Business Rules

Business rules refer to the guidelines or principles that dictate how various aspects of a business should operate. They encompass the procedures, policies, and conditions that guide decision-making and actions within an organization. They can apply to all areas of business, including finance, operations, customer service, and human resources. For instance, a business rule might determine how discounts are applied to customer orders, the steps for approving a new supplier, or the criteria for employee performance evaluations.

Business rules can be written in documentation, programmed into software systems, or informally understood within a group of employees. However, business rules are more often understood as a set of parameters integrated into software systems such as databases, enterprise resource planning (ERP) systems, and customer relationship management (CRM) tools. These systems are programmed to enforce the rules automatically, ensuring consistency and efficiency in operations.

Back to Glossary