1 Chapter 4 Decision Support and Artificial Intelligence Brainpower for Your Business
Dec 21, 2015
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Management Problem solving Model
Problem or opportunity Objectives Alternatives Analysis of alternatives Recommendation Implementation
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Decisions, Decisions, DecisionsHow You Make a Decision
Four phases of decision making
Figure 4.2 pg 135
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Structured 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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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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Artificial Intelligence Artificial intelligence (AI) - the
science of making machines imitate ____________ thinking and behavior.
Robot - mechanical device equipped 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
2. ________ networks
3. Genetic ________4. Intelligent agents5. Robotics - industry6. Artifical Vision – sort mail 7. Natural Language processing - input
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Expert Systems
Expert system, or knowledge-based system - ________ ________system that applies reasoning capabilities to reach a conclusion.
Internal medicine, investments, tax planning, engineers, accountants etc
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Expert SystemsComponents of an Expert System
Expert systems are good for diagnostic (what’s wrong?) and prescriptive (what to do?) problems.
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Expert SystemsWhat Expert Systems Can and Can’t Do
An expert system can: Reduce ________ Improve customer service ________ costs
An expert system can’t: 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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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 assists you, or acts on your behalf, in performing repetitive computer-related tasks.
Four types of intelligent agents include: Buyer agents or shopping bots User or personal agents Monitoring-and-surveillance or predictive agents Data-mining agents