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Chapter 4
Decision Support and
Artificial Intelligence
Brainpower for Your
Business
1
Introduction

Types of computer-aided decision support.

Figure 4.1 pg 134
2
Management Problem solving
Model






Problem or opportunity
Objectives
Alternatives
Analysis of alternatives
Recommendation
Implementation
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Decisions, Decisions, Decisions
How You Make a Decision

Four phases of
decision
making
Figure 4.2 pg 135

4
Decisions, Decisions, Decisions
Types of Decisions You Face
Figure 4.3 pg 136
5

Structured

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How many workers
to staff line A
What is the EOQ for
raw material Z
How many turbines
to power Lethbridge?

Unstructured



What are the
benefits of merging
with XYZ
How will consumer
react if we lower the
price by 10%
What are the
benefits of
MacDonalds
opening up Hotels
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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.
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Decision Support Systems
Components of a Decision Support System
Figure 4.5 pg 138
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Collaboration System

Collaboration
system – software
that is designed
specifically to improve
the performance of
teams by supporting
the sharing and flow of
information.
Figure 4.6 pg 141
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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.
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Geographic Information Systems
http://www.corda.com/examples/go/
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Artificial Intelligence

Artificial intelligence (AI) - the

Robot - mechanical device equipped
science of making machines imitate
____________ thinking and behavior.
with simulated ____________ senses
and the capability of taking action on
its own.
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Artificial Intelligence
The AI systems that businesses use most can
be classified into four categories:

1.
Expert systems
3.
________ networks
Genetic ________
4.
Intelligent agents
2.
5.
6.
7.
Robotics - industry
Artifical Vision – sort mail
Natural Language processing - input
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Expert Systems
Expert system, or knowledgebased system - ________

________system that applies
reasoning capabilities to reach a
conclusion.

Internal medicine, investments, tax
planning, engineers, accountants etc
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Expert Systems
Components of an Expert System

Expert systems are good for diagnostic (what’s
wrong?) and prescriptive (what to do?)
problems.
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Expert Systems
Components of an Expert System
Figure 4.10 pg 150
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Expert Systems
What Expert Systems Can and Can’t Do

An expert system can:




Reduce ________
Improve customer service
________ costs
An expert system can’t:


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Use common sense
________ all processes
Limited ability to learn
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Neural Networks

Neural network (often called an
artificial neural network or ANN) an artificial intelligence system that is
capable of finding and ____________
patterns.
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Neural Networks
Types of Neural Networks

Self-organizing neural
network - finds _______ and
__________ in vast amounts of
data by itself.

Back-propagation neural
network - a neural network
trained by someone.
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Neural Networks
Inside a Neural Network
Figure 4.11 pg 155
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Genetic Algorithms

Genetic algorithm - an artificial
intelligence system that mimics the
________, survival-of-the-fittest
process to generate increasingly better
solutions to a problem.
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Genetic Algorithms

Genetic algorithms use three concepts
of evolution:



_________ — survival of the fittest.
_________— combining portions of good
outcomes in the hope of creating an even
better outcome.
________ — randomly trying
combinations and evaluating the success
(or failure) of the outcome.
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Intelligent Agents

Intelligent agent - software that

Four types of intelligent agents include:
assists you, or acts on your behalf, in
performing repetitive computer-related
tasks.



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Buyer agents or shopping bots
User or personal agents
Monitoring-and-surveillance or predictive agents
Data-mining agents
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