Chapter 12

Introduction to Information TechnologyTurban, Rainer and Potter

Chapter 11 Intelligent Systems in Business

1

CHAPTER 11INTELLIGENT SYSTEMS

IN BUSINESS



2

Learning Objectives Describe artificial intelligence and compare it to conventional

computing

Identify the characteristics, structure, benefits,and limitations of expert systems

Describe the major characteristics of natural language processing and voice technologies

Describe neural computing and its capabilities

Define intelligent agents and their role in IT

Describe virtual reality



3

Chapter OverviewArtificial Intelligence and Intelligent Systems•Artificial Intelligence and Intelligent Behavior•Comparing Artificial and Natural•Conventional versus Al Computing•Commercial Artificial Intelligence Systems

Expert Systems•Concepts of Expert Systems•Benefits and Limitations of Expert Systems•Processes and Components of Expert Systems•Illustrative Applications•Expert Systems and the Internet/intranets

OtherIntelligence Systems•Natural Language Processing and Voice Technology•Neural Computing Card-Based Reasoning•Fuzzy Logic

Intelligent Agents

•Characteristics of Intelligent Agents•Applications of Intelligent Agents

Virtual Reality: An Emerging Technology

•What is Virtual Reality?•Applications of Virtual Reality?

Ethical and Global Issues of Intelligent Systems

•Ethical and Social Issues•Legal Issues•Global Aspects of Intelligent Systems



4

The Problem

Case: Analog Devices Uses Intelligent Systems to Support Sales

faced a problem of matching products to customers efficiently in the very competitive ICs industry

The Solution

The Results

using an intelligent technology call case-based reasoning to improve the customer-company communication

quality of the service makes the difference in this competitive market



5

What have we learned from this case??

Case (continued…)

the intelligent system solution was integrated with other information technologies (CD-ROM, Internet, extranet, search engine) as well as with a DSS

how an intelligent system solved a difficult business problem by improvingthe communication and collaborationbetween the company and its customers



6

Intelligent Systems and Artificial Intelligence

Artificial Intelligence (AI) the branch of computer science that deals with ways of

representing knowledge, using symbols rather than numbers, and heuristics, or rules of thumb, rather than algorithms for processing information

involves studying the thought processes of humans deals with representing those processes via machines objectives:

to make machines smarter to understand what intelligence is to make machines more useful



7

Comparing Artificial and Natural Intelligence

AI’s commercial advantagesover natural intelligence

• more permanent• less expensive• consistent and thorough• can be documented• ease of duplication and dissemination

Natural intelligence’sadvantages over AI

• creative• enables people to benefit form and directly use sensory experience• enables people to recognize relationships• enables people to make use of a wide context of experiences



8

Conventional vs. AI ComputingDimension Artificial Intelligence Conventional ProgrammingProcessing Include symbolic

conceptualizationPrimarily algorithmic

Nature of input

Can be incomplete Must be complete

Search approach

Frequently uses rules and heuristics

Frequently based on algorithms

Explanation Provided Usually not providedFocus Knowledge Data, InformationMaintenance and update

Relatively easy changes can be made in self-contained modules

Usually difficult

Reasoning capability

Yes No



9

Commercial AI Systems

Expert systems (ESs) Natural language technology Speech (voice) understanding Robotics and sensory systems Computer vision and scene recognition Intelligent computer-aided instruction (ICAI) Machine learning Handwriting recognizers



10

Expert Systems

Expertise is transferred

from an expert to a computer and it is stored

there

Users cancall on the

computer for specific

advice as needed

The computercan make inferences

and arrive at a conclusion

The computer program advises the nonexperts and explains, if necessary, the

logic behind the advice



11

Benefits of Expert Systems Increased output and productivity Increased quality and reliability Capture of scarce expertise Ability to operate in hazardous environment Improved customer service Human-like intelligence Fault tolerance Complex problem solving and decision making Training capabilities Reduction of cycle time and downtime



12

Limitations of Expert Systems Limited expertise No single correct solution Natural cognitive limits Narrowly defined subject areas Occasional incorrect recommendations Limited vocabulary or jargon Cost Lack of trust by end users Biases Liability issues



13

The Process of ES

UserUser

Userinterface

Userinterface

Recommendedaction

Recommendedaction

Explanationfacility

Explanationfacility

Inference enginedraws conclusions

Inference enginedraws conclusions

Blackboard(workplace)

Blackboard(workplace)

Knowledgerefinement

Knowledgerefinement

Expert and documentedknowledge

Expert and documentedknowledge

Knowledgeengineer

Knowledgeengineer

Knowledge bases Facts:What is know about the domain area Rules: Logical reference

Knowledge bases Facts:What is know about the domain area Rules: Logical reference

Knowledge acquisition

Facts about the specific incident

Consultation Environment Development Environment



14

The Components of ES The knowledge base contains knowledge necessary for

understanding, formulating, and solving problems The Blackboard is an area of working memory set aside for the

description of a current problem The inference engine is essentially a computer program that

provides a methodology for reasoning and formulating conclusions The user interface in ES allows for user-computer dialog usually

presented as questions and answers, and sometime supplemented by graphics

The explanation subsystem can trace responsibility for conclusions to their source



15

ESs and the Internet/Intranet

Support

Support

Net

provide the opportunity to disseminate expertise and knowledge to mass audiences

ExpertSystems

provide knowledge and advice to large numbers of user



16

Other Intelligent Systems

Natural Language Processing (NLP) Communicating with a computer in English or

whatever language you may speak, instead of commands

Voice Technology Voice (speech) recognition and understanding

allows users to communicate with a computer by speaking to it

Voice synthesis the technology by which computer ‘speak’



17

Other Intelligent Systems (continued …)

Neural Computing or Artificial Neural Network (ANN) emulates a biological neural network receives information from other neurons or from

external sources, transform the information, and pass it on to other neurons or as external outputs

value : useful for pattern recognition, learning, and the interpretation of incomplete inputs



18


Case-Based Reasoning (CBR) basic idea: adapt solutions that were used to solve old

problems and use them to solve new problems an extremely effective approach in complex cases used by itself or it can be combined with other reasoning

paradigms used to facilitate and expedite knowledge acquisition and

information system development, enhance learning and training, and generate explanations to users of systems



19


Fuzzy Logic deals with uncertainties by simulating the

process of human reasoning, allowing the computer to behave less precisely and logically than conventional computers do

rationale : not always a matter of true or false or black and white

creative decision-making processes are often unstructured, playful, contentious, and rambling



20

Intelligent Agents (IA)

Characteristics of Intelligent Agents capability to work on their own (autonomy) exhibition of goal-oriented behavior transportable over networks (mobility) dedication to a single repetitive task ability to interact with humans, systems, and other

agents inclusion of knowledge base ability to learn



21

Applications of IAApplication Description

User interface agents

Monitor usage and suggest improvement.

Operating systems agents

Add accounts, do group management, manage access, add/remove programs and devices, monitor licenses.

Spreadsheet agents

Offer suggestions for improvements. Can tutor novice users.

Workflow and task management agents

Administer workflow management - monitor activities, alert, and remind.

Software development agents

Assist in routine activities such as data filtering.



22

Virtual Reality (VR) : Emerging Technology

What Is Virtual Reality (VR)? most common definitions : interactive, computer-

generated, three-dimensional graphics, delivered to the user through a head-mounted display

technical definitions : environment and/or technology that provides artificially generated sensory cues sufficient to engender in the user some willing suspension of disbelief



23

Applications of VRApplication Description

Manufacturing • Worker training• Design, testing, and virtual prototyping of products and processes• Engineering and ergonomic analysis• Simulation of assemble, production, and maintenance

Transportation • Virtual aircraft mock-ups• New-car design and testing of cars in virtual accidents

Finance • View stock prices and characteristicsArchitecture • Display of building and other structuresMilitary • Training and battlefield simulationMedicine • Training of surgeons and planning surgeries

• Planning physical therapyMarketing • Store and product display

• Electronic shopping



24

Ethical and Global Issues

Ethical and Society Issues Related to Intelligent Systems The Laws of Robotics Hal and Dave

computer may refuse human orders

Virtual Reality peoples’ behavior in a world where the distinction

between the real and the virtual is unclear

Privacy



25

Ethical and Global Issues (continued …)

Legal and ethical Issues what is the value of an expert opinion when the

expertise is encoded in a computer? who owns the knowledge in a knowledge base? should royalties be paid to experts who provide the

knowledge to ES, and if so how much? can management force experts to contribute their

expertise? who is an expert? what if several experts disagree?



26

Ethical and Global Issues (continued …)

Global Aspects of Intelligent Systems Foreign trade

Advising companies on how to exploit opportunities related to the NAFTA agreement

Foreign exchange transactions FS System advises on trading currencies of various nations

Employee training Intelligent systems cut the time to train employees online before they go to

a foreign country Weather forecasting

Climatic expert systems provide long-range climate forecasts Automatic language translations

Intelligent systems translate languages, including voice in telephone conversations



27

For Accounting Intelligent systems are used extensively in

auditing to uncover irregularities, uncover and prevent fraud

For Finance Intelligent systems can facilitate the use of

spreadsheets and other computerized systems used in finance; and can help in reducing fraud in credit cards, stocks, and other financial markets

What’s in IT for Me?



28

What’s in IT for Me? (continued …)

For Marketing Intelligent systems are partially useful in mining

customer databases and predicting customer behavior

For Production/Operations Management Expert systems were developed for tasks ranging



29

What’s in IT for Me? (continued …)

For Human Resource Management Intelligent agents can find resumes of applicants

posted on the Web and sort them to match needed skill and can facilitate training and to manage fringe benefits programs

Expert systems are used in evaluating candidates Neural computing is used to predict employee

performance on the job and to pre

Chapter 12

Documents

business intelligent

intelligent technology

dss intelligent systems

information technology

intelligent behavior

limitations of expert

potter chapter

intelligent system solution