Transcript Intro to Information Systems

Chapter 9
Part 2
Decision Support Systems
McGraw-Hill/Irwin
©2008,The McGraw-Hill Companies, All Rights Reserved
Data Visualization Systems
• DVS
– DSS that represents complex data using interactive threedimensional graphical forms such as charts, graphs, and
maps
– DVS tools help users to interactively sort, subdivide,
combine, and organize data while it is in its graphical form.
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Data Mining
• to provide decision support to managers and
business professionals through knowledge discovery
• Analyzes vast store of historical business data, from
many databases and data warehouse
• Tries to discover patterns, trends, and correlations
hidden in the data that can help a company improve
its business performance
• E.g. Blockbuster Entertainment mines its video rental
history database to recommend rentals to individual
customers. American Express can suggest products
to its cardholders based on analysis of their monthly
expenditures.
• Market basket analysis - the combinations of items
consumers group together in one purchase. Tales of
diapers.
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Enterprise Interface Portals
• EIP
– Web-based interface
– Integration of MIS, DSS, EIS, and other technologies
– Gives all intranet users and selected extranet users
access
– To a variety of internal and external business
applications and services
• Typically tailored to the user giving them a
personalized digital dashboard
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Enterprise Information Portal
Components
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Knowledge Management
Systems
• The use of information technology to help gather,
organize, and share business knowledge within
an organization ‫استخدام تكنولوجيا المعلومات للمساعدة في جمع‬
‫وتنظيم وتبادل المعلومات التجارية داخل المنظمة‬
–Documents storing both facts and procedures
–Examples
• Databases, manuals, diagrams, books, bulletin, emails
etc.
• Enterprise Knowledge Portals
– EIPs that are the entry to corporate intranets that serve
as knowledge management systems
–See KAU portal
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Enterprise Knowledge Portals
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Artificial Intelligence (AI)
• Simulation of human intelligence
• Goal is to develop computers that can simulate
the ability to think, as well as see, hear, walk,
talk, and feel
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Domains of Artificial Intelligence
Cognitive Science‫العلوم المعرفية‬
• Based in biology, neurology, psychology, etc.
• Focuses on researching how the human brain works and
how humans think and learn
• Expert system, fuzzy logics, neural network
Robotics
• Based in AI, engineering and physiology
• Robot machines with computer intelligence and computer
controlled, humanlike physical capabilities
Natural language
• Based in linguistics, psychology, computer science, etc.
• Includes natural language and speech recognition, virtual
reality
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Expert Systems
• ES
• A knowledge-based information system (KBIS)
that uses its knowledge about a specific,
complex application to act as an expert
consultant to end users
• ES use inference engines that match facts and
rules, sequence questions for the user, draw a
conclusion, and present the user a
recommendation
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Architecture of an Expert System
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ES: Rule-Based
• Rule-Based – knowledge represented in rules and
statements of fact
– Rules: statements that typically take the form of a premise and a
conclusion
– Such as, If (condition) then (conclusion)
• Rule based – loan processing
• If personal income is $50,000.00 and more
– Then approve loan
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ES: Fuzzy Logic
• Method of reasoning that resembles human
reasoning
• Allows for approximate values and inferences and
incomplete or ambiguous data instead of relying only
on crisp (fact) data
• Uses terms such as “very high” rather than precise
measures
• Fuzzy logic rules – loan processing
• Risk should be acceptable
• If debt is very high
– Then risk is positively increased
• If income is increasing
– Then risk is somewhat decreased
• If cash reserves are low to very low
– Then risk is very increased
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ES: Neural Networks
• Computing systems modeled after the brain’s mesh-like network of
interconnected processing elements, called neurons
• Interconnected processors operate in parallel and interact with each
other
• Allows network to learn from data it processes
Loan processing
system relying
on a neural
network
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Virtual Reality (VR)
• Virtual reality
– Using multisensory human-computer interfaces that enable
human users to experience computer-simulated objects,
spaces and “worlds” as if they actually exist
• Computer-simulated reality
• Relies on multisensory input/output devices such as
– a tracking headset with video goggles and stereo earphones,
– a data glove or jumpsuit with fiber-optic sensors that track
your body movements, and
– a walker that monitors the movement of your feet
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Intelligent Agents
• A software surrogate for an end user or a
process that fulfills a stated need or activity
• Uses its built-in and learned knowledge base
• To make decisions and accomplish tasks in a
way that fulfills the intentions of a user
• Also called software robots or bots
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User Interface Agents
• Interface Tutors – observe user computer
operations, correct user mistakes, and provide
hints and advice on efficient software use
• Presentation – show information in a variety of
forms and media based on user preferences
• Network Navigation – discover paths to
information and provide ways to view information
based on user preferences
• Role-Playing – play what-if games and other
roles to help users understand information and
make better decisions e.g. secondlife
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Information Management Agents
• Used rapidly in the Internet and Web
• Search Agents – help users find files and databases,
search for desired information, and suggest and find new
types of information products, media, and resources
– General Search engine e.g. google, yahoo
– Specific search engine e.g. google scholar, job search agents
• Information Brokers – provide commercial services to
discover and develop information resources that fit the
business or personal needs of a user
– E.g. ask.com, why?
– http://www.virtualfreesites.com/search.agents.htm
• Information Filters – receive, find, filter, discard, save,
forward, and notify users about products received or
desired
– E.g amazon.com
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Case 1: Oracle Corporation and Others:
Dashboards for Executives and Business
Professionals: The Power and the Challenge
• The dashboard has become the CEO’s killer app.
• Dashboards provide key business information to
executives, managers, and business professionals.
• At GE executives use dashboard to follow the
production of everything from light bulbs to
dishwashers, making sure production lines are
running smoothly.
• Dashboards have some challenges. These tools can
raise pressure on employees, create divisions in the
office, and lead workers to hoard information.
• Dashboards can hurt the morale of employees.
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Case Study Questions
1. What is the attraction of dashboards to CEOs and
other executives? What real business value do
they provide to executives?
2. The case emphasizes that managers of small
businesses and many business professionals now
rely on dashboards. What business benefits do
dashboards provide to this business audience?
3. What are several reasons for criticism of the use of
dashboards by executives? Do you agree with any
of this criticism? Why or why not?
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Real World Internet Activity
1. Use the Internet to research makers of
dashboards for large and small business. For
example, try NetSuite, Hyperion Solutions, and
Salesforce.com for relatively inexpensive
versions and Microsoft, Oracle, and SAP for
more costly corporate dashboards. Evaluate
the dashboard examples and demos you
experience. Pick your favorites and explain
your reasons for doing so to the class.
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Real World Group Activity
2. How would you like to work for an executive
whose dashboard provides the level of
information about company and employee
performance described in this case? Would
you want that level of information when you
enter the executive ranks?
– Discuss this issue, and formulate suggestions
on any changes or safeguards you would
propose for the business use of dashboards.
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Case 2: Harrah’s Entertainment,
LendingTree, DeepGreen Financial, and
Cisco Systems:
• The promise of AI of automating decision making has been
very slow to materialize.
• The new generation AI applications are easier to create and
manage, do not require anyone to identify the problems or to
initiate the analysis, decision-making capabilities are
embedded into the normal flow of work, and are triggered
without human intervention.
• They sense online data or conditions, apply codified
knowledge or logic and make decisions with minimal human
intervention.
• But they rely on experts and managers to create and
maintain rules and monitor the results.
• Also, managers in charge of automated decision systems
must develop processes for managing exceptions.
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Case Study Questions
1. Why did some previous attempts to use artificial
intelligence technologies fail? What key
differences of the new AI-based applications
versus the old cause the authors to declare that
automated decision making is finally coming of
age?
2. What types of decisions are best suited for
automated decision making? Provide several
examples of successful applications from the
companies in this case to illustrate your answer.
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Case Study Questions
3. What role do humans play in automated
decision making applications? What are some
of the challenges faced by managers where
automated decision-making systems are being
used? What solutions are needed to meet
such challenges?
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Real World Internet Activity
1. Use the Internet to find examples of companies
that are using automated decision making or
other business applications of artificial
intelligence. You might begin by looking for
such information on the companies mentioned
in this case and their main competitors, and
then widen your search to encompass other
companies. What business benefits or
challenges do you discover?
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Real World Group Activity
2. Artificial intelligence applications in business
such as automated decision making pose
potential business risks, as evidenced by the
Cisco Systems experience, and have the
potential for other risks to business and human
security and safety, for example.
– Discuss such risks and propose controls and
safeguards to lessen the possibility of such
occurrences.
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Case 3: IBM, Linden Labs, and Others: The
Business Case for Virtual Worlds in a 3D
Internet
• Second Life is a 3-D virtual world entirely built and owned by
its Residents.
• Since opening to the public in 2003, it has grown explosively
and today it is inhabited by more than eight million residents
from around the globe.
• It is catching the attention of many companies because of
it’s ability to use as a platform for a whole new Net with
huge opportunities to sell products and services.
• It is also possible to exchange Second Life’s currency,
called Linden dollars, for the real currency for a fee.
• Residents could thus build, own, or sell their digital
creations.
• Second Life has become a real economy.
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Case Study Questions
1. What are the most important business benefits
and limitations of 3D virtual worlds like Second
Life to real-world companies such as those
mentioned in this case?
2. Why do you think IBM is taking a leadership
role in promoting and using 3D metaverses like
Second Life? What business benefits might it
expect to gain from its involvement in
developing a 3D Internet? Explain your
reasoning.
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Case Study Questions
3. Are 3D virtual worlds like Second Life
“solutions in search of a problem” at this stage
of their development, in that do not satisfy any
vital business need? Why or why not?
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Real World Internet Activity
1. Search the Internet to determine how Second
Life, Linden Labs, IBM, and other companies
mentioned in this case are doing in terms of
the growth and business success of their
development or use of 3D virtual worlds. Have
new competitors successfully entered the 3D
Internet market? If so, how do they differ in the
products and services they offer?
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Real World Group Activity
2. Visit the Second Life Web site and evaluate
the experience in terms of level of difficulty,
response times, operation of basic functions,
realism, and so forth. Are 3D virtual worlds like
Second Life ready for widespread use as an
important form of social networking? How
could they improve what they offer to make it
more appealing and successful? Debate these
issues.
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