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MOD 2 Kinds of Information systems
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MOD 2

Feb 25, 2016

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Page 1: MOD 2

MOD 2

Kinds of Information systems

Page 2: MOD 2

2

Transaction Processing Information Systems

The transaction processing system Monitors Collects Stores Processes Disseminates information

for all routine core business transactions.

In every organization there are business transactions that provide its mission-critical activities. Each transaction may generate additional transactions. Since the computations involved in most transactions are simple and the transaction processes are well defined they can be easily computerized.

The primary goal of TPS is to provide all the information needed to keep the business running properly and efficiently.

Page 3: MOD 2

Transactions

Transactions… Basic business operations such as customer orders,

purchase orders, receipts, time cards, invoices, and payroll checks in an organization

Transaction processing systems (TPS) Perform routine operations and serve as a foundation for

other systems

Page 4: MOD 2

Transaction processing system A transaction processing system is a type of

information system. TPSs collect, store, modify and retrieve the

transactions of an org. A transaction is an event that generates or modifies data that is eventually stored in an information system.

E.g. order entry system, cheque processing systems, accounts receivable systems, payroll system , ticket reservation systems.

These system help any company to conduct operations and keep track of its activities.

Page 5: MOD 2

Data entry & input

ProcessingDocuments& reports

Database

Internally generatedtransactions:• shipped orders• purchase orders• employee time cardsExternally generated transactions:• customer orders• vendor invoices• customer payments

Database update:• customer orders• inventory• purchase orders• customers• suppliers

Documents:• pick list• cheques to vendors• receiving notices• paychequesOperational reports:• finished product

inventory status• raw materials;

packing materials; spare parts; inventory status

Page 6: MOD 2

A ticket reservation system displays a message on the terminal indicating seats sold out to people, it also prints the tickets and perhaps a mailing label for sending them.

Event Transaction keyed

TPS program TPS Databas

e

ReportsResponse

Notice of the event

Page 7: MOD 2

Objectives of TPS

Process data generated by and about transactions Maintain a high degree of accuracy Ensure data and information integrity and accuracy Produce timely documents and reports Increase labour efficiency Help provide increased and enhanced service Help build and maintain customer loyalty Achieve competitive advantage

Page 8: MOD 2

TPS characteristics

They collect, store, modify and retrieve the transaction of an org

Directly support business operations Must be designed in conjunction with the

organizations procedures. Main information processes: collecting and

storage.

Page 9: MOD 2

Types of TPS

On-line system: it involves a direct connection between the operator and the TPS program, they provide immediate result.

E.g. An order arrive by telephone call for Pizza hut it is processed at that moment and the results are produced.

Page 10: MOD 2

On-line Schematic

Output

Terminal

Terminal

TerminalTerminal

Terminal

Terminal

Immediateprocessingof eachtransaction

Page 11: MOD 2

TYPES OF TPS

Batch processing: here the transactions are grouped together and processed as a unit.

E.g. A cheque processing system in a bank all the cheque received in a particular day are grouped together. Then they are sorted by the account no and processed in a batch.

Page 12: MOD 2

Batch Schematic

Data entryof accumulated

transactions

Input(batched) Output

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Disadvantages in batch processing Processing schedule predetermined Errors unable to be corrected during

processing Sorting transaction data- expensive and time

consuming

Page 14: MOD 2

Example of batch transaction processing Cheque clearance Bill generation Credit card sales transaction

Example of real time transaction processing Reservation systems Hotels Point of sales terminals Library systems

Page 15: MOD 2

Point-of-Sale Transaction Processing System

Customer’sreceipt

Inventorydatabase

Managementinformation

system

Exceptionreport

Purchasesdatabase

Scanner

Point-of-saletransactionprocessing

system

Itemdatabase

UPC andquantity

Item, quantity,date, time, price

UPC Price

UPC

Quantity,Date,time

Page 16: MOD 2

Batch vs. On-Line Transaction Processing

Two types of TPS: Batch processing

A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch

On-line transaction processing (OLTP) A system whereby each transaction is processed

immediately, without the delay of accumulating transactions into a batch

Page 17: MOD 2

Difference b/w real time and batchReal time each transaction is unique transactions are stand alone requires master files to be

available more often for updating

fewer errors- transaction data is validated and entered immediately

infrequent errors may occur- but often tolerated

not practical to shut down whole system ( infrequent errors)

Batch each transaction part of a

group database not accessible all the

time more errors data is organised and stored

before master file is updated errors can occur during these

steps easier to maintain than real

time.

Page 18: MOD 2

BusinessRules

ProductCustomerInventory

CurrentRecords

OrderAcknowledgement

AcceptedOrders

Model of TPS

Page 19: MOD 2

TPS Model: Customer order processing & acceptance

CustomerOrder:

Mail/E-mail

CustomerOrder

ThroughWeb

CustomerOrder data processing

CustomerOrder TransactionProcessing System

(TPS)

UpdateOrderbook

Customer Type Check

CreditTermsCheck

Credit Limit check

Reservestock

Delivery datecheck

Trigger Order Acknowledgement

Business Rules based processing

E-mailTo Customer

Transaction Processing System

Page 20: MOD 2

What is Office Automation?

Office automation refers to the use of integrated computer and communication systems to support administrative procedures in an office environment.

Office automation systems are computer based information systems that collect, process, store and transmit electronic messages, documents and other forms of communications among individuals, work groups and org.

Page 21: MOD 2

Office Management

Office management systems include electronic office accessories, electronic scheduling, and task management.

These systems provide an electronic means of organizing people, projects, and data.

Business dates, appointments, notes, and client contact information can be created, edited, stored, and retrieved.

Additionally, automatic reminders about crucial dates and appointments can be programmed.

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Projects and tasks can be allocated, subdivided, and planned. All of these actions can either be done individually or for an entire group.

Computerized systems that automate these office functions can dramatically increase productivity and improve communication within an organization.

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Office Automation system collects, processes, stores and transmits data and information in the form of electronic office communication.

OAS could also be considered as computer-based information system that collects, process, store and transmit electronic message, document and other form of communication among individual, work group and organizations.

Examples- word processing, electronic mail, desktop publishing, telecommunication and document image processing.

Page 24: MOD 2

Need for Office Automation Storage space Cost of processing Paper Cost

Page 25: MOD 2

Types of functions integrated by office automation systems include electronic publishing; electronic communication; electronic collaboration; image processing; and office management. 

Page 26: MOD 2

 At the heart of these systems is often a local area network (LAN) or WAN

It allows users to transmit data, voice, mail, and images across the network to any destination, whether that destination is in the local office on the LAN, or in another country or continent, through a connecting network.

An OAS makes office work more efficient and increases productivity.

Page 27: MOD 2

Electronic Publishing

Electronic publishing systems include word processing and desktop publishing.

Word processing software, (e.g., Microsoft Word, Corel Word-Perfect) allows users to create, edit, revise, store, and print documents such as letters, memos, reports, and manuscripts.

Page 28: MOD 2

Desktop publishing software (e.g., Adobe PageMaker, Corel VENTURA, Microsoft Publisher) enables users to integrate text, images, photographs, and graphics to produce high-quality printable output.

Desktop publishing software is used on a microcomputer with a mouse, scanner, and printer to create professional-looking publications. These may be newsletters, brochures, magazines, or books.

Page 29: MOD 2

Electronic Communication

Electronic communication systems include electronic mail (e-mail), voice mail, facsimile (fax), and desktop videoconferencing.

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Electronic Mail E-mail is software that allows users, via their computer

keyboards, to create, send, and receive messages and files to or from anywhere in the world.

Most e-mail systems let the user do other sophisticated tasks such as filter, prioritize, or file messages; forward copies of messages to other users; create and save drafts of messages; send "carbon copies"; and request automatic confirmation of the delivery of a message.

E-mail is very popular because it is easy to use, offers fast delivery, and is inexpensive.

Examples of e-mail software are Eudora, Lotus Notes, and Microsoft Outlook.

Page 31: MOD 2

Voice Mail

Voice mail is a sophisticated telephone answering machine.

It digitizes incoming voice messages and stores them on disk.

When the recipient is ready to listen, the message is converted from its digitized version back to audio, or sound.

Recipients may save messages for future use, delete them, or forward them to other people.

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Facsimile.

A facsimile or facsimile transmission machine (FAX) scans a document containing both text and graphics and sends it as electronic signals over ordinary telephone lines to a receiving fax machine.

This receiving fax recreates the image on paper. A fax can also scan and send a document to a fax modem (circuit board) inside a remote computer.

The fax can then be displayed on the computer screen and stored or printed out by the computer's printer.

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Desktop Videoconferencing Desktop videoconferencing is one of the fastest growing

forms of videoconferencing. Desktop videoconferencing requires a network and a

desktop computer with special application software (e.g., CUSeeMe) as well as a small camera installed on top of the monitor. 

Images of a computer user from the desktop computer are captured and sent across the network to the other computers and users that are participating in the conference.

This type of videoconferencing simulates face-to-face meetings of individuals.

Page 34: MOD 2

Electronic Collaboration

Electronic collaboration is made possible through electronic meeting and collaborative work systems and teleconferencing.

Electronic meeting and collaborative work systems allow teams of coworkers to use networks of microcomputers to share information, update schedules and plans, and cooperate on projects regardless of geographic distance.

Special software called groupware is needed to allow two or more people to edit or otherwise work on the same files simultaneously.

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Teleconferencing is also known as videoconferencing.

As was mentioned in the discussion of desktop videoconferencing earlier, this technology allows people in multiple locations to interact and work collaboratively using real-time sound and images.

Full teleconferencing, as compared to the desktop version, requires special-purpose meeting rooms with cameras, video display monitors, and audio microphones and speakers.

Page 36: MOD 2

Tele conferencing rooms

Page 37: MOD 2

Telecommuting and Collaborative Systems Telecommuters perform some or all of

their work at home instead of travelling to an office each day, usually with the aid of office automation systems, including those that allow collaborative work or meetings.

A microcomputer, a modem, software that allows the sending and receiving of work, and an ordinary telephone line are the tools that make this possible.

Page 38: MOD 2

Telecommuting is gaining in popularity in part due to the continuing increase in population, which creates traffic congestion, promotes high energy consumption, and causes more air pollution.

Telecommuting can help reduce these problems. Telecommuting can also take advantage of the skills of homebound people with physical limitations.

Page 39: MOD 2

Studies have found that telecommuting programs can boost employee morale and productivity among those who work from home.

It is necessary to maintain a collaborative work environment, however, through the use of technology and general employee management practices, so that neither on-site employees nor telecommuters find their productivity is compromised by such arrangements.

The technologies used in electronic communication and teleconferencing can be useful in maintaining a successful telecommuting program.

Page 40: MOD 2

Image Processing Image processing systems include electronic document

management, presentation graphics, and multimedia systems.

Imaging systems convert text, drawings, and photographs into digital form that can be stored in a computer system.

This digital form can be manipulated, stored, printed, or sent via a modem to another computer.

Imaging systems may use scanners, digital cameras, video capture cards, or advanced graphic computers.

Companies use imaging systems for a variety of documents such as insurance forms, medical records, dental records, and mortgage applications.

Page 41: MOD 2

Presentation graphics software uses graphics and data from other software tools to create and display presentations.

The graphics include charts, bullet lists, text, sound, photos, animation, and video clips. 

Examples of such software are Microsoft Power Point, Lotus Freelance Graphics, and SPC Harvard Graphics.

Multimedia systems are technologies that integrate two or more types of media such as text, graphic, sound, voice, full-motion video, or animation into a computer-based application.

Multimedia is used for electronic books and newspapers, video conferencing, imaging, presentations, and web sites.

Page 42: MOD 2

Management Information Systems (MIS)

An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations

Output, or reports, are usually generated through accumulation of transaction processing data

Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

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Management Information Systems The original type of information system

that supported managerial decision making Produces information products that support

many day-to-day decision-making needs Produces reports, display, and responses Satisfies needs of operational and tactical decision

makers who face structured decisions

10-43

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Management Information Systems

Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. TYPE: Management-level

INPUTS: high volume dataPROCESSING: simple models OUTPUTS: summary reportsUSERS: middle managersDECISION-MAKING: structured to semi-structured

E.g. annual budgeting

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A SAMPLE MIS REPORT

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Objectives of MIS

To provide requisite information support for managerial functions within the org.

To make available, right information at the right place at the right time at the lower cost.

To ensure that wrong and unwanted info is not generated; the condition of data overloaded is avoided.

The objectives of MIS are derived from company’s objectives.

Page 47: MOD 2

Characteristics of MIS1. MIS support structured decisions at the operational and

management control levels. However, they are also useful for planning purposes of senior management staff.

2. MIS are generally reporting and control oriented. They are designed to report on existing operations and therefore to help provide day-to-day control of operations.

3. MIS rely an existing corporate data-and data flows.4. MIS have little analytical capability.5. MIS generally aid in decision making using past and

present data.6. MIS are relatively inflexible.7. MIS have an internal rather than an external orientation.

Page 48: MOD 2

Scope of MIS

To provide managerial end users with information products that support much of their day to day decision making needs

To provide a variety of reports and displays to management

To provide information on the contents of the information products specified in advance by mangers.

To retrieve information about internal operations from databases that have been updated by TPS.

Page 49: MOD 2

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reportsException reportsDemand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Page 50: MOD 2

Outputs of a Management Information System Scheduled reports

Produced periodically, or on a schedule (daily, weekly, monthly)

Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day

Demand report Gives certain information at a manager’s request

Exception report Automatically produced when a situation is unusual or

requires management action

Page 51: MOD 2

Management Information Systems for Competitive Advantage

Provides support to managers as they work to achieve corporate goals

Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement

Page 52: MOD 2

Decision Support Systems (DSS)

Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making.

TYPE: Management-levelINPUTS: low volume dataPROCESSING: simulations, analysis OUTPUTS: decision analysisUSERS: professionals, staff managersDECISION-MAKING: semi-structured

EXAMPLE: sales region analysis

Page 53: MOD 2

Decision Support Systems

Decision support systems use the following to support the making of semi-structured business decisions Analytical models Specialized databases A decision-maker’s own insights and judgments An interactive, computer-based modeling process

DSS systems are designed to be ad hoc, quick-response systems that are initiated and controlled by decision makers

10-53

Page 54: MOD 2

DSS Components

10-54

Page 55: MOD 2

DSS Model Base

Model Base A software component that consists of

models used in computational and analytical routines that mathematically express relations among variables

Spreadsheet Examples Linear programming Multiple regression forecasting Capital budgeting present value

10-55

Page 56: MOD 2

Decision Support Framework.

Page 57: MOD 2

Characteristics of Decision-Support Systems

1. DSS offer users flexibility, adaptability, and a quick response.

2. DSS operate with little or no assistance from professional programmers.

3. DSS provide support for decisions and problems whose solutions cannot be specified in advance.

4. DSS use sophisticated data analysis and modelling tools.

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The DSS and its Computing Environment

Page 59: MOD 2

Emerging Types of DSS Frontline decision making. The process by which companies automate decision process and push them down into the organization and sometimes out to partners.Real- Time Decision Support. The systems that supports business decisions that must be made at the right time and frequently under time pressure.

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Using DSS in Market Segmentation Can be used for identifying and evaluating

alternative segments Markets can be identified and evaluated based

on various important attributes (e.g. growth, revenue, ROI etc)

Uses internal experts’ opinion Gives results of the effect of decision on desired

objectives ( production, costs, profit etc.

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Levels of Managerial Decision Making

10-61

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Decision Structure

Structured (operational) The procedures to follow when decision

is needed can be specified in advance Unstructured (strategic)

It is not possible to specify in advance most of the decision procedures to follow

Semi-structured (tactical) Decision procedures can be pre-specified,

but not enough to lead to the correct decision

10-62

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Decision Support Systems

Management Information Systems

Decision Support Systems

Decision support provided

Provide information about the performance of the

organization

Provide information and techniques to analyze

specific problemsInformation form and frequency

Periodic, exception, demand, and push reports

and responses

Interactive inquiries and responses

Information format

Prespecified, fixed format Ad hoc, flexible, and adaptable format

Information processing methodology

Information produced by extraction and manipulation

of business data

Information produced by analytical modeling of

business data

10-63

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Decision Support Trends

The emerging class of applications focuses on Personalized decision support Modeling Information retrieval Data warehousing What-if scenarios Reporting

10-64

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Applications of Statistics and Modeling

Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock-outs

Pricing: identify the price that maximizes yield or profit

Product and Service Quality: detect quality problems early in order to minimize them

Research and Development: improve quality, efficacy, and safety of products and services

10-65

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Using Decision Support Systems Using a decision support system involves an

interactive analytical modeling process Decision makers are not demanding

pre-specified information They are exploring possible alternatives

What-If Analysis Observing how changes to selected variables affect

other variables

10-66

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Using Decision Support Systems Sensitivity Analysis

Observing how repeated changes to a single variable affect other variables

Goal-seeking Analysis Making repeated changes to selected variables until a

chosen variable reaches a target value Optimization Analysis

Finding an optimum value for selected variables, given certain constraints

10-67

Page 68: MOD 2

Group Decision Support Systems Computer-based system that supports groups

of people engaged in a common task (or goal) and that provides an interface to a shared environment.

Used in problem solving Related areas

Electronic meeting system (EMS) Computer-supported cooperative work (CSCW) Group support system (GSS) Groupware

Page 69: MOD 2

Group Support Systems

Goal: to support groupwork Increase benefits / decrease losses of

collaboration Based on

Nominal Group Technique Delphi Method

Electronic Meeting System (EMS)

Page 70: MOD 2

How GDSS Contributes to Problem Solving

Improved communications Improved discussion focus Less wasted time

Page 71: MOD 2

GDSS Environmental Settings Synchronous exchange

Members meet at same time Committee meeting is an example

Asynchronous exchange Members meet at different times E-mail is an example

More balanced participation.

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GDSS Types Decision rooms

Small groups face-to-face Parallel communication Anonymity

Local area decision network Members interact using a LAN

Legislative session Large group interaction

Computer-mediated conference Permits large, geographically dispersed group

interaction

Page 73: MOD 2

Groupware Functions

E-mail FAX Voice messaging Internet access

Lotus Notes Popular groupware product Handles data important to managers

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Groupware

Lotus Notes / Domino ServerIncludes Learning Space

Netscape Collabra Server Microsoft NetMeeting Novell Groupwise GroupSystems TCBWorks WebEx

Page 75: MOD 2

Cool Rooms

US Air Force

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Cool Rooms

IBM Corp.

Page 77: MOD 2

Expert Systems

An Expert System (ES) A knowledge-based information system Contain knowledge about a specific, complex

application area Acts as an expert consultant to end users

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Components of an Expert System Knowledge Base

Facts about a specific subject area Heuristics that express the reasoning procedures of

an expert (rules of thumb) Software Resources

An inference engine processes the knowledge and recommends a course of action

User interface programs communicate with the end user

Explanation programs explain the reasoning process to the end user

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Components of an Expert System

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Methods of Knowledge Representation Case-Based

Knowledge organized in the form of cases Cases are examples of past performance,

occurrences, and experiences Frame-Based

Knowledge organized in a hierarchy or network of frames

A frame is a collection of knowledge about an entity, consisting of a complex package of data values describing its attributes

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Methods of Knowledge Representation Object-Based

Knowledge represented as a network of objects An object is a data element that includes both data

and the methods or processes that act on those data Rule-Based

Knowledge represented in the form of rules and statements of fact

Rules are statements that typically take the form of a premise and a conclusion (If, Then)

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Features of an EIS

Information presented in forms tailored to the preferences of the executives using the system Customizable graphical user interfaces Exception reports Trend analysis

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Expert System Application Categories

Decision Management Loan portfolio analysis Employee performance evaluation Insurance underwriting

Diagnostic/Troubleshooting Equipment calibration Help desk operations Medical diagnosis Software debugging

Page 84: MOD 2

Expert System Application Categories Design/Configuration

Computer option installation Manufacturability studies Communications networks

Selection/Classification Material selection Delinquent account identification Information classification Suspect identification

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Expert System Application Categories Process Monitoring/Control

Machine control (including robotics) Inventory control Production monitoring Chemical testing

Page 86: MOD 2

Applications of Expert Systems and Artificial Intelligence

Credit granting Information management and retrieval AI and expert systems embedded in products Plant layout Hospitals and medical facilities Help desks and assistance Employee performance evaluation Loan analysis Virus detection Repair and maintenance Shipping Marketing Warehouse optimization

Page 87: MOD 2

Developing Expert Systems

Suitability Criteria for Expert Systems Domain: the domain or subject area of

the problem is small and well-defined Expertise: a body of knowledge, techniques,

and intuition is needed that only a few people possess Complexity: solving the problem is a complex task

that requires logical inference processing

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Developing Expert Systems

Suitability Criteria for Expert Systems Structure: the solution process must be able

to cope with ill-structured, uncertain, missing, and conflicting data and a changing problem situation

Availability: an expert exists who is articulate, cooperative, and supported by the management and end users involved in the development process

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Development Tool

Expert System Shell The easiest way to develop an expert system A software package consisting of an expert

system with its knowledge base Has an inference engine and user interface

programs

Page 90: MOD 2

Overview of Expert Systems Can…

Explain their reasoning or suggested decisions Display intelligent behavior Draw conclusions from complex relationships Provide portable knowledge

Expert system shell A collection of software packages and tools

used to develop expert systems

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Know-ledgebase

User

Userinterface

Instructions &information

Solutions &explanations Knowledge

Inference engine

Problem Domain

Expert and knowledge engineer

Developmentengine Expert

system An Expert System Model

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Expert System Model User interface

Allows user to interact with system Knowledge base

Houses accumulated knowledge Inference engine

Provides reasoning Interprets knowledge base

Development engine Creates expert system

Page 93: MOD 2

User Interface User enters:

Instructions Information

Expert system provides: Solutions Explanations of

Questions Problem solutions

}Menus, commands, natural language, GUI

Page 94: MOD 2

Knowledge Base Description of problem domain Rules

Knowledge representation technique ‘IF:THEN’ logic Networks of rules

Lowest levels provide evidence Top levels produce 1 or more conclusions Conclusion is called a Goal variable.

Page 95: MOD 2

Capabilities of Expert Systems

Strategic goal setting

Decision making

Planning

Design

Quality control and monitoring

Diagnosis

Explore impact of strategic goals

Impact of plans on resources

Integrate general design principles and manufacturing limitations

Provide advise on decisions

Monitor quality and assist in finding solutions

Look for causes and suggest solutions

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When to Use an Expert System (1)

Provide a high potential payoff or significantly reduced downside risk

Capture and preserve irreplaceable human expertise

Provide expertise needed at a number of locations at the same time or in a hostile environment that is dangerous to human health

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When to Use an Expert System (2)

Provide expertise that is expensive or rare Develop a solution faster than human

experts can Provide expertise needed for training and

development to share the wisdom of human experts with a large number of people

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Benefits of Expert Systems

Captures the expertise of an expert or group of experts in a computer-based information system Faster and more consistent Can contain knowledge of multiple experts Does not get tired or distracted Cannot be overworked or stressed Helps preserve and reproduce the knowledge

of human experts

Page 99: MOD 2

Expert System Advantages For managers

Consider more alternatives Apply high level of logic Have more time to evaluate decision rules Consistent logic

For the firm Better performance from management team Retain firm’s knowledge resource

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Expert System Disadvantages

Can’t handle inconsistent knowledge Can’t apply judgment or intuition

Page 101: MOD 2

Limitations of Expert Systems The major limitations of expert systems

Limited focus Maintenance problems Development cost Can only solve specific types of problems

in a limited domain of knowledge

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Limitations of Expert Systems Not widely used or tested Limited to relatively narrow problems Cannot readily deal with “mixed” knowledge Possibility of error Cannot refine own knowledge base Difficult to maintain May have high development costs Raise legal and ethical concerns

Page 103: MOD 2

Determining requirements

Identifying experts

Construct expert system components

Implementing results

Maintaining and reviewing system

Expert Systems Development

Domain• The area of knowledge

addressed by theexpert system.

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Keys to Successful ES Development Coordinate ES development with strategic

planning Clearly define problem to be solved and

understand problem domain Pay particular attention to ethical and legal

feasibility of proposed system Understand users’ concerns and expectations

concerning system Employ management techniques designed to

retain developers

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Executive Support Systems (ESS)

Information system at the strategic level of an organization that address unstructured decision making through advanced graphics and communications.

TYPE: Strategic levelINPUTS: aggregate data; internal and externalPROCESSING: interactiveOUTPUTS: projectionsUSERS: senior managersDECISION-MAKING: highly unstructured

EXAMPLE: 5 year operating plan

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Executive information system

EIS are management information systems tailored to benefit the strategic information needs of top mgmt/ senior executives.

Usually they involve presenting reports in standard formats and they often involve graphics.

Page 107: MOD 2

Executive Information Systems (EIS)

Combines many features of MIS and DSS Provide top executives with immediate and

easy access to information Identify factors that are critical to accomplishing

strategic objectives (critical success factors) So popular that it has been expanded to managers,

analysis, and other knowledge workers

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EIS features

Ability to solve diverse business problems Access to external data pools Ability to respond to ad-hoc queries and sensitivity analysis An easy to use/easy to learn graphical user interface Statistical analytical tools On request, drill down capability to reach information for further

details On demand financial and other ratios and indicators that reflects org

strengths and weaknesses Easy to use but sophisticated tools to allow navigation ( in data

bases and datawarehouses)

Page 109: MOD 2

Components of ESS

Executive work stations depends on mainframe or minicomputer systems for access to ESS software.

This package works with DBMS and telecommunication software to provide easy access to internal, external and special database with almost instantaneous response time.

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Architecture of ESS Application

OAS Data

Executive work station

ESS program

Graphs Reports ESS Models

MIS Data

DSS Models

AdministrativeSupport Work station

TPS Data

Requests

Responses

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Executive MIS

Page 112: MOD 2

Major Types of Information Systems

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M a n a g e ria lw o rk s t a t io n s

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O p e ra t io n a l L e v e l S y s t e m s

O rd e r T ra c k in g

O rd e r p ro c e s s in g

M a c h in e c o n tro l

P la n t s c h e d u lin g

M a t e ria l m o v e m e n tc o n tro l

S e c u rit ie stra d in g

C a s hm a n a g e m e n t

P a y ro ll

A c c o u n ts p a y a b le

A c c o u n ts re c e iv a b le

C o m p e n s a t io n

T ra in in g & d e v e lo p m e n t

E m p lo y e e re c o rd k e e p in g

T Y P E S O F S Y S T E M S

E S S

M I S

D S S

K W S

O A S

T P S

S a le s a n dm a rk e t in g

M a n u fa c t u rin g F in a n c e A c c o u n t in g H u m a nR e s o u rc e s

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End of Module 2Thank you