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March 21, 2008

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…)

February 22, 2008

Rules are not enough. Knowledge is core to reuse.

James Taylor’s blog today on rules being core to BPM and SOA in which he discussed reuse had a particularly strong impact on me following a trip yesterday.  During a meeting with the insurance and retail banking practice leaders at a large consulting firm, we looked for synnergies between applications related to investment and applications related to risk.  Of course, during that conversation, we discussed whether operational rules could be usefully shared across these currently siloed areas, but we landed up discussing what they had in common in terms of business concepts, definitions, and fundamental truths or enterprise wide governance.  It was clear to us that this was the most fruitful area to develop core, reusable knowledge assets. 

In his post, James agrees with the Butler Group’s statement:

Possibly the most important aspect of a rules repository, certainly in respect of the stated promise of BPM, Service Oriented Architecture (SOA), and BRMS, is the ability for the developer to re-use rules within multiple process deployments.

I have several problems with this statement: (more…)

January 31, 2008

The $50 Business Rule

Work on acquiring knowledge about science has estimated the cost of encoding knowledge in question answering or problem solving systems at $10,000 per page of relevant textbooks.  Regrettably, such estimates are also consistent with the commercial experience of many business rules adopters.  The cost of capturing and automating hundreds or thousands of business rules is typically several hundred dollars per rule.  The labor costs alone for a implementing several hundred rules too often exceed $100,000.

The fact that most rule adopters face costs exceeding $200 per rule is even more discouraging when this cost does not include the cost of eliciting or harvesting functional requirements or policies but is just the cost of translating such content into the more technical expressions understood by business rules management systems (BRMS) or business rule engines (BRE).

I recommend against adopting any business rule approach that cannot limit the cost of automating elicited or harvested content to less than $100 per rule given a few hundred rules.  In fact, Automata provides fixed price services consistent with the following graph using an approach similar to the one I developed at Haley Systems.

Cost per Harvested or Elicited Rule


January 8, 2008

Elicitation and Management of Rules, Requirements and Decisions

A manager of an enterprise architecture group recently asked me how to train business analysts to elicit or harvest rules effectively. We talked for a bit about the similarities in skills between rules and requirements and agreed that analysts will fail to understand rules as they fail to understand requirements.

For example, just substitute rules in the historical distribution of requirements failures:[1]

  • 34% Incorrect requirements
  • 24% Inadequate requirements
  • 22% Ambiguous requirements
  • 9% Inconsistent requirements
  • 4% Poor scoping of requirements
  • 4% Transcription errors in requirements
  • 3% New or changing requirements


January 3, 2008

When Rules Meet Requirements

I am working on some tutorial material for business analysts tasked with eliciting and harvesting rules using some commercial business rules management systems (BRMS). The knowledgeable consumers of this material intuitively agree that capturing business rules should be performed by business analysts who also capture requirements. They understand that the clarity of rules is just as critical to successful application of BRMS as the clarity of requirements is to “whirlpool” development.[1]  But they are frustrated by the distinct training for requirements versus rules. They believe, and I agree, that unification of requirements and rules management is needed.

Consider these words from Forrester:

One might argue that Word documents, email, phone calls, and stakeholder meetings alone are adequate for managing rules. In fact, that is the methodology currently used for most projects in a large number of IT shops. However, this informal, ad hoc approach doesn’t ensure rigorous rules definition that is communicated and understood by all parties. More importantly, it doesn’t lend itself to managing the inevitable rules changes that will occur throughout the life of the project. The goal must be to embrace and manage change, not to prevent it. [2]

But note that Forrester used the word “requirements” everywhere I used “rules” above!


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