BRF+ Doc 1 PDF

Business Rules Management at SAP
SAP Business Rule Framework plus

Disclaimer
This presentation outlines our general product direction and should not be relied
on in making a purchase decision. This presentation is not subject to your
license agreement or any other agreement with SAP. SAP has no obligation to
pursue any course of business outlined in this presentation or to develop or
release any functionality mentioned in this presentation. This presentation and
SAP's strategy and possible future developments are subject to change and
may be changed by SAP at any time for any reason without notice. This
document is provided without a warranty of any kind, either express or implied,
including but not limited to, the implied warranties of merchantability, fitness for
a particular purpose, or non-infringement. SAP assumes no responsibility for
errors or omissions in this document, except if such damages were caused by
SAP intentionally or grossly negligent.
2011 SAP AG. All rights reserved. 2

Agenda
Key Trends and Issues

SAP Solution Overview
Why SAP?
Usage Examples

Key Trends and Issues
Key Trends
Forrester Research, Oct 2010

The Top 15 Technology Trends EA Should Watch:
2011 To 2013
A key trend in application architectures is the externalization of the policies and rules that
drive key decision points in application logic. Externalization exposes rules to policy subject-
matter experts for explicit development and maintenance. Business rules processing enables
rule management by business-side experts. Applications based on business rules processing
are moving from niche into mainstream as rules enable the creation of more-responsive, more-
personalized experiences based on more-complex conditions. Rules engines with the
appropriate configuration management infrastructure enable business managers to maintain
rules and more quickly explore ways of optimizing business processes.

Market Analysts
PWC Technology Forecast 2008
Business processes, in whatever form they take, depend heavily on business rules. Rules
drive the activities, coordinate data movement and workflow, and provide decision automation in
complex situations.
[]
For enterprises, BRMSs provide great agility not only because they automate decisions but
also because they enable organizations to modify policies or implement new programs quickly.
[]
The quality of rules engines in BPM solutions will likely emerge as a competitive
differentiator.
[]
Enterprises that create value through rapid process changes are beginning to define a market
opportunity for a pre-integrated suite of tools that supports intelligent business performance
management.

Market Analysts
James Taylor, CEO, Decision Management Solutions

Business Rules and Decisioning for Process
Experts, 2010
No organization can be more effective than its systems. Systems must be aligned with the
organization, its goals and its people. A business process orientation shows how an
organization really operates and positions it for continuous improvement. Adding decisioning
to business process-oriented thinking creates simpler and more agile processes, and
more flexible business applications. Externalizing decisions and applying business rules
technology to effectively manage those decisions improves visibility, builds in a capacity
for change and helps ensure business/IT alignment.
In each case simpler processes, more flexible business applications, an increased capacity
for change and improved alignment decisioning enhances a business process orientation
to deliver greater value to the business. Focusing also on the decisions within processes and
applications, making them explicit, giving the business control over how those decisions
are being made, is critical.
SAP has developed two robust business rules management platforms, supporting both its
Java and ABAP environments. These technologies can be used to ensure that decisions are
effectively managed and integrated throughout an SAP enterprise backbone.

Key Trends and Issues Driving Change in Application
Development
Flexibility at low Business user

Transparency
cost empowerment
Fast time from initial Transparent Enable business

idea to realized business logic and user to adapt
solution repository for application to
business rules constantly changing
Decrease
environment w/o IT
dependency on Increased demand
expertise
highly specialized IT for governance, risk,
resources and compliance / Role specific user
policy enforcement experience
Allow for on-going
optimization and
adaption of business
logic

Challenges
High
expectations
of user
Increasing
How can I deliver
importance of
immediate externalizing
How can I enable the innovation? How can I bring
business expert to immediate value to
business rules
On demand drive IT decisions? our organization?
solutions
How can I deliver How can I avoid the risk
business content at and cost of big bang
low cost? implementations?
How can I develop, How can I avoid time

share, and maintain consuming & costly
upgrades?
Cost
business content?
reduction,
Working do more
within a with less
network Legal
regulations
/ security
Challenges & Their Solutions Available
With BRFplus
Business Rules
Rules modeling in Modeling
natural human Environment
language
Rule changes
have immediate
Business logic modelling impact
environment allows to
Enables business deliver immediate value Allows for
experts to drive for dramatically
the required improved time to
No IT expertise value
solutions
required
Step by step
Allows for business Allows for
content provisioning controllable low risk
implementation
at low cost implementable steps of business
rules
As part of SAP NW,
Allows eco system for not requiring a
content sharing separate installation
Part of SAP NW
Central business ABAP stack
rules repository

Evolution of Business Application Architecture
Processes
Rules
Processes
Processes Rules
Usage of Usage of
Rules Database BPMS and
BRMS
Data
Data Data
Business Application Business Application Business Application
Separate data and application logic by putting an applications data into a database managed by a
database management system (DBMS)
Put business rules into a Business Rules Management System (BRMS) and business processes
into a Business Process Management System (BPMS)
Once the connection between application code and BRMS is established, programming skills and
code changes for updates of the business rules are not required
With a BRMS business rules can be centrally managed, easily found and compared

Business Applications, Business Processes,
and Business Rules
Application Credit Score Approval
Completeness Calculation of Automatic/manual

check credit score approval
Data validation Enable/disable Compliance rules
No-go criteria contract terms Risk management
Business Application Release 1 Business Application Release 2

Business
Application Banking

Business Process Version 1 Process Version 2 Process Version 3
Loan Approval
Process
Business
Calculation of Rules Rules Rules Rules Rules Rules Rules
Rule credit score Vers. Vers. Vers. Vers. Vers. Vers. Vers.
1 2 3 4 5 6 7

Rules Event
Reple-
Out
Product nish-
Benefits of Using Business Rules Management of

stock
ment
order
15 min
Process
Business Rules Management Benefit
Model
Context
Separation of business rules Agile and maintainable systems
Roles and code Workflow
& Task
Modeling of complex business Create Claim
Automation of key business
Manage Refine
logic decisions
Analyze Analyze
Budget Resource
Impact Impact
Central management of Consistent application of

UIbusiness rules corporate policy and
government regulations
Automate
Business Experts can find, Visibility, accountability and
change and test critical error-free business
business rules
Business Rules Management

Flexible & agile business systems Precise & informed decision making
Faster turnaround times for changes Improved visibility for the business
Reduced cost for changes

SAP Solution Overview
Aligning Stakeholders to Create a Sophisticated Business
Rules Management Solution
CEO CIO COO Head of LoB
Timeless software at low Improved transparency and Improve automated

costs consistency decision making
How do I ensure that It is critical that our policies are How do I gain greater control
business logic can be transparent and consistently over the rules that affect our
implemented efficiently, enforced in our business business operations?
consistently, and timeless? operations. How can I reduce time to
How can I secure on-going value?
maintenance and
adjustments due to legal
changes at low cost and low
risk?

CIO: Timeless software at low costs
Objectives, issues, capabilities, and benefits
Objective:
Ensure that business logic can be implemented and maintained efficiently,
transparently, and consistently at low cost
Best practice solution:

Externalizing decisioining by business rules management system
Issues Key business capabilities Benefits
Hard coded business logic, where Business rules management system Reduced costs
IT involvement is needed for any allows for transparent and well
changes defined business logic Sustainable solutions
No transparency of business Business users are able to Free up IT to focus on technical

logic, neither for IT nor for understand and maintain business aspects (instead of business)
business department logic w/o support by IT
Ensure transparency and
Inflexible frontends implying high Flexible frontend allows for role consistency
training effort for end-users based user experience
Hard to sustain and support

legacy solutions and integrations
on various technologies

CIO: Timeless software at low costs
SAP Solution
SAP Solution
Rules modeling from business perspective
Out of the box backend integration
Flexibility and extensibility
Low administration and low TCO
SAP Differentiators
Rules modeling: Business users are enabled to model and deploy business logic without IT support
Integration: BRFplus is the only BRM solution natively integrated into SAPs technology and
application stack, allowing for easy implementation of business rules services
Flexibility, extensibility: Flexibility of modeled business logic and extensibility of rules expression types
TCO: Very low costs for administration, maintenance, and setup due to being part of
SAP NetWeaver

COO: Improve transparency and consistency
Objective:
Enforce policies transparently and consistently in our business operations

Governance by business rules management system
Business rules are often unclear, Business rules management system Transparent and consistent
based on documents, tacit allows for transparent and well business rules and decisions
knowledge, or hidden in the defined decision making processes
system. Compliance with policies and legal
Intrinsic tracking and tracing regulations
Tracking of decision making capabilities ensuring the compliance
processes is not possible with policies and legal regulations Modeled business knowledge
Lacking transparency of Seamless integration to existing Tracking and auditing capabilities

compliance level and lacking systems, processes, and data
compliance with policies and
legal regulations
Redundant and often conflicting

business rules

COO: Improve transparency and consistency
SAP Solution
SAP Solution
Business SAP Business Rule Management plus

Processes
Rules Application
Transparency
Integration
Governance
Low TCO
Data
SAP Differentiators
Transparency: Central rules repository with modeled business content
Integration: BRFplus is part of the SAP system, being fully integrated into all business processes, providing
for access to all business data
Governance: Policy compliance by traceable decision making processes
TCO: BRFplus is covered by SAP NetWeaver Foundation for Third Party Applications license, no
additional license needed, no additional hardware needed, no administration effort

Head of LoB: Improve automated decision making
Objective:
Gain greater control over the rules that affect our business operations

Business enablement by business rules management system
Business rules often unclear, Business user enablement to Become more flexible and allow for
based on documents, tacit understand and maintain business instant changes
knowledge, or hidden in the logic
system Become owner of the end-to-end
Gain control over decision making process
Business needs to involve IT processes
department for process changes Modeled process knowledge,
Transparent and documented accessible by business users
Process changes very time and business decisions allowing for
money consuming enhanced reporting Enhance reporting capabilities
Unclear processes result in Rapid prototyping Empower business users

reporting impediments

Head of LoB: Improve automated decision making
SAP Solution
SAP Solution
SAP Business Rule Management plus
Business enablement
Time-to-value
Business logic modeling
Transparency
SAP Differentiators
Business enablement: Modeling business logic based on business knowledge in human language, no
development skills required
Time-to-value: Instant extensions and changes without software deployment process
Business logic modeling: Business logic persisted in business models
Transparency: Documented business decisions made by consistent processes

Why SAP?
Top Reasons
BRFplus is a Best of Breed Rules Engine
Transparency
Business User
Empowerment Transparency of rule
execution and tracing for
Graphical approach and audit
business semantics for
intuitive rule composition
and management (modeling
rather than programming)
Rapid Time-to-Value
Personalization
Rapid prototyping with feedback-
based build cycle (build, simulate, Personalization and
optimize) leading to reduced segmentation of rules
project durations (up to 60%
reduction)

BRFplus can do Much Better Than Other Rules Engines
Part of ABAP Stack

Business Semantics Seamless integration with ABAP
applications and ABAP server
Business semantics out of the box including security and
authorization
Low TCO
BRFplus is covered by No Hardware
SAP NetWeaver
Foundation for Third Party No additional hardware
Applications license required: BRFplus is
part of SAP NetWeaver
(the SAP technology
platform) and runs on
High Performance the same server
No Setup
High performance and nearly
no footprint (<100 kB) Zero initial setup effort

Total Costs of Ownership
of BRFplus Compared to an External Rules Engine
Administration
3.000$/month
Installation and
Connection Hardware
40.000$ 10.000$
(for separate server)
(10 interfaces)
Applications
External License
Rules Varying
All numbers estimated based on a work rate of
Middleware Engine $1.000/person/day
Assumptions
Rules Engine to run in conjunction with SAP system
Customer has valid SAP license

Total Costs of Ownership
of BRFplus Compared to an External Rules Engine
Administration
None (included
in administration
of SAP System)
Installation and
Connection Hardware
None None (BRFplus runs
on NW ABAP server)
SAP Business Suite

License
None (assuming
SAP licenses are
SAP NetWeaver available anyway)

Usage Examples
Ubiquitous Business Rules
Banking: Relationship based Pricing, Education: Fee Calculations, Healthcare: Claims, Patient
Scorecards, Credit Decisioning Course Selections Monitoring, Fraud Detection
Logistics and Shipping: Parts Public Sector: Tax Calculations, Insurance: New Products, Claims
Management, Duties Calculations, Customs Duties, Land Regulations, Settlement, Agent Commissions
Pricing Calculations License Fee Calculations

Business Applications
Powered by BRFplus
Public Sector Grantor Management - Tax and Revenue Management Banking Incentives
and Commis sion Managemnt - Benefit Decision Making -
Process Loyalty Management Territory ManagementReal-time Offer Management - Offer
Banking UI framework Management - CRM Freight Costs Calculation -
Tech Services Printer determinationGeneric FIN Entitlement Calculation
SRM Agile Defense GDS RM FI Events GRC
Access Controlseld Report Human Capital ocial Services - Incurance Claims nagement
Management Field Control iness Workflow Context
Viewer - Service Social Application
Processing managem Risk Management
- Order Management Dedu Plan Processing WorklfowBenefit Decision Making
Process Approval Demand Management - Revenu ABMaster
Data Governance - GRC BYD - BuRule based event management -Loading/Unloading
duration determination of freight units - Advanced Metering Infrastructure Dunning GDS-
- Freight unit filtering - Automated Incident Dispatching - Service Request & Order
Management - Field Control Expense Report Business Workflow - Rule based event
Management Loading /Unloading duration determination of freight units - Advanced
Metering Infrastructure PS-CD - Freight unit filtering - Automated Incident Dispatching -
Service Request & Order Management - Master Data Governance - Access Controls

Business Rule Services with BRFplus
BRFplus Function: Service Definition

Web Service Code Exit Input (Context), Output (Result), Purpose
Application
RFC BADI Can be called by ABAP API, RFC, or Web Service
1
*
BRFplus Rulesets: Service Implementation
Collection of rules
Preconditions, priorities, validity
Context enrichment (additionally needed data)
Business Rules Service
BRFplus Rule: step implementation
IF <condition(s)>
THEN <operation(s)>
ELSE <operation(s)>
Usage of expression types (decision tables, decision trees,
formulas, table operations, ) to define complex
conditions and value derivations/calculations
Usage of action types (message log, workflow, email, ) to
Business Rules trigger side effects

BRFplus Impressions
Function

BRFplus Impressions
Ruleset

BRFplus Impressions
Expression Type Decision Table

BRFplus Impressions
Expression Type Formula

BRFplus Impressions
Simulation

SAP Tax and Revenue Management
Tax Authorities must
Maximize tax revenue without an increase of taxes
Maximize compliance rates and fight tax fraud
Minimize taxpayer burden to create competitive advantages for the country
Maximize their responsiveness to taxpayers to further increase their services
Deal with decreasing budgets by optimizing the revenue / cost ratio
BRFplus
Citizen or Check data

Trigger follow up
company hands in Scan tax form completeness and
actions
tax form correctness
BRFplus Use Cases

Calculating Rules for filling in and validating tax
forms
Tax registration, including creating Business
Partners, Contract Objects, Contract Accounts,
Billing Documents, ...
Tax portals (e.g. ELSTER) registration

SAP Governance Risk and Compliance
Risk Management
Automated monitoring of key risk indicators and automated workflow enable risk owners to
manage risks and immediately align strategy
Alignment of key risk and performance indicators across all business functions permits earlier risk
identification and response
Cross-platform, cross-vendor capabilities deliver an enterprise-wide picture of risk exposure and
strategy execution
BRFplus
Translate answers
to risk probability Analyse risk
Trigger Survey Obtain responses
and impact situation
estimation
BRFplus Use Cases

In survey valuation plugin, BRFplus enables to
define formulas to calculate all elements of
analysis based on numbers (scores, amount, or
percentages) coming from survey response
In Key Risk Indicators BRFplus is used to trigger
email notifications, risk assessment workflows, ...

SAP Governance Risk and Compliance
Access Control
Reduce Segregation of Duties violations and critical access risk across SAP and non-SAP
systems
Streamline compliance processes
Deliver immediate visibility into current access risk
Embed compliance into business processes and minimize audit time and audit-related costs
BRFplus
User triggers
Determine
authorization Determine agent Trigger workflow
workflow routing
request
BRFplus Use Cases

In MSMP (Multi-Stage Multi-Path Workflow)
workflow engine MSMP Rules can be implemented
using BRFplus. These rules handle workflow
routing and agent determination

SAP Grants Management for Grantor
The Grants Management for Grantor solution meets the requirements of all levels of public sector
organizations that fund grant programs
Business processes include program definition, application, assessment, agreement, grant
payment, claims processing and monitoring, analysis, grant application processing, workflow
authorization and notification in addition to case management, correspondence management, and
records management functionality
Delivering robust reporting capability and content
BRFplus
Application Assessment Agreement Financials
BRFplus Use Cases

Assessment / eligibility determination of grant
applications and claims to decide whether an
applicant is eligible and for how much
Real time data validation during form entry. Pre-
screening to determine eligibility and also to ensure
all required data is entered on the form

SAP Social Services
The Monetary Social Benefits scenario combines front office social decision making processes
with an automated back-office solution to execute financial
The solution leverages key functionalities of the Social Case
Management component in SAP CRM and the Public Sector
Collection and Disbursement (PSCD) component in SAP ERP
BRFplus Social Application Processing

Receive Validate Case Approve
Item Assess
social social assign- social
proposal benefit
application application ment application
BRFplus Social Service Plan Processing

Create Entitle- Grosspay- Approve
Case Eligibility Entitle- Decision Entitle-
Social ment Manual ment item social
assign- determi- ment assessment
Service determina- adjustment determinat service
ment nation calculation ment adjustment
Plan tion ion plan
BRFplus Use Cases

BRFplus Deduction Plan Processing All decision making processes are BRFplus
enabled
Create Case Maintain Approve
deduction assign- deduction deduction
Social Application Processing
plan ment plan plan Social Service Plan Processing
Deduction Plan Processing

SAP Application Incident Management
Application Incident Management deals with incident reports and provides respective solutions
End users launch an incident report that is forwarded to experts who work on it
Beside a description of the incident, the end user provides information on the respective
component, priority, category (multi level categorization), plus information on himself, like the
application creating the report, language settings,
That information is used for auto-dispatching to respective teams, e.g. all reports with a specific
component and language French are routed to the Paris team
BRFplus
Auto-
Expert pulls Expert works Expert
User reports dispatching
incident from on incident provides
incident to team
queue report solution
queue
BRFplus Use Cases

Auto-dispatching of incident reports based on
available information
Integration to CRM organizational management to
identify available teams and their specific profiles
and skills

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Business Rules Management at SAP

SAP Business Rule Framework plus

2011 SAP AG. All rights reserved. 2

Key Trends and Issues

2011 SAP AG. All rights reserved. 3

Forrester Research, Oct 2010

2011 SAP AG. All rights reserved. 5

PWC Technology Forecast 2008

2011 SAP AG. All rights reserved. 6

James Taylor, CEO, Decision Management Solutions

2011 SAP AG. All rights reserved. 7

Flexibility at low Business user

Fast time from initial Transparent Enable business

2011 SAP AG. All rights reserved. 8

How can I develop, How can I avoid time

2011 SAP AG. All rights reserved. 10

Business Application Business Application Business Application

2011 SAP AG. All rights reserved. 11

Application Credit Score Approval

Completeness Calculation of Automatic/manual

Business Application Release 1 Business Application Release 2

2011 SAP AG. All rights reserved. 12

Benefits of Using Business Rules Management of

Central management of Consistent application of

Business Rules Management

2011 SAP AG. All rights reserved. 13

CEO CIO COO Head of LoB

Timeless software at low Improved transparency and Improve automated

2011 SAP AG. All rights reserved. 15

Best practice solution:

Issues Key business capabilities Benefits

No transparency of business Business users are able to Free up IT to focus on technical

Hard to sustain and support

2011 SAP AG. All rights reserved. 16

SAP Business Rule Framework plus

Rules modeling from business perspective

Out of the box backend integration

Flexibility and extensibility

Low administration and low TCO

2011 SAP AG. All rights reserved. 17

Best practice solution:

Issues Key business capabilities Benefits

Lacking transparency of Seamless integration to existing Tracking and auditing capabilities

Redundant and often conflicting

2011 SAP AG. All rights reserved. 18

Business SAP Business Rule Management plus

Transparency: Central rules repository with modeled business content

Governance: Policy compliance by traceable decision making processes

2011 SAP AG. All rights reserved. 19

Best practice solution:

Issues Key business capabilities Benefits

Unclear processes result in Rapid prototyping Empower business users

2011 SAP AG. All rights reserved. 20

SAP Business Rule Management plus

Business logic modeling

Time-to-value: Instant extensions and changes without software deployment process

Business logic modeling: Business logic persisted in business models

Transparency: Documented business decisions made by consistent processes

2011 SAP AG. All rights reserved. 21