Business rules are in the operations, definitions, and constraints that apply to an organization. They exist within various aspects of an organization, influencing how it functions and achieves its objectives.
Understanding Business Rules
Business rules are fundamental to how an organization operates. According to the reference, these rules "describe the operations, definitions and constraints that apply to an organization" and help the organization achieve its goals. They can be implemented across different areas of a business.
Where Business Rules Reside
Business rules are present in various areas:
- People: Guidelines and policies that employees must follow. For example, rules about employee conduct, dress code, or data handling.
- Processes: Standard operating procedures (SOPs) and workflows that dictate how tasks are completed. For example, rules for order processing, customer onboarding, or incident management.
- Corporate Behavior: Ethical standards and corporate governance policies. For example, rules regarding conflicts of interest, environmental responsibility, or community engagement.
- Computing Systems: Software applications, databases, and IT infrastructure. For example, validation rules in databases, workflow automation in applications, or security protocols in IT systems.
Examples of Business Rules
Here's a detailed look at examples across these areas:
- For People:
- Employees must take a 30-minute lunch break.
- Sales representatives must log all customer interactions in the CRM system.
- For Processes:
- Orders above $1,000 require manager approval.
- Customer complaints must be acknowledged within 24 hours.
- For Corporate Behavior:
- The company will donate 5% of its profits to environmental conservation.
- The company will conduct annual ethics training for all employees.
- For Computing Systems:
- Passwords must be at least 8 characters long and include a special character.
- Customer addresses must be validated against a postal code database before an order can be processed.
Why Business Rules Matter
Business rules provide a framework for consistency, compliance, and efficiency. By clearly defining how things should be done, organizations can:
- Ensure Compliance: Adhere to legal and regulatory requirements.
- Improve Efficiency: Streamline operations and reduce errors.
- Maintain Consistency: Ensure uniformity in processes and outcomes.
- Support Decision-Making: Provide clear guidelines for making informed choices.
- Achieve Organizational Goals: Align actions with strategic objectives.
