As profit margins shrink and competition becomes severe, businesses need to streamline operations to cut costs. Given the complexity of business operations, implementing changes individuallycan be a herculean task.
Under pressure to cut cost, businesses have a major incentive in reducing operational complexity. It involves regulating processes, policies, and rules through applications.
Overview of business rules management
Business rules management (BRM) lets companies deploy, monitor, and automate intricate decisionsfor operational systems. Those rules are used to guide tactical actions implemented through business applications.
Experts must be able to set rules that direct systems to perform at optimal levels. This brings down the time and effort required to complete a process and improves efficiency within organizations.
Business rules are used in industries like Banking (credit decisions, mortgages, pricing), Healthcare (claims processing, patient monitoring), Manufacturing (service tracking, warranty management, fraudulent claims), Public sector (tax calculations, assessing duties), etc. Business rules may apply to processes, spreadsheets, documents, databases, and application codes.
The adoption of business rules, independent ofform, drives the activities, streamlines operations, and automates the processes. As a result, BRM is vital for modifications to be set and implemented quickly and smoothly.
An area of application –business rules management in warranty management
Today, companies are implementing business rules management so that they can facilitate agility and improved decision-making. This is more popular with rule-oriented processes such as warranty management.
Although business rules management is becoming popular, the wrong application of rules can lead to more problems instead of helping. Many companies struggle to locate which business rules are critical. This can lead to ineffective rules and affect the quality of decisions.
To avoid unproductive rules, it’s important to invest in a process which goes into full detail of the BRM process. By developing a holistic view of the process, and rules, a company will be equipped to implement management of business rules effectively.
In the case of manufacturing companies using warranty management systems, it’s important to update the rules systematically, or in accordance with market requirements. By applying new rules to the process, companies will have the capability to change its warranty coverage as per customer expectations. That way, a warranty department can regulate the rules without incurring large costs for IT and workforce.
Companies following a systematic business rules management (BRM) process will be in a position to improve collaborative innovation, streamline processes, and make them effective in a competitive landscape. If implemented as desired, business rules can ensure solutions to short and long-term problems with immediate effect. This will also improve customer satisfaction levels and lead to service improvement.
Preethivagadia is currently a Senior Business architect with the Service operations practice at a well-known IT Industry in Bangalore. She has worked in several process improvement projects involving multi-national teams for global customers. She has over 8 years of experience in Warranty administration services and has successfully executed several projects in Logistics management, Logistics Integration, Reverse logistics, Warranty software and Programmatic Solutions.