Escaping the “business rule” trap

Over the years, I have worked with numerous organisations and have observed how accumulated business rules pose significant challenges to scalability, transformation and organisational agility. Business rules are operational rules that organisations follow to perform various activities. Over time, as organisations grow (organic and inorganic) and adapt to changing business conditions, they tend to add more and more rules to their software systems. This accumulation can lead to several problems:

Complexity and Inflexibility

As business rules accumulate, so does the complexity of software systems. Imagine a trading system in the financial industry. Over time, it becomes inundated with complex rules and regulations governing trade execution, reporting, and settlement. It’s not just the ever-expanding list of rules but also the intricacies within them that complicate systems, making them harder to comprehend.

Insurance companies often find themselves ensnared in their own web of business rules. These rules pertain to underwriting, claims processing, and pricing, and they can accumulate over time, making it torturous to adapt to changing industry demands.

Maintenance and Integration

But the problem doesn’t stop at complexity. The maintenance of software systems loaded with business rules can become a massive overhead. Health institutions, for instance, manage electronic health record (EHR) systems packed with rules related to patient data, billing, and compliance. The cost of maintaining such systems often diverts resources away from innovation and emerging healthcare technologies.

Integration nightmares are also part of the equation. Consider large retailers trying to mesh their legacy point-of-sale systems with modern e-commerce platforms and inventory management solutions. The intricacies of the embedded business rules can turn a seamless integration into a Herculean task.

The single point of failure

To add a final twist to this tale, some organisations rely heavily on specific individuals to hold the key to their rule-bound kingdom. These individuals, often walking encyclopaedias of business rules, become the single point of failure. Their departure, a holiday or even an extended coffee break, leaves the organisation in a precarious position, with knowledge buried in legacy code.

One notable example of a company that successfully addressed the problem of accumulated business rules is Netflix. Netflix had to constantly evolve its software systems to adapt to changing market dynamics and customer preferences. They have effectively managed the complexity of their business rules to stay competitive and innovative.

In their tech blog, “Building a Rule-Based Platform to Manage Netflix Membership SKUs at Scale,” Netflix unveiled their solution. They introduced Membership SKUs, offering various subscription plans and billing options. Here’s the summary of how they escaped the “Business rule” trap:

RuleMaker

Netflix built a centralised rule management platform called “RuleMaker.” This platform acts as the guardian of rules, ensuring they are well-documented, easy to modify, and can adapt dynamically to shifting market conditions. It’s the control centre where rules come to life, guiding the intricacies of customer subscriptions.

Dynamic rules engine

Netflix’s secret weapon is the dynamic rules engine. It evaluates customer-specific attributes, subscription preferences, and historical behaviour to determine the best-suited Membership SKU for each customer. The engine’s rule evaluation sequence ensures eligibility, pricing, and personalisation are all factored in to provide the perfect recommendation.

Learning through testing

In Netflix, A/B testing and experimentation play a vital role. They fine-tune their rules continually, ensuring they provide the best possible recommendations to their customers.

The Result: A Personalised Experience

The magic happens when Netflix applies these rules to offer customers a personalised experience. Your viewing recommendations? They’re the result of a finely tuned orchestra of business rules that ensure you’re getting content that caters to your unique tastes and preferences.

Summary

Netflix reminds us that the journey of business rule management is never-ending. The rules are continuously evolving, adapting to shifting customer behaviour and business needs. The platform scales effortlessly, delivering rapid responses to a massive user base.

And just as Netflix demonstrates, innovation is the heartbeat of a dynamic organisation. In the ever-evolving world of business rules, the ability to adapt quickly and provide personalised, efficient services ensures you remain competitive and agile.