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HD30.2.V67 2010
658.4’03--dc22 2009026784
v
vi ◾ Contents
Bibliography.................................................................................................507
Index............................................................................................................ 511
Foreword: Business Rules
and the Real World
This is an important book: it has important things to say about an especially impor-
tant set of real-world problems—business rules. Clearly, business rules represent
one of the 21st century’s major technological challenges, and if we are to create a
new generation of large-scale information systems that are agile, adaptable, and
predictable, then we must have repeatable methods for developing consistent busi-
ness rules. Here, this book makes a contribution: it describes an approach (theory
and method) that is easy for business users and IT professionals to create consistent
sets of business rules and, at the same time, is easy for them to adapt as market-
places, laws, regulations, and technologies change.
Down the hall from my office there is a law library. It contains national and
state laws, agency rules, and pending legislative issues. Recently, it occurred to me
that this library was not so much a law library as it was a library of business rules:
rules governing taxation, rules governing the construction of roads, rules governing
the support of children and families, rules governing the incarceration of criminals,
etc. The business rules in this library are encoded in an archaic language called
legal English, and despite the enormous amount of money spent on legal fees and
research that goes into the creation and maintenance of this library, the business
rules found there are only generally consistent with one another. And each year
new cases and new laws arise that make even the most learned jurists’ heads swim.
To resolve this enormous set of new or inconsistent laws, regulations, etc., society
has found it necessary to create a legal system made up of lawyers, law clerks, pros-
ecutors, judges, appeals courts, and supreme courts. You would think with all the
smart people and sophisticated technology involved, society could do better—this
book suggests that they could.
But as useful as this approach will be in helping people developing computer
systems, this book is not really about technology. This book is really about consis-
tent rules that govern how an enterprise acts under specific situations. This book is
vii
viii ◾ Foreword: Business Rules and the Real World
about a common, consistent language and method for defining rules that can be
used by either humans or computers. In the end, the approach described here can
help both the users and the computer folks.
There are some things that computers do better than people and some things
that people do better than computers; the trick is knowing which is which. Given
the right set of consistent business rules, computers can come up with the same
answer time after time, and do so not in months or years (or sometimes decades),
but in microseconds. Clearly, one of the reasons that computer systems have become
so important in advanced organizations everywhere is this ability to get the right
answer instantly. But getting the right answer is only possible if one has a consistent
way to define and implement business rules within an organization. Anyone can
develop a simple business rule or a small set of business rules; as the number of rules
and decisions grows, the problem gets exponentially more difficult.
What about the method itself? Well, for one thing, it is elegantly simple. This
is vitally important because in today’s fast paced world, it is particularly important
that organizations and enterprises be able to define large bodies of business rules
in a manner that is at the same time clear, concise, minimally redundant, and also
easy to modify. This, as we’ve learned, is by no means a simple task. Indeed, busi-
ness rules are perhaps the most important unresolved problem facing business and
IT professionals today. One of the reasons that business rules remain a problem is
that developing consistent business rules involves both knowledge of semantics and
logic, as well as a deep understanding of business and of communication skills. And
for large business rule bases, it demands an organized method.
There are a great many approaches to developing business rules, but too much
of this writing is a rehash of logic programming or expert systems. Because these
approaches were largely developed by and for programmers, they don’t really pro-
vide business professionals and business analysts a usable methodology for devel-
oping a large business rule base. The reason is simple: the key knowledge needed
for defining business rules almost always resides in the minds of a wide assort-
ment of nonprogrammers—business managers, lawyers, accountants, engineers, and
scientists.
Like the law library, today’s large organizations have tens of thousands of busi-
ness rules expressed in hundreds of different ways. These business rules fall into any
number of major categories: national and international legal restrictions, company
policies, privacy and security rules, rules for computing key formulas, and so on.
Like the law library, these rules are expressed (locked up) in dozens, sometimes
hundreds, of obscure documents, formulas, and drawings. History suggests that
coming up with a common formal set of business rules from all of this encoded
information is a very tough chore indeed.
The world of business rules today is not unlike that of a database 40 years ago.
In the late 1960s a large number of different approaches to database design were
competing for recognition when Ted Codd and his associates at IBM Research
came up with what we now call relational database theory. Codd, a mathematician
Foreword: Business Rules and the Real World ◾ ix
by training, was able to develop a rigorous, consistent approach for defining sets of
relational tables that would provide the requisite answer sets, were internally con-
sistent, and were minimally redundant.
Codd and his associates conceptualized a way of looking at that data that was
not only mathematically consistent, it was also maximally flexible and scalable.
Codd’s approach made possible the complex systems that exist today. Because it
was so straightforward and simple, it greatly aided the communication between
different systems and different databases. Even though relational database theory
is being challenged by other forms of data storage and manipulation approaches
today, it still provides the gold standard upon which a database is judged.
One of the secrets of Codd’s great success was his focus on elegant simplicity
along with mathematical rigor. What Barb and Larry have done is to come up with
an analogously elegant and simple approach for defining large sets of business rules
that has mathematic rigor as well. Then, starting with this compelling conceptual
model, they have been able show how to build a broad methodology for capturing,
analyzing, and using those business rules, whether for a small departmental appli-
cation or for an entire line of business.
One of the most important characteristics of the model presented here is that it
is truly a logical model, i.e., it is technology independent (or technology agnostic, if
you will). It leverages technologies, but it doesn’t require them. Over time this will
pay off because the history of computing over the last half century has shown that
logical models have a much longer life than technology-based ones. This has been
true of database modeling and design, it has been true of workflow modeling, and I
think that time will show that it is equally true of business rule modeling as well.
One of the obvious advantages that good, logical models have is that they are
clearer and more consistent, they make it easier to define large problems, and, at the
same time, to recognize broad, logical business patterns. Too often business rules are
buried in complex, unintelligible language or complex flowcharts of complex code.
In addition, it makes it particularly difficult to make sense of the underlying rules.
Moreover, this complexity makes it difficult to understand the rationale (semantics,
ontology intent) behind the rules. Clarity improves our ability to quickly see a rule
and understand whether it is correct and consistent. This kind of insight is after all
often one of the most valuable byproducts of well run business rule projects.
The authors should be complimented on their ability to specify how their
business rule methodology fits together with the whole complex of other major
business/technology concerns, including business decision modeling, business pro-
cess management, SOA, and requirements definition. This is especially important
because business rules occur in a variety of shapes and sizes: business process rules,
data rules, computation rules, application rules. The book shows how, for example,
using business rules located in common evaluation modules can greatly simplify
a business process model and make it far easier to modify these models when the
business rules change.
x ◾ Foreword: Business Rules and the Real World
A great many organizations are not so much the masters of their business rules
but prisoners of them. They have woven a web of complexity that no one really
understands but is so daunting that no one dares to change it either. That is unfor-
tunate. A great deal of this is a result of a modern education system that fails to
teach people either the careful use of language or the fundamentals of logic. Natural
language is great for ordering hamburgers or proposing marriage, but it is not well
suited for describing complex decisions. And as we have seen programming logic
is often not all that logical. The methodology presented hints at some of the major
problems that organizations face in defining and implementing their business rules.
Every so often a book comes along that reminds us that the purpose of business
rules is to take a complex issue and produce a simple logical solution. All this looks
easy, but it is not. For those who read this book, it can be a great help.
So is this book the last word on business rules? By no means. This book is not
the end of research and discussion about business rules any more than Ted Codd’s
initial paper was the end of research and discussion regarding databases, or Crick
and Watson’s initial paper on the structure of DNA was the end of research and
discussion regarding molecular genetics. Important books are not an end; they are
a framework for others to build on.
Ken Orr
Topeka, Kansas
[email protected]
Preface and
Acknowledgments
Edwin Abbott, in his classic Flatland (Abbott, 1884), points out that if we viewed
our universe in two dimensions, we would detect only length and breadth. That
means we would see directly only points and lines. We could, however, infer the
existence of two-dimensional shapes, like triangles and squares. But no spheres.
No cubes. Such things would exist, of course, but we could not see them or even
suspect their existence.
For those of us quite comfortable with cubes and spheres, Abbott explains
how a three-dimensional artifact appears to a Flatlander, who recognizes only
two dimensions. Put a penny on a table. If we view it from a position above the
table, we perceive a circle. Now, if we view it from a position where our eyes are
even with the table’s edge, the penny suddenly appears as a simple straight line.
The same would be true of other two-dimensional shapes. Squares, hexagons,
and triangles all appear as lines when viewed from the table’s edge. In fact,
Flatland, to its inhabitants, is an entire universe of points and simple straight
lines. Even people, houses, food, and other everyday items are reduced to points
and lines.
Residents of Flatland navigate their world successfully, though, by distinguish-
ing among the shapes they can’t see based on the behavior of the lines. For example,
if such a shape, which they cannot see directly, moves closer or further away, the
line becomes shorter or longer. Abbott brilliantly illustrates that there are disad-
vantages to viewing a world in fewer dimensions than really exist. Yet, surely, some
Flatlanders sense another dimension. Abbott cautions that they do so not based on
lucid observation but on belief alone.
In our world, we actually see directly two dimensions (i.e., planes) and infer
three dimensions (i.e., solids). We are able to infer that the planes we see directly
xi
xii ◾ Preface and Acknowledgments
are really solids through the perception of shadows, for example, but we don’t really
see the solids. We simply infer and believe they are there.
It seems like business rules and business logic are much like a dimension
we can’t quite distinguish. Like Flatlanders, we navigate our world successfully
(i.e., our business processes and systems) without the benefit of seeing a busi-
ness logic dimension. It remains invisible, buried in program code, manuals,
or peoples’ heads. But it’s still there, nonetheless. In fact, it runs most aspects
of our businesses. Unable to perceive it, we bump into it from time to time in
the form of system errors, inconsistent conclusions, or those based on business
logic that is unsound or even unknown. We develop explanations for its influ-
ence on our lives, such as unclear requirements, out-of-date documentation,
prepackaged inflexible software, or loss of business knowledge. If Abbott is
correct, there are disadvantages to viewing our world without this dimension
if it really exists.
But some of us have long sensed that a business logic dimension really exists.
We try to bring it into direct focus when we discover a single business rule and add
it to a list of other ones. Or, we diagram a business rule on top of a data model or
add it as a miscellaneous note to a business process model or use case. Sometimes,
we automate it diligently in special technology, but it has been known to disappear
even there. It seems like we aren’t really seeing the business logic directly. We only
infer its existence when its behavior influences our world.
Therefore, do we sense a business logic dimension based only on belief? Or is it
possible to observe it directly as having a distinct structure and behavior? After all,
Abbott implies that “dimension implies direction, implies measurement, the more
and the less …” (Abbott, 1884). Is it really there?
This book declares that it is really there. In this book, the Decision Model
gives the business logic dimension a formal, recognizable structure along with
behavior that is explained through principles belonging to this dimension.
Through the Decision Model, we are able to see directly that business logic has
an existence of its own that transcends the perception of one business rule at a
time. This idea is intriguing because moving from lower to higher dimensions
brings new awareness and opportunities. Once we can see what was previously
invisible, we are positioned to harness it to our advantage. Moreover, it will
advance our knowledge of other dimensions (e.g., business processes) so we can
simplify them.
It is natural, at first, to feel a bit uncomfortable at the thought of a whole new
dimension. Detecting a new dimension can be overwhelming. In fact, a Flatlander,
upon perceiving Spaceland for the first time, was understandably bewildered, won-
dering if it were madness or hell. A voice, emanating from a sphere, nevertheless,
offered consolation, “It is neither… . It is knowledge; it is Three Dimensions: open
your eye once again and try to look steadily” (Abbott, 1884).
Preface and Acknowledgments ◾ xiii
We hope you enjoy the journey into the business logic dimension and the
Decision Model. May it be the beginning of new awareness, technology, and
other opportunities.
that had become evident as we utilized the methods in Business Rules Applied. These
patterns gave rise to the idea that there is, within business logic, an inherent struc-
ture, just as there is an inherent structure that Dr. Codd had detected in data
almost 40 years earlier.
With large organizations integrating a business rules approach into their stan-
dard business systems projects, we created such inherent business logic structures
across industries. A goal was to provide a means of representing business logic in
one and only one correct way, such that it was not left to chance or preference. This
worked well but was just the beginning.
An epiphany came when Barbara was working with a large U.S. retailer. The
team was largely a business group with a representative from information tech-
nology (IT). At a certain point the team developed the base structure for a par-
ticular “rule family” (our grouping of business rules at the time.) The IT person
remarked that, with the base structure, the IT group could design the code, even
before the business rules were populated into the structure. We talked about this
after the session with the added insight that the emerging business logic struc-
tures not only have one correct representation; they have a value that transcends
the intuitive expression and organization of business rules as a precursor to auto-
mation. The deeper we looked, the greater appeared the utility of such structures
to business people, to faster iterative development methods, and even to system
architecture.
Shortly, we began to sense some parallels with the early usage of the Relational
Model, especially the value of rigorous principles. In late 2006 we issued a paper
to formalize the ideas. Over time, the Decision Model emerged, and the paper was
extended to become the seed of this book. It is important to note that the Decision
Model was not contrived to embody the rigor of mathematical set theory as is
the Relational Model. However, as a humble beginning, it embraces some of the
concepts introduced by Dr. Codd but applies them to the business logic dimen-
sion. So, by design, this book is a mixture of Decision Model principles, giving the
model rigor, and actual experience, proving that it is teachable and practical in the
everyday world.
We began using the Decision Model in practice, with results that exceeded
our expectations. People found the Decision Model intuitive to interpret and pre-
dictable to create. At the same time, the Decision Model resulted in a dramatic
improvement in the productivity of harvesting and automating business rules com-
pared to the classical methods used in previous projects.
Because of the desire to test and prove the Decision Model, initial progress on
the book was slow. We joked that we wrote the book twice—once for us and once
for others. But, in fact, by the end, we had probably written it at least three times.
As experience revealed useful advances in the Decision Model principles, we revis-
ited chapters in the book to accommodate those enhancements.
As we reach the end of this long period of development, we believe that more is
to be discovered and improved about the Decision Model. But we have confidence
Preface and Acknowledgments ◾ xv
that it reflects a simple nature of business logic, as a starting point, and will con-
tinue to be of value over time. Readers of this book will realize that the methodol-
ogy and techniques in Business Rules Applied remain valuable, but are enhanced
significantly by the introduction of the Decision Model as an important additional
deliverable.
Edmund Phelps, a professor of economics from Columbia University and a
Nobel Laureate, is fond of observing that it is not the great scientific discover-
ies that advance productivity in economies. Phelps says that it is actually the
practical knowledge that is learned when implementing those discoveries, the
“tweaking” that the practitioners are able to achieve that is the cause of the great
leaps in value in economies (Tilman & Phelps, 2008). Evidence of this is the pas-
sage of several decades from Codd’s initial publication of the Relational Model in
1970, to the emergence of commercial relational database management systems
in the 1980s, to their final ascendancy in the 1990s. This timeframe from inven-
tion to adoption reflects that successful practice is valuable to the adoption of a
new idea.
We placed great emphasis on the use of the Decision Model in real projects,
by us and by others, over the last two years, and have learned much from that
use. More work still lies ahead. John Zachman said “It occurs to me that once the
underlying structure of a discipline is discovered, friction goes to zero! The pro-
cesses (methodologies) become predictable and repeatable” (Zachman, 2006). We
have seen this in the dramatic improvement in productivity and quality that has
been achieved in actual projects using the Decision Model, giving our convictions
quite a good deal of courage.
Ironically, this book was completed in the middle hours of the global eco-
nomic panic of 2008. Imploding property, credit, and stock markets were
wreaking financial havoc on great and small alike. Much ink has been spent
on the causes and the possible cures. One compelling fact is that regulators,
managers of banks, and insurance company executives placed blind faith in
computer models to quantify, reduce, or even eliminate risk from complex finan-
cial instruments. Instead, it turns out that they amplified risk, and to levels that
were unsustainable. On the other hand, managers who knew and understood
the capabilities, limitations, and true content of their computer models also
understood what limits could be placed on their efficacy. Their institutions will
likely survive and prosper.
The object lesson to be learned is not to accept the output from automated sys-
tems as having value unless the business logic in those systems is known, understood,
tested to be correct, and is able to be adjusted quickly to reflect changing conditions.
Unfortunately most modern enterprises have, and continue to build, systems in
which the business logic becomes lost or is not well-managed. Trusting the future to
a black box is likely to result in unpleasant surprises. It is time that the business logic
in business systems is given recognition as something worth managing well. This is
ultimately the goal that we believe the Decision Model can help achieve.
xvi ◾ Preface and Acknowledgments
Start
Specific Business-
oriented topics of Chapter Chapter Chapters
interest 20 21 22 & 23
Start
Specific Technology-
oriented topics of Chapters Chapters Chapters
interest 13, 14, 15 17 & 18 18 & 19
SOA, read Chapter 15. If your interest is in the Decision Model’s improvements in
current and emerging standards, read Chapter 16 on standards and Chapter 17 on
Business Process Management Notation (BPMN). If you are an advanced techni-
cal reader, read Chapter 18 on the idea of physical Decision Models. If you are
interested in learning more about BDM, or as it is called in this chapter, Enterprise
Decision Management (EDM), read Chapter 19. Refer to Figure P2.
Start
General Review of
Decision Model Section I
Figure P3 How to read about both business and technology relevance and
benefits.
project team members may choose to read other chapters relevant to the members’
role on the project.
Start
Start
Figure P5 How to read about the full technical details of the Decision Model.
Those to Be Thanked
We gratefully acknowledge the support of our clients who trust us with some of
their most precious assets, and who had faith in the quality of our ideas. Without
them this book would not exist. For confidentiality reasons, we cannot acknowl-
edge you by name, but you know who you are and hopefully you know that we are
grateful to you.
During the research and writing we were honored that several professional
colleagues (some using the Decision Model in practice) offered to read and com-
ment on many of the Decision Model principles. Our thanks to Mishka Ilmer, Bob
Evory, Gil Segal, and Bill Shaffer, who were the patient readers of our early drafts.
A special thanks to the eclectic group that made up our second group of read-
ers, because for their pain they were rewarded with the task of writing a contribu-
tion to the book! These contributors came from several different disciplines and
backgrounds. Their contributions to the third section of the book are invaluable in
placing the Decision Model into the perspective of a wide range of different audi-
ences and specialties. Our thanks to John Zachman, Ken Orr, Bruce Silver, James
Taylor, Mike Rosen, Brian Stucky, Dave Haslett, Tracy Williams, Dave Pedersen,
and Daniel Worden. And yet, we also owe thanks to those who comprised our
Preface and Acknowledgments ◾ xxi
As the Geni project matured, the scope and scale of our ancestors’ sacrifice
became evident to me, exciting my wonder and admiration. The project became
my escape—in late night sessions of research into old shipping manifests and
archives—from the unrelenting pressure of the book deadline.
So I broaden the dedication—to family, but in the widest sense, to the group
that truly delineates family. First to my father, whose 95th birthday, fate willing,
we will celebrate this year, and whose life is an example to us all; to my brothers
Norman and Trevor, and to Jill’s brothers Jonni and the late Shalom, all of whose
closeness and love are and have been a constant in our lives; and to their families,
and our aunts, uncles, and cousins across the globe (numbering, now in the thou-
sands!), and in memory of our ancestors who set the bar so high for us all. Of them
all I must single out Raymond and Selwyn Haas, and their late parents Gertie and
Ivor, who reached out a hand of help when it was most needed, and no other was
offered; it was, and will always be deeply appreciated, even though it cannot ever
be repaid in full measure.
And finally to that most distant of relatives, but closest of kin, mentor, foil,
and beloved friend, the late Dr. Jos Gerson. He achieved much in life as a world-
renown economist. However, his most important mark may be the impression he
made among the wide, but close, circle of friends that he made across the world.
This was an eclectic group of economists, rabbis, humanists, liberals, and conserva-
tives, ranging across several generations and continents, united by his magnetic and
compelling personality, and challenged by his extraordinary intellectual energy.
He was also a deeply loving—if ever challenging—husband and father to Kirsi,
Daniel, Miriam, and Julian. Over time he taught us a great deal, but the last three
years of his life were a living lesson in honesty, grace, and courage. Jos will never
be forgotten.
William Shakespeare
About the Authors
xxiii
xxiv ◾ About the Authors
Larry has spent many decades in the IT industry, and has created several com-
panies focused on developing and marketing business applications, based on busi-
ness rules technology. He led the development of several successful commercial
enterprise applications, including applications in the healthcare, insurance, and
supply chain domains, and was active on the board of several industry bodies.
In 1999 he sold the PowerFlex company to a global software company. From
1999 to 2004 he led the business rules activities of that company, and was the
principal for several major business rules product developments in both govern-
ment and the insurance industry. He has consulted with clients and appeared as
speaker in conferences in the United States and Europe as a thought leader in the
application of business rules.
In recent years, Larry has been the editorial director of the BDM Bulletin,
an electronic publication of the BPMInstitute.org, and has been the track chair
of the BDM track at Brainstorm Conferences throughout the United States.
Larry also coedited an anthology called The Business Rule Revolution (Happy
About•, 2006).
Contributors’ List
Chapter 13 Chapter 19
John A. Zachman James Taylor
Zachman International CEO
La Cañada, California Decision Management Solutions
http://zachmaninternational.com Palo Alto, California
james@decisionmanagementsolutions.
com
Chapter 15
Mike Rosen
Chief Scientist Chapter 21
Wilton Consulting Group
Wilton, New Hampshire Brian Stucky
[email protected] Managing Director, Business Decision
Management
Allegiance Advisory Group
Chapter 17 Reston, Virginia
Bruce Silver [email protected]
Principal
Bruce Silver Associates/BPMessentials
Aptos, California Chapter 22
[email protected]
David L. Haslett, PMP
Blue Cross Blue Shield of Kansas, Inc.*
Chapter 18 Topeka, Kansas
[email protected]
Daniel J. Worden
Principal
RuleSmith Corporation * Blue Cross and Blue Shield of Kansas, Inc.
Toronto, Canada is not connected to this book project in any
[email protected] way.
xxv
xxvi ◾ Contributors’ List
John A. Zachman
John A. Zachman is the originator of the Framework for Enterprise Architecture,
which has received broad acceptance around the world as an integrative framework,
or “periodic table” of descriptive representations for enterprises. He is not known
only for this work on Enterprise Architecture, but also for his early contributions to
IBM’s Information Strategy methodology (Business Systems Planning) as well as to
its executive team planning techniques (Intensive Planning).
In 1990 he retired from IBM, having served them for 26 years. He is chief
executive officer of Zachman International. He has spoken to many thousands of
enterprise managers and information professionals on every continent.
Mr. Zachman serves on the Executive Council for Information Management
and Technology of the United States General Accounting Office. He is a fellow
of the College of Business Administration of the University of North Texas. He
serves on the Advisory Board, Data Resource Management Program, University
of Washington, and on the Advisory Board, Data Administration Management
Association International (DAMA-I), which awarded him its 2002 Lifetime
Achievement Award. He was the recipient of the 2004 Oakland University Applied
Technology in Business (ATIB) Award for IS excellence and innovation.
Mike Rosen
Mike Rosen is chief scientist at Wilton Consulting Group, which provides expert
consulting in Service-Oriented Architecture (SOA), Enterprise Architecture (EA),
and Model-Driven Solutions. Mr. Rosen is also director of Enterprise Architecture
for the Cutter Consortium and editorial director for SOA Institute. His current
emphasis is on the implementation of agile, flexible, enterprise SOA solutions, and
on education and training for SOA and EA.
Mike Rosen has more than a dozen years of experience with SOA applications
in the finance, insurance, and telecom industries, and more recently, in govern-
ment agencies and technology product companies. He has helped many different
organizations initiate and implement SOA architectures, solutions, and programs,
xxvii
xxviii ◾ About the Contributors
and get beyond the simple Web-service-enabling approach to actually create more
flexible, consistent systems.
Much of Mr. Rosen’s work is also in the area of Enterprise Architecture. Given
the dozens of questions and choices about EA programs, frameworks, governance,
processes, and artifacts, Mike helps organizations cut through the clutter and focus
their EA activities toward creating value immediately and over time.
As a student of computer architecture, Mike has spent years understanding,
developing, writing, and teaching about the principles, practices, and skills of an
architect. He has years of experience in the architecture and design of applications
for global corporations and was a product architect for several major middleware
vendors. Prior to consulting, Mike had 20+ years of product development experi-
ence for distributed technologies including DCE, CORBA, DCOM, J2EE, Web
Services, Transaction Processing, and Messaging.
Mr. Rosen is an internationally recognized speaker and author of dozens of
papers and several books including Applied SOA: Architecture and Design Strategies
(Wiley, 2008) Developing eBusiness Systems and Architecture: A Manager’s Guide
(Morgan Kaufman, 2001), and Integrating CORBA and COM Applications (Wiley,
1998).
Bruce Silver
Bruce Silver is an independent industry analyst and consultant focused on busi-
ness process modeling and management. He is the author of BPMN Method and
Style (Cody-Cassidy Press, 2009, www.bpmnstyle.com), and delivers BPMN train-
ing through BPMessentials.com, the BPM Institute, and other channels. He is the
author of the popular BPMS Watch blog (www.brsilver.com/wordpress) and of the
BPMS Report series of product evaluations.
Daniel Worden
Daniel Worden has worked with Decision Support Systems since the early 1980s.
He has held management positions in private and public sector organizations, and
has been responsible for design, development, deployment and support of database
and Web-enabled solutions.
The author of five books on a range of topics from relational database technol-
ogy to storage networks and Java, he has written and presented on best practices for
adopting IT tools and techniques.
In his capacity as a consultant to management, Mr. Worden has focused on
uncovering hidden business value in information systems, as well as on leveraging
information as an asset.
Current areas of interest include Emergent Strategy, Adaptive Systems, and,
naturally, Decision Models.
About the Contributors ◾ xxix
James Taylor
James Taylor is a leading expert and visionary in Decision Management Solutions,
helping companies build decision-centric organizations, processes, and information
systems. He actively maintains two blogs on decision management, and has been
published and quoted in a wide range of magazines from BusinessWeek to Intelligent
Enterprise. He is a frequent speaker at conferences. Previously, he was a vice president
of product marketing at Fair Isaac Corporation, and he has held posts in software
research and consulting at PeopleSoft and at Ernst & Young Management Consulting.
A graduate of the University of London, James lives with his family in Palo Alto,
California.
Mr. Taylor is a highly sought-after speaker and appears frequently at industry
conferences, events, and seminars, as well as in university lecture halls. Along with
writing numerous contributed articles for industry publications and reports, he has
contributed chapters to The Business Rule Revolution (Barbara von Halle and Larry
Goldberg, Happy About, 2007) and Business Intelligence Implementation: Issues and
Perspectives. Working with Neil Raden, he has published the definitive work on deci-
sion management: Smart (Enough) Systems (Prentice Hall, 2007).
James’ blogs can be found at
http://jtonedm.com
http://www.ebizq.net/blogs/decision_management/
Brian Stucky
Brian Stucky is Managing Director of Business Decision Management at Allegiance
Advisory Group. A recognized thought leader in the area of business rules, Brian
brings over two decades of experience designing and implementing business rule
and process management systems for both commercial and federal clients. Prior to
joining Allegiance, Brian was Vice President of Decision Management Solutions at
InScope Solutions, Inc. where he directed the company’s technology practice area.
Prior to joining InScope, Mr. Stucky served as the Enterprise Rule Steward at
Freddie Mac, where he set the business and technology strategy for business rule
development across the corporation. These efforts resulted in Freddie Mac winning
a 2005 Application Development Trends Magazine Innovator Award in the category
of Component-Based Development (“Freddie Mac redesigns its processes to satisfy
new customer needs”) and being named a finalist for a 2005 Mortgage Technology
Magazine “10X” Award.
Mr. Stucky also cofounded two companies that specialized in the design and
implementation of intelligent systems. He has implemented and managed busi-
ness rule development efforts in a variety of domains, including the secondary
mortgage market, credit card marketing and processing, and mutual fund port-
folio analysis.
Mr. Stucky works closely with a number of business rule vendors and speaks
internationally at conferences and professional events. He has given presentations
at the Business Rules Forum, European Business Rules Conference, Mortgage
Bankers Association Technology Conference, the Brainstorm Business Process
Management Conference Series, and was an invited panelist at a Gartner Group
Financial Services Summit. He was also a contributing author to The Business Rule
Revolution. Mr. Stucky holds a BS in computer science from the University of
Kansas and an MS in computer and information science from the University of
Massachusetts at Amherst.
David Pedersen
David Pedersen has more than 25 years of IT experience and is a Certified Public
Accountant (CPA). He began his career as a CPA and quickly moved to developing
and implementing Information Systems in a variety of industries.
He has enjoyed a diverse career serving in various roles: programmer, business ana-
lyst, Senior Decision Analyst, CFO, Director of Global IT and managing partner. His
experience includes co-founding a technology company, successfully developing and
implementing enterprise systems, and leading large global business process and busi-
ness decision management initiatives.
Mr. Pedersen is currently a Senior Decision Analyst at KPI where he leverages
his diverse background and experience to implement BPM and BDM solutions
in a variety of industries. Prior to KPI he served as a Director at Ernst & Young,
LLP, where he led the development, implementation and support of a portfolio of
enterprise applications. His work included Enterprise Architecture and the devel-
opment and implementation of complex global business processes re-engineering/
improvement initiatives that were among the firm’s top global priorities. Prior to
joining Ernst & Young, LLP, he developed enterprise solutions for the hazardous
waste industry, legal profession, insurance and printing industries, and nonprofit
organizations.
Mr. Pedersen has a degree in business administration from the University of
Texas. His education includes engineering and math. He is an author of many
papers, a frequent contributing writer for the BPM Institute, BPTrends and a con-
ference guest speaker.
The Decision I
Model in
Context
Intended for all readers, this section is an introduction to the Decision Model and
the opportunities it offers both business and technology audiences.
Chapter 1 is a brief introduction to the motivations for the Decision Model.
These motivations explain why the Decision Model has a broad impact on manage-
ment practices and on business systems development and technology.
Chapter 2 provides a general understanding of the look and feel of the Decision
Model. The chapter is a prerequisite for interpreting the diagrams throughout the
book. The chapter references, but does not pursue in depth, the 15 principles of the
Decision Model and the concept of Decision Model normalization.
The four chapters that follow explore the impact and value of the Decision
Model for various disciplines. These disciplines include determining the business
value of Decision Models (Chapter 3), Business Process Management (Chapter 4),
Service-Oriented Architecture (Chapter 5), and business system requirements gath-
ering (Chapter 6). Each discipline is presented in light of the Decision Model at a
level appropriate for all audiences. These chapters enable the reader to understand,
and perhaps share, the excitement that has greeted the adoption of the Decision
Model among the current practitioners.
Chapter 7, the final chapter in the section, pulls together all ideas of the section
in a realistic project. Although fictional, different aspects of the project are drawn
from several real projects that helped deliver and automate the Decision Model.
This chapter is vital for readers familiar with a traditional business rule approach. It
reveals significant advantages that the Decision Model brings to the management
and success of real-world business rule projects. Readers can find more information
on the Decision Model at www.TheDecisionModel.com.
Chapter 1
Contents
How It Began.........................................................................................................4
Automated Business Systems: The Beginning.....................................................5
The One Dimension Left Behind.......................................................................6
What Is Business Logic?................................................................................6
Why Separate Business Logic?.......................................................................6
A Disruptive Solution from the Past..................................................................7
The Current Separation of Business Logic..............................................................7
The Need for a New Model...............................................................................8
The Advent of the Decision Model................................................................8
Underlying Premise of the Decision Model...................................................8
Five Most Interesting Characteristics of the Decision Model.......................10
Rigor of the Decision Model............................................................................10
The Decision Model as an Impetus for Change....................................................10
Summary..............................................................................................................12
New Vocabulary Introduced in This Chapter........................................................12
And What about the Quote..................................................................................12
Discussion Points and Exercises............................................................................12
3
4 ◾ The Decision Model
The Decision Model is a new model that impacts not just technology trends,
but also business management practices. It brings to the world of business
rules a well-defined structure based on the inherent nature of logic, extended
with integrity and normalization principles. This is similar in concept to what
the Relational Model brings to the world of data.
This chapter is an introduction to the reasons for the development of the
Decision Model. It begins with a historical perspective of the reasons lead-
ing to the model, and continues with a brief review of the role of the model
in both a business and a technology context. Finally, the chapter closes with
insights into the potential opportunities offered by adoption of the Decision
Model.
In Chapter 2 there is an overview of the structure of the Decision
Model and its notation.
How It Began
Since the inception of computer systems in the early 1950s,* there has been a
constant expansion of the functionality of computerized business systems. This
expansion has resulted in their playing a central role in the enterprise. Even a medi-
um-sized organization has hundreds of discrete applications. Large organizations
have thousands of applications, each succeeding application more complex than
the last. Today, there are few systems in an enterprise that are not at least partially
automated.
Before the advent of commercially available computers, a business carried out
its processes through human effort guided by human thinking and logic. In many
cases, critical processes were documented as a set of tasks and important check-
points, along with guidance for carrying out decisions along the way. Indeed, such
documentation exists today for many processes that are partly or wholly carried out
by humans. The documentation together with training informs the processes and
evolves them over time.
In the age of commercial computer processing, important business processes,
or parts thereof, have become ideal targets for automation. The sequences of steps
along with the business logic for making decisions behind those steps have been
translated into program code.
Businesses have gained a great deal by automating business processes.
The ability to process transactions quickly, in greater volume, and with more
Presentation Base
Component Application
Business
Logic
Component
Reporting/BI Database
Component Component
“Big Ball of Mud”
Separated Application Component
Figure 1.1 Teasing out the big ball of mud. (Source: Adapted from Ken Orr
“Putting Data into SOA,” Cutter Consortium, Business Intelligence Vol. 7, No 11.
Used with Permission.)
consistency has made all the difference in the world to most businesses. The
gains have been enormous and, consequently, the wave of business automa-
tion has grown beyond initial expectations. So, too, have the sophistication of
technology and the way automated systems are designed. However, a price has
been paid for these great advances. That is, many, if not most, enterprises have
lost track of and control over the business logic that is embedded in these sys-
tems. This is a natural result of how the design and development of automated
systems have evolved.
* “A big ball of mud is haphazardly structured, sprawling, sloppy, duct-tape and bailing wire,
spaghetti code jungle. We’ve all seen them. These systems show unmistakable signs of unregu-
lated growth, and repeated, expedient repair. Information is shared promiscuously among
distant elements of the system, often to the point where nearly all the important information
becomes global or duplicated. The overall structure of the system may never have been well
defined. If it was, it may have eroded beyond recognition” (Foote and Yoder, 1999). What the
authors of this famous passage left out is “logic is shared promiscuously among distant ele-
ments of the system, often to the point where nearly all the important logic becomes global or
duplicated.”
6 ◾ The Decision Model
* An analysis of the Relational Model and the Decision Model is found in Chapter 11.
† To be more accurate, the Relational Model is based on a rigorous theory (including functional
management. In fact, over the past ten years or so, books have emerged on the topic
of “business rules,” and adoption of business rule technology (e.g., business rule
management systems) has increased. More recently, major vendors are endorsing,
introducing, or acquiring business rule management system software.
As with data in the 1970s, the mere separation of business logic into a list of
business rules has not proved sufficient for delivering the anticipated benefits. Again,
current technical solutions play a role analogous to the proprietary database man-
agement systems of the 1970s. That is, the products themselves are excellent and
mature, but proprietary. As a result, design approaches vary and are highly influ-
enced by proprietary target technology. Although vendors are making advances in
managing and maintaining such business rules in a business-friendly manner, each
vendor does so in its own way. Standards and specifications groups are addressing
common languages or grammars for business rules, but there is no universal model
that serves as a starting point independent of language and target technology. The
lesson from the data separation precedent is that large-scale success is more likely to
come with the introduction and adoption of such a model.
Data Models
Bad Low
Process Model
Set Person’s
Credit Rating
to?
Determine
Policy
Renewal
Method
Decision Model
Decision Model, it is improper to impose (and thereby bury again) business logic
onto other kinds of models because business logic now has its own model.
This book sets out not only to present the details of the Decision Model, but also to
explain how it integrates with emerging management methods.
* “The pure-play business process management and business rules engine software markets will
outpace other software infrastructure markets from 2005 through 2010, growing by 11.8 %
and 9.2 % for license revenue, respectively” (Cantara, 2006); “Web services and Web 2.0
technologies are features in many current software products deployed in Service-Oriented
Architecture environments. By 2011, 63% of products in the software infrastructure market
and 56% in the software application market will support Web services and Web 2.0 technolo-
gies” (Dataquest Insights, 2007).
12 ◾ The Decision Model
Summary
The Decision Model is a new model aimed at representing business logic. The
Decision Model is based only on the inherent characteristics of business logic itself;
therefore, it is unbiased by other concerns and is very easy to create and manage.
The important points in this chapter are the following:
◾◾ There has not been wide-scale success in teasing out the business logic so that
it can be developed and modified independent of other concerns.
◾◾ The Decision Model structure is based on the premise that business logic has its
own existence, independent of how it is executed, where in the business it is exe-
cuted, and whether or not its execution is implemented in automated systems.
◾◾ Business logic has a recognizable structure that is not the same as the struc-
ture of other assets for which there are models.
◾◾ Although the Decision Model fills a missing gap in today’s technology trends, its
greatest significance may be its potential to give birth to new, related directions.
Language: Finnish
Valikoima
Kirj.
EINO LEINO
Lukijalle.
Näin ystäväni.
Helsinki 17.I.19.
Eino Leino.
Kesä
Kanteletar.
Lemmen uhrit.
1892.
Kaupunkimatka.
Siskojen kesken.
1892.
Kylätiellä.
1892.
Onnen apila.
1892.
Syystunnelma.
1892.
Haaveilevalle siskolle.
Käy pois, oi sisko, sen koivun alta, se koivu on turmion,
tuskan puu! On huolten aaltoja lahden aallot ja kaihon tuoja
on illan kuu.
Ken kerran kuuli sen laulun tenhon, sen onnen kalpea kaiho
vei, hän itku silmässä illat istui ja rinnan rauhoa saanut ei.
1893.
1891.
Aatekuteet, toiveniidet.
1893.
1895.
Aamutunnelma.
Metsäpuro.
1893.
Huolissaan huokaileva.
Koko metsä on laulua täynnä, joka lehvällä lemmitään, joka
oksalla sirkut ja peipot vain kertovat keväästään.
1894
1894
Hyljätyn valitus.
1895.
Ylioppilasmuisto.
Syyslaulu neidolleni.
1895.
Rakastunut.
Matkalla.
1895.
1895.
Sinipiiat.
Sinipiikojen laulu.
1894.
Pihlajan alla.
1895.
Sonetti Leilalle.
1896.
Sukkamieli.
1896
Tälläpä pojall' on —.
1896.
Hatara sydän.
Samettisilmä.
Soutelemassa.
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