Business Information Systems. Decision Making and Problem Solving. Figure Chapters 10 & 11
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1 Business Information Systems Chapters 10 & 11 Decision Making and Problem Solving Figure
2 Programmed versus Nonprogrammed Decisions Programmed decisions Structured situations with well defined relationships Quantifiable Management information system Chapter 10 Slide 4 Programmed versus Nonprogrammed Decisions Nonprogrammed decisions Ill-structured situations with vague or changing relationships between variables Not easily quantifiable in advance Decision support systems Chapter 10 Slide 5 Problem Solving Approaches Optimization: find the best solution Satisficing: find a good solution Heuristics: use rules of thumb Chapter 10 Slide 6 2
3 Figure 10.2 An Overview of Management Information Systems Figure
4 Figure 10.4 Figure 10.4 cont d Characteristics of an MIS Fixed format, standard reports Hard-copy or soft-copy reports Uses internal data User-developed reports Users must request formal reports from IS department Chapter 10 Slide 12 4
5 Functional Aspects of the MIS Functional MIS Systems Manufacturing Marketing Human Resources Accounting GIS Chapter 10 Slide 14 An Overview of Decision Support Systems 5
6 Characteristics of Decision Support Systems Handle lots of data from various sources Support drill down analysis Complex analysis, statistics, and forecasting Optimization, satisficing, heuristics Simulation What-if analysis Goal-seeking analysis Chapter 10 Slide 16 Figure Examples of a DSS Meal Planning Web-Based Decision Support Chapter 10 Slide 18 6
7 Components of a DSS Figure The Model Base Financial models Cash flow Internal rate of return Statistical analysis models Averages, standard deviations Correlations Regression analysis Graphical models Project management models Chapter 10 Slide 21 7
8 Group Decision Support Systems Figure Characteristics of a GDSS Ease of use Flexibility Decision-making support Anonymous input Reduction of negative group behavior Parallel communication Automated record keeping Chapter 10 Slide 24 8
9 Figure Figure Executive Support Systems 9
10 Executive Support Systems (ESS) in Perspective Tailored to individual executives Easy to use Drill down capabilities Access to external data Can help when uncertainty is high Chapter 10 Slide 28 An Overview of Artificial Intelligence The Nature of Intelligence Learn from experience & apply the knowledge Handle complex situations Solve problems when important information is missing Determine what is important Chapter 10 Slide 30 10
11 The Nature of Intelligence React quickly & correctly to new situations Understand visual images Process & manipulate symbols Be creative & imaginative Use heuristics Chapter 10 Slide 31 Figure 11.1 Table
12 The Major Branches of Artificial Intelligence Vision systems Natural Language Processing Learning systems Neural networks Robotics Chapter 10 Slide 34 An Overview of Expert Systems Characteristics of an Expert System Can explain reasoning Can provide portable knowledge Can display intelligent behavior Can draw conclusions from complex relationships Can deal with uncertainty Chapter 10 Slide 36 12
13 Limitations of Expert Systems Limited to narrow problems Hard to use Cannot easily deal with mixed knowledge Cannot refine own knowledge base Hard to maintain Possible high development costs Raise legal & ethical concerns Chapter 10 Slide 37 When to Use Expert Systems High payoff Preserve scarce expertise Distribute expertise Provide more consistency than humans Faster solutions than humans Training expertise Chapter 10 Slide 38 Fig
14 Components of Expert Systems The Knowledge Base Rules Cases Fuzzy Logic Inference Engines Backward chaining Forward chaining Chapter 10 Slide 40 Fig Advantages of Expert Systems Shells and Products Easy to develop & modify Use of satisficing Use of heuristics Development by knowledge engineers & users Chapter 10 Slide 42 14
15 Applications of Expert Systems & AI Credit granting Shipping Information management & retrieval Embedded systems Help desks & assistance Medical diagnosis Whale Identification Chapter 10 Slide 43 15
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