Tag Archives: rules-engines

The problems we’re facing

Companies are engaged in an arms race. For years they have been rushing to beat competitors to market with applications designed to automate a previously manual area of the business, making them more efficient and thereby creating a competitive advantage.

Today, enterprise applications are so successful that it is impossible to do business without them. The efficiencies they deliver have irrevocably changed the business environment, with an industry developing around them a range of vendors providing products to meet most needs. It is even possible to argue that many applications have become a commodity (as Nicholas Carr did in his HBR article “IT Doesn’t Matter”), and in the last couple of years we have seen consolidation in the market as larger vendors snap up smaller niche players to round out their product portfolio.

This has levelled the playing field, and it’s no longer possible to use an application in the same way to create competitive advantage. Now that applications are ubiquitous, they’re simply part of the fabric of business.

Today, how we manage the operation of a business process is becoming more important that the business process itself. Marco Iansiti brought this into sharp relief through his work at Harvard Business Review when he measured the efficiency of deployment of IT, and not cost, and correlated upper quartile efficiency with upper quartile sales revenue growth. Efficiently dealing with business exceptions, optimizing key decisions and ensuring end-to-end consistency and efficiency will have a greater impact than replacing an existing application.

We are finished the big effort: applications are available from multiple vendors to support the majority of a business’s supporting functionality. The law of diminishing returns has taken effect, and owning or creating new IT asset today will not simply confer a competitive advantage. Competitive advantage now lives in the gaps between our applications. Exception handling is becoming increasingly important as good exception handling can have a dramatic impact on both the bottom- and top-line. If we can deal with stock-outs more efficiently then we can keep less stock on hand and operate a leaner supply chain. Improving how we determine financial adequacy allows us to hold lower capital reserves, freeing up cash that we can put to other more productive uses. Extending our value-chain beyond the confines of our organisation to include partners, suppliers and channels, allows us to optimize end-to-end processes. Providing joined-up support for our mortgage product model allows us to put the model directly in the hands of our clients, letting them configure their own, personal, home loan.

Link to the complete article.

Product Meta-Models

Imagine the future. Not the distant future, we’re talking about next week or maybe the week after rather than an eventual future where we all have flying cars. A new business competitor has emerged on the market, coming out of nowhere with a business model that makes it impossible for your company to compete. They have half the cost to serve of their competitors, half the time to revenue, they seem to be able to introduce a new product in a matter of days rather than weeks, and their products are incredibly customisable. They seem to have halved the business metrics that you want to go down, doubled the ones you want to go up, while as the same time supporting a product portfolio of impressive depth and complexity. And they claim to be able to do this with conventional technology. How did they do it? And how are you going to respond?

A version was published in Align Journal as Product Meta-Models:
Delivering business agility through a new perspective on technology
.

Link to complete article.

Beyond Rules Engines

I figured that I might as well take the time to clean up some of the articles that I’ve written in the past and drop them on the web site. The first cab off the rank is something I put together to point out some of the limitations when using rules engines to capture business logic, and technologies that might help us past these limitations.

Beyond Rules Engines

Agent technology represents a new generation of software that brings the power and sophistication of goal–directed reasoning and planning to business applications for the first time. The technology was developed during the early 80s in reaction to the perceived limitations of the rule–based systems (expert systems) that were in wide use at the time. Goal–directed technology builds on the rule–based technologies that preceded it, overcoming their limitations by integrating support for procedural reasoning; the step–by–step, trial–and–error approach that a person typically uses to solve a problem.

Goal–Directed technology enables the development of more flexible and robust applications; applications that are aligned with the business and that allow enterprise systems to adapt rapidly in the face of changing requirements.

Link to complete article.