BUSINESS LOGIC: AN OVERVIEW

At the end of the semester, the students will be able to:

1. Understand the different concepts in Logic necessary to identify and evaluate arguments.
2. Apply the practical skills and knowledge necessary to recognize whether an argument is
good or bad.
3. Discuss and differentiate Business Logic and Business Rules
4. Apply the importance of business logic to business entities
5. Formulate a Business Rules for the benefit of a business unit.
6. Construct a workflow as a tool for implementation of Business Rules.

COURSE OUTLINE
(Subject to Change)

A. INTRO TO LOGIC

MIDTERM

Chapter 1: What is Logic?

 Basic Notions
 Analysis of Arguments
 Logic and Philosophy

Chapter 2: Evaluating Arguments

 Inference and Implication: Why Conclusions Follow from Premises
 Deductive Arguments
 Inductive Arguments
 Abductive Arguments

Chapter 3: Formal Logic in Philosophy

 Logic, Validity, and Logical Forms
 Extracting Logical Forms
 The Nature of Logical Forms
 One Logical Form or Many?

Chapter 4: Informal Fallacies

 Taxonomy of Fallacies
 Common Informal Fallacies

Chapter 5: Necessary and Sufficient Condition

 Concepts of Necessary and Sufficient Conditions
 Conceptual Analysis and Necessary and Sufficient Conditions
 A problem with the Orthodox View and SPM

MAIN REFERENCE:

Assadian, Bahram, Matthew Kanchel, Cassiano Terra Rodriquez, Michael Shaffer, Nathan
Smith, Benjamin Martin and Christina Hendricks. Introduction to Philosophy: Logic. Open
Textbook Project. (nd).

FINAL GRADING PERIOD

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B. BUSINESS LOGIC
References/Sources: To be taken/retrieved from the Internet.

LOGIC

To better appreciate this course, you should have already taken at least an introductory course in
Logic/Philosophy. As refresher, the first part of this course is devoted on the review about
Logic. (See outline above for details).
Since the logic model is a depiction of “if-then” relationships.

Example:
If we invest these inputs/resources, then the activities can take place; if the activities take place,
then the outputs will result; if the outputs result, then the outcomes will be achieved.

REFERENCES:

1. (https-course-hero)
2. (https://study.com/academy/lesson/using-logic-reasoning-to-make-business-decision-html)

DEFINITION OF LOGIC

1. Logic is the study of the methods and principles used to distinguished correct reasoning
and from incorrect reasoning.

 Driven by skeptical and critical state-of-mind then raised critical thinking.

 To have a common ground about something.
 Used logic as a criterion to judge argument.
 Used deductive syllogism to arrive at a conclusion. Syllogism means conclusion
or inference.

2. Logic is the process of using rational reasoning in order to make a valid argument. We use
logic to make a point, make a decision, or convince others to agree with us. If you want to
convince your co-workers that Friday should be a casual dress day, you need to make a valid
argument to convince others that this change is needed. It might look like this:

 Companies who implement a casual dress day experience an increase in employee

morale.
 Improved employee morale increases productivity.
 Therefore, making Friday a casual dress day will increase productivity.

With the use of a valid argument, it is much more likely that you will get a casual dress day.
There are different types of logic, and there are rules to using logic. Understanding some logic
basics will help you make better business decisions.

OBJECTIVES OF LOGIC

1. Sharpen the intellect of the students.

2. Develop their learning ability
3. Strengthening their understanding.
4. Promote clear thinking.

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WHY LOGIC IS IMPORTANT?

1. It helps us to think properly.

2. It focuses our mind so we can come up with logical solution.
3. It gives more rational in our decisions.
4. It is essential for decision
5. No other instrument can successfully replace reason.
6. Our well-being depends upon knowing what truly is the case.
7. It helps other to understand reasoning behind issues which could be applied in other issues
as well.

BENEFITS OF STUDYING LOGIC

1. It supports the use of our reasoning powers.

2. It helps to make them more dependable.
3. We learn how to defend judgments.
4. It brings our intellectual capacities to maturity and fruitfulness.
5. We learn to distinguish good arguments from bad ones.
6. It creates logical behavior.
7. It creates logical mind.
8. It avoids illogical thinking – procedures or inferences that are faulty, not rationally defensible.
9. It helps one to reason well by illuminating the principles of correct reasoning.
10. We learn the principles of clear and accurate thinking.
11. Skills of correct reasoning never become obsolete.

AIMS OF LOGIC

1. To learn to test the arguments.

2. To evaluate the arguments.

SUBJECT MATTER OF LOGIC

Methods and techniques of logic that distinguish efficiently as well.

BUSINESS LOGIC

REFERENCES:
1. Investopedia
2. Wikipedia
3. https://www.webopedia.com/definitions/database
4. en.wikipedia.org/wiki/User_interface
5. https://www.ibm.com/cloud/learn/workflow
6. (https://www.laserfiche.com/ecmblog/what-are-business-rules)

DEFINITION:

BUSINESS LOGIC
 Prescribes how business objects interact with one another.
 Enforces the routes and the methods by which business objects are accessed and updated.

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 Is the custom rules or algorithms¹ that handle the exchange of information between a
database² and user interface³.
 Can be seen in the workflows that they support, such as in sequences or steps that specify in
detail the proper flow of information or data, and therefore decision-making.
 Also known as "domain logic."

¹Algorithm. A pre-determined result. For instance, when we talk about algorithms in computer
programming, we already have our input and we know the expected output. Now, an algorithm
would be all the defined steps to follow on the input to get the desired output.

Algorithm

Apart from mathematics or computer programming, we see algorithms in everyday life. Let’s say
you want to cook a dish. Now, you can begin with some ingredients (the input) and will follow
the recipe. The recipe will have different steps (the algorithm) that you can follow to make the
dish (the output).

²Database. Often abbreviated as DB, is a collection of information organized in such a way that
a computer program can quickly select desired pieces of data.

Fields, Records and Files

You can think of a traditional database as an electronic filing system, organized

by fields, records, and files. A field is a single piece of information; a record is one complete set
of fields; and a file is a collection of records. For example, a telephone book is analogous to a
file. It contains a list of records, each of which consists of three fields: name, address, and
telephone number.

To access information from a database, you need a database management system (DBMS). This
is a collection of programs that enables you to enter, organize, and select data in a database.

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 Database

Increasingly, the term database is used as shorthand for database management system. There are
many different types of DBMSs, ranging from small systems that run on personal computers to
huge systems that run on mainframes.

³Interface

When referring to software, an interface is a program that allows a user to interact computers in
person or over a network. An interface may also refer to controls used in a program that allow
the user to interact with the program. One of the best examples of an interface is a GUI
(Graphical User Interface). This type of interface is what you are using to navigate your
computer and how you got to this page.

Interface

User interfaces are composed of one or more layers, including a human-machine interface (
HMI) that interfaces machines with physical input hardware such as keyboards, mice, or game
pads, and output hardware such as computer monitors, speakers, and printers. A device that
implements an HMI is called a human interface device (HID).

Workflow (Flowchart)
(https://www.ibm.com/cloud/learn/workflow)

A workflow is a system for managing repetitive processes and tasks which occur in a particular
order. They are the mechanism by which people and enterprises accomplish their work, whether
manufacturing a product, providing a service, processing information or any other value-
generating activity.

Within business process management, a workflow can be defined as a simple series of individual
tasks, while a business process is considered more complex, consisting of multiple workflows,
information systems, data, people and their activity patterns. A workflow is distinguished by its
simplicity and repeatability, and it is generally visualized with diagram or checklist.

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 Flowchart

Understanding Business Logic

(https-course-hero)

Put another way, business logic is real-world business rules put into computer code and shown in
a computer program via a user interface. Business logic is most evident in its role in creating
workflows that pass data between users and software systems. Business logic determines how
data may be shown, stored, created, and altered. It provides a system of rules that guides how
business objects (parts of software that control how data is transported) work with one another.
Business logic also guides how business objects within software are accessed and updated. It
exists at a higher level than the type of code that is used to maintain basic computer
infrastructure, such as how a database is displayed to a user or as basic system infrastructure.

The algorithms involved in business logic perform behind-the-scenes data processing that is
invisible to the user but is critical to keeping things running smoothly in a modern economy.

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Business Logic Examples No. 1:
A credit card issuer's business logic may specify that out-of-state credit card transactions above a
certain limit, say $500, be flagged as suspicious and the issuer contacted as soon as possible to
confirm the authenticity of the transaction. The policy of flagging such a transaction is an
example of a business rule; the actual process of flagging the transaction is an example of
business logic. Given that millions of credit card transactions are conducted every single day,
business logic enables such transactions to be checked and processed in an efficient and timely
manner.

Business Logic Example No. 2:

The business logic of the website might include a workflow such as: The sequence of events that
happens during checkout, for example a multi-page form which first asks for the shipping
address, then for the billing address, next page will contain the payment method, and last page
will show congratulations.

BUSINESS RULES

BUSINESS RULES
(https://www.laserfiche.com/ecmblog/what-are-business-rules)

In general, business rules define specific instructions or constraints on how certain day-to-
day actions should be performed. Business rules can apply to many aspects of an organization
and can be expressed in a variety of ways.

For example, business rules can include:

 A decision-making approval structure for invoice processing where only certain
managers can sign off on invoices totaling a specific amount
 Calculations in which a formula may be used to calculate revenue or expenses
 Policies where an organization requires its employees to work with a preferred list of
vendors

When business rules are designed separately from process implementations, they provide a
powerful and flexible approach to help organizations move more quickly in meeting their goals
and better respond to changing business needs.

BUSINESS LOGIC VERSUS BUSINESS RULES

Other Differences: Business Logic versus Business Rules

BUSINESS LOGIC BUSINESS RULES

1. Business logic is the portion of an enterprise Business Rules are formal expressions of business
system which determines how data is transformed policy
or calculated, and how it is routed to people or
software (workflow).
2. Anything that is a process or procedure is business Anything that is neither a process nor a procedure is a
logic. business rule.
Welcoming a new visitor is a process (workflow) consisting of steps to be taken, whereas saying every new
visitor must be welcomed is a business rule. Further, business logic is procedural whereas business rules are
declarative.

3. Prescribes how business objects interact with one Model real-life business objects (such as accounts,
another loans, itineraries, and inventories)

4. Enforces the routes and the methods by which

business objects are accessed and updated

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 MISCELLANEOUS

LEARNING STRATEGIES:

The following methodologies will be utilized to achieve the learning objectives:

1. Lectures
2. Class discussion
3. Group Activity Reports (GARs)
4. Individual Activity Reports (IARs) and Assignments
5. Others

GROUP/INDIVIDUAL ACTIVITY REPORTS

Designing and Writing:

1. Business Logic
2. Business Rules
3. Workflow (Flow Chart)