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Types of Computer Based Information Systems Six Basic types of systems • Transaction processing systems (TPS) at the operational level, • Office automation systems (OAS) at the knowledge level • Knowledge work systems (KWS) at the knowledge level, • Management information systems (MIS) ) at the management level • Decision support System (DSS) at the management level • Executive support systems (ESS)at the strategic level. Transaction Processing System (TPS) • The most fundamental computer based system in an organization pertains to the processing of business transactions. Advantages • Increase labor efficiency – Paperless Transactions – Reduce manual data entry (errors) – Speed up transaction process – Elimination of redundant steps • Help provide improved service • Help build and maintain customer loyalty • Achieve competitive advantage Batch vs. Real-time Batch Processing • transaction data are accumulated • processed periodically Real-time Processing • also called online • immediately processed • Syncronization issues TPS Activities • Data collection – Should be collected at source – Should be recorded accurately, in a timely fashion • Data editing • Data correction Features • • • • • Performance Continuous availability Data integrity Ease of use Modular growth Backup procedures • Grandfather-father-son • Partial backups Management Information System • MIS are more concerned with levels of management with information essential to the running of smooth business. This Information must be as relevant, timely, accurate, complete and concise as is economically feasible. Advantages and Disadvantages Advantages • Globalization • Communication • Cost effectiveness • Bridging the cultural gap • More time • Creation of new jobs Disadvantages • Unemployment • Privacy • Lack of job security • Dominant culture Decision Support System (DSS) • Designed to assist decision makers with unstructured problems • Decision Support System is a general term for any computer application that enhances a person or group’s ability to make decisions • Decision is made based on the information available. DSS characteristics and capabilities • • • • • • • • • • • • • • • • Solve semi-structured and unstructured problems Support managers at all levels Support individuals and groups Interdependence and sequence of decisions Support Intelligence, Design, Choice Adaptable and flexible Interactive and ease of use Interactive and efficiency Human control of the process Ease of development by end user Modeling and analysis Data access Standalone and web-based integration Support varieties of decision processes Support varieties of decision trees Quick response Advantages of DSS • • • • Quick computations at a lower cost Group collaboration and communication Increased productivity Ready access to information stored in multiple databases and data warehouse • Ability to analyze multiple alternatives and apply risk management • Enterprise resource management • Tools to obtain and maintain competitive advantage Disadvantages of DSS • • • • • • • • • Monetary cost Overemphasize decision making Assumption of relevance Transfer of power Unanticipated effects Obscuring responsibility False belief in objectivity Status reduction Information overload Office Automation System (OAS) THE BASICS OF OFFICE AUTOMATION • Storage of information, • Data exchange • A management. Advantages of OAS Backbone of OAS Expert systems • Technologies that apply reasoning methodologies in a specific domain • Attempts to mimic human experts’ problem solving • Examples include: – – – – – Artificial Intelligence Systems Artificial Neural Networks (neural computing) Genetic Algorithms Fuzzy Logic Intelligent Agents “An expert system is a computer system that emulates, or acts in all respects, with the decision-making capabilities of a human expert.” Professor Edward Feigenbaum Stanford University Expert System Main Components • Knowledge base – obtainable from books, magazines, knowledgeable persons, etc. • Inference engine – draws conclusions from the knowledge base The Building Blocks of Expert Systems • knowledge base • Heuristic knowledge base Advantages of ES • Increased availability • Reduced cost • Reduced danger • Performance • Multiple expertise • • Increased reliability Explanation • Fast response • Steady, unemotional, and complete responses at all times • Intelligent tutor • Intelligent database Disadvantages of ES • Usually only covers narrow range of knowledge • Cost and effort are higher • Not as good as having human experts • Does not learn from mistakes • Unlikely to come up with creative solutions Knowladge work systems • Knowledge Base systems are intended to perform tasks which require some specialized knowledge and reasoning. • Medical diagnosis, geological analysis, and chemical compound identification are examples of tasks to which Knowledge Base systems have been applied. • The Knowledge Base system communicates with the user through the User Interface. • In many applications the Knowledge Base system is required to explain its reasoning to the user. This is particularly true in situations such as the identification of chemical structures where new results must be verified. Representing the Knowledge The knowledge of an expert system can be represented in a number of ways, including IFTHEN rules: IF you are hungry THEN eat