Rule based systems are specialized software that encapsulate human intelligence and knowledge to make intelligent decisions quickly and repeatedly. They represent knowledge using if-then rules and work memory. There are two types of rules - forward chaining which is data-driven and deductive, and backward chaining which is goal-driven and inductive. While rule engines are the core of applications, fully utilizing them requires additional components for interfacing, data exchange, data storage, and version management. Examples of companies using rule engines include Dell, Cisco, Vodafone, and Blue Cross Blue Shield.