry standards available, to which organizations often add custom rules Well entrenched industry & vendor specific standards BUSINESS
PROCESS
AUTOMATION
Slide7 : POLICIES, LEGISLATION, REGULATION PROCESS AND
WORKFLOW INFORMATION
TECHNOLOGY “Consider that an enterprise is a thinking entity…many of these thoughts exist as business rules”- Barbara von Halle in the20th Century "Verily, knowledge is of these three: the firm sign, the just duty, and the established practice.
- Prophet Mohammed in the7th Century BUSINESS
STRATEGY PRODUCT / SERVICE
OFFERING PHYSICAL
INFRASTRUCTURE ORGANIZATION/PEOPLE What is a Business Rule? What is a Business Knowledge?
ABSTRACT BUSINESS RULES : ABSTRACT BUSINESS RULES INTERFACE RULES
(HUMAN & AUTOMATION) INFORMATION
LOGISTICS RESOURCE FEED &
WORK PRODUCT
UNLOADING MECHANISMS RESOURCES &
WORK PRODUCTS IMPLEMENTATION MECHANISMS “PURE” ABSTRACT BUSINESS RULES BUSINESS PROCESS AUTOMATION MECHANISMS THAT DO NOT DIRECTLY INVOLVE INFORMATION PROCESSING Business
(re) definition Any rule that connects business meanings to technology
AND
Is visible to EITHER applications programmers or users FUNCTIONAL FEATURE
Any rule that connects business meanings to technology
AND
Is visible to BOTH applications programmers and users
Slide9 : “New employees must be oriented.”
“New employees must be oriented within one month of joining the firm.”
“New employees will be allowed two working days to get oriented.”
“A physical object must be located in a single geographical place at any given moment in time.”
“All products will be considered untested when they are first acquired” (a rule about an initial condition of a business object. We will revisit initial conditions again in section 2 of this chapter.)
“Each product will be considered saleable only after it has been tested.”
“Send shipment”
“Take customer order” “Send shipment on a truck.”
The truck, a mechanism for implementing “Send Shipment,” does not directly involve information.
Shipment is a real world business concept and Truck, a real world object, hence “Send shipment on a truck” is a business, not business process automation, rule.
“Bake Cookie in Oven.”
The oven, a mechanism for implementing the real world abstract process “Bake Cookie,” does not directly involve information.
Cookie, Oven and “Bake Cookie” are all real world objects, hence “Bake Cookie in Oven” is a business rule. “YYY Database management systems will assign a default zero value to all numeric fields” is a rule about an initial condition, but not a business rule because it is a rule imposed by a technology platform (the database management system) and not the real world of business.
“Accumulate telephone call records in the message file” is not a business rule because it involves information movement from the telephone switch to a file.
“Key customer order into the order entry screen” is a business process automation, not business, rule because it is an assertion about the information capturing mechanism for implementing a business rule. NOT
BUSINESS
RULES BUSINESS RULES
Slide10 : Source of information: Files, records, data elements
Destination of information: Files, records, data elements
Records & Data elements transported, stored or staged
Retention periods, storage media, volumes, growth, and security of information stored or staged
Initial condition of any or all of these items (Initial conditions apply to objects in all layers of the Architecture of Knowledge)
Relationships between any of the following: data flows, data stores, initial conditions of these items, retention periods, storage media, volumes, growth, and security of information stored or staged. FACTS ABOUT BUSINESS INFORMATION FLOW & AVAILABILITY
(visible to users or applications programmers) “Store orders in order file,” and “Store unmatched customers’ telephone usage in exception file” are rules about where to store information.
“Match customer on order entry screen with customer in customer file” and “Obtain customer credit rating from S&P” are rules about data flow/sourcing.
“Store customer telephone call records file on disk” and “Store customer telephone call records four 10 ten years old in tape files” are a rules about storage media that belongs to this layer.
“Preserve customer telephone call for 10 years” is a rule about availability of data that belongs to this layer.
“YYY Database management systems will assign a default zero value to all numeric fields.” is a rule about an initial condition of stored business information that maps to quantitative domains imposed by choice of a technology platform (the database management system), not the real world. It relates real world business information to the technology platform. Hence it is a rule of Business Process Automation. It belongs to the information logistics layer because it is a rule about the initial condition of business data.
“An employee’s security clearance in the personnel file must match that in the departmental security clearance file” is a relationship between data stores. EXAMPLES INFORMATION LOGISTICS
Slide11 : “If memory overflows, dump its contents to disk.”
Both computer memory and disk are parts of the technology platform.
The rule does not refer to any business information. Refers to flow of information among technology objects internal to the platform that executes software.
Therefore it is not a rule of Business Process Automation.
“Store the last three orders in the screen buffer area.”
Although orders are business information, the Screen Buffer Area is internal to the technology platform.
Movement to and from, and storage of information in, buffer areas is transparent to application programmers
Therefore this is a technology rule
(if this is not transparent to application programmers, it will belong to the Business Process Automation layer, but not be a functional feature of data flow because programmers would hide this technical complexity from users).
Assume a nationally distributed radar network is tracking air traffic.
An “airplane” business object in the system reflects each airplane in the air.
The information system is physically distributed across nodes of a computing network that runs the application on computers located at each major airport and dynamically optimizes resource use by moving processes and data between nodes.
QUESTION: Business Process Automation or Technology rule? “Move the business object that represents an airplane in the information system to the node that is nearest to the physical airplane at any given time”
The rule involves flow of business information between nodes.
Nodes are information technology objects.
The rule connects a business concept (airplane) to a technology concept (network node)
ANSWER: Technology rule:
Information movement between nodes is automatic
Invisible to applications programmers and users.
Moves information between technology platforms EXAMPLES OF RULES THAT ARE NOT INFORMATION LOGISTICS RULES
Slide12 : RULES OF INFORMATION EXCHANGE BETWEEN INFORMATION SYSTEMS AND EXTERNAL ACTORS: PEOPLE, INSTRUMENTS, ROBOTS, SENSORS, EFFECTORS, OTHER INFORMATION SYSTEMS INTERFACE
RULES Interface schedule and timing
Batch timing, schedule for refreshing business information being presented at the interface (update cycles), information exchange failures, faults and other anomalous events, availability of the interface and time-outs
Responsibility/Approvals for the interface and its operation
Interfacing file layout, interfacing record layout, interfacing data elements, corresponding formats and units of measure (if any), encryption
Security, including access permission or denial rules (there could be several kinds of permission –to know an item exists, to see its contents and to update its contents)
Presentation of information to a human or automated actor, such as Accuracy, Format (including size limitations), Units of measure, Sort sequences, screens, reports etc.
Terminal devices/Special equipment specifications
File audit & control specifications (such as record balancing or check digit processing)
File or information transfer methods
Relationships between any of these
Slide13 : “Key orders into order entry screen” and “Scan item with wand” are interface rules because they describe mechanisms for capturing business information.
“Display service location on a map” and “Show stock prices in fractional format” are interface rules because they are rules about business data presentation and formatting at the system’s human interfaces.
“Highlight all data entry errors in red,” and “The twenty fifth line of the screen will be reserved for error messages” are interface rules because they are rules about human interface standards (screens and data presentation formats).
“Report revenues to the nearest $1000” is an interface rule because it is a rule about the accuracy with which business information must be presented to an actor (human or not.)
“Allow only subscribers access to stock prices” is an interface rule because data access rules are rules about an actor’s (human or not) interface to business information stored in the system.
“Update customers’ S&P credit ratings at Close of Business every day” is an interface rule because it is a rule about timing of an interface to an S&P business data source. RULES OF INFORMATION EXCHANGE BETWEEN INFORMATION SYSTEMS AND EXTERNAL ACTORS: PEOPLE, INSTRUMENTS, ROBOTS, SENSORS, EFFECTORS, OTHER INFORMATION SYSTEMS INTERFACE
RULES “Present order data in customer number sequence” is an interface rule rule about presenting business information to a human or automated actor .
“Present the Welcome Screen at the Start of Business every day” and “Generate report at Close of Business” are interface rules because they are rules about the timing of human interfaces.
“The system must be continuously available 24 hours a day, 7 days a week” is also an interface rule because it is a rule about the timing of the interface from an actor’s perspective.
Assume that a depository markets a software product for buying and selling financial instruments it holds in trust. Customers who install the software must be activated to allow them to access information on financial instruments held by the depository. In this system “Activate New Customer” is an interface rule of Business Process Automation because it is a rule about enabling, i.e. setting the condition, of a human interface to make it available to customers.
“Scan barcode” is an interface rule because it is a rule about the format for presenting business information to the application
“Convert barcode to EBCDIC characters” is an interface rule because it is a rule about format conversion of business information.
“Commit information when the user hits the enter button” and “Commit the record on confirmation that the transmission is complete” are interface rules because they involve business information transfer methods.
“Alphanumeric fields in XX database Management systems cannot be larger that 1024 characters” is an interface rule because:
It relates a business information formatting constraint to a technology platform (DBMS)
Is a functional feature (visible to users and application programmers).
SMS is a data transfer technology for cellular telephones and wireless hand held devices. The rule “SMS messages cannot exceed 160 characters” is a (business process automation) interface rule because it is visible to both users and applications programmers of devices that support SMS.
“Send batched transactions in compressed format,” is an interface rule because it is a rule about the format in which business information must be presented to another system and is visible to application programmers.
Slide14 : SOME INTERFACES ARE INTERNAL TO TECHNOLOGY PLATFORMS EXAMPLES OF RULES THAT ARE NOT INTERFACE RULES “Disallow access to memory addresses 1 to 5000.” Memory addresses are internal to the working of the technology platform
“Accept information in GSM format” is an interface rule in the technology layer because
It is a rule about the format in which data must be presented to the wireless device that belongs to the technology layer (GSM is a standard for sending data in wireless telephony).
The rule is a communication protocol internal to the design of the technology platform: the wireless device..
“Convert the signal from CDMA to GSM format” is a rule about format conversion that belongs to the technology layer because it is internal to the technology platform
CDMA and GSM are two different standards for wireless telephony. Communications software
Modem Requirements
Transmission Rates
File blocking factors and other technology dependent rules transparent to application programmers and users
Line characteristics & protocols
Communications protocols
RULES ABOUT THESE WILL BE TECHNOLOGY RULES
Slide15 : TECHNOLOGY PLATFORM CONSTRAINTS & PERFORMANCE RULES EXAMPLES OF TECHNOLOGY RULES “If memory overflows dump its contents to disk” is a technology rule because it refers to technology concepts internal to the platform for executing software.
“Disallow access to memory addresses 1 to 5000” is a technology rule because it is internal to the technology platform for executing application software.
“Model ZZZ computers will physically execute only one thread at a time” is a technology rule because it is a rule about processes internal to the technology platform.
“The platform must have at least 256 MB of RAM to run the trading system” and “The trading system must be run on Windows 98 operating system” are technology rules because they are relationships between objects that are internal to the working of the technology platform: RAM is computer hardware, and both Windows 98 and Trading System are computer software. EXAMPLES OF RULES THAT ARE NOT TECHNOLOGY RULES To download stock prices in real time, you must have a DSL modem.
Stock price is business information.
This rule describes an interface mechanism required to access Stock Price, hence it is an interface rule.
To watch the concert in real time, you must install streaming media software and a T1 communications line.
Concert is business information.
T1 communication line is a technology concept
This rule describes an interface mechanism required to access Concert, hence it is an interface rule.
Slide16 : TECHNOLOGY RULES INTERFACE RULES
(HUMAN & AUTOMATION) INFORMATION
LOGISTICS Capture common business patterns in components of real-world knowledge and meaning
- Reusable business configurations to facilitate business (re)engineering and innovation Business Process Automation Technology Layer BUSINESSPATTERNS DATA MOVEMENT GUIs & FORMATTING
COMPONENTS PERFORMANCE OPTIMIZATION
COMPONENTS Process automation Opportunities
- Automated instruments and sensors
- Screens& Reports
- Potential for re-engineering presentation, format, accuracy and timing of information Usually Customized for each organization
-Potential automated data mapping facility
-Potential for re-engineering flow, and availability of information BUSINESS RULES INFORMATION
LOGISTICS INTERFACE
RULES TECHNOLOGY
RULES A single Business Rule may be implemented by one or more information flows Each information flow may support one or more interfaces Each Interface may be realized by one or more platforms/technologies BUSINESS PROCESS AUTOMATION
Slide17 : Small new market
A few new customers
A few low value orders
Firm is relatively unknown
Orders usually taken during sales calls to customers’ offices
Orders keyed into salesmen’s laptop computers during sales calls
Consolidated in a PC at the branch office at COB
No customer validation against master file
Orders are consolidated once a week and emailed to head office Well established market
Many customers
High volume, repeat orders
Firm is well known, has a good reputation
Most customers place orders by phone
Orders keyed into PCs located in call center
Orders validated against S&P rating on master file
Checked against availability of items on inventory file.
Inventory is reserved for the customer on the inventory master file
If items are not available off the shelf, the sales person at the call center gives the customer a date when the order can be filled and asks if the customer would like to place a back order.
Only then is the order stored on the order master
Order confirmation notice mailed to customer
All declined orders put in Declined Orders file
Management reviews declined orders report monthly to determine opportunity cost of, and reasons for, lost orders. A BUSINESS EXAMPLE
Slide18 : Business Rule = Take Order Business Rule = Take Order A BUSINESS EXAMPLE