Business Rules

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Business rules follow a principle: they're pre-established decisions that help processes flow faster and prevent your employees from wasting time on it.

Do you want to know more clearly what business rules are. Then continue reading.

What are business rules?

As the term itself suggests, they're rules that serve to define or restrict some action in your company's processes.

They are statements that describe how certain operations should be performed and if there are any limits that should be applied.

It is these rules that will guide behaviors and define what, where, when, why and how something should be done in a company.

These rules can be transmitted in a formal, informal, written or automated way.

However, generally, because they're so relevant, they're not only correctly registered, but also increasingly executed with the help of technology, with the use of specialized software.

These rules state the way a business operates and therefore should reflect the policies of the organization.

Thus, they indicate requirements that will shape the execution of activities and processes, guiding the decision - making of their collaborators.

The application possibilities are wide and will depend a lot on the particularities of each company.

But some business rules that are typically implemented are tied to a certain type of process.

Common examples of processes that use business rules:

  • Price calculations
  • Degrees of customer discount
  • Budget approval
  • Loan approval
  • Benefits offered
  • Priority setting

How to apply business rules

Understanding what business rules are is the first step.

Now, you have to know how they work.

Closely associated with the good performance of a company's processes and strategies, managers must define those rules through an excellent analysis of their processes.

These rules must be in accordance with the company's policies, dialogue with its objectives and strengthen the defined strategies.

Therefore, an important suggestion is to try to consider the possible rules at the time when strategic planning is being implemented, to make it possible to achieve the goals in the most successful way.

To apply business rules, the use of technology is increasingly common, which guarantees automated, more agile and efficient processes.

What is the importance of business rules?

Every manager must worry about planning strategies and developing processes to improve the results of his company.

And that's why leaders need to understand exactly what business rules are.

When they're defined and applied, they're controlled by automation and you can see in real time, the performance gains they bring to the company.

What do the business rules mean in terms of benefits for the company:

  • Provide greater process control: by having established rules, it will be easier to perceive errors and incompatible activities and correct them quickly. It is possible to have greater control over the most relevant processes.
  • Strengthening strategies: leads to more efficiency in the execution of strategic planning, by taking into account the company's policies, the defined goals and strengthening the processes to achieve them.
  • Reduce costs: monitoring the rules that consider your income and objectives can avoid losses.
  • Auxiliary in decision-making: we can say that the very definition of what a business rule is makes clear its help so that the decisions made are within the standard of the company.

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