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rules-based decision-making a route to a much greater degree of business agility, particularly for processes that
are decision-heavy. Cost reduction
The most powerful source of cost reduction by far is automation. By automating operational decisions through
the use of rules wherever possible, instead of relying on employees to talk to the right people, refer to the right
documents and choose the right applications to run, straight-through processing can be dramatically improved.
Where possible, human interaction can be replaced by pre-defined decisions, not only reducing the demands
on people’s time, but also reducing training and education needs. The result is much more efficient use of
resources and reduced overall costs. Beyond this, using business rules makes change less costly too, since
rules can now be modified without requiring any changes to IT applications. Governance
There are many aspects of a rules-based approach to decision-making that benefit the overall area of
governance. The first is that adopting business rules is a way of formalizing the decision-making processes
used to control operations. The improved automation combined with the fact that the decision-making rules are
written down in one place and easily accessible combine to mean that operations become much more
repeatable, predictable and auditable; decisions are not taken based on the skills of the particular individuals
involved in executing a business transaction, but instead on a formal set of rules. This formalization reduces risk
and also opens the door to a continuous auditing process. Because the formalization is based on rules that are
business oriented, business owners can inspect the rules in use on a regular basis to ensure that decisions are
being taken accurately and as intended, deliver the best possible business outcomes and that the decisionmaking process as a whole adheres to all relevant regulations and policies.
One aspect of the business context visibility of operational decision-making delivered by rules-based decisions
is the opportunity for collaboration. With easy-to-use authoring,...
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This note was uploaded on 01/29/2014 for the course ACC 230 taught by Professor Xia during the Winter '13 term at Bloomsburg.
- Winter '13