Heterogeneous Enterprise Controls Management via XML Framework

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Solution Overview

Problem

Managing internal business controls in heterogeneous enterprise environments is challenging due to the complexity of multiple, proprietary enterprise systems and the need for compliance with regulations like Sarbanes-Oxley, which often requires costly and time-consuming manual processes, and introduces risks of non-compliance and shareholder value drops.

Innovation Solution

An open and extensible framework using XML-based formats like Controls Definition Language (XCDL) and Controls Reporting Language (XCRL) for creating, monitoring, and testing internal controls, with components such as an integration layer, foundation services layer, and controls authoring suite, enabling automated data capture, normalization, and exchange across systems and organizational boundaries.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual processes are used to manage controls and ensure compliance with regulations like Sarbanes-Oxley, then compliance can be achieved, but it requires large amounts of manpower and is costly and time-consuming

Engineering Contradiction:

Improvecompliance assuranceVSAvoidtime-consuming processes

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent replaces manual mechanical processes with an automated computer-based system that uses software applications, databases, and electronic interfaces to capture, store, and manage control documentation and compliance data, eliminating the need for manual paper-based workflows

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables automated self-monitoring and self-testing of controls through computer-based interfaces that automatically capture data from enterprise systems, perform compliance checks, and generate reports without requiring manual intervention for routine compliance activities

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If proprietary enterprise systems from different vendors are used, then functional requirements can be met, but communication and integration become complex requiring specialists to administer or decipher

Engineering Contradiction:

Improvesystem functionalityVSAvoidintegration complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent implements a universal integration layer that provides standardized interfaces and communication protocols capable of working with multiple different enterprise systems from various vendors, allowing a single system to serve multiple functions across heterogeneous environments without requiring vendor-specific specialists

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system introduces an intermediary integration layer that acts as a mediator between proprietary enterprise systems and the controls management functionality, translating and normalizing data exchanges between different systems and reducing direct integration complexity

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If controls are implemented across organizational boundaries and between organizations, then comprehensive risk management is achieved, but data exchange and communication between parties become more difficult

Engineering Contradiction:

Improverisk management effectivenessVSAvoiddata exchange ease

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent extends the controls management system across organizational boundaries by implementing distributed networked architecture that allows control definitions, test results, and compliance data to be exchanged between different organizations through electronic interfaces and standardized data formats, adding a cross-organizational dimension to internal controls management

Inventive Principle:

Principle #17Another dimension (Dimensionality change)

4Reliability

If multiple complex enterprise systems are assessed for regulatory compliance, then comprehensive compliance coverage is achieved, but ongoing monitoring becomes costly and time-consuming

Engineering Contradiction:

Improvecompliance coverageVSAvoidmonitoring efficiency

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system implements continuous automated monitoring that operates continuously without interruption, constantly capturing data from enterprise systems and performing compliance checks in real-time or near-real-time, eliminating the need for periodic manual compliance assessments and improving monitoring efficiency

Inventive Principle:

Principle #20Continuity of useful action

Data Source

PatentUS8671013B2System and method for managing controls within a heterogeneous enterprise environment

Publication Date: 2014.03.11 INFOR US LLC

AI summary

A system and method for managing internal controls within a heterogeneous enterprise environment is provided. The invention may include an open and extensible standards-based architecture that may be used to create, monitor, test, or otherwise manage internal controls by capturing, organizing, translating, and exchanging controls data, tests, and test results across organizational boundaries and between an enterprise and its external auditors. By providing an automated software solution for managing internal controls, business, finance, information technology, audit, or other professionals may automate on-demand testing, or perform closed-loop remediation and continuous exception-based monitoring of controls within and across enterprise systems.