Having sufficiently had a chance to recover from a very busy and very engaging TUCON TIBCO 2010 user conference in Las Vegas, I wanted to pass along a few observations and notes from my track this year which was the Optimization and Visibility track.  This was a very full 2 days of mostly CEP customer presentations with a smattering of industry IT analysts and TIBCO engineering presentations thrown in for good measure.

I’ll include this as a series and cover one presentation at a time.

First up is PepsiCo, co-presented with their implementation partner, Infosys.

The use case was how PepsiCo uses CEP software to provide more efficient and cost-effective usage of their company transportation fleet and other dedicated transportation partners.

In specific, they wanted to use their CEP software to provide advice on when to use their own transportation fleet, or use another carrier for consumer product shipments all over the U.S.  Previously, Pepsi was using a manual, labor intensive process to manage the process.

In researching this project it was decided that they needed to be able to dynamically deploy their policies (or business rules), and automatically create decision trees to reflect the changing dynamics and costs of the transportation industry, they needed real time information on truck locations and cost valuations, and to capture metrics for performance measurement.

They also covered the architecture and design of their deployed system which was implemented with the Pepsi IT team and Infosys.  He explained how they were able to develop simple and timed events to automate and manage the business rules with the TIBCO rule authoring tool, deploy customized and re-usable processes to extract data from a 3rd Party tool at regular intervals and provide enhanced performance by querying large amount of data as subsets and utilizing XSL and XPATH capabilities within the TIBCO software.

They also wanted to provide the ability to correlate events or create alerts based on events. He described it as “managing their company transportation events”

Example: If xx# errors occur in an hour, then send email to baseline support.

Example: If the Dedicated Fleet carrier has not reviewed their trip within 2 hours of offering, alert the Network Coordinator.

They also covered their business benefits– which included the ability to strategically identify the placement of dedicated and company fleet capacity, scale their fleet best practices nationally, and provide an agile software platform that gives them the flexibility to adapt to change via business rules that require minimum to no code change.

Key learnings from their project included his observation that they were glad they involved the business side early in the project in defining business rules, actions and data elements. PepsiCo also chose to build this CEP solution using iterative methodology principles to in order to keep the business side engaged throughout the project, specifically in the area of User Interface and Rule Authoring.

One of the speakers also covered ROI and payback– but we were sworn to secrecy.

In general, it was a well received presentation by the packed room.

But what I really liked about this particular session was that it presented by the guys who were directly involved and it was to Infosys’ credit that they let the Pepsi guys (and the project’s) success speak for itself.

CEP applications are often touted as to be so cutting edge and revolutionary, but it’s applications such as these “bread and butter” projects that seems to have made a difference in their everyday company operations and sometimes it’s those applications that turn out to be the most important of all.

More customer presentations later …

… asks analyst Mike Gualtieri (co-author of the recent Forrester CEP Wave) in a recent twitter. Luckily for Mike he doesn’t have to look too far to find an answer (as presumably this is covered in his own CEP Wave report)… TIBCO BusinessEvents provides exactly that!

PS: just *how* exactly do people find time to twitter?

Dr John Bates of Apama, cofounder of one of the earliest vendors in the CEP space, gave a very nice keynote presentation at DEBS. Apama’s view on CEP market trends include things like location-aware telco services such as real-time dating (!), transport and logistics, etc. In particular John predicted:

• the rise of event-driven business rules, tracking anything on the planet
• federated services and the agile “enterprise nervous system”, including event rules in the cloud(s), in IT Architecture
• the demise of the specialist “EP”/”CEP” market with its replacement by “Event Driven BPM” covering rules, events and BPM as well as industry apps embedding event processing.

One automatically respects speakers when they politely reference their industry competitors - for example John gave due credit to TIBCO for pushing event processing in market areas beyond Capital Markets, as well as rule-engine-based event processing. And there was nothing in John’s presentation we could disagree (much) with. Except maybe the need for that CEP-driven dating thing…

[Disclaimer: Apama is a competitor to TIBCO BusinessEvents in the CEP market].

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.”

One of the interesting attributes of rule-based systems (whether in complex event processing, decision services, or whatever) is the ability for end-users to maintain the rules separately from the IT development cycle. Rule-based development tools (TIBCO BusinessEvents included) typically allow for the hot-deployment of these changes - usually where process instances are updated with the new application logic in between transactions or events. This update process is both inevitable and a requirement when the underlying ontology or Business Object Model changes.

There is however a class of update that is less obtrusive, and can be managed simply by a rule update event. This is where the rule design pattern (or template) does not change, but the change is a create / update / delete operation on such a pattern instance, stored as an object or concept. Alternatively the update could simply be to rule instance metadata (for example, champion-challenger status, or active status, or effective date). In an Event-Driven Decision system, such update events are simply a new type of event to be processed, and would typically be created by some suitable Business User Interface (or automatically generated by some analytics system). Of course, rule maintenance events themselves should be validated by the rule engine prior to deployment, and other controls such as security and authentication may be required.

Of course, with event-driven rule maintenance one has to decide where the *record* of the current rule instances is to be stored - either in running rule system (for example, exploiting the distributed cache), or local to the user interface. Alternatively one can resort to tradition, treat the rule instances as data in a database, and update them via a simple 2-tier UI using database-imported concepts in the rule-based system…