Oracle Policy AutomationIntroduction and Overview

Introducing Oracle Policy Automation

20 years as a proven EPA leader

Missionto “Optimize Policy Automation”

Customers include the world’s largest government agencies and global 1,000 financial services, insurance and commercial customers

Consistently recognized as a leader by industry analysts

Customers across North America, EMEA, Asia-Pacific, and Australia

Patented technology automates legislation and policy using natural language rather than programming language, with multiple languages supported

Designed for rapid creation of industry content that can be easily configured for an organization's unique requirements

Easy, standards-based integration, including integration with Oracle Siebel CRM

Government agencies use Haley to serve tens of millions of citizens

Tier 1 commercial banks use Haley to serve millions of customers

Global insurers use Haley to automate tens of thousands of daily claims transactions

Dynamic self-service applications and high-volume enterprise automation based on complex policy and legislation

Automating Complex Policies

• Every interaction with customers or constituents is governed by logic based on policy and/or legislation– Am I eligible for a welfare payment?– What discounts can you offer me and what will my order cost?– How much tax do I have to pay?– What type of visa can I get?

• There are 3 main ways to handle these complex interactions/decisions:

• People are expensive, and they all require detailed training

• They make mistakes, are inconsistent, and biased

• Can be inefficient

• High turnover of staff means shortage of skills

Employ rooms full of people

trained to make the decision

… but

Write custom code and scripts

… but

Use Oracle Policy

Automation

• It’s quick and easy to set up, use and change

• It integrates with existing applications, and is immediately web deployable

• Business owners own the rules

• Can be very difficult, very complex, and very expensive to write

• Very difficult and costly to update to keep up with policy change (which they do all the time!)

• Integration with other apps can be complex

3

2

1

The Traditional Software Life Cycle

BusinessAnalyst

Requirements Specification

Design Artefacts

Source Code & Libraries

TechnicalArchitect Software Engineers

Executable Program

BusinessAnalyst

BusinessAnalyst

Testers

STEP 1:

Document requirements, including business rules

STEP 2:

Build detailed design of system, including terms & vocabulary

STEP 3:

Build solution using source code & supporting libraries

STEP 4:

Test executables – note this is depicted as a black box because of the lack of transparency into system decisions

$ $ $ $

Driving change from this point in the process is very expensive – it

involves traversing the entire life cycle again!

…so what if we had

executable requirementsspecifications?

The Policy Automation Life Cycle

BusinessAnalyst

Business Rules

TechnicalArchitect

Executable Rules

BusinessAnalyst

BusinessAnalyst

Testers

EnterpriseData Model

STEP 1:

Capture rules in Oracle Policy Modeling using natural language

STEP 2:

Map rules to enterprise data model using Oracle Policy Modeling

STEP 3:

Deploy & test rules – well supported by transparent execution (decision reports)

Driving change from this point in the process is much cheaper – it

involves fewer resources & fewer stages

• Dramatically improves time-to-market for changes to policies and rules

• Simplifies development and maintenance

• Ensures accuracy and consistency in complex decisions and determinations

• Reduces the burden on IT resources• Assesses the impact of changes in

policy on customers and citizens through “what if” scenarios

• Provides full audit-trail capability

The Resulting Key Benefits

Policy Documents

Modeling

Enforcement

Dep

loym

ent

Assessment

Op

timiz

atio

n

7 Key Enablers

• Empower business users to translate legislation into business rules with natural language based rules engine

• Translate policies with configurable, flexible and reusable rules

• Adapt business process to reflect ongoing changes to rules

Key Enabler: Policy Isomorphism (Patented)

source legislation

or policy

executable document in natural language which

business users can understand and modify

copy source material, paste

into Word, markup

Demonstration: Oracle Policy Modeling

Fictional scenario• A housing agency is required to administer a cash benefit under

the Housing Benefit Act• Call centres are issuing inconsistent and inaccurate advice;

assessors are making mistakes in processing applications• The agency needs a web-based questionnaire that can

determine eligibility for the benefit:– accurately– consistently– with automatic plain English explanations for decisions– for both internal use and public self-service

• The legislation changes frequently and the system must be able to easily accommodate this

Key Enabler: Out-of-the box dynamic interviews

11

Asks least number of

questions in most logical

order to finalize a determination

Questions automatically created from

source document without need

for any programming

Key Enabler: Determination Reporting

12

Positive and Negative

statementsautomatically

created to explain determination

Can be used to build the content

for a letter of advice or audit

Natural language engine provides personalization

and pronoun substitution

Key enabler: Temporal Reasoning (Patent Pending)

• Efficiently handle changes in:– Eligibility, e.g. a change in minimum age, which takes affect on a certain date

– Rates, e.g. quarterly increase of a benefit rate

– Customer circumstances, e.g. number of children, marital status

• Benefits of the Oracle Policy Modeling approach to temporal reasoning:– Accurate calculation of payments even when notification is retrospective

– Expressing time-based logic is simple and concise

– Optimal performance, without forgoing transparency or decision audits

13 13

Annual rate

increase

Annual rate

increase

Annual rate

increase

Claimant is married

New childPay riseNew child

Neweligibility

rules come into effect

Key enabler: Temporal Reasoning (Patent Pending)

Benefits

• Increased accuracy in decision making and calculations– Appeal rate reduced by 30%

• Improved efficiency for processing staff– 60% more cases in 60% less time– 80% productivity improvement

• Reduced reliance on experts• Increased self-service uptake– Expected 20% self-service became 90%

• Significantly faster development– Measured 5x faster than nearest competitor rules product, at least

10x faster than coding

• Agility to respond to dynamic business needs– Changes that once took weeks now take hours– Business users understand (and can maintain) the “code”

ITOracle | Haley Customer Overview

Financial Services and Insurance

Government Other

• American Fidelity (US)• Countrywide (US)• Credit Suisse (Switzerland)• UBS (Switzerland)• BUPA (UK, Ireland)• NASD (US)• United Healthcare (US)• HealthMarkets (US)• American International

Assurance (US)• Farm Bureau Financial Services

(US)

• British American Tobacco (UK)• Motosport (US)• Cisco (US)• Intel (US)• AT&T (US)• Toyota Motor Corp (US)

• Internal Revenue Service (US)• Govt of British Columbia

(Canada)• Montana DMV (US)• Massachusetts DMV (US)• HM Revenue & Customs (UK)• Home Office (UK)• Ministry of Defence (UK)• Dept Trade and Industry (UK)• Dept of Social Security (Sweden)• Westchester County (US)• ICF Road Home (US)• 50+ Local Councils (UK)• Small Business Service (UK)• Dept of Statistics (Netherlands)• Dept of Defence (Australia)• Dept of Veterans’ Affairs

(Australia)• Dept of Immigration (Australia)• NSW Government (Australia)

Immigration Case Determinations

Overview• The purpose of the Department of

Immigration and Citizenship (DIAC) is to ‘enrich Australia through the well managed entry and settlement of people’.

• 6,000 staff located in all states and territories, 160 Australian-based staff in 60 countries

Challenges• Lack of support for staff in decision-making

roles• Gaps and vulnerabilities in systems and

processes• High profile errors in decisions resulting in

political flak

Business Results• Massive increase in self service using Visa

Wizard• Reduced strain on frontline staff to deal

with enquiries about potential Visa eligibility

Strategic Impact• Delivery of a large number of projects

designed to improve the work environment for DIAC staff, clients and partner organizations

• DIAC will be able to better serve clients through• Consistent operating processes• Easily accessible instructions• Integrated record keeping• Effective QA processes• Accessible online training• Effective reporting

Solution• A business-user driven solution that allows

DIAC to capture, test, maintain and execute their policies and legislation

• Integrated within the overall IBM project solution in a service-oriented architecture (SOA)

• Self service portal including a Visa Wizard

e-Government Tax and Revenues

Overview• HMRC is responsible for collecting the bulk

of UK tax revenue, as well as paying Tax Credits and Child Benefits, and strengthening the UK's frontiers.

• 29.5 million taxpayer records, 8.4 million Self Assessment

Challenges• Pan Government requirements for

administrative efficiencies • High volumes of enquiries at high cost • Mystery shopper exercise: same enquiry

made 9 times, 9 different responses given by staff

• Massive uncertainty for taxpayers

Business Results• Up to ten-fold productivity improvements

for system development compared to conventional software approaches

• For first system rolled out (employment status):• Business case assumed 25% self

service but actual results over 90%• Saved millions of pounds in

additional headcount that would have been required without automation

• Projected headcount reallocation of over 1,000 staff

Strategic Impact• The GBU continues to assist HMRC in

delivering on its Public Service Agreement targets

• Oracle Policy Automation established as key delivery tool in 5 year Strategic Plan

Solution• Interactive systems deployed which

faithfully reflect complex legislative and associated policy and business policies

• Interactive guidance platform based on Oracle Web Determinations

Veterans’ Entitlements

Overview• Department of Veterans’ Affairs is

responsible for providing funding to former Australian soldiers and service personnel

• It approves and provides funding for a number of purposes, including– Healthcare– Pensions– Home renovations

Challenges• Highly critical Auditor General report on

veteran compensation payments• Lengthy claim process: 6 months with

only 2 days or so work on each claim (veterans dying before processing)

• Up to 12 staff members involved in processing each claim

• Senior staff needed to approve claims• Legislation allowed subjectivity and

discretion by assessors• Assessments were inconsistent and

open to appeal

Results• 60% more claims in 60% less time• 80% productivity improvements• Appeals reduced by 30% (cost of appeals

previously half the total cost)• Reduction in the processing staff by 1 / 3• Reduced reliance on senior staff / doctors• Administrative savings alone of more than

$2m per annum

Solution• Haley’s technology enabled a

comprehensive re-engineering of the compensation claims policy and process

• Solution delivered a system that guides assessors through the rules governing more than 250 medical conditions

• System enabled single assessor processing, end to end

• Personalised evidence-gathering questionnaires tailored to the client’s medical circumstances and service history

• Determination of rates of payments, if any

Oracle Policy Automation

OPA Components

Oracle Policy Modeling

Oracle Web Determinations

Oracle Determinations Engine

Oracle Determinations Server (SOA)

CRM, Portal

HR, ERP

Middleware / Native Web Services / Java / .NET

Other Database

Oracle Policy Automation Connector for Siebel

Oracle Policy Automation Connector for SAP JCo

Shared Services & Enterprise SOA

• Sample Use Cases– Canada - British Columbia Social Services– Siebel

– British American Tobacco (BAT)– Siebel, mobile devices

– Department of Immigration and Citizenship– Siebel, Websphere

– Defence (UK)– Veterans’ compensation integrated via SOA

– SKAT (Danish Revenue)– Rules through SOA to core systems / SAP

– CBS (Dutch Statistics)– SOA integration on a Microsoft platform

Shared Services & Enterprise SOA

• What?– Deliver reusable services for intra- and extra-enterprise efficiency and cost

savings– Deliver rules tightly integrated with CRM (especially Siebel)

• Why Oracle Policy Automation?– Out of the box Determinations Server is easy to integrate

• Conforms to WS-Interoperability, WS-Internationalization• Multiple WSDL modes deliver flexibility• XML in and out are identical schemas

– Certified on many platforms• Apache TomCat, BEA AquaLogic, IBM WebSphere, SAP Netweaver• Pre-integrated with Siebel, deeper integration in progress

– Roundtrip with enterprise metadata repositories• Synchronise rules with System Architect, Rochade et. al.

23

OPA with Siebel Connector

24

Add a new Non Resident Parent

25

Enter Non Resident Parent details

1.

2.

26

Add the details for each child

27

Review the case

28

Calculate the payments

29

Oracle Policy Automation returns a successful outcome

30

Siebel is updated with the liability

31

The audit trail behind the answer

32

Oracle Policy Automation creates the payment schedule

Who needs Oracle Policy Automation?

If you can benefit from any of these capabilities, Oracle Policy Automation is right for you:

1. Efficient modeling by business users of natural language rules in Microsoft Word and Excel documents

2. Handling large, complex or inter-related policies, including those that vary over time

3. Delivering audit reports of how decisions are reached

4. Ensuring rule changes across releases are well-managed with strong regression testing capabilities

5. Optional interactive web-based decision making for customers or employees to obtain their own answers to complex questions

6. A high-speed determinations solutions in a service-oriented architecture

7. Ease of integration with Siebel, SAP and other systems

Who to contact

• Sales Director– Eng-Chin Tan (eng.chin.tan@oracle.com)

• Pre-sales– Christopher Yo (christopher.yo@oracle.com)– David Clarke (david.clarke@oracle.com)