Understanding business data using The Decision Model

Understanding Business Data with The Decision Model

An overview of TDM and how it helpsVersion 2.0 22nd May 2013

© Visionalysis Ltd 2012 – 2013

http://www.visionalysis.co.uk/

Introduction and disclaimer

This presentation talks about the Decision Model, created by KPI USA. It is based on practical experience of its use and in publicising its benefits to attain wider adoption of its practise.

The purpose of this presentation is to show how the Decision Model can benefit analysis of business rules and how it fits with other tools and methods to form part of an approach to understanding business data. It is intended as an overview only.

Please note that there is no proprietary client information contained in the following examples.

All examples are copyright of Visionalysis Ltd 2012.

22/05/2013Understanding Business Data using The Decision Model V2.0

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http://www.kpiusa.com/




Business Rules

Rules: a critical aspect of governing and running a business. But what might the issues be with existing business rules definition?• Natural language expressions – work up to a point, but can be

convoluted and open to interpretation. Pose downstream risks to development and testing

• Difficult to define relationships and dependencies between rules clearly

• Not typically treated as persistent documentation – rules redefined for each project

Potential solution: The Decision Model• More structured approach• Minimises ambiguity

Sounds cracking – but what does it look like?!?22/05/2013Understanding Business Data using The Decision

Model V2.0

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The Decision Model – a simple example

Example 1 – determining type of business (Insurance)Natural language business rule expression:• If the Processing Date of a Regular Premium Contribution

transaction is within + or – 15 days of the Policy Commencement Date then categorise it as ‘New Business’ and include it in the reporting data extract. If the transaction’s Processed Date is something else, then exclude it from the data extract.

What does this look like in the Decision Model?


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The Decision Model – a simple example


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Key construct is the ‘Rule Family View’ – a set of conditions that, if populated, must all be true to arrive at one AND ONLY ONE conclusion.

This isn’t the whole picture, but we’ll come back to that later……

Decision: Determine Policy Business Type (view: Base)Conditions Conclusion

Row ID Rule Pattern

Transaction Type Transaction Processing Date Policy Business Type

BT01 1 is Regular Premium Contribution

is between {Policy Commencement Date - 15 days, Policy Commencement Date

+ 15 days}

is New Business

BT02 1 is Regular Premium Contribution

is not between {Policy Commencement Date - 15 days, Policy Commencement Date

+ 15 days}

is Existing Business


The Decision Model – a more complex example

Example 2 – number of months until fund value guaranteedNatural language business rule expression:•The number of months until a guarantee is effective is calculated as the (year of the guarantee effective date – year of current date) x 12 + (month of the guarantee effective date – month of the current date)

This looks simple enough, but we need to look closer at a couple of things:• The guarantee effective date - what if there isn’t a next one and what

drives whether there is another one?• Whether the number of months will always be a an actual value –

something this rule doesn’t make clearIt all depends on the type of the guarantee, how often that guarantee recurs and where the current date is in relation to a particular policy anniversary.What does this look like in the Decision Model?


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The ‘Decision Rule Family’

This is a good example of ‘top-down’ modelling. The number of months is driven solely by a condition of the guarantee effective date, so it’s a very simple decision. But how is that date defined?


7Fund Guarantee Effective Date is derived in a ‘Supporting’ Rule Family View

Decision: Calculate Fund Time to Guarantee in Months(view: Base) Conditions Conclusion

Row ID Rule Pattern

Fund Guarantee Effective Date Fund Time to Guarantee in Months

MTG01 1 Is on the date 01/01/1900 is 0MTG02 1 is not on the date 31/12/9999 is calculated as (Fund Guarantee Effective Date Year –

Policy Valuation Date Year) x 12 + (Guarantee Effective Date Month –

Policy Valuation Date Month)

MTG03 1 Is on the date 31/12/9999 is 9999


The ‘Supporting Rule Family View’


8There’s a whole set of supporting rules to get us to an effective date

Conditions Conclusion

Row ID Rule Pattern

Fund Guarantee Type Fund Guarantee Frequency Policy Valuation Date Fund Guarantee Effective Date

GED01 1 is Moneyback Guarantee

is greater than or equal to

Policy 10-year Anniversary Date

is 01/01/1900

GED02 1 is in {No Market Value Reduction,

Moneyback, Inflation-Protected}

is less than Policy 5-year anniversary date

is Policy 5-year Anniversary Date

GED03 1 is in {Moneyback, Inflation-Protected}

is greater than or equal to

Policy 5-year anniversary date

is 31/12/9999

GED04 2 is in {No Market Value Reduction,

Moneyback}

is One-Off is less than Policy 10-year Anniversary Date


GED05 2 is No Market Value Reduction

is One-Off is greater than or equal to

Policy 10-year Anniversary Date

is 01/01/1900

GED06 2 is No Market Value Reduction

is Every 5 years is between {Policy Previous Anniversary Date,

Policy Next Anniversary Date}

is Policy Next Anniversary Date

GED07 2 is Moneyback is 5 and 10 year anniversary

is between {Policy 5-year Anniversary Date,

Policy 10-year Anniversary Date}


GED08 3 is No Guarantee is 01/01/1900


The Decision Model – why it helps

Example 2Life’s getting a little more complex, so how has the Decision Model helped?•It supports modularity – values that act as conditions in one rule family can be derived in another if they are sufficiently complex•Maintains clarity of the rule•Provides greater agility for rule maintenanceWarning: The Decision Model does not necessarily simplify business rules; we live in a complex world. It just makes them explicit, more manageable and ensures that rules are separated from process and data definition.


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(view: Base)Calculate Fund Time to Guarantee in Months

(Rf View: Base)Fund Time to Guarantee in Months

- - - - - - - - - - - - - - - -(Fund Guarantee Effective Date Year)

(Policy Valuation Date Year)(Fund Guarantee Effective Date Month)

(Policy Valuation Date Month)_________________

Fund Guarantee Effective Date- - - - - - - - - - - - - - - -

(Rf View: Base)Fund Guarantee Effective Date

- - - - - - - - - - - - - - - -(Policy 5-Year Anniversary Date)(Policy 10-Year Anniversary Date)

Policy Next Anniversary Date)_________________

- - - - - - - - - - - - - - - -Policy Valuation Date

Fund Guarantee FrequencyFund Guarantee Type

The Decision Model – graphical notation


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Shows the decision to be made (showing key verb ‘Calculate’)

Shows the decision rule family view and the condition fact types that are required

The supporting rule family view and its relationship to the

dependent rule family


Beyond business rules

Business Rules are declarative• Decision Model Rule Family has no implied order to the layout of

conditions• A rule cannot be all things to all people – many requirements methods

separate process, data and rules into their own work products. Work products are a good concept because they minimise duplication of effort and group requirements with different objectives

KEY MESSAGE: everything has its own purpose

• Process dictates the order in which some rules HAVE to be carried out. Not all rules are carried out in one place at one time

• Business Terms define what the data is, NOT how its values have been derived. It sets things like the expected values and the data type of the information


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Understanding all of your business data

What’s missing from the examples?The process and data definition bits:Example 1 – as a result of determining the business type of the transaction, the action taken is then to include or exclude it from the extract – this is procedural so not actually a rule and belongs in a process model:


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Determine Policy Business Type

Policy Business Type

Include in Reporting ExtractNew Business

Exclude from Reporting Extract

Existing Business



Example 2 – data definition. We know how the guarantee effective date is derived, but we don’t know explicitly what it IS. This belongs in the glossary/data model, whichever is appropriate.


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-Guarantee Type-Guarantee Frequency-Months to Guarantee-Launch Date-End Date

Fund

-Valuation Date-Commencement Date

Policy -Investor

*

-Invested

*

-Name

Policyholder

-Owner1

-Holding*



KEY MESSAGE: we only really understand data if we know what it represents (terms), how it was arrived at (rules) and how that information is acted upon (process).


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What the Decision Model could meanAnd why it could all go wrong……

Why is the Decision Model good?Its structural and integrity principles mean better definition, maintenance and reusability of business decisions

What are the risks?The same as any new concept – there’s an education and training piece. If that’s not done right, it goes the way of any concept: “It doesn’t work for us”Examples:• Agile – It works across a huge number of organisations, big and small,

but so many claim it doesn’t work for them; what might they be doing wrong?

• SharePoint – enables widespread collaboration across organizational boundaries. How is it typically used? A web-based document storage system. Far more capabilities but needs investment in training


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Summary

Why use the Decision Model?•It supports modularity•It maintains clarity of each rule in a Rule Family•Provides greater agility for rule maintenance

How do I do it right?•Learn from the experts•Get the right training•Understand how it fits in with the other components of your business – it’s not a “cure-all”


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Where can I go for more info?

There’s plenty of information out there:•KPI USA – the website of the Decision Model creators. Lots of white papers and articles, plus information on training available•The Decision Model book – written by Larry Goldberg and Barb Von Halle of KPI USA•BPMEssentials – new Decision Model training course starting December 2012, offered online from the major provider of BPMN training•Decision Model LinkedIn group – great discussion forum with plenty of expert input to assist with any question


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http://www.kpiusa.com/

http://www.amazon.co.uk/The-Decision-Model-Technology-Management/dp/1420082817/ref=sr_1_1?ie=UTF8&qid=1351428637&sr=8-1

http://www.bpmessentials.com/decision-modeling-essentials/

http://www.linkedin.com/groups?gid=3394865&trk=hb_side_g


About Visionalysis Ltd

Visionalysis Ltd is a company registered in England and Wales, providing independent business analysis consultancy services.

For more information, please visit visionalysis.co.uk.


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