A Guide to Understanding Business Logic and Software

business logic and software

Every area within your organization has one or more business processes they execute to accomplish different tasks. Many companies use workflow automation to complete those processes automatically. To achieve that, they must dictate how to apply custom rules to different scenarios. Organizations can cut down on manual work and improve operational efficiency with suitable business logic software. Let's look at the definition of business logic and how it applies in the course of everyday business.

What is Business Logic?

Business logic is the process of describing how you wish to apply standards to different situations. In software, that’s translated into business rules and algorithms that outline how software should handle information passed between other systems. In addition, business logic also covers any constraints around business operations.

In programming, business logic typically gets turned into rules that output a binary, or a true or false condition. The logic dictates that something must happen when a piece of information meets certain requirements.

You often see business logic at work within the sequence of steps in a workflow that outlines how information should flow through a system. Business logic is often called domain logic in programming since it controls how decision-making should happen within a program.

develop business rulesHow Does Business Logic Differ from Business Rules?

While the terms often get used interchangeably, there are distinct differences between business logic and business rules. Your business rules can’t function without business logic. It’s the logic that tells business rules how they should operate under certain conditions.

Think of the logic as the conductor and the business rules as a train. Without the conductor, the train sits there idly. Once the conductor gets on board, they input instructions that control where the train goes.

However, the conductor has no role if they have no train to operate. The conductor – our business logic – relies on having the framework of the train in place. Conversely, the train – our business rules – depends on the conductor to provide it with accurate directions.

Another important distinction to understand is the one between business logic. vs application logic. Business logic focuses on the information itself, while application logic defines how it happens. For example, your application logic might define what programming language to use when building software, while the business logic outlines the functions expected from the final product. 

Why is Business Logic Important?

Business logic helps companies manage and work with large amounts of data. With the right software, organizations can use business logic to translate various company protocols into usable data and instructions to feed into computer systems. That way, employees can keep up with their daily work while tracking and updating tasks. With business logic, organizations are better positioned to maintain multiple categories of data while remaining efficient.

What Are the Key Components of Business Logic?

The below components are essential to ensuring the proper application of business logic.

Data Stability

Correct application of business logic relies on consistency in the data entered. Therefore, any information captured in a database or other data store should comply with business logic guidelines and align with records already in the database. Consistent data help employees accomplish their work goals with the greatest accuracy.

Access Control

Ideally, employees should only see information relevant to their job roles. Instead of risking an update that could corrupt data, organizations can control who gets permission to view certain data with the correct business logic software. By managing the information available to users, businesses can streamline what workers view and interact with different company systems.

Data Update Restrictions

Another everyday use of business logic is to limit who can make changes to critical business information within a database. Many organizations use business logic software to add checks that prevent users without specific permissions from altering data. That way, there are no unintended impacts to everyday company operations.

What Are Some Use Cases for Business Logic?

business operations

Creating Process Flows

When users execute an action within a system, a data flow typically controls how information gets filtered and processed. In addition, that data flow makes sure that certain events occur to ensure the proper execution of an automated process. Data logic software lets companies outline process flows that dictate what must happen before another action can occur.

One example is setting up business logic that mimics a user logging into a website. You can use business logic to define steps like entering username and password information. The data flow ensures that information gets entered correctly before executing the following action, like taking the user to a specific landing page.

Calculations and Transactions

Many financial organizations rely on business logic to define how a business system or application performs calculations and executes a transaction. For example, when you make a website purchase, business logic determines things like how much you should pay for shipping or taxes before providing you with a final total.

When you click a button to complete your transaction, business logic direct rules that validate your payment method before completing the purchase. If there’s an issue, you get presented with an error message and the option to enter a different form of payment.

Setting Up Events

Many system processes rely on the execution of business rules. The business logic determines the execution order and what needs to happen before a method proceeds. For example, you can use business logic to decide when to apply fees to specific transactions.

If a transaction comes into the system that meets all the required parameters, the business logic tells the system to route the transaction to a different event that applies the tax. It’s only allowed to proceed after applying the additional fee. Other events that might occur during a transaction include adding on international shipping fees or local taxes based on a buyer’s location.

Sending Notifications

With business logic software, companies can ensure that the right people get notified about critical information. An example includes letting IT know that a crucial business system may be offline. That enables them to start addressing the issue before the impacts become widespread.

Validating Data

Business logic can direct business rules to check the validity of the information entered through an interface. For example, it can ensure that users enter only numerical data info fields with that designation. However, if they try to enter text, your business logic can enforce a rule that warns the user that they need to enter information in a correct format.

Enjoy the Benefits of Business Logic

The Integrify platform makes it easy for organizations to design and execute business logic through automated workflows. Learn more about the platform and how it can make your company more efficient by setting up a demo.

Automate Any Business Process

To see how quickly you can begin automating your business processes, check out our 2-minute product video.

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