chapter 4 ppt

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4
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1

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Chapter 4


Decision Support and
Artificial Intelligence


Brainpower for Your Business


4
-
2

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Introduction


Types of computer
-
aided decision support.



4
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3

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Management Problem solving
Model


Problem or opportunity


Objectives


Alternatives


Analysis of alternatives


Recommendation


Implementation

4
-
4

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Decisions, Decisions,
Decisions

How You Make a Decision




Four phases of
decision
making



4
-
5

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Decisions, Decisions,
Decisions

Types of Decisions You Face

4
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6

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Decision Support Systems


Decision support system (DSS)

-

highly flexible and
interactive IT system that is designed to support
decision making when the problem is not structured.




4
-
7

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Decision Support Systems

Components of a Decision Support System

4
-
8

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Collaboration System


Collaboration
system



software
that is designed
specifically to
improve the
performance of
teams by supporting
the sharing and flow
of information.




4
-
9

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Geographic Information Systems


Geographic information system (GIS)

-

a decision support system designed to
work with spatial information.



Spatial information is any information that
can be shown in map form, such as roads,
the distribution of bald eagle populations,
and the layout of electrical lines.

4
-
10

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Geographic Information Systems

4
-
11

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Artificial Intelligence


Artificial intelligence (AI)

-

the science
of making machines imitate human
thinking and behavior.



Robot

-

mechanical device equipped
with simulated human senses and the
capability of taking action on its own.



4
-
12

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Artificial Intelligence


The AI systems that businesses use
most can be classified into four
categories:

1.
Expert systems

2.
Neural networks

3.
Genetic algorithms

4.
Intelligent agents

4
-
13

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Expert Systems


Expert system, or knowledge
-
based
system
-

artificial intelligence system that
applies reasoning capabilities to reach a
conclusion.

4
-
14

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Expert Systems

Components of an Expert System


Expert systems are good for diagnostic (what’s
wrong?) and prescriptive (what to do?) problems.




4
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15

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Expert Systems

Components of an Expert System

4
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16

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Expert Systems

What Expert Systems Can and Can’t Do


An expert system can:


Reduce errors


Improve customer service


Reduce costs



An expert system can’t:



Use common sense


Automate all processes

On Your Own

Traffic Lights

Revisited

(p. 199)

4
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17

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Neural Networks


Neural network

(often called an
artificial
neural network

or

ANN
)
-

an artificial
intelligence system that is capable of
finding and differentiating patterns.

4
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18

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Neural Networks

Types of Neural Networks


Self
-
organizing neural
network

-

finds patterns and
relationships in vast amounts
of data by itself.



Back
-
propagation neural
network
-

a neural network
trained by someone.

Team Work

How Would You

Classify People?

(p. 202)

4
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19

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Neural Networks


Inside a Neural Network

4
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20

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Genetic Algorithms


Genetic algorithm

-

an artificial
intelligence system that mimics the
evolutionary, survival
-
of
-
the
-
fittest process
to generate increasingly better solutions to
a problem.


4
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21

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Genetic Algorithms


Genetic algorithms use three concepts of
evolution:


Selection


survival of the fittest.


Crossover


combining portions of good
outcomes in the hope of creating an even
better outcome.


Mutation


randomly trying combinations
and evaluating the success (or failure) of the
outcome.

4
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22

Management Information Systems
for the Information Age

Copyright 2002

The McGraw
-
Hill Companies, Inc.

All rights reserved

Intelligent Agents


Intelligent agent

-

software that assists
you, or acts on your behalf, in performing
repetitive computer
-
related tasks.



Four types of intelligent agents include:


Buyer agents or shopping bots


User or personal agents


Monitoring
-
and
-
surveillance or predictive agents


Data
-
mining agents