396842 Business Support Systems

8/12/2019 396842 Business Support Systems

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Prof. Anatoly Sachenko

8 Business Support Systems

I. LECTURE OVERVIEW

Foundation Concepts: Decision Support Systems shows how management information systems, decision supportsystems, executive information systems, expert systems, and artificial intelligence technologies can be applied to

decision-making situations faced by business managers and professionals in todays dynamic businessenvironment.

Inormation! Decisions! and "ana#ement $ !nformation systems can support a variety of management decision-making levels and decisions. "hese include the three levels of management activity #strategic, tactical, andoperational decision making$ and three types of decision structures #structured, semistructured, and unstructured$.!nformation systems provide a wide range of information products to support these types of decisions at all levels ofthe organi%ation.

Decision Support Trends $ &a'or changes are taking place in traditional &!S, (SS, and )!S tools for providingthe information and modeling managers need to support their decision-making. (ecision support in business ischanging, driven by rapid developments in end user computing and networking* !nternet, +eb browser, and relatedtechnologies* and the explosion of an e-commerce activity. "he growth of corporate intranets, extranets, as well asthe +eb, has accelerated the development of executive class interfaces like enterprise information portals,

enterprise knowledge portals, and +eb-enabled decision support software tools, and their use by lower levels ofmanagement and by individuals and teams of business professionals. !n addition, the dramatic expansion of e-commerce has opened the door to the use of enterprise portals and (SS tools by the suppliers, customers, and other

business stakeholders of a company for customer relationship and supply chain management and other e-businessapplications.

"ana#ement Inormation Systems $ &anagement information systems provide prespecified reports andresponses to managers on a periodic, exception, demand, or push reporting basis, to meet their need forinformation to support decision-making.

OL%& and Data "inin# $ nline analytical processing interactively analy%es complex relationships among largeamounts of data stored in multidimensional databases. (ata mining analy%es the vast amounts of historical datathat have been prepared for anlaysis in data warehouses. /oth technologies discover patterns, trends, andexception conditions in a companys data that support their business analysis and decision-making.

Decision Support Systems $ (ecision support systems are interactive, computer-based information systems thatuse (SS software and a model base and database to provide information tailored to support semistructured andunstructured decisions faced by individual managers. "hey are designed to use decision makers own insights and

'udgments in an ad hoc, interactive, analytical modeling process leading to a specific decision.

E'ecuti(e Inormation Systems $ )xecutive information systems are information systems originally designed tosupport the strategic information needs of top management. 0owever, their use is spreading to lower levels ofmanagement and business professionals. )!S are easy to use and enable executives to retrieve information tailoredto their needs and preferences. "hus, )!S can provide information about a companys critical success factors toexecutives to support their planning and control responsibilities.

Enterprise Inormation and )no*+ed#e &orta+s $ )nterprise information portals provide a customi%ed and

personali%ed +eb-based interface for corporate intranets to give their users easy access to a variety of internal andexternal business applications, databases, and information services that are tailored to their individual preferencesand information needs. "hus, an )!P can supply personali%ed +eb-enabled information, knowledge, and decisionsupport to executives, managers, and business professionals, as well as customers, suppliers, and other business

partners. An enterprise knowledge portal is a corporate intranet portal that extends the use of an )!P to includeknowledge management functions and knowledge base resources to that it becomes a ma'or form of knowledgemanagement system for a company.%rtiicia+ Inte++i#ence $ "he ma'or application domains of artificial intelligence #A!$ include a variety ofapplications in cognitive science, robotics, and natural interfaces. "he goal of A! is the development of computerfunctions normally associated with human physical and mental capabilities, such as robots that see, hear, talk, feel,


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Prof. Anatoly Sachenkoand move, and software capable of reasoning, learning, and problem solving. "hus, A! is being applied to manyapplications in business operations and managerial decision making, as well as in many other fields.

%I Tec,no+o#ies $ "he many applications areas of A! are summari%ed in 1igure 8.23, including neural networks,fu%%y logic, genetic algorithms, virtual reality, and intelligent agents. 4eural nets are hardware or softwaresystems based on simple models of the brains neuron structure that can learn to recogni%e patterns in data. 1u%%ylogic systems use rules of approximate reasoning to solve problems where data are incomplete or ambiguous.5enetic algorithms use selection, randomi%ing, and other mathematics functions to simulate an evolutionary

process that can yield increasingly better solutions to problems. 6irtual reality systems are multisensory systems

that enable human users to experience computer-simulated environments as if they actually existed. !ntelligentagents are knowledge-based software surrogates for a user or process in the accomplishment of selected tasks.

E'pert Systems $ )xpert systems are knowledge-based information systems that use software and a knowledgebase about a specific, complex application area to act as expert consultants to users in many business and technicalapplications. Software includes an inference engine program that makes inferences based on the facts and rulesare stored in the knowledge base. A knowledge base consists of facts about a specific sub'ect area and heuristics#rules of thumb$ that express the reasoning procedures of an expert. "he benefits of expert systems #such as

preservation and replication of expertise$ must be balanced with their limited applicability in many problemsituations.

II. LE%R-I- OB/ECTIVES

!dentify the changes taking place in the form and use of decision support in e-business enterprises.

!dentify the role and reporting alternatives of management information systems.

(escribe how online analytical processing can meet key information needs of managers.

)xplain the decision support system concept and how it differs from traditional management information

systems.

)xplain how executive information systems can support the information needs of executives, managers, and

business professionals.

)xecutive information systems

)nterprise information portals

)nterprise knowledge portals

!dentify how neural networks, fu%%y logic, genetic algorithms, virtual reality, and intelligent agents can be

used in business.

5ive examples of several ways expert systems can be used in business decision-making situations.

III. LECTURE -OTES

Section I: Decision Support in Business

BUSI-ESS %-D DECISIO- SU&&ORT

"o succeed in e-business and e-commerce, companies need information systems that can support the diverseinformation and decision-making needs of their managers and business professionals. "his chapter focuses on thema'or types of management information systems, decision support, and executive information systems. "hechapter concentrates on how the !nternet, intranets, and other web-enabled information technologies havesignificantly strengthened the role of information systems play in supporting the decision-making activities ofevery manager and knowledge worker in the internetworked e-business enterprise.

Analyzing Siemens AG+e can learn a lot from this case about how !nternet and intranet technologies are changing the face traditionalinformation systems for managerial information and decision support. "ake a few minutes to read the case, and wewill discuss it #See Siemens A5 in section !7$.

Information, Decisions, and Management:0Fi#ure 1.23


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"he type of information reuired by decision-makers in a company is directly related to the level of management

decision-making and the amount of structure in the decision situations they face. "he framework of the classicmanagerial pyramidapplies even in todays downsizedorgani%ations andflattenedor non-hierarchicalorgani%ational structures. 9evels of management decision making still exist, but their si%e, shape, and participantscontinue to change as todays fluid organi%ational structures evolve. "hus, the levels of managerial decision-making that must be supported by information technology in a successful organi%ation are:

Strategic Management: - "ypically, a board of directors and an executive committee of the ;) and top

executives develop overall organi%ational goals, strategies, policies, and ob'ectives as part of a strategicplanning process.

"hey monitor the strategic performance of the organi%ation and its overall direction in the political, economic,and competitive business environment.

Unstructured Decisions - !nvolve decision situations where it is not possible to specify in advance most of thedecision procedures to follow.

Strategic Decision Makers-


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Prof. Anatoly SachenkoStructured Decisions - !nvolve situations where the procedures to follow when a decision is needed can bespecified in advance.

!erational Decision Makers-


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Prof. Anatoly SachenkoDECISIO- SU&&ORT TRE-DS

!nformation systems are increasingly being used to support business decision-making. A number of trends haveoccurred in this area:

e-commerce is expanding the information and decision support uses and expectations of a companys

employees, managers, customers, suppliers, and other business partners.

1ast pace of new information technologies like P; hardware and software suites, client>server networks, and

networked P; versions of (SS>)!S software, made )!S>(SS access available to lower levels of management,as well as to nonmanagerial individuals and self-directed teams of business professionals.

"he !nternet and the +orld +ide +eb have also contributed greatly to the concept of e-commerce.

(ramatic growth of intranets and extranets that internetwork e-business enterprises and their stakeholders.

e-business decision support applications are being customi%ed, personali%ed, and web-enabled for use in e-

business and e-commerce.

"%-%E"E-T I-FOR"%TIO- S5STE"S

Management information systemswere the original type of information systems developed to support managerialdecision-making. A management information system produces information products that support many of the day-to-day decision-making needs of managers and business professionals.


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nline analytical !rocessingis a capability of management, decision support, and executive information systemsthat enables managers and analysts to interactively examine and manipulate large amounts of detailed andconsolidated data from many perspectives #analytical databases, data marts, data warehouses, data miningtechniues, and multidimensional database structures, speciali%ed servers and web-enabled software products$.

nline analytical processing involves several basic analytical operations:

Conso+idation 6 !nvolves the aggregation of data. "his can involve simple roll-ups or complex groupings

involving interrelated data.

Dri++6Do*n 6 9AP can go in the reverse direction and automatically display detailed data that comprises

consolidated data.

S+icin# and Dicin# 6


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Prof. Anatoly Sachenko 9inear programming models

&ultiple regression forecasting models

;apital budgeting present value models

Geogra!&ic Information and Data +isualization SystemsGeogra!&ic information systems#5!S$ and data visualization systems#(6S$ are special categories of (SS thatintegrate computer graphics with other (SS features.

Geogra!&ic Information System@ is a (SS that uses geographic databases to construct and display maps and

other graphics displays that support decisions affecting the geographic distribution of people and otherresources.

Data +isualization Systems@ (6S systems represent complex data using interactive three-dimensional

graphical forms such as charts, graphs, and maps. (6S tools help users to interactively sort, subdivide,combine, and organi%e data while it is in its graphical form.

USI- DECISIO- SU&&ORT S5STE"S: 0Fi#ure 1.783

?sing a decision support system involves an interactive analytical modellingprocess. "ypically, a manager uses a(SS software package at his workstation to make inuiries, responses and to issue commands. "his differs fromthe demand responses of information reporting systems, since managers are not demanding prespecifiedinformation.


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Prof. Anatoly Sachenkoconstraints. "hen one or more other variables are changed repeatedly, sub'ect to the specified constraints, untilthe best values for the target variables are discovered.

Data Mining for Decision Su!!ort:"he main purpose of data mining is knowledge discovery, which will lead to decision support. ;haracteristics ofdata mining include:

(ata mining software analy%es the vast stores of historical business data that have been prepared for analysis

in corporate data warehouses.

(ata mining attempts to discover patterns, trends, and correlations hidden in the data that can give a

company a strategic business advantage.

(ata mining software may perform regression, decision-tree, neural network, cluster detection, or market

basket analysis for a business.

(ata mining can highlight buying patterns, reveal customer tendencies, cut redundant costs, or uncover

unseen profitable relationships and opportunities.

E9ECUTIVE I-FOR"%TIO- S5STE"S

'(ecutive information systems#)!S$ are information systems that combine many of the features of managementinformation systems and decision support systems. )!S focus on meeting the strategic information needs of topmanagement. "he goal of )!S is to provide top executives with immediate and easy access to information about afirms critical success factors#;S1s$, that is, key factors that are critical to accomplishing the organi%ations

strategic ob'ectives.

eatures of an 'IS:

&ore features such as web browsing, electronic mail, groupware tools, and (SS and expert system capabilities

are being added.

!nformation is presented in forms tailored to the preferences of the executives using the system. 0eavy use of

graphical user interface and graphics displays.

!nformation presentation methods used by an )!S include exception reporting and trend analysis. "he ability

to drill downallows executives to uickly retrieve displays of related information at lower levels of detail.

!nternet and intranet technologies have added capabilities to )!S systems.

)!Ss have spread into the ranks of middle management and business professionals as they have recogni%ed

their feasibility and benefits, and as less-expensive systems for client>server and corporate intranets becomeavailable.

E-TER&RISE I-FOR"%TIO- &ORT%LS %-D DECISIO- SU&&ORT

&a'or changes and expansion are taking place in traditional &!S, (SS, and )!S tools for providing theinformation and modeling that managers need to support their decision making. Some of these changes include:

(ecision support in business is changing, driven by rapid developments in end user computing and

networking* !nternet, web browser, and related technologies, and the explosion of e-commerce activity.

5rowth of corporate intranets, extranets, as well as the +eb, has accelerated the development and use of

executive class information delivery and decision support software tools by lower levels of management andby individuals and teams of business professionals.

(ramatic expansion of e-commerce has opened the door to the use of such e-business (SS tools by the

suppliers, customers, and other business stakeholders of a company for customer relationship management,

supply chain management, and other e-business applications.

'nter!rise Information %ortals:

'nter!rise information !ortalsare being developed by companies as a way to provide web-enabled

information, knowledge, and decision support to executives, managers, employees, suppliers, customers, andother business partners.

'nter!rise information !ortals are described as a customi%ed and personali%ed web-based interface for

corporate intranets that give users easy access to a variety of internal and external business applications,databases, and services.


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Prof. Anatoly Sachenko )nterprise information portal is the entry to corporate intranets that serve as the primary kno)ledge

management systemsfor many companies. "hey are often called enter!rise kno)ledge !ortalsby somevendors. Bnowledge management systems are defined as the use of information technology to help gather,organi%e, and share business knowledge within an organi%ation.

)nterprise information portals can play a ma'or role in helping a company use its intranets as knowledge

management systems to share and disseminate knowledge in support of its business decision-making.

)-OWLEDE "%-%E"E-T S5STE"S CFi#ure 1.2D

Bnowledge management has become one of the ma'or strategic uses of information technology. &any companiesare building kno)ledge management systems#B&S$ to manage organi%ational learning and business know-how."he goal of B&S is to help knowledge workers create, organi%e, and make available important businessknowledge, wherever and whenever its needed in an organi%ation. "his includes processes, procedures, patterns,reference works, formulas, best practices, forecasts, and fixes. !nternet and !ntranet web sites, groupware, datamining, knowledge bases, discussion forums, and videoconferencing are some of the key information technologiesfor gathering, storing, and distributing this knowledge.

;haracteristics of B&S:

B&S are information systems that facilitate organi%ational learning and knowledge creation.

B&S use a variety of information technologies to collect and edit information, assess its value, disseminate it

within the organi%ation, and apply it as knowledge to the processes of a business.

B&S are sometimes calledadaptive learningsystems. "hats because they create cycles of organi%ationallearning called learning loops, where the creation, dissemination, and application of knowledge produces anadaptive learning process within a company.

B&S can provide rapid feedback to knowledge workers, encourage behavior changes by employees, and

significantly improve business performance.

As an organi%ational learning process continues and its knowledge base expands, the knowledge-creating

company integrates its knowledge into its business processes, products, and services. "his makes it a highlyinnovative and agile provider of high uality products and customer services and a formidable competitor inthe marketplace.


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Section II: %rtiicia+ Inte++i#ence Tec,no+o#ies in Business

BUSI-ESS %-D %I

/usiness and other organi%ations are significantly increasing their attempts to assist the human intelligence andproductivity of their knowledge workers with artificial intelligence tools and techniues. A! includes naturallanguages, industrial robots, expert systems, and intelligent agents.

Analyzing .A' Systems

+e can learn a lot about the business value of using the !nternet and artificial intelligence technologies from thiscase. "ake a few minutes to read it, and we will discuss it #/A) Systems in Section !7$.

%- OVERVIEW OF %RTIFICI%L I-TELLIE-CE

Artificial intelligence#A!$ is a science and technology based on disciplines such as computer science, biology,psychology, linguistics, mathematics, and engineering. "he goal of A! is to develop computers that can think, aswell as see, hear, walk, talk, and feel. A ma'or thrust of A! is the development of computer functions normallyassociated with human intelligence, such as reasoning, learning, and problem solving.

T&e Domains of Artificial Intelligence:0Fi#ure 1.243

A! applications can be grouped into three ma'or areas:

/ognitive Science - "his area of artificial intelligence is based on research in biology, neurology, psychology,

mathematics, and many allied disciplines. !t focuses on researching how the human brain works and howhumans think and learn. "he results of such research in human information processing are the basis for the

development of a variety of computer-based applications in artificial intelligence.

Applications in the cognitive science area of A! include:

'(!ert Systems - A computer-based information system that uses its knowledge about a specific complexapplication area to act as an expert consultant to users. "he system consists of knowledge base and softwaremodules that perform inferences on the knowledge, and communicate answers to a users uestions.

0no)ledge-.ased Systems - An information system, which adds a knowledge base and some, reasoningcapability to the database and other components, found in other types of computer-based information systems.


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Ada!tive 1earning Systems - An information system that can modify its behavior based on informationacuired as it operates.

uzzy 1ogic Systems - ;omputer-based systems that can process data that are incomplete or only partiallycorrect. Such systems can solve unstructured problems with incomplete knowledge by developing approximateinferences and answers.

2eural 2et)ork- software can learn by processing sample problems and their solutions. As neural nets start

to recogni%e patterns, they can begin to program themselves to solve such problems on their own.

Genetic Algorit&m- software uses (arwinian #survival of the fittest$, randomi%ing, and other mathematicalfunctions to simulate evolutionary processes that can generate increasingly better solutions to problems.

Intelligent Agents- ?se expert system and other A! technologies to serve as software surrogates for a varietyof end user applications.

$o*otics:6 A!, engineering, and physiology are the basic disciplines of robotics. "his technology produces

robot machines with computer intelligence and computer-controlled, humanlike physical capabilities.

computer interfaces that enables human users to experiencecomputer-simulated ob'ects, entities, spaces, and worlds as if they actually existed.

-EUR%L -ETWOR)S

2eural net)orksare computing systems modelled on the human brains mesh-like network of interconnectedprocessing elements, called neurons. f course, neural networks are much simpler than the human brain#estimated to have more than EHH billion neuron brain cells$. 9ike the brain, however, such networks can processmany pieces of information simultaneously and can learn to recogni%e patterns and program themselves to solverelated problems on their own.

4eural networks can be implemented on microcomputers and other computer systems via software packages,which simulate the activities of a neural network of many processing elements. Speciali%ed neural networkcoprocessor circuit boards are also available. Special-purpose neural net microprocessor chips are used in someapplication areas.


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Prof. Anatoly Sachenko?ses include:

&ilitary weapons systems

6oice recognition

;heck signature verification

&anufacturing uality control

!mage processing

;redit risk assessment

!nvestment forecasting

(ata mining

FU;;5 LOIC S5STE"S

uzzy 1ogicis a method of reasoning that resembles human reasoning since it allows for approximate values andinferences #fu%%y logic$ and incomplete or ambiguous data #fu%%y data$ instead of relying only on crispdata, suchas binary #yes>no$ choices.

uzzy 1ogic in .usiness:)xamples of applications of fu%%y logic are numerous in Iapan, but rate in the ?nited States. "he ?nited Stateshas tended to prefer using A! solutions like expert systems or neural networks. Iapan has implemented many fu%%ylogic applications, especially the use of special-purpose fu%%y logic microprocessors chips, called fu%%y process

controllers. )xamples of fu%%y logic applications in Iapan include:

+irtual reality#6computer interfaces that

enable human users to experience computer-simulated ob'ects, entities, spaces, and JworldsJ as if they actuallyexisted #also called cyberspaceand artificial reality$.

+$ A!!lications:

;omputer-aided design #;A($

&edical diagnostics and treatment

Scientific experimentation in many physical and biological sciences

1light simulation for training pilots and astronauts

Product demonstrations


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Prof. Anatoly Sachenko )mployee training

)ntertainment #3-( video games$

+$ 1imitations:"he use of virtual reality seems limited only by the performance and cost of its technology. 1or example, some 6wi%ards$ is asoftware surrogatefor an end user or a processthat fulfils a stated need or activity. An intelligent agent uses a built-in and learned knowledge base about a personor process to make decisions and accomplish tasks in a way that fulfils the intentions of a user. ne of the mostwell known uses of intelligent agents is the wi%ards found in &icrosoft ffice and other software suites."he use of intelligent agents is expected to grow rapidly as a way for users to:

Simplify software use.

Search websites on the !nternet and corporate intranets

0elp customers do comparison-shopping among the many e-commerce sites on the +eb.

E9&ERT S5STE"S

ne of the most practical and widely implemented applications of artificial intelligence in business is thedevelopment of expert systems and other knowledge-based information systems.

0no)ledge-*ased information system- adds a knowledge base to the ma'or components found in other types

of computer-based information systems.

'(!ert System - A computer-based information system that uses its knowledge about a specific complex

application area to act as an expert consultant to users. )S provide answers to uestions in a very specificproblem area by making humanlike inferences about knowledge contained in a speciali%ed knowledge base."hey must also be able to explain their reasoning process and conclusions to a user.


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/om!onents of '(!ert Systems:0Fi#ure 1.473

"he components of an expert system include a knowledge base and software modules that perform inferences onthe knowledge and communicate answers to a users uestion. "he interrelated components of an expert systeminclude:

0no)ledge *ase: - the knowledge base of an )S contains:

E. 1acts about a specific sub'ect area2. 0euristics #rule of thumb$ that express the reasoning procedures of an expert on the sub'ect.

Soft)are resources: - An )S software package contains:

E. Inference enginethat processes the knowledge related to a specific problem.2. ?ser interface program that communicates with end users.3. )xplanation program to explain the reasoning process to the user.F. Software tools for developing expert systems include knowledge acuisition programs and expert system

shells.

3ard)are resources: - "hese include:

E. Stand alone microcomputer systems2. &icrocomputer workstations and terminals connected to minicomputers or mainframes in a

telecommunications network.3. Special-purpose computers.

%eo!le resources: - People resources include:

E. Bnowledge engineers2. )nd-users

'(!ert System A!!lications: 0Fi#ure 1.483


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?sing an expert system involves an interactive computer-based session, in which:

"he solution to a problem is explored with the expert system acting as a consultant.

)xpert system asks uestions of the user, searches its knowledge base for facts and rules or other knowledge.

)xplains its reasoning process when asked.

5ives expert advice to the user in the sub'ect area being explored. )xamples include: credit management,

customer service, and productivity management.

)xpert systems typically accomplish one or more generic uses. Six activities include:

(ecision &anagement

(iagnostic>troubleshooting

&aintenance Scheduling

(esign>configuration

Selection>classification

Process monitoring>control

DEVELO&I- E9&ERT S5STE"S

"he easiest way to develop an expert system is to use an e(!ert systems&ellas a developmental tool. An expertsystem shell is a software package consisting of an expert system without a kernel, that is, its knowledge base."his leaves ashellof software #the inference engine and user interface programs$ with generic inferencing anduser interface capabilities. ther development tools #such as rule editors and user interface generators$ are addedin making the shell a powerful expert system development tool.


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0no)ledge 'ngineeringA kno)ledge engineeris a professional who works with experts to capture the knowledge #facts and rules ofthumb$ they possess. "he knowledge engineer then builds the knowledge base using an interactive, prototyping

process until the expert system is acceptable. "hus, knowledge engineers perform a role similar to that of systemsanalysts in conventional information systems development. bviously, knowledge engineers must be able tounderstand and work with experts in many sub'ect areas. "herefore, this information systems speciality reuiresgood people skills, as well as a background in artificial intelligence and information systems.

T


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Prof. Anatoly Sachenko )xcel only in solving specific types of problems in a limited domain of knowledge.

IV. )E5 TER"S %-D CO-CE&TS 6 DEFI-ED

%na+ytica+ "ode+in#:!nteractive use of computer-based mathematical models to explore decision alternatives using what-if analysis,sensitivity analysis, goal-seeking analysis, and optimi%ation analysis.

%na+ytica+ "ode+in# $ oa+6See@in# %na+ysis:&aking repeated changes to selected variables until a chosen variable reaches a target value.

%na+ytica+ "ode+in# 6 OptimiAation %na+ysis:1inding an optimum value for selected variables in a mathematical model, given certain constraints.

%na+ytica+ "ode+in# 6 Sensiti(ity %na+ysis:

bserving how repeated changes to a single variable affect other variables in a mathematical model.

%na+ytica+ "ode+in# 6 W,at6i %na+ysis:bserving how changes to selected variables affect other variables in a mathematical model.

%rtiicia+ Inte++i#ence:

A science and technology, whose goal is to develop computers that can think, as well as see, hear, walk, talk, andfeel.

%rtiicia+ Inte++i#ence 6 %pp+ication %reas:

&a'or areas of A! research and development include cognitive science, computer science, robotics, and naturalinterface applications.

%rtiicia+ Inte++i#ence 6 Domains:

"he ma'or domains of A! intelligence are grouped under three ma'or areas: ;ognitive science applications,robotics applications, and natural interface applications.

Data "inin#:?sing special-purpose software to analy%e data from a data warehouse to find hidden patterns and trends.

Data Visua+iAation Systems:(6S systems represent complex data using interactive three-dimensional graphical forms such as charts, graphs,and maps. (6S tools help users to interactively sort, subdivide, combine, and organi%e data while it is in itsgraphical form.

Decision Structure:

!nformation systems can support a variety of management levels and decisions. "hese include the three levels ofmanagement activity #strategic, tactical, and operational$, and three types of decision structures #structured,semistructured, and unstructured$.

Decision Support (ersus "ana#ement Reportin#:!nformation reporting systems focus on providing managers with prespecified information products that report onthe performance of the organi%ation. (ecision support systems focus on providing information interactively tosupport specific types of decisions by individual managers.

Decision Support System:An information system that utili%es decision models, a database, and a decision makers own insights in an ad hoc,interactive analytical modelling process to reach a specific decision by a specific decision maker.

Decision Support Trends:

&a'or changes are taking place in traditional &!S, (SS, and )!S tools for providing the information and modelingmanagers need to support their decision-making.

DSS


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Prof. Anatoly SachenkoSoftware resources include software packages such as (SS generators and spreadsheet packages that supportdatabase management, model database management, and dialog generation and management.

Enterprise Inormation &orta+:)nterprise information portals are being developed by companies as a way to provide web-enabled information,knowledge, and decision support to executives, managers, employees, suppliers, customers, and other business

partners.

Enterprise )no*+ed#e &orta+:

)nterprise information portals are the entry to corporate intranets that serve as their knowledge managementsystems. "hese portals are often called enterprise knowledge portals by their vendors.

E'ecuti(e Inormation System:

An information system that provides strategic information tailored to the needs of top management.

E'pert System:A computer-based information system that uses its knowledge about a specific complex application area to act asan expert consultant to users.E'pert System 6 %pp+ications:!ncludes applications such as diagnosis, design, prediction, interpretation, and repair.

E'pert System 6 Beneits and Limitations:/enefits include the preservation and replication ofexpertise. "hey have limited applicability in manyproblem

situations.

E'pert System 6 Components:"he system consists of a knowledge base and software modules that perform inferences on the knowledge, andcommunicate answers to a users uestions.

E'pert System 6 De(e+opment:)xpert systems can be purchased or developed if a problem situation exists that is suitable for solution by expertsystems rather than by conventional experts and information processing.

E'pert System S,e++:An expert system without its knowledge base.

FuAAy Lo#ic:

A computer-based system that can process data that are incomplete or only partially correct, i.e., fu%%y data. Suchsystems can solve unstructured problems with incomplete knowledge as humans do.

enetic %+#orit,ms:

5enetic algorithms use sets of mathematical process rules #algorithms$ that specify how combinations of processcomponents or steps are to be formed.

eo#rap,ic Inormation System:

A 5!S is a (SS that constructs and displays maps and other graphics displays that support decisions affecting thegeographic distribution of people and other resources.

Inerence En#ineerin#:"he software component of an expert system, which processes the rules and facts, related to a specific problem andmakes associations and inferences resulting in recommended sources of action.

Inte++i#ent %#ent:A knowledge base software surrogate for a user or process in the accomplishment of selected tasks.

)no*+ed#e Base:A computer-accessible collection of knowledge about a sub'ect in a variety of forms, such as facts and rules ofinference, frames, and ob'ects.

)no*+ed#e En#ineer:


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Prof. Anatoly SachenkoA specialist who works with experts to capture the knowledge they possess in order to develop a knowledge basefor expert systems and other knowledge-based systems.

)no*+ed#e "ana#ement System:Bnowledge management systems are defined as the use of information technology to help gather, organi%e, andshare business knowledge within an organi%ation.

Le(e+ o "ana#ement Decision "a@in#:!nformation systems can support a variety of management levels and decisions. "hese include the three levels of

management activity #strategic, tactical, and operational$, and three types of decision structures #structured,semistructured, and unstructured$.

"ana#ement Inormation System:

A management support system that produces prespecified reports, displays, and responses on a periodic, exception,or demand basis.

"ode+ Base:

An organi%ed collection of conceptual, mathematical, and logical models that express business relationships,computational routines, or analytical techniues. Such models are stored in the form of programs and programsubroutines, command files, and spreadsheets.

-eura+ -et*or@:&assively parallel neurocomputer systems whose architecture is based on the human brains mesh-like neuron

structure. Such networks can process many pieces of information simultaneously and can learn to recogni%epatterns and programs themselves to solve related problems on their own.

On+ine %na+ytica+ &rocessin#:

&anagement, decision support, and executive information systems can be enhanced with an online analyticalprocessing capability. "hrough 9AP, managers are able to analy%e complex relationships in order to discoverpatterns, trends, and exception conditions in an online, realtime process that supports their business analysis anddecision-making.

Reportin# %+ternati(es:

"hree ma'or reporting alternatives include periodic scheduled reports, exception reports, and demand reports andresponses.

Rootics:

"he technology of building machines #robots$ with computer intelligence and human like physical capabilities.

Virtua+ Rea+ity:"he use of multisensory human>computer interfaces that enable human users to experience computer-simulatedob'ects, entities, spaces, and worlds as if they actually existed.

V. DISCUSSIO- UESTIO-S

!s the form and use of information and decision support in e-business changing and

expanding=

0as the growth of self-directed teams to manage work in organi%ations changed the needfor strategic, tactical, and operational decision making in business=

+hat is the difference between the ability of a manager to retrieve information instantly ondemand using an &!S and the capabilities provided by a (SS=


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Prof. Anatoly Sachenko !n what ways does using an electronic spreadsheet package provide you with the

capabilities of a decision support system=

Are enterprise information portals making executive information systems unnecessary=

;an computers think= +ill they )6)< be able to=

+hat are some of the most important applications of A! in business=

+hat are some of the limitations or dangers you see in the use of A! technologies such asexpert systems, virtual reality, and intelligent agents= +hat could be done to minimi%esuch effects=

Documents

396842 Business Support Systems