- Increased production or sales volume.
- Lower production and operational costs.
Key concepts in BPI include business processes and business rules.
Business processes are the steps a business executes to achieve their objectives. Accepting and processing orders, doing payroll, and hiring and firing employees are all examples of business processes.
Business rules are rules the company follows as it executes its business processes. An example is a pricing rule that states the minimum price or margin a sales person is allowed to negotiate with a customer. You can also view the steps within an established business process as rules; i.e. the rule is that the employees follow those steps.
When we are developing a product for sale to businesses, it's important to understand the business processes and rules of the businesses we are targeting. That way we can understand how best to deliver value - a product that will improve the businesses' operating efficiency.
In my next entry, I will explore the relationship between product requirements and business processes/rules.