1business models – rea ontology resources events agents the rea ontology

1Business Models – REA Ontology

Resources Events Agents

The REA Ontology

2Business Models – REA Ontology

Example of Exchange 1

Subscription

Subscriber Publisher

Payment Delivery

Magazine

3Business Models – REA Ontology

Example of Exchange 2

Order

Customer Company

Payment Shipment

Product

4Business Models – REA Ontology

Example of Exchange 3

Order line

Customer Company

Payment Shipment

Product

Order

Resources

Events

Agents

REAREAREAREA

5Business Models – REA Ontology

REA - Intuition

Agent Agent

Resource Resource

Eventsexchangingresources

6Business Models – REA Ontology

Economic Resource

An economic resource is something of value that is under the control of an agent and that can be transferred from one agent to another

Examples: cash, goods,labour service

7Business Models – REA Ontology

Economic Event

An economic event is the transfer of control of an economic resource from one agent to another agent

Examples: cash-payment, shipment

8Business Models – REA Ontology

Economic Agent

An economic agent is someone who is able to participate in economic events

Examples: manufacturer, distributor, carrier, consumer

9Business Models – REA Ontology

Duality

Order line

Customer Company

Payment Shipment

Product

Order

Resources

Events

Agents

Duality

10Business Models – REA Ontology

Duality Duality is a relationship

between economic events expressing that in order to obtain an economic resource, an agent must give up another economic resource

“One good turn deserves another”

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Duality

PaymentPaymentCashCashCompanyCompanyresource

from

to

CustomerCustomer

ShipmentShipmentProductProductCustomerCustomerresource

from

to

CompanyCompany

dualityduality

12Business Models – REA Ontology

Basic REA Ontology

EconomicEvent

duality

EconomicResource

EconomicAgent

custody

13Business Models – REA Ontology

Basic REA Ontology

EconomicResource

EconomicEvent

EconomicAgent

duality

Customer

CompanyProduct

Cash

Shipment

Payment

14Business Models – REA Ontology

Commitments and Contracts

Order line

Customer Company

Payment Shipment

Product

Order

Resources

Events

Agents

Duality

Contract

Commitment

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Commitment

An obligation to perform an economic event in the future

Example: order lines

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Contract

A contract is a container for a collection of commitments

Example: purchase order with several line items

17Business Models – REA Ontology

REA Ontology

EconomicResource

EconomicEvent

EconomicAgent

duality

custody

EconomicContract

EconomicCommitment

fulfils

EconomicResource Type reserves

18Business Models – REA Ontology

Operational Level and Knowledge Level

KnowledgeLevel

OperationalLevel

Information structures that characterise and prescribe the structure and behaviour of objects at the operational level

Concrete objects that can be born, change and die

19Business Models – REA Ontology

Operational Level and Knowledge Level

KnowledgeLevel

OperationalLevel

Meal

Recipe

Car

Car model

Book copy

Book

20Business Models – REA Ontology

REA Ontology - Summary

ECONOMIC RESOURCE

ECONOMIC RESOURCE TYPE

1

0..*

1

0..*

of

ECONOMIC EVENT

1 0..*1 0..*

stock-flow ECONOMIC AGENT

10..*

10..*from

10..*

to

10..*

BUSINESS PROCESS

ECONOMIC COMMITMENT

1 0..*1 0..*

reserves

1

0..*

1

0..*

fulfils

ECONOMIC CONTRACT

0..* 0..*0..* 0..*

governs

1

1..*

within

1

1..*

21Business Models – REA Ontology

REA Ontology - Links

Home page of William McCarthy: http://www.msu.edu/~mccarth4/

22Business Models – REA Ontology

Credits

Disclaimer and Copyright Notice: Permission is granted without fee for personal or educational (non-profit) use. In other cases contact with INTEROP Project Coordinator interop_coordinator@listes.u-bordeaux1.fr for use conditions. Some of the figures presented in this tutorial are freely inspired by others reported in referenced works/sources. For such figures copyright and all rights therein are maintained by the original authors or by other copyright holders. It is understood that all persons copying these figures will adhere to the terms and constraints invoked by each copyright holder.

Developed by KTH

for INTEROP Projectwww.interop-noe.org

Introduction to REA

Published: December, 4th 2006

Authors:Paul Johannesson pajo@dsv.su.se

Stockholm University and Royal Institute of TechnologySweden