Business Rules, Business Schmules

The Business Analysis technique for today’s post is “business rules”.

So, business rules define or limit some aspect of the business. Business rules define business logic- not system logic. Business rules are truly important to understand, because without them, a feasible solution to a business problem cannot be developed. Business rules are large contributors to business policy, procedure, and strategy.

For example, let’s consider a deposit account. There are many rules that govern deposit accounts in this country alone. Consider business rules that different deposit account institutions create.

Credit unions offer deposit accounts, but only to individuals who are members. Additionally, a savings deposit account must be opened before any other deposit account can be opened. These rules limit who can own a deposit account at a credit union.

Chart showing business rules for shipping an order.
Business Rules Example

While most brick and mortar deposit account institutions create rules around charging ATM fees, many online deposit account institutions create business rules around refunding ATM fees. These business rules allow online institutions to compete with traditional institutions by strategically offering something the latter does not.

The Modern Analyst does a great job explaining a few tests that can help to differentiate between business and system rules.

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