Business Logic - How Companies avoid Vulnerabilities

Before computers, companies carried out their business processes manually. The business logic of the time was therefore based primarily on human experience and intuition. Companies kept information on paper and made decisions personally.

With the advent of computers, business logic was first centralized on servers and then delivered online via cloud computing. Then came artificial intelligence and Machine learning. They decisively developed business logic further. In today's practice, this means: algorithms recognize patterns in data in real time, make predictions and automated decisions. 

What has not changed over time is the enormous importance of sophisticated business logic for an efficient and successful way of working. We explain to you in an understandable way how business logic works and which functions it assumes in practice. In doing so, we also provide you with 4 important tips on how to protect your company from weak points in business logic.

Business Logic - Definition

business logic definition

Business Logic comprises the essential logical and computational components of a business application. It is the core that controls the functionality and operation of the application. For this purpose, it consists of a collection of rules, processes and calculations that reflect the basic business operations. 

In the process, business logics interact closely with other components such as the user interface, the database, and external interfaces. They are responsible for interpreting user interactions and implementing the associated business rules. They determine how information flows between different components of the application, how they interact with each other, and how they respond to different scenarios. 

In practice, this means that Business Logic is responsible to automate and standardize Automate business processes and procedures.

In this way, companies can minimize human errors and ensure smooth operations. It also enables companies to scale an application efficiently by consolidating core rules and processes into one central part of the application.

Business Logic vs. Application Logic

Business Logic and Application Logic are two central concepts in software development. Business Logic is something like the thinking center of a company. It includes all the rules and processes that determine how the company works. This can be anything from the prices of products to how orders are processed.

Application Logic, on the other hand, is more like the framework of a software application. It takes care of how the application works. This can be, for example, a user login on a platform or the display of data. 

So while Business Logic decides what the business performs, Application Logic is all about how the technical side is implemented.

You can say the Business Logic is the "what" and the Application Logic is the "how".

Together, they ensure that both the business and the software operate properly and efficiently.

In practice, this means, for example: Business Logic is responsible for moderating the input of a customer information form. The Applications Logic ensures that the form is downloaded to the users' system when they click a down arrow button.

Business Logic vs. Business Rules

Business Logic and Business Rules are like the heart and brain of an enterprise application. Business Logic is responsible for the big plan. It decides how things get done and how information flows. 

Business rules, on the other hand, are the small instructions that define what to do in certain situations.

When certain conditions are met, special actions are triggered. For example, if a customer is loyal, the company gives him a discount.

The business logic thus ensures the overall flow, while the business rules regulate the details. What's important is that if companies want to change the Business Logic rules, they don't have to revamp the entire system. This division helps keep the system flexible and easily adaptable so that it runs smoothly.

business logic components

Business Logic Components and their Tasks

Business Logic has different components, each of which performs a different supporting task. Together, they define and control the business logic in a system and implement it. In this way, they ensure that the software functions according to business requirements:

Data consistency

The data consistency component ensures that data in the system is always correct and consistent. It prevents inconsistencies and conflicting information by monitoring transactions and ensuring that all changes are properly completed.

Access control

Access control regulates which users or roles are allowed to access which resources in the system. It implements security policies, authenticates users, and authorizes them according to their permissions to prevent unauthorized access to data.

Restrictions on changes

The change constraints component defines what kind of changes users are allowed to make to the data and under what conditions. In this way, it protects certain data and ensures its integrity.

Business rules

Business rules are logical rules and conditions that control the behavior and operations of the system. These rules can trigger automations, perform validations, or make decisions to ensure that the business processes run according to the requirements.

Calculations and aggregations

This component performs calculations or aggregations with the existing data to generate new information. This can include, for example, calculating totals, averages, or other metrics that companies need for analysis or reporting.

Notifications and user interaction

This component enables communication with users through notifications, messages or interactions. It informs users about important events, requests or actions in the system and allows them to react accordingly.

Transaction management

Transaction management monitors the flow of transactions in the system. It ensures that the software starts, executes and completes transactions properly. In this way, it ensures data consistency and integrity.

Timed actions

This component allows scheduling and executing actions at specific times or time intervals. The system can use it for automatic maintenance tasks, reporting or other periodic tasks.

Data validation and formatting

This component checks incoming data for correctness, completeness and compliance with the required standards. It also performs formatting to ensure that the data has the right structure to process it further.

business logic use case

Business Logic Example

The following business logic example shows how business logic in e-commerce helps an online store run smoothly. It ensures that interactions between customers, products, prices, and inventory run correctly and efficiently. In this way, store operators improve the customer experience.

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A customer visits an online store, browses the product list, and adds two items of clothing to the shopping cart. This is where the Business Logics come into play. They ensure that the selected items in the selected size are available in the warehouse. If an item is no longer in stock, the logic informs the customer of this and suggests alternatives if necessary.

Price calculation

Once the items are in the shopping cart, the online store calculates the total cost. To do this, Business Logic applies pricing rules such as discounts, offers, or shipping costs based on the quantity and type of items purchased. For example, sale items have a higher discount than regular items.

Complete order 

After the customer has selected the items and the online store has calculated the prices, the customer completes the order. Here, Business Logic accesses the stored customer data and generates an order confirmation with the relevant information.

Payment processing 

The business logic usually also plays a role in the selection of the payment method and the execution of the transaction. Depending on the selected payment method (credit card, PayPal, wire transfer, etc.), it performs different steps and security checks.

Order management 

After the purchase is completed, Business Logic stores the order data in the database and updates the inventory of the purchased items. This ensures that inventory levels remain accurate and an accurate record of transactions is available.

Business logic and application logic in interaction

As the use case shows, business logic and application logic work closely together. The boundaries between them are not always absolute. They often work hand in hand to ensure that an application functions effectively and smoothly. 

In our Business Logic example, this is the case: 

The Application Logic processes the customer's request, retrieving products from the database and forwarding them to the Business Logic. This then applies the specific business rules to calculate prices, check inventory and apply discounts. The Application Logic then uses the results of the business logic to return the correct information to the user, display the shopping cart and complete the ordering process. 

How to prevent Business Logic Vulnerabilities - 4 Tips

Vulnerabilities in business logics are usually due to errors in the design or implementation of an application. In practice, they occur when users interact with software in a way that is unexpected or unknown to them.

In practice, this would have devastating consequences: For example, business logic vulnerabilities allow attackers to bypass authentication and steal data. In addition, a vulnerability allows users to redeem a voucher more than once, for example. 

To prevent this, companies can take the following preventive measures:

  1. Develop deep understanding of the software

    A comprehensive understanding of the software lays the foundation for vulnerability detection and prevention. The data security, testing and software development team should therefore know the application inside out. It helps if companies create a comprehensive list of potential vulnerabilities, licenses and code components used to cover all potential risk factors.

  2. Avoid assumptions about user behavior

    A common mistake developers and testers make is to make assumptions about how users will behave when interacting with the software. To prevent vulnerabilities, organizations should critically review their own assumptions. Therefore, for example, implement mechanisms to ensure that user input is meaningful before the software performs actions.

  3. Master prioritization

    As a rule, every software has a business logic vulnerability from time to time. However, addressing all vulnerabilities simultaneously can be challenging for companies. Therefore, you should always fix the flaws that pose a particularly high risk first. You can identify these using analysis tools.

  4. Constant monitoring and adjustment

    The technology landscape is constantly evolving, so new vulnerabilities in business and application logic are emerging all the time. Companies should therefore conduct regular security audits and adjust logics accordingly. In addition, training and education for the security team helps to stay on top of the latest threats and best practices.

Simplify Business and Application Logic with Konfuzio 

With Konfuzio, companies can simplify business and application logic and make it more efficient. The software provides an all-in-one tool for this purpose. With this tool, companies can automatically capture, classify, analyze and evaluate unstructured data, such as from customer service, market analysis, customer communication and contract management.

Konfuzio has trained its software on over 100,000 documents. In the process, artificial intelligence, machine learning and deep learning make it possible that companies can set up and implement rules for their business and application logic in no time. 

In practice, Konfuzio supports companies in this way, for example:

Make Business Logic more efficient with Konfuzio

Companies optimize business logic with Konfuzio in this way, among others:

More efficient processes

Konfuzio extracts business rules and processes from a large amount of unstructured data. This enables companies to design their business logic more accurately and make decisions based on current data.

Better automation

The software automates repetitive tasks and processes based on business logic. In this way, companies make better use of their resources and reduce human errors. 

Faster adjustment

With Konfuzio, companies can adapt their business logic in an agile manner, as the software is able to detect changes in unstructured data and update the logic accordingly.

Approach Application Logic more efficiently with Konfuzio

Companies can improve application logic with Konfuzio in the following ways, for example:

More efficient data processing

Konfuzio helps extract relevant information from unstructured data such as emails, documents or chats. Application Logic then uses this information to execute specific functions within an application.

Personalized experiences

Through data analytics, Konfuzio helps Application Logic create personalized experiences for users. For example, the application can make customized recommendations based on customer communications.

Faster development

Konfuzio helps generate code snippets and templates that software engineers can integrate into application logic. In this way, companies accelerate the development of new functions and applications.


What is Business Logic?

Business Logic is the critical part of an application that determines how business processes run. For example, it defines rules according to which an order in an online store is processed or data is changed or used - based on the requirements of a company. In this way, business logic ensures that an application runs smoothly and efficiently performs its tasks.

What is the difference between Business Logic and Application Logic?

Business Logic refers to the rules and processes that are specific to a business. This is where business-related calculations, validations, and decisions are made that form the basis of how a business runs. Application Logic is about the control of the application itself. This includes processing requests, coordinating actions, and interacting with the user interface. While Business Logic defines the "what" and "why" of a system, Application Logic takes care of the "how" of function execution and interaction.

What is a Business Logic example?

A Business Logic example is how an online store works. When a customer adds a product to the shopping cart, the Business Logic is activated. This means that the rules and calculations programmed behind the scenes go into action. In this case, the price of the selected product is added to the total price in the shopping cart. At the same time, the availability of the product in the warehouse is checked and updated to ensure that the customer can only add available items to the cart. This example illustrates how Business Logic is used to implement business processes and rules in an application to ensure smooth and correct interaction between the customer and the system.

Do you have questions about integrating artificial intelligence into your processes? Then get in touch now advised by one of our experts!

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