BRMS (Business Rule Management System)
A generation ago, IT moved from hard coded data to using database management systems (DBMS), today, IT is making the same leap from hard coded decision logic to configurable decision logic using a business rule management system (BRMS).
What is BRMS?
A BRMS or business rule management system is a software system used to define, deploy, execute, monitor and maintain the variety and complexity of decision logic that is used by operational systems within an organization or enterprise. This logic, also referred to as business rules, includes policies, requirements, and conditional statements that are used to determine the tactical actions that take place in applications and systems.
A business rule management system (BRMS) is a very powerful tool for modern enterprises which fundamentally transforms the nature of application development. Instead of embedding rules as code within multiple applications—accessible and understandable only to programmers— with a BRMS, the rules are externalized.
When is BRMS used?
A primary use for BRMS is in
- Agile Environment where rules are constantly changing and require immediate attention and response from Business systems.
- Evolving business conditions, such as changes by competitors or in the economic environment.
- New regulations, procedures and/or policies as in financial services or insurance sectors.
- New organizational priorities and market opportunities.
- Automated business decision-making to support highly variable decisions in organization’s business model and product/service offerings. Such variability might include:
- Locality-specific decisions, such as eligibility verification or pricing.
- Customer-specific decisions, such as sales authorization, priority assignment or contract-related provisions.
- Product-specific decisions, such as configuration and availability.
- Process-specific decisions, such as workflow routing, approvals and straight-through processing.
Organizations across all industries and the public sector have been able to improve their operational systems through the adoption and implementation of a BRMS.
Some examples of applications include
- Banking – loan origination, cross-sell offer management, payment fee calculations, credit risk decisions
- Capital markets – trade order validation, account on-boarding, anti-money laundering compliance, general ledger data validation
- Health care and life sciences—clinical decision support, drug interaction assessment, clinical trials data validation
- Insurance – policy underwriting, claims processing, risk rating, commission calculations
- Manufacturing – order configuration validation, contract-based billing, order prioritization
- Public sector – services entitlement and benefits calculation, tax fraud assessment, homeland security screening
- Retail – online recommendations, pricing and tax calculations, loyalty program offer management
- Telecom – offer configuration, service prioritization and assignment, cross-network billing, loyalty programs
- Travel and transportation – loyalty programs, contract-based billing management, ticket pricing
Why BRMS is important?
BRMS is a solution that enables
- Logic, like data, to be managed as an enterprise asset, outside of code for organizations to keep pace with customer and marketplace demands.
- Business and IT to collaborate with each other.
- Separation of Application Decision Logic Concerns from technical concerns
- Technical and nontechnical users are empowered to author and test their business logic reducing testing costs and speeding time to market.
- Visual display of the rule change configuration via dependency diagrams.
Some of the key benefits of using BRMS are:
- Reuse of business repository rules across multiple applications.
- Excellent collaboration between business and IT for rapid improvement in changing business rules on the fly.
- Faster response to change with cascading time savings throughout the application lifecycle. This increased agility is key to establishing and maintaining a competitive advantage
- Easily create test scenarios to test one or more rules individually or all at once
- Deploy business rules changes to production with minimal IT intervention.
- Governance with separate the BRLC(Business Rule Life Cycle)
There are many BRMS tools available in the current market. Some of them are:
- JBoss Drools
- IBM’s ODM
- Blaze Adivsor
- Progress Corticon
- Open Rules
- Jess Rule Engine