6. A business process is a set of activities that takes one or more kinds of input and creates an output that is of greater value to the customer (Hammer) A value chain is a purposeful network of business processes aimed at assembling the individual components of a final product (i.e., its portfolio of attributes) of value to the customer (Porter) Definitions of Business Process and Value Chain cookies Conversion Cycle labor cookie ingredients Acquisition Cycle Revenue Cycle cash cash business process value chain business process business process
7. delivered raw materials delivered manufactured goods $$ Example Value Chain (source, make, deliver) ______ ______ _______ $$ $$ $$ manufactured goods payment sale Cash payment Cash payment logistical operation shipment labor payment labor acquire labor labor facilities, services & technology payment service acquire manufacture job material issue manufacture operation $$ $$ service contract service operation product services labor raw materials purchase payment $$
8. Buyer Seller Third Party Collaboration Space Value Exchange Concept of a Business Collaboration Source: ISO Open-edi
11. Economic Agents Operational Level Knowledge Level Source: Geerts and McCarthy, type paper Harry Jane Named Set of Objects Tom Dick Ashley Typification Salespeople Tom Dick Ashley Abstraction Harry Jane Named Set of Objects with Labeled Clusters Group & Name Clusters Cashiers Named Set of Groups Cashiers Salespeople Economic Agent Type
12. payment duality Contract as a Bundle of Commitments Source: Geerts and McCarthy, ontology paper delivery commitment to deliver Economic Contract commitment to pay reciprocal fulfills fulfills
13. Business Role Economic Commitment Resource Type Event Type specifies specifies specifies Source: Geerts and McCarthy, ontology paper
14. Exchange with Commitments and Types Source: Geerts and McCarthy, ontology paper Economic Event Economic Resource Economic Agent stockflow from to fulfills duality Economic Resource Type typifies specifies Economic Event Type Role typifies Economic Commitment reciprocal specifies specifies typifies
15. ISO Open-edi Ontology Collaboration Model Bilateral Collaboration governs Economic Event Economic Resource Economic Agent stockflow from to Economic Commitment fulfills establish duality typifies specifies Business Role specifies specifies typifies qualifies reserves involves Third Party Mediated Collaboration participates requires Agreement Regulator constrains Economic Contract reciprocal Economic Resource Type Economic Event Type Partner Business Transaction
19. Phases of a Business Transaction and Object States for Completion Business Transaction Planning Identification Negotiation Actualization Post Actualization Economic Resource Type Identified Corresponding Partners Identified Economic Contract Complete Requiting Economic Event Complete Invoked Warranty Component Complete
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21. State Model of Business Collaboration: Economic Event Economic Resource resourceflow site from to Economic Claim Economic Contract Economic Commitment settles fulfills establish duality Agreement Economic Resource Type Location Type typifies typifies specifies specifies Economic Event Type Partner Type specifies specifies typifies typifies Business Transaction governs regulate reciprocal identified identified negotiation complete specified specified specified specified in-force in-force started materialized complete settled transferred identification pending identification complete negotiation pending actualization pending actualization complete fully-specified planning complete started complete planned In-Service aborted suspended COMPLETED designated realized warranty used post-actualization complete fulfilled Seller sends Catalog to Prospective Buyer Buyer sends AvailabilityandPriceRequest to Supplier Supplier returns AvailabilityandPriceResult to Buyer Buyer sends Offer to Supplier with proposed details of resource, location, event, & partner Supplier sends counter-offer, acccepting resource and location and countering on event and partner Buyer accepts details of counter-offer on shipment and proposes payment schedule Seller sends an AdvanceShippingNotice when goods are prepared for shipping Buyer sends ReceivingReport to Seller when inspected goods are accepted Seller sends an Invoice to Buyer after parts are shipped Buyer sends RemittanceAdvice to Seller with information about payment of the Invoice Buyer sends WarrantyInvocation to Seller Seller accepts payment schedule, completing contract specification proposed Partner Location Business Event
24. A Customer B ProductSupplier C LogisticsVendor D Bank FreightOrder AA ShippingDocument AdvanceShipNotice RA FundTransferAdvice AA ReceivingAdvice RA FundTransferAdvice AA FundsTransferNotice RA FundsTransferNotice RA Source: David, Geerts and McCarthy PO RA AA AdvanceShipNotice RA AdvanceShipNotice AA
30. Business Domain View (BDV) Business Requirements View (BRV) Business Transaction View (BTV) Business Service View (BSV) UMM metamodel Process Area Business Process Business Transaction Business Collaboration (binary or multiparty) Requesting Business Activity Responding Business Activity Business Messages Requesting Service Transaction Responding Service Transaction Agreement Economic Event Network Component Authorizing Roles Partner Economic Resources Business Documents Business Area REA ONTOLOGY Source: ebXML TMWG