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March, 2008:

Harvesting business rules from the IRS

Does your business have logic that is more or less complicated than filing your taxes?

Most business logic is at least as complicated.  But most business rule metaphors are not up to expressing tax regulations in a simple manner.  Nonetheless, the tax regulations are full of great training material for learning how to analyze and capture business rules.

For example, consider the earned income credit (EIC) for federal income tax purposes in the United States.  This tutorial uses the guide for 2003, which is available here. There is also a cheat sheet that attempts to simplify the matter, available here. (Or click on the pictures.)

eitc-publication-596-fy-2003.jpgeitc-eligibility-checklist-for-tax-year-2003.jpg

What you will see here is typical of what business analysts do to clarify business requirements, policies, and logic.  Nothing here is specific to rule-based programming.  (more…)

Agile decision services without XML details

Externalizing enterprise decision management using service-oriented architecture orchestrated by business process management makes increases agility and allows continuous performance improvement, but…

How do you implement the rules of EDM in an SOA decision service?  (more…)

Ontology of time in progress – amounts needed

Recent posts on money and time have produced some excellent comments and correspondence.  There is even recent OMG effort that is right on the money, at least concerning time.  For details, see the Date-Time Foundational Vocabulary RFP.  I am particularly impressed with SBVR “Foundation” Vocabularies, which I understand Mark Linehan of IBM presented last week at an OMG meeting in DC[1].

Mark’s suggestions include establishing standard upper ontologies for:

  1. Time & dates
  2. Monetary amount
  3. Location
  4. Unit of measure
  5. Quantities, cardinalities, and ratios
  6. Arithmetic operations

I will skip operations for now since they are not taxonomic concepts but functional relationships involving such concepts.  I believe the post on CEP and BPM covered time in adequate detail and the post on Siebel’s handling of foreign exchange covered the currency exchange aspects of money.  It only touched on the more general concept of amounts that I will focus on here.

The remaining concepts are common to almost every application conceivable.  They are some of the most primitive, domain-independent concepts of a critical and practical upper ontology.  They include: (more…)

RuleBurst re-brands as Haley Limited

For those who are interested in my former company, they are still committed to natural language business rules management technology, as shown in their most recent press release.  They have also picked up on the public sector activity, especially eligibility, as discussed here

From the release, CEO, Dominic OHanlon, said:

  • “With our natural language rule authoring capabilities and BRMS solutions, we are uniquely positioned to make our customers more competitive and agile in a fast-paced, highly-regulated world.”
  • “For the government market, Haley is a worldwide leader in using natural language technology to rapidly transform regulations, policies and rules into automated decision-making systems, to determine eligibility for government services, and in the taxation and immigration arenas.”

As discussed here, this focuses comes from (more…)

In the names of CEP and BPM

Have you heard the one about how to drive BPM people crazy? 

Ask them the question that drives CEP people crazy!

Last fall, at the RuleML conference in Orlando, was the first time I heard a consensus that a standard ontology of events and processes was sorely needed.  I’ve had a number of discussions with others on this over the interim until today’s posts by Paul Vincent, summing up an OMG meeting in Washington, DC, and Sandy Kelmsley’s comments on a survey of 590 business process modeling notation users.   (more…)

Over $100m in 12 months backs natural language for the semantic web

Radar Networks is accelerating down the path towards the world’s largest body of knowledge about what people care about using Twine to organize their bookmarks.  Unlike social bookmarking sites, Twine uses natural language processing technology to read and categorize people’s bookmarks in a substantial ontology.  Using this ontology, Twine not only organizes their bookmarks intelligently but also facilitates social networking and collaborative filtering that result in more relevant suggestions of others’ bookmarks than other social bookmarking sites can provide.

Twine should rapidly eclipse social bookmarking sites, like Digg and Redditt.  This is no small feat!

The underlying capabilities of Twine present Radar Networks with many other opportunities, too.  Twine could spider out from bookmarks and become a general competitor to Google, as Powerset hopes to become.  Twine could become the semantic web’s Wikipedia, to which Metaweb’s Freebase aspires. (more…)

Goals and backward chaining using the Rete Algorithm

I was prompted to post this by request from Mark Proctor and Peter Lin and in response to recent comments on CEP and backward chaining on Paul Vincent’s blog (with an interesting perspective here).

I hope those interested in artificial intelligence enjoy the following paper .  I wrote it while Chief Scientist of Inference Corporation.  It was published in the International Joint Conference on Artificial Intelligence over twenty years ago. 

The bottom line remains:

  1. intelligence requires logical inference and, more specifically, deduction
  2. deduction is not practical without a means of subgoaling and backward chaining
  3. subgoaling using additional rules to assert goals or other explicit approaches is impractical
  4. backward chaining using a data-driven rules engine requires automatic generation of declarative goals

We implemented this in Inference Corporation’s Automated Reasoning Tool (ART) in 1984.  And we implemented it again at Haley a long time ago in a rules langauge we called “Eclipse” years before Java.

Regretably, to the best of my knowledge, ART is no longer available from Inference spin-off Brightware or its further spin-off, Mindbox.  To the best of my knowledge, no other business rules engine or Rete Algorithm automatically subgoals,  including CLIPS, JESS, TIBCO Business Events (see above), Fair Isaac’s Blaze Advisor, and Ilog Rules/JRules.  After reading the paper, you may understand that the resulting lack of robust logical reasoning capabilities is one of the reasons that business rules has not matured to a robust knowledge management capability, as discussed elsewhere in this blog.  (more…)

Behind the CEP curtain – it’s about time, not the cache

TIBCO is the CEP vendor most focused on the market for business rules, as reflected in Paul Vincent’s post here.  Although I agree with Paul that rule vendors are not currently offering enough in terms of support for long-running processes, the conclusions that he draws in favor of considering a CEP alternative to a BRMS are not compelling yet.

Paul said that rules don’t address the following that are addressed by CEP:

  1. BAM (business activity monitoring) and the other BPM (business performance management)
  2. Complex-rule processing
  3. Customer-centric (portfolio-based) decisions / policies

I am sure Paul was just being flippant, but you may notice that there is a bit of a war going on between CEP, BPM and rules right now.  (more…)

Externalization of rules and SOA is important – for now

James Taylor’s notes on his lunch with Sandy Carter of IBM and the CEO of Ilog prompted me to write this.  Part of the conversation concerned the appeal of SOA and rules to business users.  Speaking as a former vendor, we all want business people to appreciate our technology.  We earn more if they do.  They say to IT “we want SOA” or “we want rules” and our sale not only becomes easier, it becomes more valuable.  So we try to convince the business that they are service-oriented, so they should use SOA.  Or we tell the business that they have (and make) rules, so they should use (and manage their own) rules.   And rules advocates embrace and enhance the SOA value proposition saying that combined, you get the best of both worlds.  This is almost precisely the decision management appeal.  Externalize your decisions as services and externalize rules from those services for increased agility in decision making.   This is an accurate and appropriate perspective for point decision making.  But it doesn’t cover the bigger picture that strategic business people consider, which includes governance and compliance. 

Nonetheless,

Effective SOA and business rules have one requirement (or benefit) in common: externalization.  

The externalization of services from applications (more…)

Oracle should teach Siebel CRM about location and money

Not long ago I posted on the need to understand common concepts well. My example then concerned the need to understand time well enough to answer a question like, “How much did IBM’s earnings increase last quarter?”. Recently, in contemplating some training issues related to the integration of Haley Authority within Siebel, I came across examples phrasings from the documentation on Siebel’s web site, including:

  • if an account’s location contains “CA” then add 50000 in “USD” for the account
  • if an account’s location contains “CA” then add 70000 in “USD” on today for the account

Two things are immediately obvious.

  1. Oracle does not understand location.
  2. Oracle has an interesting, but nonetheless poor understanding of money.

Of course, I am intimately familiar with Authority’s understanding of money. However, Siebel needs more than Authority understands. (more…)