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Progress Corticon BRMSUnderstanding Business Rulesand How to Use ThemDr. Mark AllenChief Technology Officer, Decision ManagementProgress SoftwareFounder and Former CEO, Corticon Technologies

Agenda Introduction to Business Rules Management What Is Business Rules Management? The Business Rules Management Problem The Corticon Solution Corticon Customer Success Corticon Differentiation Corticon Demo Corticon and OpenEdge Summary & Q&A2 2014 Progress Software Corporation. All rights reserved.

What Is Corticon Business Rules Management?Software to Help Make the Right Decision atthe Right Time With Business AgilityShould we pay this claim?What offer should we make, now?What resource should we allocate?3 2014 Progress Software Corporation. All rights reserved.

What Is Business Rules Management? Decisions are governed by business rulesDecisionRuleShould we paythis claim?Reject Claims withinvalid billing codes BRMS – Business Rules Management Systems(a.k.a. rule engines) externalize decision logic from applications and represent as business rulesRuleRuleRuleRuleClaims ManagementSystem4 2014 Progress Software Corporation. All rights reserved.RuleBRMS

The Problem: Automating Business RulesTraditional approach is programming-based Simple rules difficult to automate, sophisticated ones impossible Single change can impact hundreds of Market ShiftsFraudstersAdaptingCompetition“That change requires 2 years & 5M”There is a better way 5 2014 Progress Software Corporation. All rights reserved.

The Solution: Progress Corticon Business Rules Management System Separate decision logic from code Ensure performance & scalability Empower business users Enable fast, safe changesModel Ruleswith IntegrityExecute asOpen StandardsDecision ServicesDecision ModelersEnterprise SystemsEnterprise Data Sources6 2014 Progress Software Corporation. All rights reserved.

Agenda Introduction to Business Rules Management What Is Business Rules Management? The Business Rules Management Problem The Corticon Solution Corticon Customer Success Corticon Differentiation Corticon Demo Corticon and OpenEdge Summary & Q&A7 2014 Progress Software Corporation. All rights reserved.

Progress Corticon: 500 CustomersInsuranceFinancialHealth& ervices FederalGovernmentHuman ServicesFBIOPMDIAState Department8 2014 Progress Software Corporation. All rights reserved.eCommerce

Progress Corticon: Key Use Cases9Commerce (Sales& Marketing)Apply – Price/Quote – Recommend – PoliceCustomer ServicingIntake – Validate – Adjudicate – Recover – FraudManufacturing &Supply ChainProduction Planning – Resource Allocation – LogisticsEnterprise RulesManagementDecision Analytics as a Business & IT Discipline 2014 Progress Software Corporation. All rights reserved.

Corticon Case Study: Online Insurance tionnaireUnderwriteApplicationQuote &RecommendAutomated Underwritingand Product RecommendationsPowered By CorticonBusiness Rules Management System (BRMS)10 2014 Progress Software Corporation. All rights reserved.Close SaleGeneratePolicy DocsAutomated Generation ofCustom Policy Documentation

Grow revenues thru new sales channel Streamline process from days to minutes Rapidly respond to changes in market direction11

Corticon Case Study: Claims ProcessingDetermineClaim TypeDetermineClaim StatusDetermineJurisdictionReserve CasePaymentsDetermineAuthorityAuthorityApprove Claim(Lost Time)Approve Claim(Medical Only)Evaluate RecoveryOptionsSend EDI Noticeto NIBProcess MedicalInvoicesReprice BillsMedRefer?Medical CaseReferralApprvdEvaluate for SIUReferralSIURefer?Evaluate forMedical Case MgtApprove Claim(Medical Only)Retrieve MedicalInvoicesEvaluate forCounsel ReferralTeleRefer?AuthorityApprove Claim(Lost Time) 21 Manual StepsApprvdGenerate andMail FormsBefore CorticonCounselRefer?Review by SIUReview byCounselGenerate FormWC-2SIURefer?After Corticon 7 Manual StepsTelephonic CaseMgt ReferralMedRefer?Medical CaseReferralRe-evaluateCase ReservesCounselRefer?TeleRefer?Review byCounselTelephonic CaseMgt Referral Accelerate Service DeliveryAuthority Reduce CostsLegalRefer?AuthorizationGenerate FormWC-15 Improve Service QualityObtainAuthorization12 Improve Agility 2014 Progress Software Corporation. All rights reserved.LegalRefer?AuthorizationReview by SIU

CHALLENGE With more than 250 milliontransactions per day, eBay requireda millisecond response from a ruleservice to ensure a responsivecustomer experienceSOLUTION Progress Corticon’s rules enginecould rapidly stand up to eBay’sdemanding production needsBENEFIT Increased performance, scalability,accuracy, integrity and agility13 2014 Progress Software Corporation. All rights reserved.

CHALLENGE Provide a seamless mobile phone shoppingexperience for users in store and onlineSOLUTION Progress Corticon is the decision logicbehind the smartphone sales and activationkiosks located in Wal-Mart and Sam's Clubstores.BENEFITS14 2014 Progress Software Corporation. All rights reserved. Allows Wal-Mart to increase its presence inmulti-billion smartphone retail market. Improves the activation process byproviding quicker service and exclusiveofferings. Corticon decision modeling providescustomers the best plan to meet theirdistinctive needs.

CHALLENGE Unum, a market leader in disability,group life, long-term care and voluntarybenefits, needed to reduce time-tomarket for new products and businessrules changesSOLUTION Progress Corticon Business RulesManagement SystemBENEFIT“Before Corticon, a customer could wait eight weeks aftera price quote was accepted before their policy was issued;now it takes as little as a week.”“Changes that would have taken weeks can be made in dayseven including all the necessary IT governance and controls. Andchanges are made with accuracy and confidence now, thanks tothe model-driven approach and rule verification built into Corticon.”15 2014 Progress Software Corporation. All rights reserved. Faster implementation and businesschange cycles Faster price quotes—from 8 weeks to aslittle as one week Better customer service Unprecedented agility and businesscontrol Strong ROI

CHALLENGE One of the largest banks in Asianeeded better ways to manage creditrisk.SOLUTION Credit scoring models build inProgress Corticon BRMSBENEFIT Better credit models reduce risk andrequired reserves Improved speed to deliver new creditscoring models (and update) Reduced errors in models Reuse logic across multiple models Easy to use, deploy and manage16 2014 Progress Software Corporation. All rights reserved.

CHALLENGE Harness the potential of automateddecision management to providecustomized credit ratings togovernment agencies, banks andretailers covering over 9M registeredDutch citizens.SOLUTION BKR will use Corticon to automate thebusiness rules associated with credit ratingsbased on multiple data sources to enabletailored service offerings, improve speed tomarket and boost customer satisfaction andretention.BENEFITS 17 2014 Progress Software Corporation. All rights reserved.Help organizations like banks and retailers toassess an individual’s credit worthiness tominimize fraud and credit risk.

CHALLENGE Meridian Health Plan needed to expandhealthcare claims processing businessinto new states and keep up withchanging regulations as HIPPA and theAffordable Care Act (“Obamacare”)SOLUTION Use Progress Corticon BRMS tomodernize existing OpenEdgearchitectureBENEFIT18 2014 Progress Software Corporation. All rights reserved. Empower healthcare domain expert tomanage volatile decision rules outside ofthe OpenEdge ABL Accelerate application customizationcovering the needs of each customer aswell as state/local regulatory schemes

U.S. States Using Progress Corticon23 U.S. states (46%)have chosen ProgressCorticon as theirbusiness rulessolution (HHS,pensions, DMV, etc.)19 2014 Progress Software Corporation. All rights reserved.

CHALLENGE Romanian Government HealthcareService combatting prescription fraudand reducing medical errors.SOLUTION Use Progress Corticon BRMS to buildelectronic prescription systemBENEFIT Ability to process high volumes oftransactions (scalability) Ease of development – rulesintegrity Seamless integration with theNational Health Insurance Fundexisting BPM system20 2014 Progress Software Corporation. All rights reserved.

CHALLENGE Deliver a cross-channel strategy to enable aseamless customer experienceSOLUTION Create custom made ERP system with theProgress Pacific platform: ProgressRollbase, Progress OpenEdge 11.3,Progress OpenEdge Mobile, ProgressOpenEdge BPM, Progress CorticonBENEFITS21 2014 Progress Software Corporation. All rights reserved. Flexibility & agility to capitalize onopportunities faster than competition Enable consumers to easily move betweenonline and offline channels to optimize theshopping experience Ensure superior customer service with accessto real-time product and customer information

Capturing New Selling OpportunitiesFind new products locally (i.e. Asia)22 2014 Progress Software Corporation. All rights reserved.Capture only high leveldetails at the source

Completing the Product Details in the Back OfficeTask sourcing assistants tocomplete the product detailsAutomatically create allrequired product attributes basedon rules (different for all products)23 2014 Progress Software Corporation. All rights reserved.

Rules Driving the Front End ExperienceCreate specific product details(attributes) based on apparelcategory, gender, product type, etc.24 2014 Progress Software Corporation. All rights reserved.

Bringing It All TogetherFind and capture products locallyCreate, validate and assign tasks internally tocomplement product sourcing detailsDynamically create allrelevant product details based onmany criteria (rules)Seamless integrationComplete product profile in back-endsystem with product specificdetails25 2014 Progress Software Corporation. All rights reserved.

CHALLENGE With 21M item references and 600Kstock items and 20K customers andthousands of suppliers across morethan 170 countries, the rules thatmanage pricing as well as thebonuses tied to sales can be highlycomplexSOLUTION TVH will use Corticon to automatethe business rules associated withprice calculations and bonuses toimprove accuracy, productivity andcustomer satisfaction.BENEFITS Increased performance, scalability,accuracy, integrity and agility26 2014 Progress Software Corporation. All rights reserved.

Agenda Introduction to Business Rules Management What Is Business Rules Management? The Business Rules Management Problem The Corticon Solution Corticon Customer Success Corticon Differentiation Corticon Demo Corticon and OpenEdge Summary & Q&A30 2014 Progress Software Corporation. All rights reserved.

Progress Corticon BRMS: Recognized Market “Leader”Corticon has breakthrough tools forbusiness analystsCorticon positioned as Leading Innovatorin Gartner Magic QuadrantCorticon has developed breakthroughtechnology in the BRMS market31 2014 Progress Software Corporation. All rights reserved.

Corticon Differentiation Model-driven Development Automate rules without coding Guaranteed Rules Integrity Ensure safe changes DeTI engine Market-best performance and scalability32 2014 Progress Software Corporation. All rights reserved.

Model-Driven Rules Development Out-of-the-boxready for use by Business Analysts IT Professionals Patented Excel-likemodeling tool No programming Business friendlyRules are constructed withdrag-and-drop easeVocabulary consists of yourbusiness objects/terms One-click deploymentRule Statements provide ruledocumentation and traceabilityComprehensive,extensible library ofoperators (akin toExcel functions)Proven with the most sophisticated business problems33 2014 Progress Software Corporation. All rights reserved.