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CEP 101
Complex Event Processing
          Paul Vincent
        TIBCO Software

        © Copyright 2000-2012 TIBCO Software Inc.
PRESENTER
  Paul Vincent, CTO Business Rules and CEP
  ◦ Part of TIBCO QL product team
  ◦ Contributor to OMG DMN Decision Model and Notation standard
  ◦ Contributor to http://www.thetibcoblog.com category on CEP

  TIBCO Software Inc.:
  ◦ Software tools+solutions for “event enabled enterprises”
  ◦ History: pub-sub middleware (eg RV), standard event processing (eg BW)
  ◦ Recent innovations, news
     —Hardware Logging and JMS servers
     —Statistical server for R and S+ analytic languages
     —Event processing combined with decisions and BPMN
  ◦ Headquartered in Palo Alto, California
  ◦ Over 3,000 customers and offices in 40 countries
                              © Copyright 2000-2012 TIBCO Software Inc.
TOPICS
  Intro to Complex Event Processing
  IT perspective and Technologies
  Examples
  CEP Market, Tools Available




                          © Copyright 2000-2012 TIBCO Software Inc.
2-3 DECADE’S CHANGES IN BUSINESS LATENCY
             Process Cycle-Time Improvements
   Perform Trading Analytics                                                      30 minutes                      5 seconds
   Airline Operations                                                            20 minutes                    30 seconds
   Handle Call Center Inquiries                                        8 hours                                   10 seconds
   Track Financial/Risk Position                                 1 day                                      5 minutes
   Supply Chain Updates                                          1 day                                 15 minutes
                                                                               Mail… express… fax… e-mail
   Document Transfer                                     3 days                                                20 seconds
   Phone/Service Activation                              3 days                                   1 hour
   Refresh Data Warehouse                1 month                                                  1 hour
   Settle Trade/Transaction                         5 days                                1 day
   Build-to-Order Product          6 weeks                                                1 day
  Source: Gartner




                                   © Copyright 2000-2012 TIBCO Software Inc.
REAL-WORLD EVENTS

                                                 Customer                        New
    Customer                                      Checks                         Order
     Logon                                    “Close Account”
                    Fed
                 Base Rate                       Web Page
                  Increase
                                                                              Contract
                                                               Mobile Call
    Production                                                               Submitted
                           New                                  from CT
       Item                                                      @11.13
    Arrives at           Liability                                                 Contract
      Store               Added                                                    Returned
                                                                Rental             thru EDI
                    Rental
                                                                 Car
                     Car
                                                               Returned
                   Crashed

                             © Copyright 2000-2012 TIBCO Software Inc.
WHERE IS THE INFORMATION?

                                                   Customer                      New
    Customer                                        Checks                       Order
     Logon                                       Close Account
                    Fed
                 Base Rate                         Web Page
                  Increase
                                                                              Contract
                                                               Mobile Call
    Production                                                               Submitted
                           New                                  from CT
       Item                                                      @11.13
    Arrives at           Liability                                                 Contract
      Store               Added                                                    Returned
                                                                Rental             thru EDI
                    Rental
                                                                 Car
                     Car
                                                               Returned
                   Crashed

                             © Copyright 2000-2012 TIBCO Software Inc.
WHERE IS THE INFORMATION?
  7
                                                                                  Change in
       Fraud                                          Customer                  Product Sales
        Risk!                                         CrossSell                     Trend
                    Risk of                          Opportunity
                   Customer
                   Defection
                                                                                Contract
                                                                  Cell phone    Validated
      Employee           Compliance                               fraud alert
      Over hours            Limit
                         Approached                                                   Contract
                                                                 Customer              Valid
                     Rental
                                                                 now rated
                    Contract
                                                                   Gold
                    Complete

                               © Copyright 2000-2012 TIBCO Software Inc.
COMPLEX BUSINESS PROBLEMS
  Fraud / Theft                                                            Relevant event of interest
  ◦ Thousands-to-millions of high-value small-size product
    items or transactions                                                         Product location
  ◦ How do you identify known patterns of “suspicious”                                change
    behavior?
  Logistics / Scheduling
  ◦ Raw material, production & delivery scheduling and
    resources are complex and prone to change                                         Resource,
  ◦ How do we reallocate resources to handle business and                        requirement change
    production changes?
  Activity Monitoring
  ◦ Complex production and supply process with multiple                         Process data change
    actors
  ◦ How to measure and action Key Performance Indicators?



                               © Copyright 2000-2012 TIBCO Software Inc.
TYPES OF “EVENT”
   Change of state in some entity
    ◦ Customer call                                                        Incident
    ◦ Bank debit
    ◦ Aircraft movement
   Observation of some entity
    ◦ CRM record of a customer call                                      Observation
    ◦ ATM report of debit transaction success
    ◦ Radar plot update of an aircraft
   IT Message
    ◦ Queued point-to-point message                                      IT Message
    ◦ Publish / subscribe message


                             © Copyright 2000-2012 TIBCO Software Inc.
ASSOCIATED EVENTS
  Positive Events
  ◦ Product item X arrives at Production station S from Store T
  ◦ Production worker Y arrives at Production station S
  ◦ Production contract for item Z by time T is posted
  Negative Events
  ◦ Product item X has been in transit to Store T for >15 minutes
  ◦ Subcomponent Y hasn’t arrived at the Production station by the ETA
  ◦ Delivery of contract Z has not taken place
  Sets of Events
  ◦ 5+ items of Product item type Y failed to arrive at destination
  ◦ Supplier Y was 5 mins late for 1 delivery, but made it early to the next
  ◦ Return rate on component Z exceeds SLA %


                              © Copyright 2000-2012 TIBCO Software Inc.
SIGNIFICANT FEATURES OF THESE EVENTS
  Time Sensitivity
  ◦ A thief may leave the building at the same time as stolen
    product                                                                          t
  ◦ A product should take 40 minutes to travel a given production
    line segment
  Distributed Event Sources
  ◦ A series of produced items fails at various QA stages, and their
    common attribute was a storage location
  ◦ Multiple suppliers for a subcomponent are reporting delivery
    delays


                                               ERP                        Supplier


                              © Copyright 2000-2012 TIBCO Software Inc.
THE EVENT CLOUD


  Can we infer important business events
  by correlating events automatically + earlier,
  regardless of source / type?



           Personnel events          RFID events
                                               Supply chain events
              Timeout events
                               Delivery events



                                                                             12
                                 © Copyright 2000-2012 TIBCO Software Inc.
POWER OF EVENTS
              “The events we have access to are not always
                tailored to the problems we are trying to solve.
                Therefore, we need a technology that enables
                us to progress in stages.

                      1: The first stage is recognizing relevant patterns of
                        events in the sources of events we do have access to
                        and can monitor.

                      2: The second stage is aggregating information in those
                        events to build up information that is needed to solve
                        our problems.”


                  © Copyright 2000-2012 TIBCO Software Inc.
EPTS ON DERIVED AND COMPOSITE EVENTS
  Derived event (also synthesized event): an event that is generated as a result
  of applying a method or process to one or more other events.
   ◦ Example:
      —A “Company B is a good buy” event may be derived from “Company B price has dropped
       where Company A price has risen within 5 minutes”
   ◦ Note: The absence of an event, say in a given time interval, can lead to a derived
     event for the missing event.
  Composite event: a derived, complex event that is created by combining base
  events using a specific set of event constructors
   ◦ Operators include disjunction, conjunction, sequence, etc.
   ◦ A composite event always includes the base (member) events from which it is
     derived.
   ◦ Note: A derived event may not be a composite event if its method of derivation lies
     outside a specified set of allowed constructors.
  Note: The term aggregate event is sometimes used for some forms of
  composite or derived event.
                                   © Copyright 2000-2012 TIBCO Software Inc.
EPTS ON COMPLEX EVENTS
  Complex event: an event that is an abstraction of other events
   ◦ Abstracted events are the members of the complex event
   ◦ Examples:
      —the 1929 stock market crash (an abstraction denoting many thousands of member events),
      —the 2004 Indonesian Tsunami (an abstraction of many natural events) ,
      —a completed stock purchase (an abstraction of the events in a transaction to purchase the
       stock).
      —a successful on-line shopping cart checkout (an abstraction of shopping cart events on an on-
       line website).
   ◦ Note: a complex event denotes or signifies the set of its member events. This may or
     may not include references to individual member events.
  A composite event or a derived event is a complex event. The converses are
  not necessarily true.




                                     © Copyright 2000-2012 TIBCO Software Inc.
EPTS ON EVENT PROCESSING



  Event processing: computing that performs operations on events, including
 reading, creating, transforming and deleting events.
  ◦ Note: The overloaded meaning event object processing is intended in this context.
 Complex-event processing (CEP): Computing that performs operations on
 complex events, including reading, creating, transforming or abstracting them.
  ◦ Note: CEP results in creating complex events even if some or all of the source events
    are simple events




                                 © Copyright 2000-2012 TIBCO Software Inc.
ALTERNATIVE TERMS
                                                                                Event Cloud
             Personnel events          RFID events
                                                 Supply chain events
                Timeout events
                                 Delivery events

                                                                               Event Streams

  CEP (technology) applies
  pattern detection & filtering to the
  event clouds & streams and their histories
  Multiple modelling / execution paradigms are available for
  pattern detection
  Related terms: real-time analytics, continuous intelligence,
  event processing, …                                                                 CEP
                                   © Copyright 2000-2012 TIBCO Software Inc.
WHAT DOES CEP SOLVE?                                          … the “ Latency Problem“
                                                                                    warnings precede threats



                                                                                                CEP allows fast
                       Business Event                                                        responses to detected
                                                                                                    issues
  Potential Business




                              Resulting Complex Event Measured
        Value




                                            Root Cause / Correlation

                                                                        Corrective Decision Made

                                                                                                       Action Taken


                                                 Action time

                                        © Copyright 2000-2012 TIBCO Software Inc.
TOPICS
  Intro to Complex Event Processing
  IT perspective and Technologies
  Examples
  CEP Market, Tools Available




                          © Copyright 2000-2012 TIBCO Software Inc.
USE CASE PATTERNS


           “Situational Awareness”

            “Sense and Respond”

             “Track and Trace”

                © Copyright 2000-2012 TIBCO Software Inc.
CEP’S ROLE IN I.T.




                     © Copyright 2000-2012 TIBCO Software Inc.
COMPLEX EVENT PROCESSING
                                                                            Processing type:

                                                                              Decision
                                                                             Processing



                                                                               Event
                                                                             Processing



                                                            -- TIBCO Reference Architecture by Alan Lundberg
                                                                                                        2005

                © Copyright 2000-2012 TIBCO Software Inc.
EVENT-DECISION ARCHITECTURE
   EVENT
  SOURCES
                EVENT PRE-                                                                Event-Decision Architecture
                PROCESSING
     EXTERNAL
                                LEVEL ONE                        LEVEL TWO                        LEVEL THREE
  DISTRIBUTED
                              Event Tracking &               Situation Detection               Impact Assessment
    LOCAL                       Refinement                      & Refinement                      & Predictive
                                                                                                    Analysis
    EVENT
   SERVICES                                                                                                               User
       .                                                                                                                Interface
       .
    EVENT
      .
                                                                                                                            &
                                                                                                                        Systems
      .




   PROFILES
      .




       .
       .                                                                     EVENT + DATA STORE
     DATA
    BASES
                                                                             Historical          Profiles &
       .                        LEVEL FOUR                                     Data              Patterns
       .
  OTHER DATA                 Process Refinement
                                & Adaptation


                                                                        -- Adapted from JDL Data Fusion Model by Tim Bass
                                        Steinberg, A., & Bowman, C., Handbook of Multisensor Data Fusion, CRC Press, 2001

                                 © Copyright 2000-2012 TIBCO Software Inc.
EPTS FUNCTIONAL REFERENCE ARCHITECTURE




                                                                   -- EPTS Reference Archjitecture
                                                                       by EPTS RA Working Group
                                                               editors Alex Alves, Adrian Paschke,
                                                                     Catherine Moxey, Paul Vincent

                                                                       Proceedings of the 6th ACM
                                                            International Conference on Distributed
                                                                 Event-Based Systems, ACM, 2012



                © Copyright 2000-2012 TIBCO Software Inc.
STANDARD OR SIMPLE EVENT PROCESSING

                     Fixed to specific
    Synchronous        event types
      Events

 new order                                                                  fulfilment
                  BPM: business                                  SOA:
                    process                                   IT services




                             Data Persistence (service)




                      © Copyright 2000-2012 TIBCO Software Inc.
MULTIPLE SIMPLE EVENT PROCESSING

   new order                                                             fulfilment
new supplier                                                             purchasing
change order                                                             rectification
     delivery                                                            billing
                Multiples of                              Multiples of
                Processes                                  Services




                                    Multiples
                                of Database Views


                    © Copyright 2000-2012 TIBCO Software Inc.
MULTIPLE SIMPLE EVENT PROCESSING (THEORY)

   new order                                                             fulfilment
new supplier                                                             purchasing
change order                                                             rectification
     delivery                                                            billing
                Multiples of                              Multiples of
                Processes                                  Services




                                    Multiples
                                of Database Views


                    © Copyright 2000-2012 TIBCO Software Inc.
COMPLEX EVENT PROCESSING

 Asynchronous                                                         Flexible to any
    Events           Continuous                                         event types
                identification of event
                        patterns
                                                                      business events
 source
 events
                 CEP: complex
                event processing

                   State store                         BPM: business                    SOA: IT
                                                         process                        services




                                                Data Persistence (service)
                               © Copyright 2000-2012 TIBCO Software Inc.
REQUIREMENTS FOR CEP TECHNOLOGY
  Access and Monitor                                                          Event Bus or Source
  the “Event Cloud”
                                                                               Low-latency reliable
  ◦ Instrumentation (for state changes)                                         message delivery
  ◦ JMS, RV, MQ, TCP/IP, etc…
  ◦ Timers to detect lack of events                                        Event and Data Model

  Match Patterns                                                           for information modeling
  (+ Apply Business Logic)




                                                                                                       History and State
                                                                               Temporal Model
  ◦   Detect events
                                                                                for determining
  ◦   Detect event patterns                                                  time-dependent info
  ◦   Maintain State and Facts over time
                                                                           Pattern Detection Model
  ◦   Update Detection algorithms as events
      change                                                               for recognizing patterns,
                                                                                defining actions


                               © Copyright 2000-2012 TIBCO Software Inc.
CEP TECHNOLOGIES
                                                                  Types of CEP Processing
                                                                         Rule-Driven CEP
    Event
   Sources                                                               Rule Engine          Rulebase



                                                                         Neural Net CEP

                                                                          Neural Net          Network
              Event
               Bus
                                                                     Event Stream Query CEP
    Event
                                                                         Query Engine      Stream Queries
  Consumers


                                                                  Orchestrated Event Stream CEP

                                                                         Flow Engine        Flow Model


                      © Copyright 2000-2012 TIBCO Software Inc.
CEP BEHAVIOR: STATE-ORIENTED


                                                             New New
                                                             Condition /
                                                                Order
                                                                New
                                                             TimeEvent
                                                             Order
                                                               Order




                                   State 1                                  State 2


                                                              State Model




                 © Copyright 2000-2012 TIBCO Software Inc.
STATE MODEL CEP AGENT FEATURES
 1.   Visual modeling metaphor
      ◦   State diagram / flow diagram is simple to follow
 2.   State / flow transitions can be time-related
      ◦   Can model missing events through time-outs etc




                               © Copyright 2000-2012 TIBCO Software Inc.
CEP BEHAVIOR: RULE-ORIENTED

                                             New
                                          (Lots of
                                            New
                                            Order
                                            New
                                          Events)
                                           Order
                                           Order




                                          Complex
                                                                    Reaction
                                          Patterns


                                                             Rule




                 © Copyright 2000-2012 TIBCO Software Inc.
INFERENCE RULE CEP AGENT FEATURES
 1.   High performance pattern matching
      ◦   Rete (or other) algorithm determines what rules are executable based on
          underlying data changes
 2.   Declarative + Inferencing
      ◦   Rules defined in terms
          of classes:
          can be relevant
          for any # instances
      ◦   Rules’ actions can cause
          other rules to fire
          automatically
 3.   In-memory
      ◦   Limited only by
          JVM / process memory

                               © Copyright 2000-2012 TIBCO Software Inc.
CEP BEHAVIOR: QUERY-ORIENTED

                                            New
                                          New
                                         (Lots of
                                           Order
                                           New
                                         Events)
                                         Order
                                          Order




                                         Complex
                                                                    Results Event
                                          Query


                                                            Query




                © Copyright 2000-2012 TIBCO Software Inc.
QUERY CEP AGENT FEATURES
 1.       Common query language
      ◦      Usually SQL-based – widely used language
      ◦      May be in-memory, in-file or both
      ◦      Can include query optimizers
 2.       Continuous
      ◦      Extensions usually support time windows for the query to operate over




                                    © Copyright 2000-2012 TIBCO Software Inc.
CEP MEMORY ARCHITECTURES
  Usually in-memory for
  simple apps like trading
  Cache / DB memory stores
  used where failover / DR
  required, or scalable
  distributed processing
  Other options too (e.g.
  transactional shared
  memory systems)

                      © Copyright 2000-2012 TIBCO Software Inc.
CEP TOOLS EVOLVING – THE “EVENT SERVER”


      Event                                                         events
   Transport &
   Distribution




                   Pattern
                  Detection                     Decisions                Reactions
                                    Event & State store



                        © Copyright 2000-2012 TIBCO Software Inc.
TOPICS
  Intro to Complex Event Processing
  IT perspective and Technologies
  Examples
  CEP Market, Tools Available




                          © Copyright 2000-2012 TIBCO Software Inc.
EVENT-DRIVEN MARKETING USING CEP
 #Campaign and Offers pa             500 Campaigns + 4 M Offers
 #Target Customers                   >4M

 Transaction Volume                  >240 Msgs/Sec

 Revenue Growth                      Campaign Performance
                                     1.      Campaign 1:
                                             235% Over Campaign Revenue Target
                                     2.      Campaign 2:
                                             160% Over Campaign Revenue Target
                                     3.      Campaign 3
                                             270% Over on Additional Spending Target
                                     4. Campaign 4
                                        250% Over Campaign Revenue Target
 Time to Market per Marketing        Concept to Execution:
 Campaign                            Before:              3 – 6 Months
                                     After:               7 – 8 Days
                                © Copyright 2000-2012 TIBCO Software Inc.
SHIPPING TRACK AND TRACE USING CEP
   Shipment container track and trace:
    ◦ Monitoring shipment milestones and invoking
      appropriate processes
   54 million active milestones for
   shipments in-situ at any one time
   Implemented 3 times to compare technology approaches
Approach              Cost                                          Cost vs Java
Java programming      64                                            1x
BPM for events        400                                           6x
Event-driven rules    28 overall                                    0.5x
Event-driven rules    12 best case                                  0.2x
                             © Copyright 2000-2012 TIBCO Software Inc.
MANUFACTURING QUALITY CONTROL USING CEP

                                                                                Test results data
                                                                                vs Error lifecycle

                                                                                       Example: after a restart
     100% testing?                                                                       production station is
                                           Manual,                                    75% reliable for first 4 uses
                                                                                     100% reliable for the next 11
                                        expensive tests                                          days
                                                                                        80% reliable thereafter


 Manufacturing tasks per day             24,000
 Number of process steps per unit        Several 100s
 Solution results                        10-15% avg. reduction in manual test costs
                                         “Significant reduction” in overall costs
                                    © Copyright 2000-2012 TIBCO Software Inc.
TOPICS
  Intro to Complex Event Processing
  IT perspective and Technologies
  Examples
  CEP Market, Tools Available




                          © Copyright 2000-2012 TIBCO Software Inc.
FORRESTER NOTE ON BR PLATFORMS, JULY 2011




                 © Copyright 2000-2012 TIBCO Software Inc.
GARTNER PREDICTIONS, OCT 2011




                 © Copyright 2000-2012 TIBCO Software Inc.
CEP MARKET PLAYERS




       Different
    technologies
     for different
    CEP subtypes



                     © Copyright 2000-2012 TIBCO Software Inc.
© Copyright 2000-2012 TIBCO Software Inc.

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CEP Overview v1 2 for public use

  • 1. CEP 101 Complex Event Processing Paul Vincent TIBCO Software © Copyright 2000-2012 TIBCO Software Inc.
  • 2. PRESENTER Paul Vincent, CTO Business Rules and CEP ◦ Part of TIBCO QL product team ◦ Contributor to OMG DMN Decision Model and Notation standard ◦ Contributor to http://www.thetibcoblog.com category on CEP TIBCO Software Inc.: ◦ Software tools+solutions for “event enabled enterprises” ◦ History: pub-sub middleware (eg RV), standard event processing (eg BW) ◦ Recent innovations, news —Hardware Logging and JMS servers —Statistical server for R and S+ analytic languages —Event processing combined with decisions and BPMN ◦ Headquartered in Palo Alto, California ◦ Over 3,000 customers and offices in 40 countries © Copyright 2000-2012 TIBCO Software Inc.
  • 3. TOPICS Intro to Complex Event Processing IT perspective and Technologies Examples CEP Market, Tools Available © Copyright 2000-2012 TIBCO Software Inc.
  • 4. 2-3 DECADE’S CHANGES IN BUSINESS LATENCY Process Cycle-Time Improvements Perform Trading Analytics 30 minutes 5 seconds Airline Operations 20 minutes 30 seconds Handle Call Center Inquiries 8 hours 10 seconds Track Financial/Risk Position 1 day 5 minutes Supply Chain Updates 1 day 15 minutes Mail… express… fax… e-mail Document Transfer 3 days 20 seconds Phone/Service Activation 3 days 1 hour Refresh Data Warehouse 1 month 1 hour Settle Trade/Transaction 5 days 1 day Build-to-Order Product 6 weeks 1 day Source: Gartner © Copyright 2000-2012 TIBCO Software Inc.
  • 5. REAL-WORLD EVENTS Customer New Customer Checks Order Logon “Close Account” Fed Base Rate Web Page Increase Contract Mobile Call Production Submitted New from CT Item @11.13 Arrives at Liability Contract Store Added Returned Rental thru EDI Rental Car Car Returned Crashed © Copyright 2000-2012 TIBCO Software Inc.
  • 6. WHERE IS THE INFORMATION? Customer New Customer Checks Order Logon Close Account Fed Base Rate Web Page Increase Contract Mobile Call Production Submitted New from CT Item @11.13 Arrives at Liability Contract Store Added Returned Rental thru EDI Rental Car Car Returned Crashed © Copyright 2000-2012 TIBCO Software Inc.
  • 7. WHERE IS THE INFORMATION? 7 Change in Fraud Customer Product Sales Risk! CrossSell Trend Risk of Opportunity Customer Defection Contract Cell phone Validated Employee Compliance fraud alert Over hours Limit Approached Contract Customer Valid Rental now rated Contract Gold Complete © Copyright 2000-2012 TIBCO Software Inc.
  • 8. COMPLEX BUSINESS PROBLEMS Fraud / Theft Relevant event of interest ◦ Thousands-to-millions of high-value small-size product items or transactions Product location ◦ How do you identify known patterns of “suspicious” change behavior? Logistics / Scheduling ◦ Raw material, production & delivery scheduling and resources are complex and prone to change Resource, ◦ How do we reallocate resources to handle business and requirement change production changes? Activity Monitoring ◦ Complex production and supply process with multiple Process data change actors ◦ How to measure and action Key Performance Indicators? © Copyright 2000-2012 TIBCO Software Inc.
  • 9. TYPES OF “EVENT” Change of state in some entity ◦ Customer call Incident ◦ Bank debit ◦ Aircraft movement Observation of some entity ◦ CRM record of a customer call Observation ◦ ATM report of debit transaction success ◦ Radar plot update of an aircraft IT Message ◦ Queued point-to-point message IT Message ◦ Publish / subscribe message © Copyright 2000-2012 TIBCO Software Inc.
  • 10. ASSOCIATED EVENTS Positive Events ◦ Product item X arrives at Production station S from Store T ◦ Production worker Y arrives at Production station S ◦ Production contract for item Z by time T is posted Negative Events ◦ Product item X has been in transit to Store T for >15 minutes ◦ Subcomponent Y hasn’t arrived at the Production station by the ETA ◦ Delivery of contract Z has not taken place Sets of Events ◦ 5+ items of Product item type Y failed to arrive at destination ◦ Supplier Y was 5 mins late for 1 delivery, but made it early to the next ◦ Return rate on component Z exceeds SLA % © Copyright 2000-2012 TIBCO Software Inc.
  • 11. SIGNIFICANT FEATURES OF THESE EVENTS Time Sensitivity ◦ A thief may leave the building at the same time as stolen product t ◦ A product should take 40 minutes to travel a given production line segment Distributed Event Sources ◦ A series of produced items fails at various QA stages, and their common attribute was a storage location ◦ Multiple suppliers for a subcomponent are reporting delivery delays ERP Supplier © Copyright 2000-2012 TIBCO Software Inc.
  • 12. THE EVENT CLOUD Can we infer important business events by correlating events automatically + earlier, regardless of source / type? Personnel events RFID events Supply chain events Timeout events Delivery events 12 © Copyright 2000-2012 TIBCO Software Inc.
  • 13. POWER OF EVENTS “The events we have access to are not always tailored to the problems we are trying to solve. Therefore, we need a technology that enables us to progress in stages. 1: The first stage is recognizing relevant patterns of events in the sources of events we do have access to and can monitor. 2: The second stage is aggregating information in those events to build up information that is needed to solve our problems.” © Copyright 2000-2012 TIBCO Software Inc.
  • 14. EPTS ON DERIVED AND COMPOSITE EVENTS Derived event (also synthesized event): an event that is generated as a result of applying a method or process to one or more other events. ◦ Example: —A “Company B is a good buy” event may be derived from “Company B price has dropped where Company A price has risen within 5 minutes” ◦ Note: The absence of an event, say in a given time interval, can lead to a derived event for the missing event. Composite event: a derived, complex event that is created by combining base events using a specific set of event constructors ◦ Operators include disjunction, conjunction, sequence, etc. ◦ A composite event always includes the base (member) events from which it is derived. ◦ Note: A derived event may not be a composite event if its method of derivation lies outside a specified set of allowed constructors. Note: The term aggregate event is sometimes used for some forms of composite or derived event. © Copyright 2000-2012 TIBCO Software Inc.
  • 15. EPTS ON COMPLEX EVENTS Complex event: an event that is an abstraction of other events ◦ Abstracted events are the members of the complex event ◦ Examples: —the 1929 stock market crash (an abstraction denoting many thousands of member events), —the 2004 Indonesian Tsunami (an abstraction of many natural events) , —a completed stock purchase (an abstraction of the events in a transaction to purchase the stock). —a successful on-line shopping cart checkout (an abstraction of shopping cart events on an on- line website). ◦ Note: a complex event denotes or signifies the set of its member events. This may or may not include references to individual member events. A composite event or a derived event is a complex event. The converses are not necessarily true. © Copyright 2000-2012 TIBCO Software Inc.
  • 16. EPTS ON EVENT PROCESSING Event processing: computing that performs operations on events, including reading, creating, transforming and deleting events. ◦ Note: The overloaded meaning event object processing is intended in this context. Complex-event processing (CEP): Computing that performs operations on complex events, including reading, creating, transforming or abstracting them. ◦ Note: CEP results in creating complex events even if some or all of the source events are simple events © Copyright 2000-2012 TIBCO Software Inc.
  • 17. ALTERNATIVE TERMS Event Cloud Personnel events RFID events Supply chain events Timeout events Delivery events Event Streams CEP (technology) applies pattern detection & filtering to the event clouds & streams and their histories Multiple modelling / execution paradigms are available for pattern detection Related terms: real-time analytics, continuous intelligence, event processing, … CEP © Copyright 2000-2012 TIBCO Software Inc.
  • 18. WHAT DOES CEP SOLVE? … the “ Latency Problem“ warnings precede threats CEP allows fast Business Event responses to detected issues Potential Business Resulting Complex Event Measured Value Root Cause / Correlation Corrective Decision Made Action Taken Action time © Copyright 2000-2012 TIBCO Software Inc.
  • 19. TOPICS Intro to Complex Event Processing IT perspective and Technologies Examples CEP Market, Tools Available © Copyright 2000-2012 TIBCO Software Inc.
  • 20. USE CASE PATTERNS “Situational Awareness” “Sense and Respond” “Track and Trace” © Copyright 2000-2012 TIBCO Software Inc.
  • 21. CEP’S ROLE IN I.T. © Copyright 2000-2012 TIBCO Software Inc.
  • 22. COMPLEX EVENT PROCESSING Processing type: Decision Processing Event Processing -- TIBCO Reference Architecture by Alan Lundberg 2005 © Copyright 2000-2012 TIBCO Software Inc.
  • 23. EVENT-DECISION ARCHITECTURE EVENT SOURCES EVENT PRE- Event-Decision Architecture PROCESSING EXTERNAL LEVEL ONE LEVEL TWO LEVEL THREE DISTRIBUTED Event Tracking & Situation Detection Impact Assessment LOCAL Refinement & Refinement & Predictive Analysis EVENT SERVICES User . Interface . EVENT . & Systems . PROFILES . . . EVENT + DATA STORE DATA BASES Historical Profiles & . LEVEL FOUR Data Patterns . OTHER DATA Process Refinement & Adaptation -- Adapted from JDL Data Fusion Model by Tim Bass Steinberg, A., & Bowman, C., Handbook of Multisensor Data Fusion, CRC Press, 2001 © Copyright 2000-2012 TIBCO Software Inc.
  • 24. EPTS FUNCTIONAL REFERENCE ARCHITECTURE -- EPTS Reference Archjitecture by EPTS RA Working Group editors Alex Alves, Adrian Paschke, Catherine Moxey, Paul Vincent Proceedings of the 6th ACM International Conference on Distributed Event-Based Systems, ACM, 2012 © Copyright 2000-2012 TIBCO Software Inc.
  • 25. STANDARD OR SIMPLE EVENT PROCESSING Fixed to specific Synchronous event types Events new order fulfilment BPM: business SOA: process IT services Data Persistence (service) © Copyright 2000-2012 TIBCO Software Inc.
  • 26. MULTIPLE SIMPLE EVENT PROCESSING new order fulfilment new supplier purchasing change order rectification delivery billing Multiples of Multiples of Processes Services Multiples of Database Views © Copyright 2000-2012 TIBCO Software Inc.
  • 27. MULTIPLE SIMPLE EVENT PROCESSING (THEORY) new order fulfilment new supplier purchasing change order rectification delivery billing Multiples of Multiples of Processes Services Multiples of Database Views © Copyright 2000-2012 TIBCO Software Inc.
  • 28. COMPLEX EVENT PROCESSING Asynchronous Flexible to any Events Continuous event types identification of event patterns business events source events CEP: complex event processing State store BPM: business SOA: IT process services Data Persistence (service) © Copyright 2000-2012 TIBCO Software Inc.
  • 29. REQUIREMENTS FOR CEP TECHNOLOGY Access and Monitor Event Bus or Source the “Event Cloud” Low-latency reliable ◦ Instrumentation (for state changes) message delivery ◦ JMS, RV, MQ, TCP/IP, etc… ◦ Timers to detect lack of events Event and Data Model Match Patterns for information modeling (+ Apply Business Logic) History and State Temporal Model ◦ Detect events for determining ◦ Detect event patterns time-dependent info ◦ Maintain State and Facts over time Pattern Detection Model ◦ Update Detection algorithms as events change for recognizing patterns, defining actions © Copyright 2000-2012 TIBCO Software Inc.
  • 30. CEP TECHNOLOGIES Types of CEP Processing Rule-Driven CEP Event Sources Rule Engine Rulebase Neural Net CEP Neural Net Network Event Bus Event Stream Query CEP Event Query Engine Stream Queries Consumers Orchestrated Event Stream CEP Flow Engine Flow Model © Copyright 2000-2012 TIBCO Software Inc.
  • 31. CEP BEHAVIOR: STATE-ORIENTED New New Condition / Order New TimeEvent Order Order State 1 State 2 State Model © Copyright 2000-2012 TIBCO Software Inc.
  • 32. STATE MODEL CEP AGENT FEATURES 1. Visual modeling metaphor ◦ State diagram / flow diagram is simple to follow 2. State / flow transitions can be time-related ◦ Can model missing events through time-outs etc © Copyright 2000-2012 TIBCO Software Inc.
  • 33. CEP BEHAVIOR: RULE-ORIENTED New (Lots of New Order New Events) Order Order Complex Reaction Patterns Rule © Copyright 2000-2012 TIBCO Software Inc.
  • 34. INFERENCE RULE CEP AGENT FEATURES 1. High performance pattern matching ◦ Rete (or other) algorithm determines what rules are executable based on underlying data changes 2. Declarative + Inferencing ◦ Rules defined in terms of classes: can be relevant for any # instances ◦ Rules’ actions can cause other rules to fire automatically 3. In-memory ◦ Limited only by JVM / process memory © Copyright 2000-2012 TIBCO Software Inc.
  • 35. CEP BEHAVIOR: QUERY-ORIENTED New New (Lots of Order New Events) Order Order Complex Results Event Query Query © Copyright 2000-2012 TIBCO Software Inc.
  • 36. QUERY CEP AGENT FEATURES 1. Common query language ◦ Usually SQL-based – widely used language ◦ May be in-memory, in-file or both ◦ Can include query optimizers 2. Continuous ◦ Extensions usually support time windows for the query to operate over © Copyright 2000-2012 TIBCO Software Inc.
  • 37. CEP MEMORY ARCHITECTURES Usually in-memory for simple apps like trading Cache / DB memory stores used where failover / DR required, or scalable distributed processing Other options too (e.g. transactional shared memory systems) © Copyright 2000-2012 TIBCO Software Inc.
  • 38. CEP TOOLS EVOLVING – THE “EVENT SERVER” Event events Transport & Distribution Pattern Detection Decisions Reactions Event & State store © Copyright 2000-2012 TIBCO Software Inc.
  • 39. TOPICS Intro to Complex Event Processing IT perspective and Technologies Examples CEP Market, Tools Available © Copyright 2000-2012 TIBCO Software Inc.
  • 40. EVENT-DRIVEN MARKETING USING CEP #Campaign and Offers pa 500 Campaigns + 4 M Offers #Target Customers >4M Transaction Volume >240 Msgs/Sec Revenue Growth Campaign Performance 1. Campaign 1: 235% Over Campaign Revenue Target 2. Campaign 2: 160% Over Campaign Revenue Target 3. Campaign 3 270% Over on Additional Spending Target 4. Campaign 4 250% Over Campaign Revenue Target Time to Market per Marketing Concept to Execution: Campaign Before: 3 – 6 Months After: 7 – 8 Days © Copyright 2000-2012 TIBCO Software Inc.
  • 41. SHIPPING TRACK AND TRACE USING CEP Shipment container track and trace: ◦ Monitoring shipment milestones and invoking appropriate processes 54 million active milestones for shipments in-situ at any one time Implemented 3 times to compare technology approaches Approach Cost Cost vs Java Java programming 64 1x BPM for events 400 6x Event-driven rules 28 overall 0.5x Event-driven rules 12 best case 0.2x © Copyright 2000-2012 TIBCO Software Inc.
  • 42. MANUFACTURING QUALITY CONTROL USING CEP Test results data vs Error lifecycle Example: after a restart 100% testing? production station is Manual, 75% reliable for first 4 uses 100% reliable for the next 11 expensive tests days 80% reliable thereafter Manufacturing tasks per day 24,000 Number of process steps per unit Several 100s Solution results 10-15% avg. reduction in manual test costs “Significant reduction” in overall costs © Copyright 2000-2012 TIBCO Software Inc.
  • 43. TOPICS Intro to Complex Event Processing IT perspective and Technologies Examples CEP Market, Tools Available © Copyright 2000-2012 TIBCO Software Inc.
  • 44. FORRESTER NOTE ON BR PLATFORMS, JULY 2011 © Copyright 2000-2012 TIBCO Software Inc.
  • 45. GARTNER PREDICTIONS, OCT 2011 © Copyright 2000-2012 TIBCO Software Inc.
  • 46. CEP MARKET PLAYERS Different technologies for different CEP subtypes © Copyright 2000-2012 TIBCO Software Inc.
  • 47. © Copyright 2000-2012 TIBCO Software Inc.