Business Rules Management: System & Software

Instructor: Elizabeth Wamicha

Elizabeth teaches undergraduate courses in Business and Information Technology for the last 7 years. She is currently on course to completing a Doctorate in Information Systems

In this lesson, you will learn the concept of business rules management. Business rules management plays an important role in any organization that has complex business processes. The lesson also describes the system and software that is used in Business Rules Management.

Business Rules Management

The process of Business Rules Management focuses on automating logical statements that manage the decisions that are made at operational level in an organization. For example, if an organization has a tracking system for its inventory, then it can develop a set of business rules that can help govern aspects such as when to buy new inventory, at what point to report on the available inventory and so on. This information is very important for managers who want to be able to monitor how inventory is moving through the organization. Business rules are repeatable and will be executed consistently throughout the operations of an organization. They are very useful to an organization because they can improve the efficiency of important business processes, such as tracking inventory.

The end result of Business Rules Management is to make management of business processes more efficient and to improve the overall decision making process of an organization. For example, if business rules are developed for the inventory tracking business process, then it becomes easier for managers to make certain decisions, such as knowing how much inventory is in stock and when to purchase additional inventory.

Developing Business Rules Systems and Software

Okay, so how exactly do we develop and automate business rules within an organization? Well, the first thing is to understand what business rules are. Business rules are formal statements that are provided regarding data that is to be processed and the steps that will be taken to process the data. For example, if a raw materials inventory in the warehouse is less than 50, then reorder the raw material. This indicates a certain condition and what needs to be done if that particular condition is true. An organization can have multiple complex business rules within its operations. Managing this multiple, complex business rules manually can be an uphill task. This is why, organizations opt to automate their business rules into business rules management systems. Business rules are important because they help organizations develop standards for operation. These standards include organizational policies, procedures and workflow activities.

Business rules management systems are used to govern and automate these formal rules or statements. These statements represent repeatable operations that an organization carries out.

Characteristics of Business Rules Systems and Software

The following are some important characteristics of Business Rules Systems and Software:

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