Business Processes and Rules

Sometimes we sell a product to businesses that improves their efficiency. Improved efficiency can help the business achieve:

Increased production or sales volume.
Lower production and operational costs.

There is a discipline called "business process improvement" (BPI) dedicated to the subject of improving operational efficiency. Companies like Dell spend a great deal of time on BPI projects to determine how they can make different aspects of their business more efficient.

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.

Comments

rodgert said…

Hi Roger,

I recently when for an interview where I was asked

Explain the difference between a business requirement and a business rule?

Tue Aug 19, 06:33:00 AM 2008

Roger L. Cauvin said…

My next entry addresses the question you were asked in your interview.

Tue Aug 19, 09:24:00 AM 2008

What Product Managers Can Learn from the Apple iPod

The Story When Apple unveiled its iPod digital music player back in October 2001, I dismissed it as a parity product . I already owned the Cowon iAUDIO CW100 MP3 player, loaded with my favorite tunes. There was Apple, generating great hype over the iPod as if it were a breakthrough product. The idea of a portable digital music player was nothing new. The first mass-produced MP3 players came out in 1998. In late 2001, the concept may have been new to a lot of Apple customers, but it wasn't new to me. I proudly showed my MP3 player to friends when they gushed about the iPod. Thus Apple's iPod was not an innovative product in and of itself. Years later, however, I realized the significance of ecosystem of which the iPod was a part. Apple had released iTunes (with technology purchased from SoundJam MP ) and created the iTunes Store for finding and downloading music. Unlike Napster , it was a safe and legal way of distributing and acquiring music. The prior way of playing

Why Spreadsheets Suck for Prioritizing

The Goal As a company executive, you want confidence that your product team (which includes all the people, from all departments, responsible for product success) has a sound basis for deciding which items are on the product roadmap. You also want confidence the team is prioritizing the items in a smart way. What Should We Prioritize? The items the team prioritizes could be features, user stories, epics, market problems, themes, or experiments. Melissa Perri makes an excellent case for a " problem roadmap ", and, in general, I recommend focusing on the latter types of items. However, the topic of what types of items you should prioritize - and in what situations - is interesting and important but beyond the scope of this blog entry. A Sad but Familiar Story If there is significant controversy about priorities, then almost inevitably, a product manager or other member of the team decides to put together The Spreadsheet. I've done it. Some of the mos

Interaction Design: the Neglected Skill

Your product development organization has a big, gaping hole in it. (Be prepared to feel defensive as you continue reading.) One of the most important roles in product development is the role of interaction designer. An interaction designer designs how the users will interact with the product and conceptualize the tasks they perform. He decides whether, for example, the user interface will be command driven, object oriented (clicking on objects then specifying what to do with them), or wizard based. The interaction designer decides the individual steps in the use cases. Every company has one or more people that play the interaction designer role. Usually, those people have little or no expertise in interaction design. Sadly, they typically don't even realize how unqualified they are. Let's see who typically plays the role at companies. Engineer . An engineer is an expert on building what is designed. Yes, an engineer may know how to design the internal structure of the hardware

Cauvin

Search This Blog