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Management Information Systems Management Information Systems for the Information Agefor the Information Age
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Chapter 4Chapter 4
Decision Support and Artificial Decision Support and Artificial IntelligenceIntelligence
Brainpower for Your BusinessBrainpower for Your Business
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Chapter MapChapter Map
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Decision Support SystemsDecision Support Systems Collaboration SystemsCollaboration Systems Geographic Information SystemsGeographic Information Systems
Artificial IntelligenceArtificial Intelligence Expert SystemsExpert Systems Neural NetworksNeural Networks Genetics AlgorithmsGenetics Algorithms Intelligent AgentsIntelligent Agents
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People make decisions all the time.People make decisions all the time. In a business environment, managers regularly make In a business environment, managers regularly make
complex decisions.complex decisions.
IntroductionIntroduction
IT?IT?
Whether you are running a hospital or a small retail business, Whether you are running a hospital or a small retail business, information technology can help you make decision (while you are in information technology can help you make decision (while you are in
the decision making process).the decision making process).
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Management Review Management Review Future successes will be for those organizations that areFuture successes will be for those organizations that are
““Big on brain and small of massBig on brain and small of mass”.”.
IntroductionIntroduction
IT?IT?
Increase organizations knowledge and capability of using this Increase organizations knowledge and capability of using this knowledge via intelligent tools such as decision support systems knowledge via intelligent tools such as decision support systems
and artificial intelligence software.and artificial intelligence software.
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The categories of computer-aided decision support. The categories of computer-aided decision support.
IntroductionIntroduction
Decision SupportDecision Support Decision Support SystemsDecision Support Systems Collaboration SystemsCollaboration Systems Geographic Information SystemsGeographic Information Systems
Artificial IntelligenceArtificial Intelligence Expert SystemsExpert Systems Neural NetworksNeural Networks Genetics AlgorithmsGenetics Algorithms Intelligent AgentsIntelligent Agents
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Decision Support SystemsDecision Support Systems Collaboration SystemsCollaboration Systems Geographic Information SystemsGeographic Information Systems
Artificial IntelligenceArtificial Intelligence Expert SystemsExpert Systems Neural NetworksNeural Networks Genetics AlgorithmsGenetics Algorithms Intelligent AgentsIntelligent Agents
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
People make decisions all the time.People make decisions all the time. Which job offer to take?Which job offer to take? Which market to expand into?Which market to expand into?
Decisions include a number of criteria.Decisions include a number of criteria. Some decisions include a small number of criteriaSome decisions include a small number of criteria Other decision include a large number of criteria some of which are Other decision include a large number of criteria some of which are
practically impossible to quantify.practically impossible to quantify.
When making decisions, one usually has alternatives. It is difficult When making decisions, one usually has alternatives. It is difficult to select the “best” alternative.to select the “best” alternative.
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Decision making is one of the Decision making is one of the most most significantsignificant and important activities in and important activities in
business.business.
This is why organizations This is why organizations spendspend tremendous tremendous amount of time and money to the decision amount of time and money to the decision
making process.making process.
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
How You Make a DecisionHow You Make a Decision
Figure 4.2Figure 4.2Four phases of Four phases of decision makingdecision makingpage 135page 135
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
How You Make A DecisionHow You Make A Decision
Step 1: IntelligenceStep 1: IntelligenceFind or recognize aFind or recognize a problem, need, or opportunity.problem, need, or opportunity. This is the diagnostic phase of the decision makingThis is the diagnostic phase of the decision making Involves the detection and interpretation of signsInvolves the detection and interpretation of signs
Consistent customer request for new feature or productConsistent customer request for new feature or product Threat of new competitionThreat of new competition Declining salesDeclining sales Rising costsRising costs Offer from a company to handle your distribution needsOffer from a company to handle your distribution needs
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
How You Make A DecisionHow You Make A Decision
Step 2: DesignStep 2: DesignConsider ways to solve the problem, fill the need, or take Consider ways to solve the problem, fill the need, or take advantage of an opportunity.advantage of an opportunity.
This is the phase where you would study all possible This is the phase where you would study all possible solutions and develop those that are most interesting and solutions and develop those that are most interesting and feasible.feasible.
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
How You Make A DecisionHow You Make A Decision
Step 3: ChoiceStep 3: ChoiceEExamine and weigh the merits of each solution, estimate the consequences of xamine and weigh the merits of each solution, estimate the consequences of
each, and choose the best one.each, and choose the best one.
This is the prescriptive phase of the decision making.This is the prescriptive phase of the decision making. In this stage a course of action is prescribed and this course of action could In this stage a course of action is prescribed and this course of action could
simply be to do nothing.simply be to do nothing. Selection of best solution requires selection criteria such as:Selection of best solution requires selection criteria such as:
CostCost Ease of implementationEase of implementation Staffing requirementsStaffing requirements Timing Timing
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
How You Make A DecisionHow You Make A Decision
Step 4: ImplementationStep 4: ImplementationCarry out the chosen solution, monitor the results, and Carry out the chosen solution, monitor the results, and make adjustments as necessary.make adjustments as necessary.
The implementation of final solution is seldom enough and The implementation of final solution is seldom enough and will practically always need fine-tuning.will practically always need fine-tuning.
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
Figure 4.3Figure 4.3Viewing Viewing Structured Structured Versus Versus Nonstructured Nonstructured Decision Decision Making as a Making as a ContinuumContinuumpage 136page 136
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
If you want to decide which cheese to by then the criteria would be based If you want to decide which cheese to by then the criteria would be based on:on:
Expiry dateExpiry date PricePrice
If you have to decide which job offer is better to accept, then the criteria for If you have to decide which job offer is better to accept, then the criteria for your decision would be based on:your decision would be based on:
SalarySalary Intrinsic motivationIntrinsic motivation LocationLocation CompanyCompany PositionPosition BenefitsBenefits Many other criteriaMany other criteria
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
In the cheese case, the criteria are pretty In the cheese case, the criteria are pretty straight forward, hence the decision making is straight forward, hence the decision making is rather rather STRUCTUREDSTRUCTURED..
In the case of the job offer, the criteria are many In the case of the job offer, the criteria are many and most are not straight forward and are and most are not straight forward and are difficult to quantify, hence difficult to quantify, hence UN-STRUCTUREDUN-STRUCTURED..
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
Structured decisionStructured decisionProcesses information in a specified way so that you will Processes information in a specified way so that you will
always get the right answer.always get the right answer. Does not involve any “feel” into the processDoes not involve any “feel” into the process Does not require intuitionDoes not require intuition These types of decision can be easily programmedThese types of decision can be easily programmed
Fixed set of inputFixed set of input Same processingSame processing Produce correct resultProduce correct result
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
Non-structured decision Non-structured decision One for which there may be several “right” answers and One for which there may be several “right” answers and
there is no precise way to get a right answer. there is no precise way to get a right answer. No rules or criteria exist that guarantee you a good No rules or criteria exist that guarantee you a good
solution.solution. ExamplesExamples
To introduce a new product line or notTo introduce a new product line or not To employ a new marketing campaignTo employ a new marketing campaign To change the corporate imageTo change the corporate image
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
Recurring decisionRecurring decisionOne that happens repeatedly, and often periodically. One that happens repeatedly, and often periodically.
Usually use the same set of rules each time.Usually use the same set of rules each time.
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Decisions, Decisions, DecisionsDecisions, Decisions, Decisions
Types of Decisions You FaceTypes of Decisions You Face
Nonrecurring decisionNonrecurring decision
One that you make infrequently.One that you make infrequently. Or ad-hoc decisionOr ad-hoc decision May have different criteria for determining the best May have different criteria for determining the best
solution each timesolution each time ExampleExample
Company mergerCompany merger
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Decision Support SystemsDecision Support Systems
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Decision Support SystemsDecision Support Systems
HHighly ighly flexibleflexible and and interactiveinteractive IT system that IT system that is designed to support decision making is designed to support decision making
when the problem iswhen the problem is
notnot structuredstructured. .
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Decision Support Systems Decision Support Systems
A DSS is an alliance between A DSS is an alliance between you, you, the decision maker and the decision maker and specialized support provided by ITspecialized support provided by IT
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Decision Support Systems Decision Support Systems
A DSS brings A DSS brings SpeedSpeed Vast amounts of informationVast amounts of information Sophisticated processing capabilitiesSophisticated processing capabilities
ToToHelpHelpYOUYOU
Create information Create information USEFULUSEFUL to make to makea a DECISIONDECISION
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Decision Support Systems Decision Support Systems
You bring the know-how in the form ofYou bring the know-how in the form of ExperienceExperience IntuitionIntuition JudgmentJudgment Knowledge of relevant factorsKnowledge of relevant factors
You must know the right kind of questions to ask You must know the right kind of questions to ask and how to process the information so you may and how to process the information so you may get useful answers from the IT.get useful answers from the IT.
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Decision Support SystemsDecision Support Systems
Figure 4.4Figure 4.4The Alliance The Alliance Between You Between You and a Decision and a Decision Support SystemSupport Systempage 137page 137
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
A typical DSS has three components:A typical DSS has three components: Model managementModel management Data managementData management User interface managementUser interface management
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
Figure 4.5Figure 4.5Components of a Decision Components of a Decision Support System Support System page 138page 138
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
How do the components work together?How do the components work together? You tell the DSS using the user interface management component which You tell the DSS using the user interface management component which
model to usemodel to use The model is found in the model management component which you had The model is found in the model management component which you had
instructed to use on a set of information found in the data management instructed to use on a set of information found in the data management componentcomponent
So the modelSo the model Requests the information from the data management componentRequests the information from the data management component Analyzes that informationAnalyzes that information Sends the results to the user interface management component, hence Sends the results to the user interface management component, hence
back to youback to you
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
The Model management The Model management Consists of both the DSS models and the DSS model management Consists of both the DSS models and the DSS model management
system.system. A model is a representation of some event, fact or situation to A model is a representation of some event, fact or situation to
represent variables and their relationshipsrepresent variables and their relationships The model you use in DSS depend on the decision you are The model you use in DSS depend on the decision you are
making and consequently the kind of analysis you require such making and consequently the kind of analysis you require such as:as:• What-if analysisWhat-if analysis• OptimizationOptimization
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
Data managementData managementPerforms the function of storing and maintaining the information that Performs the function of storing and maintaining the information that
you want your DSS to use.you want your DSS to use. It consists of both the DSS information and the DSS database It consists of both the DSS information and the DSS database
management systemmanagement system The information you use in your DSS comes from one or more of The information you use in your DSS comes from one or more of
the three sources:the three sources: Organizational informationOrganizational information External informationExternal information Personal informationPersonal information
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Decision Support Systems Decision Support Systems
Components of a Decision Support SystemComponents of a Decision Support System
User interface managementUser interface management Allows you to communicate with the DSS.Allows you to communicate with the DSS. Consists of the user interface and the user interface management systemConsists of the user interface and the user interface management system Allows you to combine your know-how with the storage and processing Allows you to combine your know-how with the storage and processing
capabilities of the computercapabilities of the computer Through it you enterThrough it you enter
InformationInformation CommandsCommands ModelsModels
Best user interface uses your terminology and methods and is:Best user interface uses your terminology and methods and is: FlexibleFlexible ConsistentConsistent SimpleSimple adaptableadaptable
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Collaboration SystemsCollaboration Systems
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Collaboration systemCollaboration system
A system that is designed specifically to A system that is designed specifically to improve the performance of teams by improve the performance of teams by
supporting the sharing and flow of supporting the sharing and flow of information.information.
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Figure 4.6Figure 4.6Collaboration Software Collaboration Software
Connects PeopleConnects Peoplepage 141page 141
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Collaboration System Collaboration System
Collaboration software takes many forms Collaboration software takes many forms with with Many combinations of featuresMany combinations of features Varying degrees of complexityVarying degrees of complexity
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Collaboration System Collaboration System
Three types of collaboration systems are Three types of collaboration systems are discussed in the book: discussed in the book: Enterprise-wide collaborationEnterprise-wide collaboration Supply chain collaborationSupply chain collaboration Web-based collaborationWeb-based collaboration
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Collaboration System Collaboration System
Enterprise-wide CollaborationEnterprise-wide Collaboration
Lotus Notes and Microsoft Exchange are Lotus Notes and Microsoft Exchange are types of integrated collaboration systems.types of integrated collaboration systems.
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Collaboration System Collaboration System
Supply-Chain CollaborationSupply-Chain Collaboration
Supply chain management means working Supply chain management means working with your suppliers and distributors in all with your suppliers and distributors in all phases of planning, production, and phases of planning, production, and distribution.distribution.
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Collaboration System Collaboration System
Web-Based CollaborationWeb-Based Collaboration
Web-based collaboration tools use the power of Web-based collaboration tools use the power of the Internet to enable people to work together the Internet to enable people to work together effectively and efficiently.effectively and efficiently.
The peer-to-peer file-sharing feature is The peer-to-peer file-sharing feature is combined with the ability to create and edit combined with the ability to create and edit documents collaboratively, and to send and documents collaboratively, and to send and receive text and voice messages. receive text and voice messages.
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Geographic Information SystemsGeographic Information Systems
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Geographic Information SystemsGeographic Information Systems
Geographic information system (GIS)Geographic information system (GIS)
A decision support system designed to work A decision support system designed to work with spatial information. with spatial information.
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Geographic Information SystemsGeographic Information Systems
Spatial informationSpatial information
Is any information that can be shown in map Is any information that can be shown in map form, such as roads, the distribution of bald form, such as roads, the distribution of bald
eagle populations, and the layout of eagle populations, and the layout of electrical lines.electrical lines.
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Geographic Information SystemsGeographic Information Systems
Figure 4.7Figure 4.7Geographic Information Geographic Information SystemsSystemspage 144page 144
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Geographic Information SystemsGeographic Information Systems
Today GISs are helping businesses:Today GISs are helping businesses: Identify the best site to locate a branch officeIdentify the best site to locate a branch office Target pockets of potential customersTarget pockets of potential customers Reposition promotions and advertisingReposition promotions and advertising Determine the optimal location of a new Determine the optimal location of a new
distribution outletdistribution outlet
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Geographic Information SystemsGeographic Information Systems
Business GeographyBusiness Geography
A new type of information created when A new type of information created when businesses combine textual information with businesses combine textual information with
spatial informationspatial information
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Artificial IntelligenceArtificial Intelligence
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Artificial IntelligenceArtificial Intelligence
Artificial IntelligenceArtificial Intelligence
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
Decision SupportDecision Support
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Are IT systems that Are IT systems that augment business brain augment business brain power.power.
++ Mimic human behavior in Mimic human behavior in various waysvarious ways
==
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Artificial IntelligenceArtificial Intelligence
Artificial intelligence (AI)Artificial intelligence (AI)
TThe science of making machines imitate he science of making machines imitate human thinking and behavior. human thinking and behavior.
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Artificial IntelligenceArtificial Intelligence
RobotRobot
A A mechanical device equipped with mechanical device equipped with simulated human senses and the capability simulated human senses and the capability
of taking action on its own. of taking action on its own.
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Artificial IntelligenceArtificial Intelligence
Who uses artificial intelligence?Who uses artificial intelligence? Financial analysts to:Financial analysts to:
• Manage assetsManage assets• Invest in the stock marketInvest in the stock market• Perform other financial operationsPerform other financial operations
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Artificial IntelligenceArtificial Intelligence
Who uses artificial intelligence?Who uses artificial intelligence? Hospitals:Hospitals:
• For scheduling staffFor scheduling staff• Assigning beds to patientsAssigning beds to patients• Diagnose illnessesDiagnose illnesses• Treat conditions and illnessesTreat conditions and illnesses
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Artificial IntelligenceArtificial Intelligence
Who uses artificial intelligence?Who uses artificial intelligence? Credit card companiesCredit card companies
• To detect credit card fraudTo detect credit card fraud
Insurance companiesInsurance companies• To ferret out fraudulent claimsTo ferret out fraudulent claims
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Artificial IntelligenceArtificial Intelligence
Artificial intelligent systems that businesses Artificial intelligent systems that businesses today use most can be classified into the today use most can be classified into the following major categoriesfollowing major categories Expert systemsExpert systems Neural networksNeural networks Genetic algorithmsGenetic algorithms Intelligent agentsIntelligent agents
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Expert SystemsExpert Systems
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Expert SystemsExpert Systems
Expert systemExpert system
or knowledge-based systemor knowledge-based system
Is anIs an artificial intelligence system that applies artificial intelligence system that applies reasoning capabilities to reach a conclusion.reasoning capabilities to reach a conclusion.
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
Expert systems are good for Expert systems are good for Diagnostic problems: Problems requiring an answer Diagnostic problems: Problems requiring an answer
to the question “what’s wrong?” correspond to the to the question “what’s wrong?” correspond to the intelligence phase of decision making and intelligence phase of decision making and
Prescriptive problems: Problems that require an Prescriptive problems: Problems that require an answer to the question “what to do?” and correspond answer to the question “what to do?” and correspond to the choice phase of decision making.to the choice phase of decision making.
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
Figure 4.9Figure 4.9Traffic-Light Expert System RulesTraffic-Light Expert System Rulespage 149page 149
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
An expert system is usually built for a specific An expert system is usually built for a specific application area called domain:application area called domain: AccountingAccounting MedicineMedicine Process controlProcess control Human resource managementHuman resource management Financial managementFinancial management ProductionProduction Forestry managementForestry management
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
An expert system combines An expert system combines Information types, Information types, People, and People, and IT components.IT components.
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
Information types include:Information types include: Domain expertiseDomain expertise
• The reasoning process that will solve the problem.The reasoning process that will solve the problem. ““Why” information.Why” information. Problem facts.Problem facts.
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Expert SystemsExpert SystemsComponents of an Expert SystemComponents of an Expert System
Figure 4.8Figure 4.8Developing and Using an Expert SystemDeveloping and Using an Expert Systempage 150page 150
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
People People Domain expertDomain expert
• provides the domain expertise in the form of problem-solving provides the domain expertise in the form of problem-solving strategies. strategies.
Knowledge engineer Knowledge engineer • IT specialistIT specialist who formulates the domain expertise into an who formulates the domain expertise into an
expert system. expert system. Knowledge worker or user Knowledge worker or user
• that’s you.that’s you.
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Expert SystemsExpert Systems
Components of an Expert SystemComponents of an Expert System
IT ComponentsIT Components Knowledge baseKnowledge base
• stores the rules of the expert system.stores the rules of the expert system. Knowledge acquisitionKnowledge acquisition
• used to enter the rules. used to enter the rules. Inference engineInference engine
• takes the problem facts and searches the knowledge base for rules takes the problem facts and searches the knowledge base for rules that fit. that fit.
User interfaceUser interface • used to run the consultation. used to run the consultation.
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Expert SystemsExpert Systems
What Expert Systems Can and Can’t DoWhat Expert Systems Can and Can’t Do
An expert system can:An expert system can: Reduce errorsReduce errors Improve customer serviceImprove customer service Reduce costsReduce costs
An expert system can’t:An expert system can’t: Use common senseUse common sense Automate all processesAutomate all processes
On Your Own
Traffic LightsRevisited(p. 151)
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Neural NetworksNeural Networks
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Neural NetworksNeural Networks
Neural networkNeural network(often called an (often called an artificial neural networkartificial neural network oror ANNANN))
an artificial intelligence system that is an artificial intelligence system that is capable of finding and differentiating capable of finding and differentiating
patterns. patterns.
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Neural Networks Neural Networks
A NN simulates the human ability to classify things A NN simulates the human ability to classify things without taking prescribed steps leading to the without taking prescribed steps leading to the solutionsolution
A NN can learn by exampleA NN can learn by example A NN can adapt to new concepts and knowledgeA NN can adapt to new concepts and knowledge NN are widely used for visual pattern and speech NN are widely used for visual pattern and speech
recognition systemsrecognition systems A PDA probably uses NN to decipher your handwritingA PDA probably uses NN to decipher your handwriting
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Neural Networks Neural Networks
NN are used for many other applications NN are used for many other applications such assuch as In airports to detect bombsIn airports to detect bombs In police departments to identify corruptionIn police departments to identify corruption In medicine to In medicine to
• Check for drug interactionCheck for drug interaction• Detect anomalies in tissue samplesDetect anomalies in tissue samples• Heart attacksHeart attacks
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Neural Networks Neural Networks
In business NN are usedIn business NN are used Security tradingSecurity trading Fraud detectionFraud detection Real estate appraisalReal estate appraisal Evaluating loan applicationsEvaluating loan applications Target marketingTarget marketing
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Neural Networks Neural Networks
Types of Neural NetworksTypes of Neural Networks
Self-organizing neural Self-organizing neural networknetwork - - finds patterns and finds patterns and relationships in vast amounts relationships in vast amounts of data by itself. of data by itself.
Back-propagation neural Back-propagation neural network - network - a neural network a neural network trained by someone. trained by someone.
Team Work
How Would YouClassify People?
(p. 154)
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Neural Networks Neural Networks
Inside a Neural NetworkInside a Neural Network
Figure 4.11Figure 4.11The Layers of a The Layers of a Neural NetworkNeural Networkpage 155page 155
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Neural Networks Neural Networks
Inside a Neural NetworkInside a Neural Network
NNs attempt to mimic the human brainNNs attempt to mimic the human brain They consist of three layers of a They consist of three layers of a
virtual neuronvirtual neuron Input layerInput layer Hidden layerHidden layer Output layerOutput layer
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Neural Networks Neural Networks Inside a Neural NetworkInside a Neural Network
Advantages of a neural networkAdvantages of a neural network Can learn and adjust to new circumstances on their Can learn and adjust to new circumstances on their
ownown Lend themselves to massive parallel processingLend themselves to massive parallel processing Can function without complete and well structured Can function without complete and well structured
informationinformation Can cope with huge volumes of information with Can cope with huge volumes of information with
many dependent variablesmany dependent variables Can analyze nonlinear relationships in informationCan analyze nonlinear relationships in information
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Neural Networks Neural Networks Inside a Neural NetworkInside a Neural Network
The biggest problem with NNThe biggest problem with NN The hidden layers are hiddenThe hidden layers are hidden
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Genetic AlgorithmsGenetic Algorithms
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Genetic AlgorithmsGenetic Algorithms
Genetic algorithmGenetic algorithm
An artificial intelligence system that mimics An artificial intelligence system that mimics the evolutionary, survival-of-the-fittest the evolutionary, survival-of-the-fittest
process to generate increasingly better process to generate increasingly better solutions to a problem. solutions to a problem.
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Genetic AlgorithmsGenetic Algorithms
Genetic algorithms are artificial intelligence Genetic algorithms are artificial intelligence software capable of following trial-and-error software capable of following trial-and-error processes leading to the evolution of a good processes leading to the evolution of a good result.result.
In other words, genetic algorithms are optimizing In other words, genetic algorithms are optimizing systems such that they find the combination of systems such that they find the combination of inputs that give the best outputs.inputs that give the best outputs.
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Genetic AlgorithmsGenetic Algorithms
Genetic algorithms use three concepts of Genetic algorithms use three concepts of evolution:evolution: Selection Selection — survival of the fittest. — survival of the fittest. Crossover Crossover — — combining portions of good outcomes combining portions of good outcomes
in the hope of creating an even better outcome.in the hope of creating an even better outcome. Mutation Mutation — — randomly trying combinations and randomly trying combinations and
evaluating the success (or failure) of the outcome.evaluating the success (or failure) of the outcome.
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Genetic AlgorithmsGenetic Algorithms
Who uses genetic algorithms?Who uses genetic algorithms? They are used by business executives to help them decide They are used by business executives to help them decide
which combination of projects a firm should invest in.which combination of projects a firm should invest in. They are used by investment firms to help then in trading They are used by investment firms to help then in trading
choices and associated decisions.choices and associated decisions. Used in the garment industry to help them solve the problem of Used in the garment industry to help them solve the problem of
laying out the pieces of the garment and cutting fabric in a way laying out the pieces of the garment and cutting fabric in a way that leaves as little waste as possible.that leaves as little waste as possible.
Used to determine the optimal configuration of fiber optic cable Used to determine the optimal configuration of fiber optic cable in a network that may include as many as 100,000 connection in a network that may include as many as 100,000 connection points.points.
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On Your Own
Be a Genetic AlgorithmAnd Put Nails in Boxes
(p. 158)
Genetic AlgorithmsGenetic Algorithms
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Intelligent AgentsIntelligent Agents
Chapter 4: Decision Support and Artificial IntelligenceChapter 4: Decision Support and Artificial Intelligence
DecisionsDecisions CategoriesCategories
Decision SupportDecision Support Artificial IntelligenceArtificial Intelligence
Decision Support SystemDecision Support System
Collaboration SystemsCollaboration Systems
Geographic Information SystemsGeographic Information Systems
Expert SystemsExpert Systems
Neural NetworksNeural Networks
Genetic AlgorithmsGenetic Algorithms
Intelligent AgentsIntelligent Agents
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Intelligent AgentsIntelligent Agents
Intelligent agentIntelligent agent
Software that assists you, or acts on your Software that assists you, or acts on your behalf, in performing repetitive computer-behalf, in performing repetitive computer-
related tasks. related tasks.
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Intelligent AgentsIntelligent Agents
Four types of intelligent agents include:Four types of intelligent agents include: Buyer agents or shopping botsBuyer agents or shopping bots User or personal agentsUser or personal agents Monitoring-and-surveillance or predictive agentsMonitoring-and-surveillance or predictive agents Data-mining agentsData-mining agents
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Intelligent Agents Intelligent Agents
Buyer AgentsBuyer Agents
Buyer agentBuyer agent or or shopping botshopping bot
an intelligent agent on a Web site that helps an intelligent agent on a Web site that helps the customer find products and services.the customer find products and services.
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Intelligent Agents Intelligent Agents
Buyer AgentsBuyer Agents
Types of filtering include:Types of filtering include: Collaborative filteringCollaborative filtering - a method of placing - a method of placing
you in an affinity group of people with the you in an affinity group of people with the same characteristics. same characteristics.
Profile filteringProfile filtering - requires that you choose - requires that you choose terms or enter keywords.terms or enter keywords.
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Intelligent Agents Intelligent Agents
Buyer AgentsBuyer Agents
Types of filtering continued:Types of filtering continued: Psychographic filteringPsychographic filtering - anticipates your - anticipates your
preferences based on the answers you give to a preferences based on the answers you give to a questionnaire. questionnaire.
Adaptive filteringAdaptive filtering - asks you to rate products or - asks you to rate products or situations and also monitors your actions over time to situations and also monitors your actions over time to find out what you like and dislike. find out what you like and dislike.
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Intelligent Agents Intelligent Agents
User AgentsUser Agents
User agentsUser agents (sometimes called (sometimes called personal agents) - personal agents) - intelligent agents that intelligent agents that take action on your take action on your behalf. behalf.
On Your Own
Go BargainHunting Online
(p. 161)
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Intelligent Agents Intelligent Agents
Monitoring-and-Surveillance AgentsMonitoring-and-Surveillance Agents
Monitoring-and-surveillance agentsMonitoring-and-surveillance agents (also called (also called predictive agents) - predictive agents) - observe observe and report on equipment. and report on equipment.
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Intelligent Agents Intelligent Agents
Data-Mining AgentsData-Mining Agents
Data-mining agentData-mining agent - operates in a data - operates in a data warehouse discovering information. warehouse discovering information.
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Intelligent Agents Intelligent Agents
Components of an Intelligent AgentComponents of an Intelligent Agent
AutonomyAutonomy - act without your telling them every - act without your telling them every step to take. step to take.
AdaptivityAdaptivity - discovering, learning, and taking - discovering, learning, and taking action independently. action independently.
SociabilitySociability - conferring with other agents. - conferring with other agents.
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Closing Case Study OneClosing Case Study OneUsing Neural Networks To Categorize PeopleUsing Neural Networks To Categorize People
Using neural network software, businesses now Using neural network software, businesses now have the ability to look for patterns in their have the ability to look for patterns in their customer information.customer information.
How accurate is it for a business to predict the How accurate is it for a business to predict the future behavior of customers on the basis of past future behavior of customers on the basis of past behavior?behavior?
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Closing Case Study TwoClosing Case Study Two
Decision Support and Artificial Decision Support and Artificial Intelligence in Health CareIntelligence in Health Care
Good health care is based largely on good Good health care is based largely on good information.information.
How can DSS and AI be used to track How can DSS and AI be used to track symptoms, treatment, and outcomes that require symptoms, treatment, and outcomes that require the collection and maintenance of a huge the collection and maintenance of a huge amount of qualitative and quantitative amount of qualitative and quantitative information?information?
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SummarySummary Student Learning OutcomesStudent Learning Outcomes
1.1. Define decision support system, list its Define decision support system, list its components, and understand its applications.components, and understand its applications.
2.2. Define collaboration systems along with their Define collaboration systems along with their features and uses.features and uses.
3.3. Define geographic information systems and Define geographic information systems and state how they differ from other decision state how they differ from other decision support tools.support tools.
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Summary Summary
Student Learning OutcomesStudent Learning Outcomes
4.4. Define artificial intelligence and list the Define artificial intelligence and list the different types that are used in business.different types that are used in business.
5.5. Define expert systems, and the type of Define expert systems, and the type of problems to which they are applicable.problems to which they are applicable.
6.6. Define neural networks, their uses, and Define neural networks, their uses, and the major strength and weaknesses.the major strength and weaknesses.
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Summary Summary
Student Learning OutcomesStudent Learning Outcomes
7.7. Define genetic algorithms and list the Define genetic algorithms and list the concepts on which they are based, and concepts on which they are based, and the types of problems they solve.the types of problems they solve.
8.8. Define intelligent agents, list the four Define intelligent agents, list the four types, and identify the types of problems types, and identify the types of problems they solve.they solve.
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SummarySummary Assignments & ExercisesAssignments & Exercises
1.1. Make a GISMake a GIS
2.2. Collaboration WorkCollaboration Work
3.3. Choose a Financing OptionChoose a Financing Option
4.4. Which Software Would You Use?Which Software Would You Use?
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Real Hot Electronic CommerceReal Hot Electronic CommerceFinding Investment Opportunities on the Finding Investment Opportunities on the
InternetInternet
Learning about InvestingLearning about Investing Researching the Company behind the StockResearching the Company behind the Stock Finding other Sources of Company FinancialsFinding other Sources of Company Financials Making Trades OnlineMaking Trades Online Retrieving Stock QuotesRetrieving Stock Quotes
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Visit the Web to Learn MoreVisit the Web to Learn Morewww.mcgrawhill.ca/college/haagwww.mcgrawhill.ca/college/haag
Learning about InvestingLearning about Investing Researching the Company behind the StockResearching the Company behind the Stock Finding other Sources of Company FinancialsFinding other Sources of Company Financials Making Trades OnlineMaking Trades Online Retrieving Stock QuotesRetrieving Stock Quotes