ISM 3003 Professor John Breed Final Exam Review Chapters 4 5 6 7 8 9 Module K Chapter 4 IT for Decision Support Artificial intelligence the science of making machines imitate human thinking and behavior can replace human decision making in some instances Includes the following 5 1 Expert systems knowledge based an artificial intelligence system that applies reasoning capabilities to reach a conclusion It is Used for a Diagnostic problems what s wrong b Prescriptive problems what to do i An expert system CAN Reduce errors Improve customer service and Reduce costs ii An expert system CAN T Use common sense or Automate all processes 2 Neural networks artificial neural network or ANN an artificial intelligence system that is capable of finding and differentiating patterns a Neural networks CAN Learn and adjust to new circumstances on their own Take part in massive parallel processing Function without complete information Cope with huge volumes of information and Analyze nonlinear relationships 3 Fuzzy Logic a mathematical method of handling imprecise or subjective information Used to make ambiguous information such as short usable in computer systems a Applications include Google s search engine Washing machines and Antilock breaks 4 Genetic algorithms an artificial intelligence system that mimics the evolutionary survival of the fittest process to generate increasingly better solutions to a problem a Examples i Staples determine optimal package design characteristics ii Boeing design aircraft parts such as fan blades iii Many retailers better manage inventory and optimize display areas CAN b Genetic Algorithms i Take thousands or even millions of possible solutions and combine and recombine them until it finds the optimal solution ii Work in environments where no model of how to find the right solution exists 5 Agent based technologies piece of software that acts on your behalf or on behalf of another piece of software performing tasks assigned to it Includes a Autonomous Agent can adapt and alter the manner in which it works b Distributed Agent works on multiple distinct computer systems c Mobile Agent can relocate itself onto different computer systems d Intelligent Agent incorporates artificial intelligence capabilities such as reasoning and learning i Types of Intelligent Agents 1 Information agents buyer agents search for information and bring it back 2 Monitoring and surveillance agents constantly observe and report on some entity of interest a network or manufacturing equipment 3 User agents take action on your behalf e g sorting your email 4 Data mining agents operate in a data warehouse discovering information Important analytics tool for data warehouse data Can find hidden patterns in the data and Can also classify and categorize 5 Multi systems Agent group of intelligent agents that can work independently and also together to perform a task 6 Shopping Agent program that will search websites based on specific criteria rules provided by the user and will either provide information to the user or actually negotiate for and purchase the goods or services sought by the user Types of Decisions you face get the right answer right answer Structured decision processing a certain information in a specified way so you always Nonstructured decision may be several right answers without a sure way to get the Recurring decision happens repeatedly Nonrecurring ad hoc decision one you make infrequently Decision support system DSS a highly flexible and interactive system that is designed to support decision making when the problem is not structured Decision support systems help you analyze but you must know how to solve the problem and how to use the results of the analysis DSS Components of a Model management component consists of both the DSS models and the model Data management component stores and maintains the information that you User interface management component allows you to communicate with the management system want your DSS to use DSS Geographic information systems DSS designed specifically to analyze spatial information Spatial information is any information in map form Businesses use GIS software to analyze information generate business intelligence and make decisions Implementation the process of putting a decision or plan into effect execution Knowledge management system the process of capturing developing sharing and effectively using organizational knowledge It refers to a multi disciplined approach to achieving organizational objectives by making the best use of knowledge Predictive analytics highly computational data mining technology that uses information and business intelligence to build a predictive model for a given business application Insurance retail healthcare travel financial services CRM SCM credit scoring etc Query is a request for information from a database Spatial any information in map form Swarm management Swarm collective intelligence the collective behavior of groups of simple agents that are capable of devising solutions to problems as they arise eventually learning to coherent global patterns A subfield of biomimicry Biomimicry learning from ecosystems and adapting their characteristics to human and organizational situations Chapter 5 Ecommerce Adware software package which automatically renders advertisements in order to generate revenue for its author The advertisements may be in the user interface of the software or on a screen presented to the user during the installation process B2B Business to business is commerce transactions between businesses such as between a manufacturer and a wholesaler or between a wholesaler and a retailer B2B e marketplace where a business sells products and services to customers who are primarily other businesses B2C Business to Consumer when a business sells products and services to a consumer B2G Business to Government when a business sells products and services to a government Banner ads small advertisements that appear on other sites Two variations are current Web site entity Pop up ad small Web page advertisement that appears on your screen outside the Pop under ad pop up ad you do not see until you close your current browser window C2C Consumer to Consumer when a consumer sells to another consumer Click through counts of the number of people who visit one site and use an ad to get to another Commodity like Same no matter where you purchase it Examples books music movies The Price and ease of ordering are