The document discusses business rules and how they are derived from various sources like contracts, regulations, and business policies. It provides an example of pricing rules for eBooks that are included in a sample eBook distribution contract. The contract also includes terminology that is defined for understanding the business rules. Overall, the document aims to illustrate how business rules originate from sources like agreements and how they are then formalized and structured.

1. Challenging Business Analysts:
Can You See the Elephant?
by Ronald G. Ross
Co-Founder & Principal, Business Rule Solutions, LLC
BRSolutions.com
Executive Editor, Business Rules Journal
BRCommunity.com
References:
Business Rule Concepts (3rd Edition),
Ronald G. Ross, 2009, BRSolutions.com
Principles of the Business Rule Approach
Ronald G. Ross, Addison-Wesley, 2003
Business Rule Solutions, LLC
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2. About Ronald G. Ross
Ronald G. Ross is Co-Founder and Principal of Business Rule Solutions, LLC
(BRSolutions.com). BRS provides workshops, consulting, publications, and
methodology supporting business analysis, business rules, business vocabulary,
decisioning, and rule management. His popular public seminars, the first on
business rules (starting 1996) and the longest-running in the industry, are given
through AttainingEdge in North America and IRM-UK in Europe.
Mr. Ross co-develops ProteusR, BRS’s landmark methodology, featuring
numerous innovative techniques including the popular RuleSpeakR (free on
RuleSpeak.com, now also in Spanish, German and Dutch). These are the latest
offerings in a 35-year career that has consistently featured creative, business-
driven solutions.
Mr. Ross is also Executive Editor and regular columnist of BRCommunity.com
and its flagship on-line publication, Business Rules Journal. Sponsored by
BRS, BRCommunity.com is a non-commercial vertical community for
professionals working in the field. Mr. Ross was formerly Editor of the Data
Base Newsletter from 1977 to 1998.
Mr. Ross is recognized internationally as the “father of business rules.” He has served as Co-Chair of the annual
Business Rules Forum Conference since 1997. He was a charter member of the Business Rules Group (BRG) in
the 1980s, and an editor of the two landmark BRG papers, “The Business Motivation Model: Business Governance
in a Volatile World” (2000, revised 2005, 2007) and the “Business Rules Manifesto” (2003). He is also active in
OMG standards development for business rules and business models, including SBVR.
Mr. Ross (RonRoss.info) is the author of eight professional books. His newest are: Business Rule Concepts (2009),
a third edition of his popular, easy-to-read handbook, and Principles of the Business Rule Approach, Addison-
Wesley (2003). An earlier work, The Business Rule Book (1994, 1997), was the seminal work in the field. Mr.
Ross received his M.S. in information science from Illinois Institute of Technology, and his B.A. from Rice U.
Business Rule Solutions, LLC
The Business Rule Technique Company 2 Copyright, BRS. All rights reserved.

3. Can You See The Problem?
what you need to run business
operations day-in and day-out
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4. Can You See The Problem?
Manager’s Lament
Large Health Care Organization
24 person-years per year to maintain a 30-year
old monolithic COBOL legacy system.
400 person-days over a 4-month period to make changes to
business rules of ‘moderate’ complexity.
“Truth be told, we work for our legacy systems, not the business.”
“Our business leads are so familiar with the limitations of our legacy
systems, they don’t even consider business innovations they know from
experience to be difficult for the system to handle … Sometimes I
wonder if they can even think through innovation effectively any more.”
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5. Can You See The Problem?
Business Process / Value Chain
organize prepare formalize
raw to do the
material do results
Guidance Sphere
Business policies
Business rules
Guidelines
Instruction points and suggestions
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6. Can You See The Problem?
Laws,
Product/Service Business
Regulations,
Rules & Guidelines Policies
Agreements,
& Contracts
Program Procedure Manuals,
Code Reference Documents
& “Help”
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7. Can You See The Problem?
Laws,
Product/Service Business Regulations,
Rules & Guidelines Policies Agreements,
& Contracts
Program Procedure Manuals,
Code Reference Documents
& “Help”
Problems …
No single sourcing
Stove-pipe semantics “Governance, compliance
Lack of traceability and consistency are all a
Erratic, disorganized feedback function of correct rules.”
Un-agile business Steve Hendrick - Keynote
Business Rules Forum 2009, Las Vegas
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8. Developing Business Capabilities vs. IT Systems
Senior Software Engineer:
“Use cases (in the classic definition)
contain quite high-level information
and do not drill down to the level of
the business rules.”
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9. Developing Business Capabilities vs. IT Systems
Functional Requirement: a requirement that
defines a function of a software system …
what a system is supposed to accomplish
Use Case: a description of a system’s behavior
as it responds to a request from the outside …
Use cases are used to capture a system's
behavioral requirements
Non-Functional Requirement: a constraint
imposed on the design or implementation of a
system (such as performance requirements,
security, or reliability)
Wikipedia
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10. Developing Business Capabilities vs. IT Systems
Mind Experiment:
If you threw away all the
systems and had to do
the business by hand, what you need
what would you need? to run business
operations day-
in and day-out
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11. Developing Business Capabilities vs. IT Systems
what you need
to run business
operations day-
in and day-out
business processes
(the doing zone)
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12. Developing Business Capabilities vs. IT Systems
business rules
(the knowing zone)
what you need
to run business
operations day-
in and day-out
business processes
(the doing zone)
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13. About Business Rules
This is not a (business) rule …
If ACT-BL LT 0 then set OD-Flag to ‘yes’.
This is a business rule …
An account must be considered overdrawn if the account
balance is less than $0.
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14. About Business Rules
“The really rapid change is in the
rules … not in the processes.”
“If you separate the rules, you
can develop remarkably stable
processes.”
Roger T. Burlton
Chair, Business Process Forum, BBC 2010
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15. About Business Rules
It’s Your Choice …
Rule #3
Rule #2 Rule #4
Rule #5
Program Code Rule #1
Business
Rules
e
n g in
Rule E E)
(B R
General
Rulebook System
(GRBS)
‘Black Box’ ‘White Box’
Development Development
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16. About Business Rules
“Business rules are fundamental
to an organization.”
“Business analysts need a
consistent, repeatable approach
to dealing with business rules.”
Kathleen Barret
Chair, Business Analysis Forum, BBC 2010
CEO, IIBA
From: Business Rules Journal,
www.BRCommunity.com,
October, 2010.
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17. About Business Rules
One Organization’s Achievement
Financial Services – Credit Card Fraud Detection
Business Set-Up
Suspicious transactions kicked out to fraud specialists for manual inspection.
Fraud specialists are an expensive and largely non-scalable resource.
Scenario
The bad guys pick up and move shop from Idaho to Manhattan.
Transactions deemed suspicious by zip code yield a 10x increase in volume.
Additional selection criteria (e.g., location of store, type of store, frequency of
use, size of transaction, etc.) introduced to keep the volume of kick-outs
relatively constant.
Achievement
Before rules engine … elapsed time: 30-60 days.
After rules engine … elapsed time: 3-6 days.
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18. Where Do Business Rules Come From?
Example: eBook Contract Business Rules
The following guidance (business rules) (7b) eDistributor shall either remit to Publisher, or issue a credit in Publisher's
is embedded in the Agreement: favor, subject to Minimum Monthly Remittance Amount thresholds determined by
eDistributor (e.g., $150), balance due by Electronic Funds Transfer ("EFT") no later
(1b) Publisher hereby appoints eDistributor in those Countries listed than forty-five (45) days following the close of the previous Monthly Sales Period.
… as its non-exclusive agent for the sale and delivery of eBooks (7c) Payment shall be made in the Currency set forth for the applicable Country
through the Online Store, on Publisher's behalf, to end-users for their
personal, non-commercial use (8a) No later than forty-five (45) days following the end of each Monthly Sales
Period, eDistributor will make available to Publisher a sales report
(1e) eDistributor will market and solicit to end-users, and obtain and (3b) Publisher shall
(8e) eDistributor shall withhold any taxes, duties, charges or levies on payments
fulfill orders for, eBooks on Publisher's behalf, including delivery of
copies of Previews for free to potential eBook customers provide and make
by eDistributor to Publisher … and eDistributor shall remit any such withholding to
the appropriate tax authority
(1p) eDistributor will provide receipts for the purchase price payable
by end-users for eBooks
available New Releases
(10b) Publisher shall provide an appropriate copyright notice in the Content File …
(3b) Publisher shall provide and make available New Releases to to eDistributor on the
which eDistributor shall display for each eBook.
eDistributor on the same day and date as Publisher makes any New
Release otherwise available to end-users in any format, including
same day and date as
(10d) In the event of a security breach of the Online Store servers such that
unauthorized access to Publisher Content becomes available, eDistributor will
physical copies. disable all access to such serversPublisher makes any
or destroy content on such servers within
twenty-four (24) hours.
(12c) eDistributor shall maintain complete Release otherwise and
New records regarding sales of eBooks
(3e) Publisher shall deliver Content Files to eDistributor, at
Publisher's expense, in the Delivery Format and using the Delivery
Method reasonably specified by the eDistributor available to end-users
proceeds payable to Publisher for at least three (3) years
(3f) Publisher shall not include any digital watermark or similar (13a) For New Release hardcover titles, Publisher shall determine in its discretion
technologies in the Content File a Customer Price not greater than theany format, including
in Maximum Customer Price for the given
(6b) For sales of eBooks, eDistributor shall be entitled to a
Country and Pricing Tier.
physical copies.
commission of thirty percent (30%) of the Customer Price payable (13c) For all books published in mass market or trade paperback with a list price
by eBook purchasers net of any and all taxes collected of $22.00 or less, the Customer Price set by Publisher shall not be greater than
$9.99 during the first twelve (12) months after publication in those formats.
(6d) eDistributor shall be entitled to a commission on the delivery of
any eBook to any eBook purchaser, even if eDistributor is unable to (13f) All prices set by Publisher hereunder for any eBooks must be in dollar
collect the Customer Price for that eBook from that eBook purchaser. increments that end in "--.99," except if Publisher sets the price at $0 (i.e., free).
(6f) The “Sale” of an eBook shall occur when an eBook is first (15c) End-users acquiring eBooks may use eBooks on up to five (5) Transfer
delivered Business Rule Solutions, LLC
to an end-user. Devices and an unlimited number of Non-Transfer Devices at the same time
The Business Rule Technique Company 18 Copyright, BRS. All rights reserved.

19. Where Do Business Rules Come From?
Example: What is the
maximum Outcome Restriction:
eBook Contract price allowed
for an eBook?
A Maximum eBook
Price over $1.00 must
end in 99 cents.
Decision Table Publisher’s
Hardcover
Maximum
eBook Price
The pricing rules in the decision table List Price
opposite are included in the Agreement. $0 $0
100% of Publisher’s
$0.01 to $4.99
Hardcover List Price
75% of Publisher’s
$5.00 to $9.99
Hardcover List Price
$10.00 to $19.00 $9.99
$19.01 to $25.00 $11.99
$25.01 to $28.00 $12.99
$28.01 to $30.00 $13.99
$30.01 to $35.00 $14.99
Reference: $35.01 to $40.00 $15.99
Decision Analysis Using Decision Tables and
Business Rules, by Ronald G. Ross, 2010, $40.01 to $45.00 $16.99
76 pp., in-depth white paper, free on
http://www.brsolutions.com/b_decision.php $45.01 to $70.00 $19.99
$70.00 and over 40% of Publisher’s
Hardcover List Price
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20. Where Do Business Rules Come From?
Example: eBook Contract Vocabulary
Terms shall have the following meanings eCONNECT means the proprietary content and account management tool
for purposes of this Agreement: known as eConnect, made available by eDistributor to Publisher during the
Term.
ARTWORK means book covers, photos, drawings, and illustrations NEW RELEASE means any adult trade fiction or nonfiction book during the
associated with Publisher Content, including any artwork that is seven (7) month period following its first publication in any format.
included in copies of Publisher Content in digital format, and which
ONLINE STORE means the electronic eBook store owned or controlled by
has been provided by or on behalf of Publisher to eDistributor. All
eDistributor or an eDistributor affiliate.
Artwork provided to eDistributor shall have been cleared for
eDistributor's use for the purposes of performing its functions under eBOOK means an
PREVIEW means an excerpt from each item of Publisher Content (e.g., the first
this Agreement. chapter or 10% of the book) used to promote the corresponding Publisher
individual Content File
Content, as selected by Publisher in the metadata. The Parties agree that
COMMISSIONAIRE means that a non-risk bearing agent acts in its
own name but on the account of a principal. containing Publisher
Previews need not be protected using the Security Solution or be subject to any
content usage rules other than limited for personal, non-commercial use.
PUBLISHER CONTENT meansContent, Artwork, Insert
CONTENT FILE means a digital file comprising at least an item of
publishable textual and graphical book content
Publisher Content, associated Artwork, metadata and/or Insert
owned or controlled by Publisher cleared for distribution in digital form.
Content and Extras. Content (if any), Extras
PUBLISHER MATERIALS means, collectively, all materials furnished by or on
behalf of Publisher to eDistributor in any) and metadata in
(if furtherance of its appointment, including
CUSTOMER PRICE means the price displayed to the end-user on the
Online Store, as set and designated by Publisher for each eBook.
any Publisher Content, Artwork, metadata, Insert Content, Previews and any
eBOOK means an individual Content File containing Publisher extra bonus-type text, audio, video form authorized by
a or audio-visual content (“Extras”).
Content, Artwork, Insert Content (if any), Extras (if any) and metadata
in a form authorized by Publisher for download on the Online Store.
Publisher for download
SECURITY SOLUTION means eDistributor's proprietary digital rights
management solution marketed as “eSecurity”.
Each eBook available for sale hereunder will be designated by its
International Standard Book Number (ISBN) in the metadata.
on the Online Store.
TERM means the period beginning on the Effective Date and continuing for one
year followed by automatic monthly renewal periods, unless terminated pursuant
ENHANCED eBOOK means an eBook which is in some way
to Section 15 or, after the first anniversary of the Effective Date, for any or no
differentiated from the standard version of the eBook delivered by
reason by either Party upon advance written notice of not less than thirty (30)
Publisher. An enhanced eBook may or may not be primarily intended
days.
to be used for the reading of text.
TERRITORY means those countries set forth in Exhibit A. For the sake of clarity,
INSERT CONTENT means promotional content provided by or on
Publisher shall select the particular countries in which eDistributor may make
behalf of Publisher and associated with Publisher Content, such as
eBooks available, on a title-by-title basis, using eConnect or via other technical
book reviews, author bios, forewords and similar content.
Business Rule Solutions, LLC means provided and approved by eDistributor.
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21. What the Business Rule Approach is About
What Not To Do …
SDLC
Program
Code
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22. What the Business Rule Approach is About
1. Separation of
Functionality
Business Rules Delivered
from Functional
Requirements
ne
Rule Engi
Rule RE)
Repository (B
Decision
Logic
tion
Business Workers plica m
Ap f or
IT Plat
Functional
Requirements
& Use Cases
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23. What the Business Rule Approach is About
2. Business Rules
Pushed Out Toward Functionality
Delivered
Business Workers
ne
Engi
General Rule RE)
Rulebook (B
System (GRBS)
Decision
tion
plica m
Logic
Business Workers Ap f or
IT Plat
Functional
Requirements
& Use Cases
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24. What the Business Rule Approach is About
3. Liberation of
Business Rules Software
from the Software Release
Cycle
Release Cycle
ne
Engi
General Rule RE)
Rulebook (B
System (GRBS)
Business
Rule tion
Business Workers Life Cycle plica m
Ap f or
IT Plat
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25. Can You See the Elephant?
Three Questions with the Same Answer
What is the difference between …
Requirements and business rules?
Project management and business governance?
Agile in software and agile in business?
Software
Release
Software
Development
Business
Rules
IT Business Workers
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26. Can You See the Elephant?
What Traceability Does the Business Need?
Governing
Rules
Managing the
Business
Practicable
Business
Rules
Operating the
Business
Running the Automated
Systems Rules
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27. Can You See the Elephant?
“govern”
1a: to exercise arbitrarily or by established
rules continuous sovereign authority over;
especially: to control and direct the making
and administration of policy in
So ‘governing’ involves how policy
and rules are …
created (“made”).
deployed (managed, distributed
and monitored) within day-to-day
operations (“administration”).
“business governance”
… a process, systematic approach, organizational From: Merriam-Webster
function, and set of techniques Unabridged Dictionary
(emphasis added)
… for creating and deploying business policy and
business rules into day-to-day business operations
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28. Business Rules and Business Strategy
How Does a Business Achieve True Success?
By knowing clearly what its ends are …
End … vision, goal or objective*
… That means business strategy
By setting business policies accordingly …
Business Policy …
“business rule in the making”
… To ensure alignment of business
processes with strategy
* Reference - The Business Motivation Model: “Any customer can have a car painted any
Business Governance in a Volatile World, color that he wants so long as it is black.”
by the Business Rules Group,
www.BusinessRulesGroup.org Henry Ford (1863-1947)
My Life and Work (1922), Chapter IV
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29. Challenging Business Analysts: Summary
See the Elephant?!
~~
Thank You!
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