Log On With IT Compliance and Truly Manage Big Data

Log ManagementWe know business is data-driven, but are we missing the forest for the trees? Sitting inside our own systems is data that describes our daily operations and offers an opportunity to take intelligent, data-driven actions. When it comes to operational data, like log files, many businesses struggle to know how to take use this information wisely.

Billions of daily logs, log files, from a wide variety of sources are now part and parcel of big data. If you can manipulate data in real time, you can expand your understanding beyond log management into customer-centric areas. If you can determine a large single-purchase is fraud or not in the moment, you mitigate risk while maintaining customer loyalty. Log data is both deep and wide.

Take RadioShack Corporation, an American franchise of electronics retail stores with a vast retail network that includes 4,700 company-operated stores across the United States and Mexico, 1,500 wireless phone centers, and 1,100 dealer and other outlets. In the fast-paced world of wireless devices and consumer electronics, RadioShack has a mobility strategy rooted in customer advocacy and choice. [Read more...]

CEP and EDA tackles fraud for $12M pa ROI

An interesting use case from the travel industry came up in conversation recently: an airline decided to upgrade its fraud detection efforts to be real-time and event-driven. This exploited their existing analytical applications for fraud detection in areas like ticketing, but made sure the events fed to them and the responses from them could be correlated and actioned at the time of the fraud (rather than in a report after the event). Result: something like $12M savings in the first year.

Not bad. Perhaps TIBCO should change the “2 second advantage” catchphrase to something like the “$12M advantage”!

Hopefully this customer will publicly present this application (along with some of their other CEP applications) at TUCON this year…

Haiti disaster, charity, and false-positives in fraud detection

I was listening to a BBC radio article last weekend about how some attempts to donate by debit or credit card to charity sites supporting the relief efforts for the humanitarian disaster unfolding in Haiti, have been thwarted by banks’ automated anti-fraud measures. Apparently charity donation websites happen to be a favorite for fraudsters testing card numbers to see if they have been blocked or not. And seemingly, some banks’ automated anti-fraud systems are deciding to block donations.

It would be easy to claim that this sort of problem was typical of organisations relying too heavily on machine learning and analytics rather than common sense (prescribed as business rules, perhaps). But this sort of “banking error – oops – oh no – now bad publicity” could just as easily be down to embedded rules in a process that could not be overwritten (or had no process for being overwritten…). Clearly the banks in question have some agility issues – either in management, business processes, business rules, software apps – or some combination thereof. The good news was that their “exception management” processes seemed to work – angry customers contacted their bank and were thence able to make their donation, it seems. A win for the call center, then…

EPTS5-2: Panel on Event-driven Business Process Management

edbpmpanelThere is an EU Project proposal to look at Event-driven Business Process Management, and that drove the title and interest in this panel (following neatly on from the edBPM09 workshop a few weeks back) chaired by CITT’s Rainer von Ammon.

The brief for the panel was to cover particular aspects of  “edBPM” such as:

  • edbpm-ra-suggestions-sep09What is meant by edBPM? Compared with, for example, the “edBPM  Reference Model” presented at the 1st EPTS symposium in 2006?
    • TIBCO of course talks about “edBPM” as either a part of “BPM+” (from a BPM perspective) or as automated rule- and event-driven processes (from a CEP perspective). Either way, customers regularly combine complex event processing and (orchestrated, BPMN-based) workflow as well as (orchestrated, XML processing) SOA.
    • The main issues with the supplied edBPM model was that it simply combined event processing with BPEL processes. TIBCO’s edBPM customers invariably never use BPEL (why should they?), and indeed some don’t use BPMN for process models (defining models in terms of states and rules). So the main suggestion here is to go up a level in abstraction:
      • Multiple engines (that could include BPEL if you were so hindered inclined) as well as event processing algorithms or even analytics.
      • An event server (or bus).
      • Some kind of generic state store (for process states, persisted events, etc).
      • More generic models (for business control) and dashboards (cockpit or otherwise).
  • Who will be the first “market mover” in exploiting the term “edBPM”?
    • This might have been disappointing to the edBPM pundits, but the vendors basically agreed that this term had no formal “legs” yet: no one had a marketing campaign around event driven BPM, no one had tried to persuade an analyst to take up (or define) the term, and the large BPM vendor and consultant community would not want their “BPM” mindshare asset diluted.
  • edbpm-fraudmgmt-suggestions-sep09Do we need new/enhanced standards for edBPM? And what is the challenge to insert/combine Complex Events in BPM? Versus say an example model for non-deterministic approaches like Smart Fraud Management in Banking?
    • The new BPMN2 standard has started the process of adding interesting event extensions to BPMN, while there are existing standards for other models (PRR for production rules, UML State for entity lifecycles, BMM for motivations, PMML for analytics, the proposed DMN for decision models, and so forth).
    • The Fraud example shows how some existing fraud products might work, but again is too specific – what if other event pattern detection and event pattern discovery techniques are desired?
  • edbpm-domainstandardt-suggestions-sep09Related to the above point was the proposal for new standards at the domain level for edBPM…
    • “The good thing about standards is that there are so many to choose from” comes to mind here: effort would be better spent event-enabling the existing standards (what are the relevant loads and what combinations of the domain data models are relevant as payloads?)…
  • Although the panel did not progress to the next question, it is interesting nontheless: what is required to set up edBPM projects and/or what aspects of edBPM need to be researched further?
    • Probably there is some methodology work to be done on when to use processes, rules/queries or states and how to combine them…
    • Areas of outstanding research in edBPM are probably joint semantics (a.k.a. the promise of BPDM) across different process types (including CEP), CEP-enabled BPMN, and mergers of event operations with (some aspect of the voluminous domain of) the SOA service standards.

The original CITT proposal can be found at http://www.citt-online.com/downloads/EDBPM-IP-proposal.ppt .

The Banker 2009 award-winning CEP app: Citibank Hong Hong on real-time marketing

The Banker runs annual technology awards, and this year the Citibank CEP application supporting real-time marketing is one of the winners. The article quotes:

“The system deploys complex event processing technology to evaluate static and dynamic events against a customer profile and ‘propensity model’, to determine in real time the next best offer the bank can extend to the customer.”

“Because the system operates on a ‘rules basis’, it can be adapted by business users to design the rules that govern a particular campaign without the involvement of IT staff. “

“The bank is also using the intelligence in the system for fraud prevention and proactive customer service.”