Chapter 4
Decision Support and
Artificial Intelligence
Brainpower for Your Business
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Chapter Overview
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Decisions, Decisions, Decisions
Decision Support Systems
Collaboration Systems
Geographic Information Systems
Artificial Intelligence
Expert Systems
Neural Networks
Genetic Algorithms
Intelligent Agents
Opening Case Study
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Continental Airlines Files High with
Decision Support
Continental implemented a decision
support system to provide up-to-theminute flight information.
What other types of decision support
systems could Continental Airlines
implement?
Introduction
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Types of computer-aided decision support.
Decisions, Decisions,
Decisions
How You Make a Decision
Four phases of decision making
1. Intelligence – find or recognize a problem, need, or
opportunity.
2. Design – consider ways to solve the problem, fill the
need, or take advantage of an opportunity.
3. Choice – examine the merits of each solution, estimate
the consequences of each, and choose the best one.
4. Implementation – carry out the chosen solution, monitor
the results, and make adjustments as necessary.
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Decisions, Decisions,
Decisions
Types of Decisions You Face
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Structured decision - processes a certain
kind of information in a specified way so
that you will always get the right answer.
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Nonstructured decision - one for which
there may be several “right” answers, and
there is no precise way to get a right
answer.
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Decisions, Decisions,
Decisions
Types of Decisions You Face
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Recurring decision - one that happens
repeatedly, and often periodically.
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Nonrecurring decision - one that you
make infrequently.
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Decision Support Systems
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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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Decision Support Systems
Components of a Decision Support System
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Decision Support Systems
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Components of a Decision Support
System
A typical DSS has three components:
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Model management - consists of both the
DSS models and the DSS model
management system.
Data management - performs the function of
storing and maintaining the information that
you want your DSS to use.
User interface management - allows you to
communicate with the DSS.
Collaboration System
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Collaboration system – software that is
designed specifically to improve the
performance of teams by supporting the sharing
and flow of information.
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Lotus Notes and Microsoft Exchange.
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Supply chain management means working with your
suppliers and distributors in all phases of planning,
production, and distribution.
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Collaboration System
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Web-based collaboration tools use the
power of the Internet to enable people to
work together effectively and efficiently.
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The peer-to-peer file-sharing feature is
combined with the ability to create and edit
documents collaboratively, and to send
and receive text and voice messages.
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Geographic Information Systems
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Geographic information system (GIS) a decision support system designed to
work with spatial information.
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Spatial information is any information that
can be shown in map form, such as roads
and the distribution of bald eagle
populations.
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Artificial Intelligence
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Artificial intelligence (AI) - the science
of making machines imitate human
thinking and behavior.
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Robot - mechanical device equipped
with simulated human senses and the
capability of taking action on its own.
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Expert Systems
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Expert system, or knowledge-based system artificial intelligence system that applies
reasoning capabilities to reach a conclusion.
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Expert systems are well suited for problems that
are:
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Diagnostic (what’s wrong?)
Prescriptive (what to do?)
Expert Systems
Components of an Expert System
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Information
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Domain expertise – the reasoning process
that will solve the problem.
Problem facts – the particulars of the current
situation.
“Why” information – the explanation of how
the expert system asked a question or
reached a conclusion.
Expert Systems
Components of an Expert System
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People
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Domain expert - provides the domain
expertise in the form of problem-solving
strategies.
Knowledge engineer – IT specialist who
formulates the domain expertise into an
expert system.
Knowledge worker or user - that’s you.
Expert Systems
Components of an Expert System
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IT Components
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Knowledge base - stores the rules.
Knowledge acquisition – used to
enter the rules.
Inference engine - takes the problem
facts and searches the knowledge
base for rules that fit.
User interface – runs the consultation.
Explanation module – where
information is stored.
On Your Own
Traffic Lights
Revisited
(p. 199)
Neural Networks
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Neural network (often called an artificial
neural network or ANN) - an artificial
intelligence system that is capable of
finding and differentiating patterns.
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Neural Networks
Types of Neural Networks
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Self-organizing neural
network - finds patterns and
relationships in vast amounts
of data by itself.
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Back-propagation neural
network - a neural network
trained by someone.
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Team Work
How Would You
Classify People?
(p. 202)
Genetic Algorithms
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Genetic algorithm - an artificial intelligence
system that mimics the evolutionary, survival-ofthe-fittest process to generate increasingly better
solutions to a problem.
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Genetic algorithms use three concepts of
evolution:
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Selection
Crossover
Mutation
Genetic Algorithms
Team Work
Be a Genetic
Algorithm and Put
Nails in Boxes
(p. 206)
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Intelligent Agents
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Intelligent agent - software that assists
you, or acts on your behalf, in performing
repetitive computer-related tasks.
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Four types of intelligent agents include:
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Buyer agents or shopping bots
User or personal agents
Monitoring-and-surveillance or predictive agents
Data-mining agents
Intelligent Agents
Buyer Agents
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Buyer agent or shopping bot - an
intelligent agent on a Web site that helps
the customer find products and services.
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Intelligent Agents
Buyer Agents
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Types of filtering include:
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Collaborative filtering
Profile filtering
Psychographic filtering
Adaptive filtering
Intelligent Agents
User Agents
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User agents
(sometimes called
personal agents) intelligent agents that
take action on your
behalf.
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On Your Own
Go Bargain
Hunting Online
(p. 209)
Intelligent Agents
Monitoring-and-Surveillance Agents
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Monitoring-and-surveillance agents
(also called predictive agents) - observe
and report on equipment.
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Intelligent Agents
Data-Mining Agents
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Data-mining agent - operates in a data
warehouse discovering information.
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Intelligent Agents
Components of an Intelligent Agent
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Autonomy - act without your telling them
every step to take.
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Adaptivity - discovering, learning, and
taking action independently.
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Sociability - conferring with other agents.
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Closing Case Studies
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Using Neural Networks To Categorize People
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How accurate is it for a business to predict the future
behavior of customers on the basis of past behavior?
Decision Support and Artificial Intelligence in
Health Care
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How can DSS and AI be used to track a huge amount
of qualitative and quantitative information on patients
and employees?
Visit the Web to Learn More
www.mhhe.com/haag
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Learning about investing
Researching the company behind the
stock
Finding other sources of company
financials
Making trades online
Retrieving stock quotes
Computer-aided decision support
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