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Semantic business process model developed initially at Michigan State University

Modeling of Business Enterprises with the R esource- E vent- A gent (REA) Ontology G. L. Geerts ( University of Delaware ) & W.E. McCarthy ( Michigan State University ). Semantic business process model developed initially at Michigan State University

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Semantic business process model developed initially at Michigan State University

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  1. Modeling of Business Enterprises withthe Resource-Event-Agent (REA) Ontology G. L. Geerts (University of Delaware) & W.E. McCarthy (Michigan State University) • Semantic business process model developed initially at Michigan State University • Ontology extensions (vertical and horizontal) • Refereed literature in accounting & computer science • Successful way of teaching modern accounting and business systems • Candidate for standard use • UN/CEFACT & ebXML • ISO Open-edi • EEC e-commerce integration (ECIMF) • Now at point of increasing formalization need: • Protégé • KIF • Connections to upper ontology

  2. Pattern: A prototypical constellation of entities • REA is an accounting transaction (BP) pattern that has been expanded for full enterprise use • Can we standardize the world of ERP business objects and business object connections with a library of BP patterns ? • Can we standardize collaboration space with collaboration patterns ?

  3. Cookie-Monster (the customer) and Elmo (the entrepreneur) meet in the (real or virtual) marketplace, thus setting the stage for an Economic Exchange

  4. Cookie-Monster (the customer) and Elmo (the entrepreneur) engage in a SHIPMENT (transfer of Cookie Inventory)

  5. Cookie-Monster (the customer) and Elmo (the entrepreneur) engage in a PAYMENT (transfer of Cash)

  6. Economic Resource Economic Event Economic Agent duality {transfer, transformation} participation {outside, inside{accountability}} stock-flow {outflow{use,consumption,give}, inflow{take,production}} Sale Economic Event participation {accountability} Salesperson Economic Agent Cookie Economic Resource stock-flow participation {outside} Customer Economic Agent duality {transfer} participation {outside} Cash Economic Resource Cash-Receipt Economic Event Cashier Economic Agent stock-flow participation {accountability}

  7. Horizontal expansion of BP pattern (Porter Value Chain) ?? • PORTFOLIO of ATTRIBUTES: (Lancaster) • ingredients • baked • advertised • delivered • guaranteed fresh

  8. $$ $$ Cash payout Cash payment $$ raw materials $$ payment purchase logistical operation shipment labor labor labor acquire payment $$ manufactured goods facilities, services & technology labor material issue manufacture job manufacture operation service acquire payment sale payment labor $$ serv. & labor cons advertise campaign targeted product & customer services advertising service delivered raw materials $$ delivered manufactured goods Value Chain

  9. $$ $$ Cash payout Cash payment $$ raw materials $$ payment purchase logistical operation shipment labor labor labor acquire payment $$ manufactured goods facilities, services & technology labor material issue manufacture job manufacture operation service acquire payment sale payment labor $$ serv. & labor cons advertise campaign targeted product & customer services advertising service financing procurement transportation human resources delivered raw materials $$ manufacturing delivered manufactured goods procurement sales marketing service Value Chain

  10. Planning Identification Negotiation Actualization Post-Actualization Vertical expansion of BP pattern (ISO Open-edi)

  11. PLANNING

  12. Cookie-Monster plans his acquisition

  13. IDENTIFICATION

  14. Cookie-Monster and ELMO identify their potential trading partners after

  15. NEGOTIATION

  16. Offer Counter-offer Instrument of offer Instrument of acceptance Cookie-Monster negotiates with ELMO until they reach a contract

  17. ACTUALIZATION

  18. THE “HAPPY PATH” Cookie-Monster and Elmo do the deal

  19. POST ACTUALIZATION

  20. deliver return return fail to deliver delivery penalty pay fail to pay payment penalty pay SELLER BUYER event stream pay deliver n-to-1 pay deliver 1-to-n pay deliver 1-to-1 pay deliver

  21. To accommodate this wider view of business process modeling, what changes ? • Declarative: • Use the basic REA pattern • Abstract up to types • Account for the future with commitments • Establish Aggregations • UP (value chain) • DOWN (workflow) • Procedural: • Use a state machine for continuous monitoring and reporting

  22. Declarative Extensions

  23. Named Set of Groups Abstraction Economic Agent Type Cashiers Salespeople Typification Tom Tom Dick Dick Ashley Ashley Salespeople Harry Harry Jane Jane Cashiers Group & Name Clusters Named Set of Objects Named Set of Objects with Labeled Clusters Planning & Control level Knowledge level Operational Level Economic Agents Source: Geerts and McCarthy, type paper

  24. Economic Contract reciprocal commitment to ship commitment to pay executes executes duality cookie shipment cash payment

  25. Resource Type specifies Economic Commitment specifies Event Type specifies Business Role Source: Geerts and McCarthy, ontology paper

  26. Car Labor Labor Cash Payroll Process Cash Maintained Car Used Car Revenue Process Labor Maintenance Process Labor Car Labor Maintained Car Used Car Labor Cash Acquisition Process Cash Used Car Used Car Car Revenue Maintained Car Customer Rental Agent Labor Used Car Rental Contract Car Car Give Take Exchange Cash Receipt Cash Used Car Cash Cashier Customer Accept Customer Contact Find Car & Provide Keys Assess Customer Needs Check Out Car Check Car File & Choose Assess Insurance Options & Credit Return Car Fill in Contract Update Files Customer Pays

  27. Standards Models

  28. UN/CEFACT

  29. Business Transaction governs Agreement Economic Event Type Economic Resource Type typifies establish specifies specifies Business Role involves Economic Commitment specifies qualifies reciprocal fulfills reserves typifies Regulator Economic Resource Economic Event stockflow Economic Agent from to constrains duality Economic Contract Partner Third Party requires Bilateral Collaboration Mediated Collaboration participates ISO Open-edi Ontology Collaboration Model SOURCE: Adapted from ISO 15944-4, W.E. McCarthy

  30. ECIMF

  31. Why are we here ?? • Connection to Ontolog and core components (UBL) and (hopefully) SUMO • Learn more about formalization for extensions (Protégé and KIF) • For further REA information: http://www.msu.edu/user/mccarth4

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