Download O`Brien - Intro. to Information Systems

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
Decision Support
Systems
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-1
Learning Objectives
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
Real World Cases
KEY TERMS
BACK NEXT
END
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.
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-2
Learning Objectives
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
Real World Cases
KEY TERMS
BACK NEXT
END
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.
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-3
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
Real World Cases
KEY TERMS
BACK NEXT
END
Decision Support in
Business
• Diverse Information and
Decision Making Needs
• Varied MIS, DSS, and
Other Information
Systems
• Real World Case 1- Ben
& Jerry’s and GE
Plastics
Click to go to
Case 1
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-4
Decision Support in Business
Information Requirements
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
Decision Structure
Unstructured
BACK NEXT
Information Characteristics
Strategic
Management
Executives & Directors
Semi-Structured
Tactical Management
Business Unit Management
Self-Directed Teams
Operational
Management
Structured
Real World Cases
KEY TERMS
of Decision Makers
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope
Prespecified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus
Operating Management & Self-Directed Teams
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-5
Decision Support in Business
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
Real World Cases
KEY TERMS
BACK NEXT
END
Characteristics of Information Products
•Time Dimension
•Content Dimension
•Form Dimension
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-6
Decision Support in Business
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
Decision Structure
Structured Decisions
Semistructured
Unstructed
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-7
Decision Support in Business
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
Real World Cases
KEY TERMS
BACK NEXT
END
Decision Support Trends
• Focus on Personalized
Decision Support
• Modeling
• Information Retreival
• Data Warehousing
• What-if Scenarios
• Reporting
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-8
Decision Support in Business
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
Decision Support Trends
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-9
Decision Support in Business
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
Real World Cases
Decision Support Trends
Meeting the Data Analysis
and Proactive Decision
Support Requirements
Business Stakeholder
Requirements
Information at Your
Fingertips
Do-It-Yourself Data
Analysis
Decision
Support Response
Personalized, Proactive
Decision Analytics and
Web-based Applications
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-10
Decision Support in Business
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
Decision Support Trends
Developing Business Intelligence
Decision
Support
Systems
Management
Information
Systems
Business
Intelligence
Data
Mining
Real World Cases
Knowledge
Management
Systems
Online
Analytical
Processing
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-11
Decision Support in Business
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
Real World Cases
KEY TERMS
BACK NEXT
END
Decision Support Trends
Developing Business Intelligence
Cisco Systems: DSS
Dashboard
• Need for Universal Access to
Real-Time Information
• Introduction of
“Dashboard”
• Some Data is Batched
• Merged Data Provides RealTime Information System
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-12
Management Information Systems
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
Real World Cases
KEY TERMS
BACK NEXT
Management Reporting Alternatives
• Periodic Scheduled
Reports
• Exception Reports
–Less Information
Overload
• Demand Reports and
Responses
• Push Reporting
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-13
Management Information Systems
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
Real World Cases
KEY TERMS
BACK NEXT
Management Reporting Alternatives
Components of a Marketing
Information System
CLIENTS
INTERNAL
DATABASES
Sales Prospects
and Rivals’ News
SERVER
Rivals’ News and
Company News
Sales Prospects
Rivals’ News
Sales Prospects
and Company
News
Customer
Data
Sales
Data
News Wires
Company News
The Server Filters
Information Based
on Users’ Custom
Requirements
Inventory
Data
Via the Internet
Firewall
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-14
Management Information Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
Management Reporting Alternatives
Microsoft: The Impact of IT on
District Sales Managers
• 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-15
Online Analytical Processing
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
OLAP
• Consolidation
• Drill-Down
• Slicing and Dicing
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-16
Online Analytical Processing
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
OLAP
Use of Excel for OLAP
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-17
Online Analytical Processing
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
Real World Cases
KEY TERMS
BACK NEXT
OLAP
Use of Specialized Servers and
Multidimensional Databases
OLAP Server
Client PCs
Corporate
Databases
•Spreadsheets
•Statistical Packages
•Web-Enabled
•OLAP Software
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
Data are retrieved from
corporate databases and
staged in an OLAP
multidimensional database
for retrieval by front-end
systems
Multidimensional
Database
• Operational
Databases
• Data Marts
• Data Warehouse
9-18
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
Real World Cases
KEY TERMS
BACK NEXT
END
Online Analytical Processing
International Rectifier:
OLAP for Decision Support
• 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-19
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
Real World Cases
KEY TERMS
BACK NEXT
END
Decision Support Systems
DSS Uses:
• Analytical Models
• Specialized Databases
• Decision Maker’s Own
Insights and Judgments
• An Interactive, ComputerBased Modeling Process to
Support Semistructured
and Unstructured Business
Decisions
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-20
Decision Support Systems
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
Components of WebEnabled Marketing DSS
Legacy
Software
Web
Browser
User Interface Functions
Hyperlinked Multimedia, 3-D Visualization
Model Management Functions
Analytical Modeling, Statistical Analysis
Data Management Functions
Data Extraction, Validation, Sanitation, Integration, and Replication
Real World Cases
KEY TERMS
BACK NEXT
END
Other
Software
Operational
Data
Sales
Market
Data
Data
Data Marts and Other Databases
Copyright 2005, McGraw-Hill/Irwin, Inc.
Customer
Account
Data
9-21
Decision Support Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
Web-Enabled DSS at PepsiCo
• 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-22
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
Decision Support Systems
Examples of Special
Purpose DSS Packages
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-23
Decision Support Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
Eli Lilly: Data Visualization
for Decision Support
• Use of Spotfire’s DecisionSite
Software 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-24
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
Decision Support Systems
Using Decision Support
• What-if Analysis
• Sensitivity Analysis
• Goal-Seeking Analysis
• Optimization Analysis
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-25
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
Decision Support Systems
Using Decision Support
Example of What-if Analysis
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-26
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
Real World Cases
KEY TERMS
BACK NEXT
END
Decision Support Systems
Lexis-Nexis: Web Tools for
Decision 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-27
Decision Support Systems
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
Data Mining for Decision
Support
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-28
Decision Support Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
KeyCorp and Peoples Bank:
Data 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, IndustrySpecific Data Models, and
Consulting Services
• High Costs May Limit
Applications of the Package
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-29
Executive Information Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
Features of an EIS
• Critical Success Factors
(CSF)
• Ability to Drill Down
• Trend Analysis
• Exception Reporting
• Use Spread to Middle
Management and
Business Professionals
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-30
Executive Information Systems
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
A Web-Based EIS
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-31
Executive Information Systems
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
Real World Cases
KEY TERMS
BACK NEXT
END
EIS at Conoco and 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”
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-32
Enterprise Portals and
Decision Support
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
• Web-Based Interface
• Integration of MIS, DSS,
EIS, and Other Technologies
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-33
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
Real World Cases
KEY TERMS
BACK NEXT
END
Enterprise Portals and
Decision Support
AmeriKing Inc.: The
Business Value of EIS
• Large Burger King
Franchisee with Poor
Technology Infrastructure
• Launched Intranet Portal
• Used Web Browsers for
Access
• Dramatic Savings and Much
Better Performance
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-34
Enterprise Portals and
Decision Support
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
Components of an EIS Portal
Sales
VP
Managers
Sales Reps
Marketing
VP
Managers
Analysts
Corporate
Search
Query
Calendaring
CXO
VPs
Managers
Analysts
Engineering
VP
Managers
Engineers
Channels/
News
Enterprise Portal Server
Administration
Security
APIs
Metadata Management
Inferencing
Contextualization
Other
Employees
Suppliers
Customers
e-Mail/
Chat
Load Balancing
Dynamic Profiling
Hyperlinking
DSS Tools
Data Mining
OLAP
Other Tools
Indexing
Search Agents
Taxonomy
Portal Gateway
Real World Cases
KEY TERMS
BACK NEXT
END
Operational
Databases
Analytic
Databases
Data
Business
Warehouse Applications
Copyright 2005, McGraw-Hill/Irwin, Inc.
Intranets
Extranets
Internet
Web
9-35
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
Real World Cases
KEY TERMS
BACK NEXT
END
Knowledge Management
Systems
Enterprise Knowledge Portals
Qwest Communications: Web
Knowledge Management System
• Used to Provide All Needed
Knowledge to Call Center
Representatives
• Accuracy and Completeness
Was Vital
• InfoBuddy System “Pushed”
New Information to
Appropriate Users
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-36
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
Knowledge Management
Systems
Enterprise Knowledge Portal
Web User (Employee/Customer)
Single Point of Access to all Corporate Data
Personalized Views of News and Data
Collaboration Tools
Enterprise Knowledge Portal
Community Work Areas
• 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
Data Sources
Structured Data Sources
Unstructured Data Sources
Enterprise Knowledge
Real World Cases
KEY TERMS
BACK NEXT
ERP
Database
CRM
Database
Other
Databases
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
e-Mail
Groupware
File System
•Documents
•Presentations
Web
•Internet
•Intranet
•Extranet
Enterprise
Knowledge
Base
9-37
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
Real World Cases
KEY TERMS
BACK NEXT
END
Artificial Intelligence
Technologies 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 Case 2Wal-Mart, BankFinancial,
Click to go to
and HP
Case 2
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-38
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
Artificial Intelligence
Overview of AI
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-39
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Field of Science and
Technology Based Upon
Disciplines:
• Computer Science
• Biology
• Psychology
• Linguistics
• Mathematics
• Engineering
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-40
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
The Domains of AI
• Cognitive Science
–Human Information
Processing
–Knowledge-Based Systems
–Fuzzy Logic
–Fuzzy Data
–Neural Networks
–Intelligent Agents
• Robotics
• Natural Interfaces
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-41
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
The Domains of AI
Artificial
Intelligence
Cognitive
Science
Applications
•Expert Systems
•Learning Systems
•Fuzzy Logic
•Genetic Algorithms
•Neural Networks
•Intelligent Agents
Robotics
Applications
•Visual Perception
•Tactility
•Dexterity
•Locomotion
•Navigation
Natural
Interface
Applications
•Natural Languages
•Speech Recognition
•Multisensory Interfaces
•Virtual Reality
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-42
Artificial Intelligence
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
Commercial Applications of AI
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-43
Artificial Intelligence
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
Neural Network Application
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-44
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Neural Nets at Go.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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-45
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Fuzzy 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-46
Artificial Intelligence
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
Fuzzy Logic Systems
Fuzzy Logic Rules
Risk should be acceptable
If debt-equity 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
If PE ratio is good
Then risk is generally decreased
Fuzzy Logic SQL Query
Select companies
from financials
where revenues are very large
and pe_ratio is acceptable
and profits are high to very high
and (income/employee_tot) is reasonable
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-47
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Genetic Algorithms
• Uses Darwinian,
Randomizing, and Other
Mathematical Functions
• Stimulates Evolutionary
Process That Can Yield
Better Problem Solutions
• Mutations
• Crossovers
• Selections
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-48
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
GE’s Engeneous
• 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-49
Artificial Intelligence
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
Business Use of Genetic Algorithm
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-50
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Virtual Reality (VR)
• Computer Simulated
Reality
• Multisensory
Input/Output Devices
• Data Glove
• Walker
• Creating Telepresence
With Sight, Sound, and
Touch
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-51
Artificial Intelligence
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
Virtual Reality (VR)
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-52
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
VR 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-53
Artificial Intelligence
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
Intelligent Agents
• Use of Software
Surrogates
• Software Robots “Bots”
• Many Types of Intelligent
Agents…
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-54
Artificial Intelligence
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
Intelligent Agents
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-55
Artificial Intelligence
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
Intelligent Agents
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-56
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Dow Jones & Co.:
Intelligent 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 EMailed to User
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-57
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Expert Systems
•Components of an
Expert System
•Knowledge Base
•Software Resources
•Inference Engine
Program
•Expert System
Applications
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-58
Artificial Intelligence
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
Expert Systems
The Expert System
Expert System Software
Expert
Advice
User
Interface
Programs
Inference
Engine
Program
Knowledge
Base
User
Workstation
Expert System Development
Knowledge
Acquisition
Program
Real World Cases
Knowledge
Engineering
KEY TERMS
Workstation
BACK NEXT
Expert and/or
Knowledge Engineer
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-59
Artificial Intelligence
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
Expert Systems
IBM Network Management
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-60
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
Cutler-Hammer:
Strategic 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-61
Artificial Intelligence
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
Major Application Categories
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-62
Artificial Intelligence
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
• Benefits of Expert Systems
• Limitations of Expert Systems
• Criteria for Suitable
Applications
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-63
Artificial Intelligence
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
Expert Systems
•Developing Expert
Systems
•Expert System Shell
•Knowledge Engineering
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-64
Artificial Intelligence
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
Visual Rule Studio and VB
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-65
Artificial Intelligence
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
Real World Cases
KEY TERMS
BACK NEXT
END
ES Development at
MacMillan Bloedel
• Forest Products Conglomerate
• Used ES to Capture
Knowledge of Plant
Operations
• Used ACQUIRE Expert
System
• Provides Quality Maintenance
and Operations Advice to Mill
Operators
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-66
Summary
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
Real World Cases
KEY TERMS
BACK NEXT
END
• Information, Decisions,
and Management
• Decision Support
Trends
• Management
Information Systems
• OLAP and Data Mining
• Decision Support
Systems
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-67
Summary
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
Real World Cases
• Executive Information
Systems
• Enterprise
Information and
Knowledge Portals
• Artificial Intelligence
• AI Technologies
• Expert Systems
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-68
KEY TERMS
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
Real World Cases
KEY TERMS
BACK NEXT
END
Analytical Modeling
a. Goal-Seeking Analysis
b. Optimization Analysis
c. Sensitivity Analysis
d. What-if Analysis
Artificial Intelligence
a. Application Areas
b. Domains
Business Intelligence
Data Mining
Data Visualization System
Decision Structure
Decision Support System
Decision Support Trends
DSS Components
Enterprise Information Portal
Enterprise Knowledge Portal
Executive Information System
Expert System
a. Applications
b. Benefits and Limitations
c. Components
d. System Development
Copyright 2005, McGraw-Hill/Irwin, Inc.
Expert System Shell
Fuzzy Logic
Genetic Algorithms
Geographic Information
System
Inference Engine
Intelligent Agent
Knowledge Base
Knowledge Engineer
Knowledge Management
System
Level of Management Decision
Making
Management Information
System
Model Base
Neural Network
Online Analytical Processing
Reporting Alternatives
Robotics
Virtual Reality
9-69
Optional Case Studies
Real World Case 1
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
Real World Cases
KEY TERMS
BACK NEXT
END
Ben & Jerry’s and GE Plastics:
The Business Value of Business
Intelligence
Click to go to
Case 1
Real World Case 2
Wal-Mart - BankFinancial and
HP: The Business Value of AI
Technologies
Click to go to
Case 2
Real World Case 3
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Click to go to
Case 3
Real World Case 4
Boehringer Ingelheim: Using WebBased Tools for Financial Analysis
and Reporting
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 4
9-70
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
Module IV – Development Processes
Developing
Business/IT
Solutions
Real World Cases
Chapter 10
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-71
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
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
1- What is business
intelligence? Why are BI
systems becoming such a
popular business
application of IT?
Return to
Chapter 9
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-72
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
Real World Cases
KEY TERMS
BACK NEXT
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
• Business Intelligence are Programs
that Crunch Huge Quantities of
Data in Search of Trends, Problems,
or New Business Opportunities
• BI Systems are Becoming a Popular
Business Application of IT Due to:
– BI Software Helps Deliver on
Investments
– Software Costs ($35,000-$75,000)
– BI Promise-Anyone Can Use
Technology
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-73
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
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
2- What is the business value
of Ben & Jerry’s business
intelligence system? Is
their BI system an MIS or
DSS? Explain.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-74
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
Real World Cases
KEY TERMS
BACK NEXT
END
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
The Business Value Would Include:
Ben & Jerry's:
• Depends on BI Software for Statistics
• Shortened Time to Close Monthly
Books
• Sales Team Can Check Specifics on
Sales
• Marketing Can Check Orders Online
• Finance Adds Numbers to Journals
• Consumer Affairs Checks for
Complaints
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-75
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
Real World Cases
KEY TERMS
BACK NEXT
END
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
The Business Value Would Include:
Both MIS and DSS Should be Used
Students should be able to provide
several points based upon reading
the chapter. These points would
include:
• "Business Intelligence"-Use of
Software Tools
• Trends in Decision Support
• Types/Levels of Decision
• Are You Able to Argue the Point?
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-76
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
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
3- What are the benefits and
limitations of the “digital
cockpits” of GE Plastics?
Are these an example of an
MIS or DSS? Explain.
Return to
Chapter 9
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-77
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
Real World Cases
KEY TERMS
BACK NEXT
END
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
Benefits Would Include:
• Change Culture to
Common Look
• Continuously Updated
Online Display
• Managers Access to
Essential Data
• Reduce Analysts
from 12 to 6
Return to
Chapter 9
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-78
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
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
Limitations Would Include:
• Day Old Business
Intelligence Numbers
• Live Data Cost Ten Times
Old Data
Return to
Chapter 9
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-79
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
Real World Cases
KEY TERMS
BACK NEXT
END
Ben & Jerry’s and GE
Plastics: The Business Value
of Business Intelligence
Limitations Would Include:
• Day Old Business
Intelligence Numbers
• Live Data Cost Ten Times
Old Data
Both MIS and DSS
Can Be Used
Return to
Chapter 9
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-80
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
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
1- What is the business
value of AI technologies in
business today? Use
several examples from the
case to illustrate your
answer.
Return to
Chapter 9
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-81
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
Real World Cases
KEY TERMS
BACK NEXT
END
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Business Values Can Be Illustrated by:
• AI Software Helps Engineers Create
Better Jet Engines
• AI Technology Boosts Productivity
• Gains Insights Into Huge Data on
Human Genome
• Use Neural Networks to Detect CreditCard Fraud
• Qualify for Debit Card Insurance
• Uncover Patterns/Relationships
Eluded in Human Searches
• Banks Use This to Predict Customer
Behavior
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-82
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
Real World Cases
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
2- What are some of the
benefits and limitations of
data mining for business
intelligence? Use
BankFinancial’s
experience to illustrate
your answer.
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-83
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
Real World Cases
KEY TERMS
BACK NEXT
END
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Benefits Would Include:
• Mining Cost-Savings and
Revenue-Boosting Ideas
• Accurately Targets Customer
Promotions
• Helps Users Set Up Predictive
Models
• Reduce Models for the Bank
50% to 70%
• Predicts Customer “Churn,” the
Rate Customers Come and Go
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-84
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
Real World Cases
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
3- Why have banks and
other financial institutions
been leading users of AI
technologies like neural
networks? What are the
benefits and limitations
of this technology?
Return to
Chapter 9
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-85
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
Real World Cases
KEY TERMS
BACK NEXT
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Banks and Others’ Benefits Would
Include:
• Detecting Credit-Card
Fraud
• Use Models to Predict
Customer Behavior
• Revenue Enhancing
• Cost Reduction
Return to
Chapter 9
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-86
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
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Limitations Would Include:
• Biggest Problem is Getting
Data
• Access Correct Data Needed
for Predictive Models
• Dealing with Disparate Data
Sources
Return to
Chapter 9
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-87
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
Real World Cases
KEY TERMS
BACK NEXT
END
Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Limitations Would Include:
• Biggest Problem is Getting
Data
• Access Correct Data Needed
for Predictive Models
• Dealing with Disparate Data
Sources
• Systems Integration
and Interface Work is
Needed
Return to
Chapter 9
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-88
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
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
1- Do you agree with Proctor
& Gamble that a supply
chain should be called a
supply network? Why or
why not?
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-89
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
Real World Cases
KEY TERMS
BACK NEXT
END
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Discussion Points Include:
• “Supply Network” More
Complex than “Supply
Chain”
• Agent-Based Modeling
More Sophisticated
• Computer Modeling Adds
Additional Dimension
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-90
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
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
2- What is the business value
of agent-based modeling?
Use P&G and other
companies in this case as
examples.
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-91
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
Real World Cases
KEY TERMS
BACK NEXT
END
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Discussion Points Include:
• P&G Performs What-if Simulations
• P&G to Relax Rigid Rules to Improve
Overall Performance of the Supply
Network
• P&G Convinced that Cultural
Changes are Good
• No Need for More Flexibility in
Manufacturing
• Need for More Flexibility in
Distribution
• Southwest Airlines Used Agent-Based
Modeling
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-92
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
Real World Cases
KEY TERMS
BACK NEXT
END
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Discussion Points Include:
• Air Liquide America LP Reduced
Production/Distribution Costs
• Merck & Co. Found Efficient
Ways to Distribute Anti-HIV
Drugs in Zimbabwe
• Ford Motor Co. Simulated Buyer
Preferences
• Edison Chouest Offshore LLC
Optimized Deployment of Service
and Supply Vessels in the Gulf of
Mexico
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-93
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
Real World Cases
KEY TERMS
BACK NEXT
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
3- Visit the website of
NuTech Solutions. How
does NuTech use AI
techniques to help
companies gain “adaptive”
business intelligence? Give
several examples from the
website case studies.
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-94
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
Real World Cases
KEY TERMS
BACK NEXT
END
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Examples From Site Include:
• Branch Banking and Trust – ARROW
• ChevronTexaco – Scheduling Optimization
• DaimlerChrysler Aerospace – Engineering
Design Optimization
• Dutch Ministry of Traffic – Scheduling
Optimization
• F. E. Bording – Supply Network
Optimization
• General Motors – Vehicle Distribution
System
• U. S. Internal Revenue Service – Expert
System Development
Return to
• Kraftwerksunion (KWU) –
Cases Page
Scheduling Optimization
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-95
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
Real World Cases
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Examples From Site Include:
• Major Automaker – Marketing
Diffusion
• Major Producer – Resource Allocation
Optimization
• Major Telecom Company – Engineering
Design Optimization
• Major U. S. Automaker – Data Mining
• Major U. S. Bank – Vehicle Distribution
System
• NASA – Modeling and Simulation
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-96
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
Real World Cases
KEY TERMS
BACK NEXT
END
Proctor & Gamble and Others:
Using Agent-Based Modeling
for Supply Chain Management
Examples From Site Include:
• Major Automaker – Marketing
Diffusion
• Major Producer – Resource Allocation
Optimization
• Major Telecom Company – Engineering
Design Optimization
• Major U. S. Automaker – Data Mining
• Major U. S. Bank – Vehicle Distribution
System
• NASA – Modeling and Simulation
Return to
• Nasdaq – Modeling and
Cases Page
Simulation
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-97
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
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
1- What are the Business
Benefits and Limitations of
Boehringer’s Web-Based
Financial Analysis and
Reporting Systems?
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-98
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
Real World Cases
KEY TERMS
BACK NEXT
END
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
Discussion Points Would Include
• Rapidly Consolidate and Present Key
Financial Data on a Daily, Weekly or
Monthly Basis Which Allows it to Drill
Down and Draw Conclusions Based on
the Latest Data
• Boehringer Able to Close its Books for
Most of its Divisions in Just Two Hours
vs. a Three Day Requirement in the Past
• Accounting Can Spot Product Sales
Trends and Track Expenses Quickly
• Boehringer Can Create
Return
to
Multidimensional Views of
Profit
Cases Page
and Loss Data
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-99
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
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
2- Which of Boehringer’s
financial analysis and
reporting systems are MIS
tools? DSS tools? Why?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-100
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
Real World Cases
KEY TERMS
BACK NEXT
END
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
Discussion Points Would Include
• Decision Support Provided
– MIS – Provide Information About the
Performance of Boehringer
– DSS – Provide Information and
Decision Support Techniques to
Analyze Specific Problems or
Opportunities
• Information Form and Frequency
– MIS – Periodic, Exception, Demand,
and Push Reports and Responses
– DSS – Interactive Inquiries and
Responses
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-101
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
Real World Cases
KEY TERMS
BACK NEXT
END
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
Discussion Points Would Include
• Information Format
– MIS - Prespecified, Fixed Format
– DSS – Ad Hoc, Flexible, and
Adaptable Format
• Information Processing
Methodology
– MIS – Information Produced by
Extraction and Manipulation of
Business Data
– DSS – Information Produced by
Analytical Modeling of Business
Data
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-102
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
Real World Cases
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
3- How could the Cognos
tools used by Boehringer be
used for marketing and
other business analysis and
reporting applications?
Visit the Cognos website to
help you answer.
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-103
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
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
Discussion Points Would Include
• Use of the Cognos Tools by the
Marketing Staff to Increase
Boehringer’s Competitive
Position and their Customer
Relationship Management System
• Training of the Marketing Staff to
Use the Cognos Tools
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-104
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
Real World Cases
KEY TERMS
BACK NEXT
Boehringer Ingelheim: Using
Web-Based Tools for Financial
Analysis and Reporting
Discussion Points Would Include
• Use of the Cognos Tools by the
Marketing Staff to Increase
Boehringer’s Competitive
Position and their Customer
Relationship Management System
• Training of the Marketing Staff to
Use the Cognos Tools
• Ability of Boehringer’s IT Staff to
Implement the System in All
Divisions
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
9-105