Introduction to Information TechnologyTurban, Rainer and Potter
Chapter 11 Intelligent Systems in Business
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CHAPTER 11INTELLIGENT SYSTEMS
IN BUSINESS
Introduction to Information TechnologyTurban, Rainer and Potter
Chapter 11 Intelligent Systems in Business
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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’
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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
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Other Intelligent Systems (continued …)
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
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Other Intelligent Systems (continued …)
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
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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
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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.
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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
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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
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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
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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?
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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
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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?
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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
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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