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END BACK NEXT Decision Support in Business Decision Support Trends Management Information Systems Decision Support Systems Knowledge Management Systems Section II Business and AI Neural Networks Fuzzy Logic Genetic Algorithms Expert Systems KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 9-1 Real World Cases Decision Support Decision Support Systems Systems END BACK NEXT Decision Support in Business Decision Support Trends Management Information Systems Decision Support Systems Knowledge Management Systems Section II Business and AI Neural Networks Fuzzy Logic Genetic Algorithms Expert Systems KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 9-2 Real World Cases Learning Objectives Learning Objectives 1. Identify the changes taking place in the form and use of decision support in business. 2. Identify the role and reporting alternatives of management information systems. 3. Describe how online analytical processing can meet key information needs of managers. 4. Explain the decision support system concept and how it differs from traditional management information systems. END BACK NEXT Decision Support in Business Decision Support Trends Management Information Systems Decision Support Systems Knowledge Management Systems Section II Business and AI Neural Networks Fuzzy Logic Genetic Algorithms Expert Systems KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 9-3 Real World Cases Learning Objectives Learning Objectives 5. Explain how the following information systems can support the information needs of executives, managers, and business professionals: a) Executive information systems b) Enterprise information portals c) Enterprise management systems 6. Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. 7. Give examples of several ways expert systems can be used in business decision-making situations. END BACK NEXT Decision Support in Business Decision Support Trends Management Information Systems Decision Support Systems Knowledge Management Systems Section II Business and AI Neural Networks Fuzzy Logic Genetic Algorithms Expert Systems KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc. 9-4 Real World Cases Decision Support in Decision Support in Business Business Diverse Information and Decision Making Needs Varied MIS, DSS, and Other Information Systems Real World Real World Case 1 Case 1- Ben Ben & Jerry & Jerry’ s and GE s and GE Plastics Plastics Click to go to Case 1

Learning Objectives Decision Support SystemsSystemsfaculty.tamucc.edu/hormozi/MISY3310/Chap009/chap009.pdf1 END BACK NEXT Decision Support in Business Decision Support Trends Management

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-1

Real World Cases

Decision Support Decision Support SystemsSystems

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-2

Real World Cases

Learning ObjectivesLearning Objectives1. Identify the changes taking place in

the form and use of decision support in business.

2. Identify the role and reporting alternatives of management information systems.

3. Describe how online analytical processing can meet key information needs of managers.

4. Explain the decision support system concept and how it differs from traditional management information systems.

ENDBACK NEXT

Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-3

Real World Cases

Learning ObjectivesLearning Objectives5. Explain how the following information

systems can support the information needs of executives, managers, and business professionals:a) Executive information systemsb) Enterprise information portalsc) Enterprise management systems

6. Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business.

7. Give examples of several ways expert systems can be used in business decision-making situations. END

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-4

Real World Cases

Decision Support in Decision Support in BusinessBusiness

• Diverse Information and Decision Making Needs• Varied MIS, DSS, and

Other Information Systems•• Real World Real World Case 1Case 1-- Ben Ben

& Jerry& Jerry’’s and GE s and GE PlasticsPlastics Click to go to

Case 1

2

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-5

Real World Cases

Information Requirements of Decision Makers

OperationalManagement

Operating Management & Self-Directed Teams

Tactical ManagementBusiness Unit Management

Self-Directed Teams

StrategicManagement

Executives & Directors

Structured

Semi-Structured

Unstructured

Decision Structure Information Characteristics

InformationDecis

ions

Ad HocUnscheduledSummarizedInfrequentForward LookingExternalWide Scope

PrespecifiedScheduledDetailedFrequentHistoricalInternalNarrow Focus

Decision Support in BusinessDecision Support in Business

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-6

Real World Cases

••Time DimensionTime Dimension••Content DimensionContent Dimension••Form DimensionForm Dimension

Decision Support in BusinessDecision Support in BusinessCharacteristics of Information ProductsCharacteristics of Information Products

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-7

Real World Cases

Structured DecisionsSemistructuredUnstructed

Decision StructureDecision StructureDecision Support in BusinessDecision Support in Business

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-8

Real World Cases

• Focus on Personalized Decision Support•Modeling• Information Retreival•Data Warehousing•What-if Scenarios•Reporting

Decision Support TrendsDecision Support TrendsDecision Support in BusinessDecision Support in Business

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-9

Real World Cases

Decision Support TrendsDecision Support TrendsDecision Support in BusinessDecision Support in Business

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-10

Real World Cases

Decision Support TrendsDecision Support TrendsDecision Support in BusinessDecision Support in Business

Meeting the Data Analysis and Proactive Decision Support Requirements

Business StakeholderRequirements

Information at YourFingertips

Do-It-Yourself DataAnalysis

DecisionSupport Response

Personalized, ProactiveDecision Analytics and

Web-based Applications

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-11

Real World Cases

Decision Support TrendsDecision Support TrendsDecision Support in BusinessDecision Support in Business

Developing Business Intelligence

DecisionSupportSystems

KnowledgeManagement

Systems

Online Analytical

Processing DataMining

ManagementInformation

Systems

BusinessIntelligence

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-12

Real World Cases

Decision Support TrendsDecision Support TrendsDecision Support in BusinessDecision Support in Business

Developing Business IntelligenceCisco Systems: DSS Cisco Systems: DSS

DashboardDashboard• Need for Universal Access

to Real-Time Information• Introduction of

“Dashboard”• Some Data is Batched• Merged Data Provides Real-

Time Information System

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-13

Real World Cases

Management Reporting AlternativesManagement Reporting AlternativesManagement Information SystemsManagement Information Systems

• Periodic Scheduled Reports•Exception Reports–Less Information Overload

•Demand Reports and Responses• Push Reporting

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-14

Real World Cases

Components of a Marketing Information System

Sales Prospects and Rivals’ News

Rivals’ News

Company News

SERVER

CLIENTSINTERNAL

DATABASES

FirewallVia the InternetThe Server Filters

Information Based on Users’ Custom

Requirements

Rivals’ News and Company News

Sales Prospects and Company

News

Sales Prospects

News Wires

CustomerData

SalesData

InventoryData

Management Reporting AlternativesManagement Reporting AlternativesManagement Information SystemsManagement Information Systems

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-15

Real World Cases

• Use of MS Sales Software• Discovery of Poor Sales Among

Large Dealers Hidden by Large Sales by Small Dealers• Use of Numbers to be a

Business Thinker• Breadth of Manager’s Role

Enhanced by Digital Tools

Management Reporting AlternativesManagement Reporting AlternativesManagement Information SystemsManagement Information Systems

Microsoft: The Impact of IT on Microsoft: The Impact of IT on District Sales ManagersDistrict Sales Managers

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-16

Real World Cases

Online Analytical ProcessingOnline Analytical Processing

•Consolidation•Drill-Down•Slicing and Dicing

OLAPOLAP

5

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-17

Real World Cases

Use of Excel for OLAP

Online Analytical ProcessingOnline Analytical ProcessingOLAPOLAP

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-18

Real World Cases

OLAPOLAPOnline Analytical ProcessingOnline Analytical Processing

Multi-dimensional

Database

CorporateDatabases

OLAP ServerClient PCs

•Spreadsheets•Statistical Packages•Web-Enabled•OLAP Software

Data are retrieved from corporate databases and staged in an OLAP multidimensional database for retrieval by front-end systems

• Operational Databases

• Data Marts• Data Warehouse

Use of Specialized Servers and Multidimensional Databases

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-19

Real World Cases

• Producer of Power Management Semiconductors• Use of Hyperion Solutions

Essbase• Allows Workstations to

Retrieve Data from AS/400s• Realized Extensive Savings • Use of Common Databases

Provides Uniform Definitions

International Rectifier: International Rectifier: OLAP for Decision SupportOLAP for Decision Support

Online Analytical ProcessingOnline Analytical Processing

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-20

Real World Cases

• Analytical Models• Specialized Databases• Decision Maker’s Own

Insights and Judgments• An Interactive, Computer-

Based Modeling Process to Support Semistructuredand Unstructured Business Decisions

DSS Uses:DSS Uses:Decision Support SystemsDecision Support Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-21

Real World Cases

Components of Web-Enabled Marketing DSS

Decision Support SystemsDecision Support Systems

LegacySoftware

WebBrowser

OtherSoftware

User Interface FunctionsHyperlinked Multimedia, 3-D Visualization

Model Management FunctionsAnalytical Modeling, Statistical Analysis

Data Management FunctionsData Extraction, Validation, Sanitation, Integration, and Replication

Data Marts and Other Databases

OperationalData

MarketData

CustomerAccount

DataSalesData

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-22

Real World Cases

• Development of a Risk Management DSS to Minimize PepsiCo Losses• Claims Data Updated

Weekly on INFORM Risk Management System• INFORM Accessed by

Managers Who Plan Ways to Minimize Risks and Losses

WebWeb--Enabled DSS at PepsiCoEnabled DSS at PepsiCoDecision Support SystemsDecision Support Systems

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-23

Real World Cases

Examples of Special Examples of Special Purpose DSS PackagesPurpose DSS Packages

Decision Support SystemsDecision Support Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-24

Real World Cases

Eli Lilly: Data Visualization Eli Lilly: Data Visualization for Decision Supportfor Decision Support

• Use of Spotfire’s DecisionSiteSoftware Combining Visualization and Database Querying Capability• $100,000 Plus Software – 16,000

Licensed Users• Launched Multiple Queries in

Rapid Succession and Saw the Results Graphically Onscreen• Supports Real Time Collaboration

Decision Support SystemsDecision Support Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-25

Real World Cases

Using Decision SupportUsing Decision SupportDecision Support SystemsDecision Support Systems

•What-if Analysis• Sensitivity Analysis•Goal-Seeking Analysis•Optimization Analysis

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-26

Real World Cases

Using Decision SupportUsing Decision SupportExample of What-if Analysis

Decision Support SystemsDecision Support Systems

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-27

Real World Cases

LexisLexis--Nexis: Web Tools for Nexis: Web Tools for Decision SupportDecision Support• Use of MicroStrategy DSS

Software• Web-Based Tools for Data

Acquisition for Subscribers• Data Warehouse Supports

Extensive User and Use Analysis• Also Analyzes and Models

Business Processes

Decision Support SystemsDecision Support Systems

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-28

Real World Cases

Data Mining for Decision Data Mining for Decision Support Support

Decision Support SystemsDecision Support Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-29

Real World Cases

KeyCorp and Peoples Bank: KeyCorp and Peoples Bank: Data Mining DSSData Mining DSS

• Use of IBM’s DecisionEdge for Relationship Marketing• Data Mining and Analysis System

Increased Direct Mail Response Rate from 1% to 10%• Package Includes Analytical

Tools, a Mining Data Tool, Industry-Specific Data Models, and Consulting Services• High Costs May Limit

Applications of the Package

Decision Support SystemsDecision Support Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-30

Real World Cases

Features of an EISFeatures of an EIS•Critical Success Factors

(CSF)•Ability to Drill Down•Trend Analysis•Exception Reporting•Use Spread to Middle

Management and Business Professionals

Executive Information SystemsExecutive Information Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-31

Real World Cases

A WebA Web--Based EISBased EISExecutive Information SystemsExecutive Information Systems

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-32

Real World Cases

EIS at EIS at ConocoConoco and KeyCorpand KeyCorp• Conoco – A Very Large System

with Thousands of Users• Wide Variety of Data Sources• Analysis of Internal Operations• Improved Productivity and

Decision Making• Significant Cost Savings• KeyCorp Banking Company

Experienced Similar Results• Keynet EIS System Nicknamed

“Everyone’s Information System”

Executive Information SystemsExecutive Information Systems

9

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-33

Real World Cases

• Web-Based Interface• Integration of MIS, DSS,

EIS, and Other Technologies

Enterprise Portals and Enterprise Portals and Decision SupportDecision Support

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-34

Real World Cases

• Large Burger King Franchisee with Poor Technology Infrastructure• Launched Intranet Portal• Used Web Browsers for

Access• Dramatic Savings and Much

Better Performance

Enterprise Portals and Enterprise Portals and Decision SupportDecision Support

AmeriKingAmeriKing Inc.: The Inc.: The Business Value of EISBusiness Value of EIS

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-35

Real World Cases

Enterprise Portals and Enterprise Portals and Decision SupportDecision Support

Components of an EIS PortalComponents of an EIS Portal

OperationalDatabases

AnalyticDatabases

DataWarehouse

BusinessApplications

IntranetsExtranets

InternetWeb

SalesVP

ManagersSales Reps

MarketingVP

ManagersAnalysts

CorporateCXOVPs

ManagersAnalysts

EngineeringVP

ManagersEngineers

OtherEmployeesSuppliers

Customers

Search Query Calendaring Channels/News

e-Mail/Chat

APIs Administration Security Load BalancingEnterprise Portal Server

Contextualization Metadata ManagementInferencing Dynamic Profiling

DSS ToolsData MiningOLAPOther Tools

Search Agents

Hyperlinking

Indexing

Taxonomy

Portal Gateway

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-36

Real World Cases

• Used to Provide All Needed Knowledge to Call Center Representatives• Accuracy and Completeness

Was Vital• InfoBuddy System “Pushed”

New Information to Appropriate Users

Knowledge Management Knowledge Management SystemsSystems

Qwest Communications: Web Qwest Communications: Web Knowledge Management SystemKnowledge Management System

Enterprise Knowledge Portals

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-37

Real World Cases

Knowledge Management Knowledge Management SystemsSystems

Enterprise Knowledge PortalEnterprise Knowledge Portal

Enterprise Knowledge Portal

Structured Data Sources Unstructured Data Sources Enterprise Knowledge

Data Sources

Web User (Employee/Customer)

• Portal Server with Knowledge Management Engine/Server Component

• Automatically Crawls (Searchers) Structured or Unstructured Data Sources

• Categorizes Searched Data, Tags, and Hyperlinks Information

• Automatically Builds User Profiles Based on Activity

Community Work AreasCollaboration Tools

Personalized Views of News and Data

Single Point of Access to all Corporate Data

ERPDatabase

CRMDatabase

OtherDatabases

e-MailGroupware File System

•Documents•Presentations

Web•Internet•Intranet•Extranet

EnterpriseKnowledge

BaseEND

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-38

Real World Cases

Artificial Intelligence Artificial Intelligence Technologies in BusinessTechnologies in Business

• AI Being Used to Improve DSS• Used for Information

Distribution and Retrieval, Database Mining, Product Design, Manufacturing, Inspection, Training, User Support, and Much More

Real World Real World Case 2Case 2--WalWal--Mart, Mart, BankFinancialBankFinancial, ,

and HPand HP Click to go toCase 2

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-39

Real World Cases

Artificial IntelligenceArtificial IntelligenceOverview of AI

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-40

Real World Cases

Artificial IntelligenceArtificial IntelligenceField of Science and

Technology Based Upon Disciplines:•Computer Science• Biology• Psychology• Linguistics•Mathematics• Engineering

11

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-41

Real World Cases

Artificial IntelligenceArtificial Intelligence

• Cognitive Science–Human Information

Processing–Knowledge-Based Systems–Fuzzy Logic–Fuzzy Data–Neural Networks–Intelligent Agents

• Robotics• Natural Interfaces

The Domains of AIThe Domains of AI

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-42

Real World Cases

Artificial IntelligenceArtificial IntelligenceThe Domains of AIThe Domains of AI

CognitiveScience

ApplicationsRobotics

ApplicationsNatural

InterfaceApplications

ArtificialIntelligence

•Expert Systems•Learning Systems•Fuzzy Logic•Genetic Algorithms•Neural Networks•Intelligent Agents

•Visual Perception•Tactility•Dexterity•Locomotion•Navigation

•Natural Languages•Speech Recognition•Multisensory Interfaces•Virtual Reality

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-43

Real World Cases

Artificial IntelligenceArtificial IntelligenceCommercial Applications of AICommercial Applications of AI

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-44

Real World Cases

Artificial IntelligenceArtificial IntelligenceNeural Network ApplicationNeural Network Application

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-45

Real World Cases

Artificial IntelligenceArtificial IntelligenceNeural Nets at Neural Nets at Go.comGo.com•A Targeted Marketing

Service•Targets Ads on Internet

Search Engine to the Users’ Interests•Used to Build Up Web Site

and Repeat Business•Provides Analysis of

Customer Buying Patterns ENDBACK NEXT

Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-46

Real World Cases

Artificial IntelligenceArtificial IntelligenceFuzzy Logic SystemsFuzzy Logic Systems•Resembles Human Reasoning

Allowing Approximations and Inferences, Use of Ambiguous Data• Fuzzy Data• Fuzzy Rules•Data is Deliberately

Imprecise• Fuzzy Logic Can Process This

Imprecise Data

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-47

Real World Cases

Artificial IntelligenceArtificial IntelligenceFuzzy Logic SystemsFuzzy Logic Systems

Fuzzy Logic Rules

Risk should be acceptableIf debt-equity is very high

then risk is positively increasedIf income is increasing

then risk is somewhat decreasedIf cash reserves are low to very low

then risk is very increasedIf PE ratio is goodThen risk is generally decreased

Fuzzy Logic SQL Query

Select companiesfrom financials

where revenues are very largeand pe_ratio is acceptableand profits are high to very highand (income/employee_tot) is reasonable

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-48

Real World Cases

Artificial IntelligenceArtificial IntelligenceGenetic AlgorithmsGenetic Algorithms•Uses Darwinian,

Randomizing, and Other Mathematical Functions•Stimulates Evolutionary

Process That Can Yield Better Problem Solutions•Mutations•Crossovers•Selections

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-49

Real World Cases

Artificial IntelligenceArtificial IntelligenceGEGE’’s s EngeneousEngeneous• Design of a Boeing 777 Engine• Used Genetic Algorithm

Application• Used to Develop More Efficient

Fan Blades• Estimated Billions of Years to

Evaluate the Astronomical Number of Performance and Cost Combinations• Engenious Expert System Offered

Optimal Solution in a Week ENDBACK NEXT

Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-50

Real World Cases

Artificial IntelligenceArtificial IntelligenceBusiness Use of Genetic AlgorithmBusiness Use of Genetic Algorithm

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-51

Real World Cases

Artificial IntelligenceArtificial IntelligenceVirtual Reality (VR)Virtual Reality (VR)•Computer Simulated Reality•MultisensoryInput/Output Devices•Data Glove•Walker•Creating TelepresenceWith Sight, Sound, and Touch END

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-52

Real World Cases

Artificial IntelligenceArtificial IntelligenceVirtual Reality (VR)Virtual Reality (VR)

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-53

Real World Cases

Artificial IntelligenceArtificial IntelligenceVR at Morgan StanleyVR at Morgan Stanley•Market Risks Department Uses VR Models Financial Risks in Varied Market Conditions•Displays 3-Dimensional Results of Risk Analysis •VR Makes Easier Intuitive Connections than 2-D or Tables of Numbers END

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-54

Real World Cases

Artificial IntelligenceArtificial IntelligenceIntelligent AgentsIntelligent Agents•Use of Software Surrogates•Software Robots “Bots”•Many Types of Intelligent Agents…

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-55

Real World Cases

Artificial IntelligenceArtificial IntelligenceIntelligent AgentsIntelligent Agents

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-56

Real World Cases

Artificial IntelligenceArtificial IntelligenceIntelligent AgentsIntelligent Agents

15

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-57

Real World Cases

Artificial IntelligenceArtificial IntelligenceDow Jones & Co.: Dow Jones & Co.:

Intelligent Web AgentsIntelligent Web Agents• Use to Compare Prices or

Other Characteristics• 600,000 Customers Search

Stories from 6,000 Publications• Dow Uses Intelligent Agents

and Other AI Technologies to Manage the Process • Results on Web Page or E-

Mailed to User ENDBACK NEXT

Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-58

Real World Cases

Artificial IntelligenceArtificial IntelligenceExpert SystemsExpert Systems•Components of an Expert System•Knowledge Base•Software Resources•Inference Engine Program•Expert System Applications

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-59

Real World Cases

Artificial IntelligenceArtificial IntelligenceExpert SystemsExpert Systems

UserWorkstation

ExpertAdvice

UserInterfacePrograms

InferenceEngine

Program

The Expert System

Expert System Software

Expert System Development

KnowledgeAcquisition

ProgramKnowledgeEngineering

Expert and/orKnowledge Engineer

Workstation

KnowledgeBase

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-60

Real World Cases

Artificial IntelligenceArtificial IntelligenceExpert SystemsExpert SystemsIBM Network Management

16

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-61

Real World Cases

Artificial IntelligenceArtificial IntelligenceCutlerCutler--Hammer: Hammer:

Strategic Expert SystemStrategic Expert System• Expert System Pioneers in 1995

with Bid Manager• Allows Easy Configuring of

Complex Products• Automatic Checks on

Engineering• Expert System Proved Itself• Boosted Sales, Productivity,

and Profits ENDBACK NEXT

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-62

Real World Cases

Artificial IntelligenceArtificial IntelligenceMajor Application CategoriesMajor Application Categories

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-63

Real World Cases

Artificial IntelligenceArtificial Intelligence• Benefits of Expert Systems• Limitations of Expert Systems•Criteria for Suitable

Applications

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-64

Real World Cases

Artificial IntelligenceArtificial Intelligence

•Developing Expert Systems•Expert System Shell•Knowledge Engineering

Expert SystemsExpert Systems

17

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-65

Real World Cases

Artificial IntelligenceArtificial IntelligenceVisual Rule Studio and VB

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-66

Real World Cases

Artificial IntelligenceArtificial IntelligenceES Development at ES Development at

MacMillanMacMillan BloedelBloedel• Forest Products Conglomerate•Used ES to Capture

Knowledge of Plant Operations•Used ACQUIRE Expert

System• Provides Quality Maintenance

and Operations Advice to Mill Operators

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Decision Support in BusinessDecision Support TrendsManagement Information SystemsDecision Support SystemsKnowledge Management SystemsSection IIBusiness and AINeural NetworksFuzzy LogicGenetic AlgorithmsExpert Systems

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-67

Real World Cases

SummarySummary• Information, Decisions,

and Management• Decision Support

Trends• Management

Information Systems• OLAP and Data Mining• Decision Support

SystemsEND

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KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 9-68

Real World Cases

SummarySummary• Executive Information

Systems• Enterprise

Information and Knowledge Portals

• Artificial Intelligence• AI Technologies• Expert Systems