The four key components of Strategy Analysis are principles, practices, techniques, and skills. They play an essential role in identifying and validating the organization’s strategic needs, defining suitable solution approach(es) and solution(s), and planning, monitoring, and engaging stakeholders to achieve the organization’s strategic objectives. Techniques describe a step-by-step approach to conducting Strategic Analysis activities.
Want to guide operational business decision-making effectively? Here is a Strategy Analysis technique to achieve that. This blog will look at a technique called Business Rules Analysis with examples.
History of Business Rules Analysis as a strategy analysis technique
Business Rules Analysis (BRA) is an old analytical technique that has been used for many years to analyze a variety of business problems. It is a process for uncovering the logic, structure, and intent of business plans, policies, and processes. BRA is used to identify and understand the different components of a business process or a problem and to develop an effective solution.
The first recorded use of BRA as a strategy analysis technique dates back to the 1950s, when American engineer and management consultant, Lawrence L. Gordon, used it as part of his consulting practice. In the 1960s, BRA began to be used in a variety of industries, such as manufacturing, banking, insurance, and healthcare. Finally, in the 1970s, BRA was adapted to the software industry, and it was used to develop software systems.
In the 1980s, BRA was used to analyze and understand the various components of business processes and to develop more efficient and effective solutions. BRA was also used to develop business plans, policies, and processes and identify improvement areas.
In the 1990s, BRA was used to analyze and understand the various components of a business process and to develop more efficient and effective solutions. BRA was also used to develop business plans, policies, and processes and identify improvement areas.
Today, BRA is still used as a strategy analysis technique to analyze a variety of business problems and to develop effective solutions. It is used to identify and understand the different components of a business process and develop effective solutions. BRA is also used to develop business plans, policies, and processes and identify improvement areas.
Business policies dictate the actions of an enterprise and the people in it by broadly controlling, influencing, or regulating them. Business rules guide stakeholder behavior and help in making decisions.
Business rules analysis identifies, expresses, validates, refines, and organizes business rules. Rules may be explicit or tacit (implicit) and require a defined glossary. Rules to make operational business decisions are usually expressed as decision tables or decision trees (flow charts).
Business rules should:
- Use business terminology for validation.
- Be documented independently from enforcement.
- Be stated in declarative format at an atomic level.
- Be maintained in a manner enabling monitoring and adaption as they change.
- Finally, it should be written in simple language.
- Business rules should not be nested
- Each rule should be independent
- It should be correct, verifiable, and consistent.
- Traceable to business needs.
Represent operational knowledge of the organization. Prescribe how information may be derived, inferred, or calculated. For example, Gross margin = Revenue – Variable cost of production. These rules can be misapplied but cannot be violated.
Behavioral rules guide the actions of stakeholders, which may be violated. Therefore, take precautions in the solutions to prevent violations. For example, “No customer should be provided a credit period of more than 30 days.”
Business Rules Catalog
A business rules catalog is a table of business rules and related attributes. Common attributes include a unique ID for the business rule, the description, source, applicability, and references. The Business rules catalog needs to be kept current and updated like any other analysis model. In addition, the business rules catalog should be maintained at the organizational level, as business rules are often not specific to one strategic initiative.
Defining and managing business rules allows organizations to govern business behaviors and make changes to policies when required.
Advantages of Business Rules Analysis as a strategy analysis technique
- Improved Decision Making: Business rules analysis helps to improve decision-making by providing a systematic approach for gathering and analyzing data. This allows businesses to identify patterns and trends in their data and make more informed decisions.
- Faster Results: Business rules analysis helps to identify potential problems and solutions quickly. This allows businesses to quickly address any issues they may be having and make changes quickly.
- Reduced Risk: Businesses can identify potential risks that may have been overlooked by analyzing data through business rules analysis. This can help businesses to reduce their risk of making costly mistakes and can help them to develop better strategies.
- Improved Efficiency: Business rules analysis helps businesses to streamline processes and improve efficiency. By analyzing data in a structured way, businesses can identify areas of improvement and make changes quickly.
- Better Communication: Business rules analysis helps to improve communication between different departments. This allows businesses to share information quickly and efficiently, which can help to improve collaboration and communication.
Weaknesses of Business Rules Analysis as a strategy analysis technique
- Lack of Flexibility: Business Rules Analysis is limited in its ability to adapt to changing circumstances and emerging technologies. It does not provide a comprehensive view of all aspects of the business and does not consider the organization’s complexity.
- Reliance on Expertise: Business Rules Analysis requires a high degree of expertise and experience to be effective. It relies heavily on the knowledge and experience of the analyst and can lead to inaccurate conclusions.
- Costly: Business Rules Analysis can be a costly and time-consuming process, as it requires a significant amount of time to develop and analyze the rules.
- Limited Insight: Business Rules Analysis provides only a narrow view of the business. It does not provide an in-depth understanding of the data, organization, or system dynamics.
Relationship of Business Rules Analysis with other strategy analysis techniques
Business Rules Analysis is a strategy analysis technique that helps organizations identify, understand, and manage their business rules. It involves analyzing the business rules that drive organizational processes and decisions, such as policies, procedures, and regulations. Business Rules Analysis is closely related to other strategy analysis techniques such as SWOT Analysis and PEST Analysis. SWOT Analysis helps organizations identify their strengths, weaknesses, opportunities, and threats. PEST Analysis helps identify key external factors that can affect the success of an organization. By using Business Rules Analysis in conjunction with these other strategy analysis techniques, organizations can comprehensively understand their business rules and how they impact their overall strategy.
Future of Business Rules Analysis as a strategy analysis technique
Business Rules Analysis (BRA) is a strategy analysis technique that has been around for some time and is used to analyze a company’s operational and strategic decisions. BRA helps to identify areas where improvement is needed and can provide guidance for better decision-making. It also helps identify potential problems that may arise in the future and can inform strategic plans and objectives.
The future of BRA as a strategy analysis technique is likely to be very bright. As companies and organizations become more complex, the need for BRA to help them make better decisions will only increase. Additionally, advances in technology have made it easier for organizations to collect and analyze data, allowing them to make more informed decisions. Business rules analysis can help identify areas where improvement is needed and provide guidance for better decision-making.
Finally, BRA is becoming increasingly popular in the consulting industry and is being used by a variety of organizations to help them make better decisions. As more organizations become aware of the benefits of BRA, the demand for it is likely to increase.
In conclusion, Business Rules Analysis is a strategy analysis technique that is likely to remain popular in the future. It is used to help companies and organizations make better decisions by providing guidance and identifying potential problems. As the complexity of companies and organizations increases, the need for BRA to inform decisions is likely to increase.
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