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Oracle Policy Automation (OPA) Overview

Peter JeavonsJuly 2010

Dynamic Legislation is Driving the Need to Automate Policies

Freedom of information is increasing the pressure from customers and citizens to prove compliance with policies and standards

Budgetary pressures forceefficiencies

Costly IT projects and resource-intensive call centres are expected to innovate, and deliver more with less

Accountability requires transparency

Security, geopolitical and financial events drive frequent legislative changes and high expectations of enforcement

Making accurate and consistent decisions is difficult when finely targeted policies are needed to deliver the best outcomes

Policy complexity is growing

Legislative changes are accelerating

Policy Automation benefits

• Dramatically improves time-to-market for changes to policies and rules• Simplifies development and maintenance • Ensures accuracy and consistency in complex

decisions and determinations • Helps balance the workload with IT resources• Assesses the impact of changes in policy on

customers and citizens through “what if” scenarios• Provides full audit-trail capability

DRAFT ONLY

Business users create the content

Unique tools check rules

& show implications

Quick, high performance deployment

• Business people write rules in Natural Language with no cost or risk associated with translation by IT

• Manage rules with Microsoft Word, Excel, Visio reduces training requirement and allows for agility with updates

• Policy Isomorphism providing confidence in and visibility of rules

• In-built simulation and scenario modelling gives capacity to analyse and test policy and rule outcomes

• Detailed determination reporting documents how conclusions were reached for audit purposes

• Automated and interactive rule testing to ensure that deployments give correct results

• Fully SOA-enabled out-of-the-box providing low cost flexibility

• Integrated with Siebel and other applications• High performance inference engine with Temporal

Reasoning architecture

Policy Automation value proposition

Oracle Policy Automation

Oracle Policy Modelling and Automation

Oracle Policy Modellng

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

ITPolicy Automation Customers

Financial Services and InsuranceGovernment 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)

Policy Automation unique product differentiators

Key Enabler: Policy Isomorphism (Patented)

8

The Source Legislation or

Policy

Executable Document in Natural Language that Business users can

understand and modifyCopy, Paste, Markup

Key Enabler: Determination Reporting

9

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

10 10

Annual rate

increase

Annual rate

increase

Annual rate

increase

Claimant is married

New childPay riseNew child

Neweligibility

rules come into effect

Key Enabler: Dynamic interactive 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: Business User Regression Testing

Clearly define and communicate expected behavior for complex scenarios

Ensure that between policy versions only expected differences occur

Instantly run 100s or 1000s of test cases, and drill into report results

Key Enabler: Policy Visualization

Quickly find dependencies across sections, and claimant data

Clearly identify base data needed for decision making purposes

Find orphaned sections of legislation, and identify unused data items

Key Enabler: Outstanding Performance• Patented high-speed Linear Inferencing algorithm

– Faster than Rete which is widely used within BRE industry– Better exploits modern CPU architectures– More space efficient (stateless)– Well suited to batch/transactional processing scenarios

• Results of benchmarking:– Over 1 million premise evaluations/sec– Using dual CPU Sun Fire 280R

0

0.5

1

1.5

2

2.5

3

0 2000 4000 6000 8000 10000 12000

# concurrent users

Ave

rage

resp

onse

tim

e (s

ecs)

Oracle Web Determinations on 8 CPU Sun server

British Columbia Chooses Oracle to Modernize their Systems for Social Welfare

Requirements• Provide better integration of services and protection of children• Deliver a single view of the citizen across services• Enable visibility into service and productivity

Why Oracle • Leading policy automation, rules determination and case management• Proven Enterprise platform that is available commercially off the shelf (COTS)• Business Insight

Policy Automation delivers rapid benefits to Dentists in Sweden

Challenges• Implement new Dental Reform legislation in tight timescales• Deliver new Dental benefits calculations and improve Fraud detection• Complete in parallel with modernisation of Legacy back office systems

Results • New legislation delivered in four months• Highly scalable and performant solution • Success achieved by ‘externalising’ rules from core applications• Business users built and now own the rules• Benchmark for future modernisation projects

Australian Immigration Department Gains Client Visibility with Policy Automation

Challenges• Improve openness and accountability• Deliver a unified and accurate internal view

of all client dealings• Streamline overlapping processes and

deliver global consistency

Results• Visa applicants can now test eligibility

against 57 visa classes through self-service• 98% of call center visa inquiries are now

handled through self-service• 1,500 policies automated for over 750,000

annual visa applications, delivering consistency for 7,000 global staff

• Legislative changes in 1.5 hours that used to take 3 days to complete

Veterans’ Entitlements

Overview• Department is responsible for providing

funding to former Australian soldiers and service personnel

• It approves and provides funding for Healthcare, Pensions and Home renovations.

Challenges• Highly critical Auditor General report on

veteran compensation payments• Lengthy claim process: veterans dying

before processing completed• Up to 12 staff members involved in

processing each claim• 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)• 33% reduction in the processing staff • Reduced reliance on senior staff / doctors• Administrative savings alone of more than

$2m per annum

Solution• Enabled comprehensive re-engineering

compensation claims policy and process• Guides assessors through the rules for

more than 250 medical conditions• Personalised evidence-gathering

questionnaires tailored to the client’s medical circumstances and service history

• Determination of rates of payments

Tax and Revenues

Overview• Department is responsible for Tax

revenues from 58M UK residents• It also processes Tax credit claims and is

responsible for all UK ports plus associated Customs procedures.

Challenges• Inaccurate and inconsistent advice

being provided by staff• Drive to reduce costs and increase use

of technology• Complexity of legislation and frequency

of changes required.• Reduce time to market for new

applications• Improve the Citizen interaction

experience• Closing the tax gap through efficient

tax collection

Results• Up to Ten times quicker deployment• First project saved £3M+• Significant Call Centre headcount savings• Increased Self Service usage• Policy Automation part of five year

strategic plan.

Solution• Improved accuracy consistency and

transparency of determinations by staff• Quicker deployment of legislative changes

and new applications• Business now owns policies and has

greater flexibility and control.• Solutions deployed across multiple

channels including Self service

The Enterprise Policy Automation Difference