Mis II Business Information Systems

8/4/2019 Mis II Business Information Systems

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BUSINESSBUSINESS

INFORMATIONINFORMATION

SYSTEMSSYSTEMS


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Major types of InformationMajor types of Information

SystemsSystems

Levels of OrganizationLevels of Organization Functional areas of anFunctional areas of an

OrganizationOrganization


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The structure of organizationsThe structure of organizations

Operationallevel

Strategic level

Management level

Knowledge

level

Provides overall directionand guidance

Develops the goals and

strategies

Manages day-to-day operationsand implementation

Does all the basic

jobs


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Systems from a functionalSystems from a functional

perspectiveperspective

S.LS.L

M.LM.L

K.LK.L

O.LO.L

S. M M & P A & F HRS. M M & P A & F HR


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Types of Infn. systems based on levelsTypes of Infn. systems based on levels

of organizationof organization

Operational

level

Strategic level

Management level

Knowledge

level

Executive Support System

MIS & DIS

Knowledge & Office work Sys

Transaction

Processing System


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Serve the operational level of the organisationServe the operational level of the organisation

Records daily routine transactions necessary to conductRecords daily routine transactions necessary to conductbusiness.business. Railway reservationsRailway reservations Sales order entrySales order entry Hotel reservation systemsHotel reservation systems Employee record keeping etc.,Employee record keeping etc.,

TPS produces information for the other types of systemsTPS produces information for the other types of systems

Computerized systems that perform and record the dailyComputerized systems that perform and record the dailyroutine transactions necessary to conduct the business;routine transactions necessary to conduct the business;they serve the operational level of the organization.they serve the operational level of the organization.

Ex: Employee pay checks, sales receipts, purchaseEx: Employee pay checks, sales receipts, purchaseorders, dividend checks etc.orders, dividend checks etc.

Transaction Processing System (TPS)Transaction Processing System (TPS)


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Types of TPSTypes of TPS

--Sales & MarketingSales & Marketing Sales order systemSales order system

MR systemMR system

Sales Commission SystemSales Commission System

--Manufacturing & ProductionManufacturing & Production

M/C Control systemM/C Control system Purchase order systemPurchase order system

Quality control systemQuality control system


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Cont.Cont.

-Finance & Accounting-Finance & AccountingGeneral ledger systemGeneral ledger systemAccounts receivables & payables systemAccounts receivables & payables system

Funds management systemFunds management system

-Human Resource-Human Resource Payroll SystemPayroll System

Employee record systemEmployee record systemBenefit systemBenefit system

Career path systemCareer path system


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KNOWLEDGE WORK & OFFICEKNOWLEDGE WORK & OFFICE

SYSTEMSYSTEM

Knowledge work system supportsKnowledge work system supports

knowledge workers in the creation andknowledge workers in the creation and

integration of new knowledge in theintegration of new knowledge in the

organization.organization.

Office system increases the productivity ofOffice system increases the productivity of

data workers in the office like worddata workers in the office like word

processing, e-mail, scheduling, documentprocessing, e-mail, scheduling, document

imaging etc.,imaging etc.,


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MANAGEMENT INFORMATIONMANAGEMENT INFORMATION

SYSTEMS (MIS)SYSTEMS (MIS)

It is an IS that supports planning,It is an IS that supports planning,

controlling and decision makingcontrolling and decision making

Uses the data generated by the TPS toUses the data generated by the TPS to

produce standard reportsproduce standard reports

Used by managers to monitor the state ofUsed by managers to monitor the state of

the organization and make routinethe organization and make routine

decisionsdecisions

Examples include weekly productionExamples include weekly production

reports, daily numbers of books issuesreports, daily numbers of books issues

and returns, and returns,


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Types of Reports generated by MISTypes of Reports generated by MIS

Scheduled ReportsScheduled Reports

Exception ReportsException Reports

Demand ReportsDemand ReportsPush ReportsPush Reports


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Characteristics of MISCharacteristics of MIS

Supports structured and semi-structured decisions.Supports structured and semi-structured decisions.

Reporting and control orientedReporting and control oriented

Rely on existing corporate data & data flowsRely on existing corporate data & data flows

Little analytical capabilityLittle analytical capability

Uses past & present data to support decision makingUses past & present data to support decision making

Relatively FlexibleRelatively Flexible

More internal orientedMore internal oriented

Requirements are known and stableRequirements are known and stableRequires lengthy analysis and design processRequires lengthy analysis and design process

Uses data from TPSUses data from TPS


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DECISION SUPPORTDECISION SUPPORTSYSTEMS (DSS)SYSTEMS (DSS)

Combine data and analytical models to supportCombine data and analytical models to support

semi-structured and unstructured decisions.semi-structured and unstructured decisions.

Combine information from several differentCombine information from several different

sources within the organization, plus externalsources within the organization, plus externaldatadata

Used by tactical managers to support decisionUsed by tactical managers to support decision

makingmaking

They have more analytical power than otherThey have more analytical power than othersystemssystems

May involve artificial intelligence systems toMay involve artificial intelligence systems to

make recommendationsmake recommendations


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COMPONENTSCOMPONENTS

DatabaseDatabase

Model baseModel baseDialogue managerDialogue manager

Link to external data basesLink to external data bases

The InternetThe Internet

The corporate intranetThe corporate intranet

Extranets,Extranets,

NetworksNetworks

& other systems& other systems


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Data baseData base use data warehouses & data marts. Data-use data warehouses & data marts. Data-driven DSS primarily performs qualitative analysisdriven DSS primarily performs qualitative analysisbased on the co., databases.based on the co., databases.

TheThe Model baseModel base contains the models used by thecontains the models used by thedecision maker, such as financial, statistical,decision maker, such as financial, statistical,graphical, & project mgt models.graphical, & project mgt models.

TheThe dialogue mgrdialogue mgrallows users to interact with theallows users to interact with the

DSS to obtain information.DSS to obtain information.

The dialogue manager provides a dialogue mgtThe dialogue manager provides a dialogue mgtfacility to assist in communications between thefacility to assist in communications between thesystem & the user.system & the user.

Access to other computer-based systems permits theAccess to other computer-based systems permits theDSS to tie into other powerful systemsDSS to tie into other powerful systems


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DialogueManager

DSSprocessor

Access to the Internet& corporate intranet,

Networks, & otherComputer systems

ExternalDatabase

access

DSSSoftware

ModelbaseDatabase

ExternalDatabase


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Characteristics of DSSCharacteristics of DSS

Offers flexibility, adoptability & quick responseOffers flexibility, adoptability & quick response

Allows users to control the i/p and o/pAllows users to control the i/p and o/p

Supports semi-structured and unstructuredSupports semi-structured and unstructured

decisionsdecisionsUses sophisticated analysis and modelling toolsUses sophisticated analysis and modelling tools

Uses data from both TPS and MISUses data from both TPS and MIS


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4 BASIC TYPES OF4 BASIC TYPES OF

ANALYTICAL MODELINGANALYTICAL MODELINGTECHNIQUES USED IN DSSTECHNIQUES USED IN DSS


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What-ifWhat-if

analysisanalysis

Observing how changes to selected variablesObserving how changes to selected variablesaffect other variables.affect other variables.

Ex: What if we cut advertising by 10%?Ex: What if we cut advertising by 10%?

What would happen to sales?What would happen to sales?SensitivitySensitivityAnalysisAnalysis

Observing how repeated changes to a singleObserving how repeated changes to a singlevariable affect other variables.variable affect other variables.

Ex: lets cut advertising by $100 repeatedly so weEx: lets cut advertising by $100 repeatedly so we

can see its r/s to sales.can see its r/s to sales.

Goal-seekingGoal-seeking

AnalysisAnalysis

Making repeated changes to selected variablesMaking repeated changes to selected variablesuntil a chosen variable reaches a target value.until a chosen variable reaches a target value.

Ex: Lets try increases in advertising until salesEx: Lets try increases in advertising until sales

reach $ 1 million.reach $ 1 million.

OptimizationOptimization

analysisanalysis

Finding an optimum value for selected variables,Finding an optimum value for selected variables,given certain constraints.given certain constraints.

Ex: Whats the best amount of advertising toEx: Whats the best amount of advertising to

have, given our budget & choice of media?have, given our budget & choice of media?

A COMPARISON OF DSS & MISA COMPARISON OF DSS & MIS


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FACTORFACTOR DSSDSS MISMIS

ProblemProblemTypeType

A DSS is good @ handling unstructured problems thatA DSS is good @ handling unstructured problems thatcannot be easily programmedcannot be easily programmed

An MIS is normally used only with moreAn MIS is normally used only with morestructured problemsstructured problems

UsersUsers A DSS support individuals, small groups, & the entireA DSS support individuals, small groups, & the entireorgn. In the short run, users typically have more controlorgn. In the short run, users typically have more control

over a DSSover a DSS

An MIS supports primarily the orgn. In the shirtAn MIS supports primarily the orgn. In the shirtrun, users have less control over an MIS.run, users have less control over an MIS.

SupportSupport A DSS supports all aspects & phases of decisionA DSS supports all aspects & phases of decisionmaking; it does not replace the decision maker-peoplemaking; it does not replace the decision maker-peoplestill make the decisionsstill make the decisions

This is not true of all MIS systems-some makeThis is not true of all MIS systems-some makeautomatic decisions & replace the decisionautomatic decisions & replace the decisionmaker.maker.

EmphasisEmphasis A DSS emphasizes actual decisions & decision-makingA DSS emphasizes actual decisions & decision-makingstylesstyles

An MIS usually emphasizes information onlyAn MIS usually emphasizes information only

pproachpproach A DSS is a direct support system that providesA DSS is a direct support system that providesinteractive reports on computer screensinteractive reports on computer screens

An MIS is typically an indirect support systemAn MIS is typically an indirect support systemthat uses regularly produced reportsthat uses regularly produced reports

SystemsSystems The computer equipment that provides decision supportThe computer equipment that provides decision supportis usually on-line and related to real time. Computeris usually on-line and related to real time. Computerterminals & display screens are ex-these devices canterminals & display screens are ex-these devices canprovide immediate information & answers to questionsprovide immediate information & answers to questions

An MIS, using printed reports that may beAn MIS, using printed reports that may bedelivered to mangers once a week, may notdelivered to mangers once a week, may notprovide immediate results.provide immediate results.

SpeedSpeed Because of DSS is flexible & can be implemented byBecause of DSS is flexible & can be implemented byusers, it usually takes less time to develop & is betterusers, it usually takes less time to develop & is betterable to respond to user requests.able to respond to user requests.

An MISs however, typically is oriented towardAn MISs however, typically is oriented towardprinted reports & documents.printed reports & documents.

OutputOutput DSS reports are usually screen oriented, with the abilityDSS reports are usually screen oriented, with the abilityto generate reports on a printerto generate reports on a printer

An MIS, however, typically is oriented towardAn MIS, however, typically is oriented towardprinted reports and documents.printed reports and documents.

Develop-Develop-

mentment

DSS users are usually more directly involving in itsDSS users are usually more directly involving in its

devpt.it means better systems that provide superiordevpt.it means better systems that provide superiorsupport.For all systems,user involvement is the mostsupport.For all systems,user involvement is the mostimpt factor for the devpt of a successful system.impt factor for the devpt of a successful system.

An MIS is frequently serveral years old & oftenAn MIS is frequently serveral years old & often

was developed for people who are no longerwas developed for people who are no longerperforming the work supported by the MIS.performing the work supported by the MIS.

A COMPARISON OF DSS & MISA COMPARISON OF DSS & MIS


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EXECUTIVE SUPPORT SYSTEM(ESS)EXECUTIVE SUPPORT SYSTEM(ESS)

Combine aggregated data from within theCombine aggregated data from within theorganization and a wide range of external informationorganization and a wide range of external information

Provides computing and communication environmentProvides computing and communication environment

rather than any fixed applicationrather than any fixed applicationUsed by strategic managers to make policy decisionsUsed by strategic managers to make policy decisions

Uses data from MIS and DSS.Uses data from MIS and DSS.

They filter, compress & track critical data to reduce theThey filter, compress & track critical data to reduce thetime and effort of executives.time and effort of executives.Involves scenario modelling and What if? questionsInvolves scenario modelling and What if? questions

Examples include systems to help a supermarketExamples include systems to help a supermarket

chain to decide where to locate new storeschain to decide where to locate new stores


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Interrelationship among SystemsInterrelationship among Systems

ESS

MISDSS

KWS&OS

TPS


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Functional Categorization of ISFunctional Categorization of IS

Sales & Marketing SystemsSales & Marketing Systems Order ProcessingOrder Processing Market AnalysisMarket Analysis Pricing AnalysisPricing Analysis Sales trend forecastingSales trend forecasting

Manufacturing & Production SystemsManufacturing & Production Systems Machine ControlMachine Control

CAD/CAMCAD/CAM Production PlanningProduction Planning Facilities locationFacilities location


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Finance & Accounting SystemFinance & Accounting System--Accounts receivables/ payablesAccounts receivables/ payables-Portfolio analysis-Portfolio analysis

-Budgeting-Budgeting

-Profit Planning-Profit Planning

Human Resource SystemsHuman Resource Systems-Training & development-Training & development

-Career pathing-Career pathing

-Compensation analysis-Compensation analysis-HR planning-HR planning


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GROUP DECISION SUPPORT SYSTEMS (GDSS)GROUP DECISION SUPPORT SYSTEMS (GDSS)

MeaningMeaning

GDSS SoftwareGDSS Software

Characteristics of GDSSCharacteristics of GDSS

GDSS alternativesGDSS alternatives


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Meaning:Meaning: GDSS is a software application that consistsGDSS is a software application that consists

of most elements in a DSS, plus software needed toof most elements in a DSS, plus software needed toprovide effective support in group decision making;provide effective support in group decision making;

also calledalso called group support system or computerizedgroup support system or computerizedcollaborative work system.collaborative work system.

Evolution of GDSS:Evolution of GDSS: GDSS approaches & techniquesGDSS approaches & techniquesare not suitable for a group decision-makingare not suitable for a group decision-making

environment. Although not all workers & mangersenvironment. Although not all workers & mangersare involved in committee meetings & group decision-are involved in committee meetings & group decision-

making session, some tactical & strategic-level mgrsmaking session, some tactical & strategic-level mgrscan spend more than half their decision-making timecan spend more than half their decision-making time

in a group setting. Such mgrs need assistance within a group setting. Such mgrs need assistance with

group decision making.group decision making.

Model TypeModel Type DescriptionDescription Software that Can BeSoftware that Can Be


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Model TypeModel Type DescriptionDescription Software that Can BeSoftware that Can BeUsedUsed

FinancialFinancial Provides cash flow, internal rate ofProvides cash flow, internal rate ofreturn, & other investment analysis.return, & other investment analysis.

Spreadsheet, such asSpreadsheet, such asExcelExcel

StatisticalStatistical Provides summary statistics, trendProvides summary statistics, trendprojections, hypothesis testing, &projections, hypothesis testing, &moremore

Statistical program,Statistical program,such SPSS or SASsuch SPSS or SAS

GraphicalGraphical Assists decision makers in designing,Assists decision makers in designing,developing and using graphicdeveloping and using graphicdisplays of data & informationdisplays of data & information

Graphics programs,Graphics programs,such as Power Pointsuch as Power Point

ProjectProject

MgtMgt

Handles & coordinates large projects,Handles & coordinates large projects,

also used to identify critical activitiesalso used to identify critical activities& tasks that could delay or jeopardize& tasks that could delay or jeopardizean entire project if they are notan entire project if they are notcompleted in a timely & cost-effectivecompleted in a timely & cost-effectivefashionfashion

Project mgt software.Project mgt software.


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CHARACTERISTICS OF GDSSCHARACTERISTICS OF GDSS

1 S i l D i GDSS h k l d th t


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1.1. Special Design:Special Design: GDSS approach acknowledges thatGDSS approach acknowledges thatspecial procedures, devices & approaches arespecial procedures, devices & approaches areneeded in group decision-making setting. Theseneeded in group decision-making setting. Thesefoster creative thinking, effective communications, &foster creative thinking, effective communications, &

good group decision-making techniques.good group decision-making techniques.2.2. Ease of Use:Ease of Use: GDSS is easy to learn & use like anGDSS is easy to learn & use like an

individual DSS. Systems that are complex & hard toindividual DSS. Systems that are complex & hard tooperate will seldom be used. Many groups haveoperate will seldom be used. Many groups have

less tolerance than do individual decision makersless tolerance than do individual decision makersfor poorly developed systems.for poorly developed systems.

3.3. Flexibility:Flexibility: 2 or more decision makers working on2 or more decision makers working onthe same problem may have different & uniquethe same problem may have different & uniquedecision-making styles & preferences. GDSSdecision-making styles & preferences. GDSSsupport the different approaches that mgrs use tosupport the different approaches that mgrs use tomake decisions and find a mean to integrate theirmake decisions and find a mean to integrate theirdifferent perspectives into a common view of thedifferent perspectives into a common view of thetask at hand.task at hand.

44 D i i kiD i i ki t GDSSGDSS t


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4.4. Decision-making support:Decision-making support: GDSS can supportGDSS can supportdifferent decision-making approaches, like:different decision-making approaches, like:

Delphi approach:Delphi approach: this approach encourages diversitythis approach encourages diversity

among group members and fosters creativity &among group members and fosters creativity &original thinking in decision making.original thinking in decision making.Brainstorming:Brainstorming: Decision-making approach whichDecision-making approach whichoften consists of members in the group to reach aoften consists of members in the group to reach aunanimous decision & so on.unanimous decision & so on.

5.5.Anonymous Input:Anonymous Input: Many GDSSs allows anonymousMany GDSSs allows anonymousinput, where the person giving the input is not knowninput, where the person giving the input is not knownto other group members. For Ex: ranking theto other group members. For Ex: ranking theperformance of a managerperformance of a manager

6.6. Reduction of Negative Group Behaviour:Reduction of Negative Group Behaviour: GDSS hasGDSS hasthe ability to suppress or eliminate group behaviourthe ability to suppress or eliminate group behaviourthat is counterproductive or harmful to efectivethat is counterproductive or harmful to efectivedecision making (dominant individuals decision. Adecision making (dominant individuals decision. Atrained facilitator is often employed to help lead thetrained facilitator is often employed to help lead the

group decision-making process.group decision-making process.


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7.7. Parallel Communication:Parallel Communication: With a GDSS, it isWith a GDSS, it ispossible for every group member to addresspossible for every group member to addressissues or make comments at the same time byissues or make comments at the same time by

entering them into a PC or workstation. Theseentering them into a PC or workstation. Thesecomments & issues are displayed on everycomments & issues are displayed on everygroup members PC or workstationgroup members PC or workstation

immediately. Parallel communication canimmediately. Parallel communication canspeed meeting times and result in betterspeed meeting times and result in betterdecisions than traditional group meetings.decisions than traditional group meetings.

8.8.Automated Record Keeping:Automated Record Keeping: Each commentEach comment

that is entered into a group members PC orthat is entered into a group members PC orworkstation can be anonymously recorded. inworkstation can be anonymously recorded. insome cases, literally hundreds of commentssome cases, literally hundreds of commentscan be stored for future review and anlaysis.can be stored for future review and anlaysis.


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EXPERT SYSTEMSEXPERT SYSTEMS

MeaningMeaning

Components of an Expert systemComponents of an Expert systemExpert system applicationsExpert system applications

Developing expert systemsDeveloping expert systems

The value of expert systemThe value of expert system

Benefits of expert systemsBenefits of expert systems

Limitations of expert systemsLimitations of expert systems


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Meaning:Meaning:

One of the most practical & widely implemented applications ofOne of the most practical & widely implemented applications ofartificial intelligence in business is the development of expertartificial intelligence in business is the development of expert

systems & other knowledge-based IS.systems & other knowledge-based IS.

An expert system (ES) is aAn expert system (ES) is a knowledge-based IS that uses itsknowledge-based IS that uses itsknowledge about a specific, complex application area to act asknowledge about a specific, complex application area to act asan expert consultant to end users.an expert consultant to end users.

Expert systems provideExpert systems provide answers to questions in a very specificanswers to questions in a very specificproblem area by making human like interferences aboutproblem area by making human like interferences aboutknowledge contained in a specialized knowledge base.knowledge contained in a specialized knowledge base.

They must also be able to explain their reasoning process &They must also be able to explain their reasoning process &conclusions to a user.conclusions to a user.

So expert systems can provide decision support to end users inSo expert systems can provide decision support to end users inthe form of advice from an expert consultant in a specificthe form of advice from an expert consultant in a specificproblem area.problem area.

Components of an expert system.


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Components of an expert system.

Expertadvice User

InterfacePrograms

InferenceEngine

Program

KnowledgeBase

KnowledgeAcquisitionProgram

UserWorkstation

WorkstationExpert

&/orKnowledg

Expert systemdevelopment

Expert system software

The Expert system


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Components of an Expert System:Components of an Expert System:

The components of an expert system include aThe components of an expert system include aknowledge base & software modules that performknowledge base & software modules that perform

inference on the knowledge & communicateinference on the knowledge & communicateanswers to a users questions. Figure illustratesanswers to a users questions. Figure illustratesthe interrelated components of an expert system.the interrelated components of an expert system.

1.1. Knowledge base:Knowledge base: The knowledge base of anThe knowledge base of anexpert system contains:expert system contains:

Facts about a specific subject areaFacts about a specific subject areaHeuristics (rule of thumb) that express theHeuristics (rule of thumb) that express thereasoning procedures of an expert on the subject.reasoning procedures of an expert on the subject.

Ex: If John is an analyst, THEN, he needs aEx: If John is an analyst, THEN, he needs aworkstation. There are many ways that suchworkstation. There are many ways that suchknowledge is represented in expert systems. Ex:knowledge is represented in expert systems. Ex:are rule-based, frame-based, object-based, &are rule-based, frame-based, object-based, &case-based methods of knowledge representation.case-based methods of knowledge representation.


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Methods of Knowledge RepresentationMethods of Knowledge Representation

Case-based Reasoning: Representing knowledge in an expertCase-based Reasoning: Representing knowledge in an expertsystems knowledge base in the form of cases, that is, ex: of pastsystems knowledge base in the form of cases, that is, ex: of past

performance, occurrences,& experiences.performance, occurrences,& experiences.Frame-based Knowledge: Knowledge represented in the form ofFrame-based Knowledge: Knowledge represented in the form ofa hierarchy or network of frames. A frame is a collection ofa hierarchy or network of frames. A frame is a collection ofknowledge about an entity consisting of a complex package ofknowledge about an entity consisting of a complex package of

data values describing its attributes.data values describing its attributes.Object-Based Knowledge represented as a network of objects.Object-Based Knowledge represented as a network of objects.An object is a data element that includes both data the methods orAn object is a data element that includes both data the methods orprocesses that act on those data.processes that act on those data.

Rule-Based Knowledge: knowledge represented in the form ofRule-Based Knowledge: knowledge represented in the form ofrules & statements of fact. Rules are statements that typically takerules & statements of fact. Rules are statements that typically takethe form of a premise & a conclusion such as: If (condition), Thenthe form of a premise & a conclusion such as: If (condition), Then(conclusion).(conclusion).

2 S f R A f


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2. Software Resources:2. Software Resources: An expert system softwareAn expert system softwarepackage contains an inference engine & otherpackage contains an inference engine & otherprograms for refining knowledge & communicatingprograms for refining knowledge & communicatingwith users. The inference engine program processeswith users. The inference engine program processesthe knowledge (such as rules & facts) related to athe knowledge (such as rules & facts) related to aspecific problem. It then makes associations &specific problem. It then makes associations &inferences resulting in recommended courses ofinferences resulting in recommended courses ofaction for a user.action for a user.


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DEVELOPING EXPERT SYSTEMSDEVELOPING EXPERT SYSTEMS

The easiest way to develop an expert system is to useThe easiest way to develop an expert system is to usean expert system shell as a developmental tool. Anan expert system shell as a developmental tool. An

expert system shellexpert system shell is a software package consistingis a software package consistingof an expert system without knowledge base.of an expert system without knowledge base.

Expert system shells are now available as relativelyExpert system shells are now available as relativelylow-cost software packages that help users developlow-cost software packages that help users develop

their own expert systems on microcomputers.their own expert systems on microcomputers.Knowledge Engineering:Knowledge Engineering: A knowledge engineer is aA knowledge engineer is a

professional who works with experts to capture theprofessional who works with experts to capture theknowledge (facts and rules of thumb) they possess.knowledge (facts and rules of thumb) they possess.

The knowledge engineer then builds the knowledgeThe knowledge engineer then builds the knowledgebase using an iterative, prototyping process until thebase using an iterative, prototyping process until theexpert system is acceptable.expert system is acceptable.


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The value of Expert systems:The value of Expert systems: What types ofWhat types of

problems are most suitable to expert systemproblems are most suitable to expert system

solutions?solutions?One way to answer this is to look at examplesOne way to answer this is to look at examples

of the applications of current expert systems,of the applications of current expert systems,

including the generic tasks they canincluding the generic tasks they canaccomplish, as were summarized in the fig.1accomplish, as were summarized in the fig.1

Another way is to identify criteria that make aAnother way is to identify criteria that make a

problem situation suitable for an expertproblem situation suitable for an expert

system. Fig 2 outlines some important criteria.system. Fig 2 outlines some important criteria.

Application Categories of Expert Systems Fig 1Application Categories of Expert Systems Fig 1


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pp g p y gpp g p y g

Decision mgt:-Decision mgt:- Systems that appraise situations or consider alternatives & makeSystems that appraise situations or consider alternatives & makerecommendations based on criteria supplied during the discovery process:recommendations based on criteria supplied during the discovery process:

i) Loan portfolio analysis ii) Employee performance evaluation iii) Insurancei) Loan portfolio analysis ii) Employee performance evaluation iii) Insuranceunderwriting iv)Demographic forecastsunderwriting iv)Demographic forecasts

Diagnostic/troubleshootingDiagnostic/troubleshooting-Systems that infer underlying causes from reported-Systems that infer underlying causes from reportedsymptoms & history:symptoms & history:

i) Equipment calibration ii) Help desk operations iii) software debugging iv)i) Equipment calibration ii) Help desk operations iii) software debugging iv)

Medical diagnosisMedical diagnosis

Design/configurationDesign/configuration-Systems that help configure equipment components, given-Systems that help configure equipment components, givenexisting constraints: i) Computer option installation ii) Manufacturability studiesexisting constraints: i) Computer option installation ii) Manufacturability studiesiii) communications networks iv) Optimum assembly planiii) communications networks iv) Optimum assembly plan

Selection/classificationSelection/classification- Systems that help users choose products or processes,- Systems that help users choose products or processes,

often from among large or complex sets of alternatives: i) material selectionoften from among large or complex sets of alternatives: i) material selectionii) information classification etc.,ii) information classification etc.,

Process monitoring/control-systemsProcess monitoring/control-systems that monitor & control procedures orthat monitor & control procedures orprocess: i) machine control (including robotics) ii) Invetory control iii) Productionprocess: i) machine control (including robotics) ii) Invetory control iii) Production

monitoring iv) Chemical testing.monitoring iv) Chemical testing.

Suitability Criteria for Expert Systems table 2Suitability Criteria for Expert Systems table 2


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y p yy p y

Domain:Domain: the domain, or subject area, of the problem is relativelythe domain, or subject area, of the problem is relativelysmall & limited to a well-defined problem areasmall & limited to a well-defined problem area

Expertise:Expertise: Solutions to the problem require the efforts of an expert.Solutions to the problem require the efforts of an expert.That is, a body of knowledge, techniques, & intuition is needed thatThat is, a body of knowledge, techniques, & intuition is needed thatonly a few people possess.only a few people possess.

Complexity:Complexity: Solution of the problem is a complex task that requiresSolution of the problem is a complex task that requires

logical inference processing, which would not be handled as well bylogical inference processing, which would not be handled as well byconventional information processing.conventional information processing.

Structure:Structure: the solution process must be able to cope with ill-the solution process must be able to cope with ill-

structured, uncertain, missing, & conflicting data, & a problemstructured, uncertain, missing, & conflicting data, & a problemsituation that changes with the passage of time.situation that changes with the passage of time.

Availability:vailability: An expert exists who is articulate & cooperative, & whoAn expert exists who is articulate & cooperative, & whohas the support of the mgt & end users involved in the devpt of thehas the support of the mgt & end users involved in the devpt of the

proposed system.proposed system.

B fit f E t tB fit f E t t


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Benefits of Expert systemsBenefits of Expert systems

An expert system is faster & more consistent, canAn expert system is faster & more consistent, canhave the knowledge of several experts & does nothave the knowledge of several experts & does not

get tired or distracted by overwork or stress.get tired or distracted by overwork or stress.Expert systems also help preserve & reproduce theExpert systems also help preserve & reproduce theknowledge of experts.knowledge of experts.

They allow a company to preserve the expertise ofThey allow a company to preserve the expertise ofan expert before he/she leaves the orgn. Thisan expert before he/she leaves the orgn. Thisexpertise can then be shared by reproducing theexpertise can then be shared by reproducing thesoftware & knowledge base of the expert system.software & knowledge base of the expert system.

Expert system have competitive advantages asExpert system have competitive advantages asother types of IT.other types of IT.

Effective use of expert systems can allow a firm toEffective use of expert systems can allow a firm tosignificantly improve the efficiency of its businesssignificantly improve the efficiency of its businessprocesses, or produce new knowledge basedprocesses, or produce new knowledge basedproducts & services.products & services.

Li it ti f E t S tLi it ti f E t S t


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Limitations of Expert SystemLimitations of Expert System

Limited focus, inability to learn, maintenanceLimited focus, inability to learn, maintenanceproblems, & developmental cost.problems, & developmental cost.

Expert systems excel only in solving specific typesExpert systems excel only in solving specific typesof problems in a limited domain of knowledge.of problems in a limited domain of knowledge.

This fail miserably in solving problems requiring aThis fail miserably in solving problems requiring aknowledge base & subjective problem solving.knowledge base & subjective problem solving.

They do well with specific types of operational orThey do well with specific types of operational oranalytical tasks, but falter at subjective managerialanalytical tasks, but falter at subjective managerialdecision making.decision making.

Expert systems may also be difficult & costly toExpert systems may also be difficult & costly todevelop & maintain properly.develop & maintain properly.

The costs of knowledge engineers, lost expert time,The costs of knowledge engineers, lost expert time,& hardware & software resources may be too high to& hardware & software resources may be too high tooffset the benefits expected from some applications.offset the benefits expected from some applications.

Expert system cant maintain themselves.Expert system cant maintain themselves.


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Mis II Business Information Systems