Introduction to Information Systems Chapter 9 1 Introduction to Essentials for Information Systems Eleventh Edition James A. O’Brien Chapter 9 Decision Support Systems Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 2 Chapter Objectives • Identify the changes taking place in the form and use of decision support in e-business enterprises. • Identify the role and reporting alternatives of management information systems. • Describe how online analytical processing can meet key information needs of managers. • Explain the decision support system concept and how it differs from traditional management information systems. Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 1 Introduction to Information Systems James A. O’Brien Chapter 9 Introduction to Essentials for Information Systems Eleventh Edition 3 Chapter Objectives • Explain how the following information systems can support the information needs of executives, managers, and business professionals: – A) Executive Information Systems – B) Enterprise Information Portals – C) Enterprise Knowledge Portals • Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. • Give examples of several ways expert systems can be used in business decision-making situations. Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 4 e-Business Decision Support Applications Supply Chain Management Customer Relationship Management Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Enterprise Performance Monitoring EmployeeManager/ Customer/Partner Situation: What-if Scenario Analysis Knowledge/Innovation Management Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 2 Introduction to Information Systems Chapter 9 Eleventh Edition Introduction to Essentials for Information Systems James A. O’Brien 5 Decisions in the e-Business Decision Characteristics Unstructured Strategic Management De cis io Tactical Management Structured Operational Management Irwin/McGraw-Hill James A. O’Brien n io at rm ns fo In Semi-structured Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 6 Management Information System Reports Periodic Scheduled Reports Exception Reports Major Management Information Systems Reports Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Demand Reports and Responses Push Reports Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 3 Introduction to Information Systems James A. O’Brien Chapter 9 Introduction to Essentials for Information Systems Eleventh Edition 7 Online Analytical Processing Data is retrieved from corporate databases and staged in an OLAP multi-dimensional database Corporate Databases Client PC OLAP Server Multi•Operational DB dimensional •Data Marts database •Data Warehouse Web-enabled OLAP Software Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 8 Decision Support Systems What If-Analysis Sensitivity Analysis Important Decision Support Systems Analytical Models Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Goal-Seeking Analysis Optimization Analysis Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 4 Introduction to Information Systems James A. O’Brien Chapter 9 Eleventh Edition Introduction to Essentials for Information Systems 9 Enterprise Information Portals and DSS Internet Extranet Intranet Enterprise Information Portal Gateway Enterprise Information Portal User Interface Search Agents OLAP Data Mining DSS What-If Models Sensitivity Models Goal-Seeking Models Optimization Models Knowledge Management Database Management Functions Data Mart Operational Database Irwin/McGraw-Hill James A. O’Brien Other Business Applications Analytical Database Knowledge Base Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 10 Attributes of Intelligent Behavior • • • • • • • Think and reason Use reason to solve problems Learn or understand from experience Acquire and apply knowledge Exhibit creativity and imagination Deal with complex or perplexing situations Respond quickly and successfully to new situations. • Recognize the relative importance of elements in a situation • Handle ambiguous, incomplete,or erroneous information Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 5 Introduction to Information Systems Chapter 9 Introduction to Essentials for Information Systems James A. O’Brien Eleventh Edition 11 Artificial Intelligence Applications Artificial Intelligence Cognitive Science Applications •Expert Systems •Fuzzy Logic •Genetic Algorithms •Neural Networks •Visual Perceptions •Locomotion •Navigation •Tactility Irwin/McGraw-Hill James A. O’Brien Natural Interface Applications Robotics Applications •Natural Language •Speech Recognition •Multisensory Interface •Virtual Reality Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 12 AI Application Areas in Business Neural Networks Fuzzy Logic Systems Genetic Algorithms Virtual Reality AI Application Areas in Business Intelligent Agents Expert Systems Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 6 Introduction to Information Systems James A. O’Brien Chapter 9 Introduction to Essentials for Information Systems Eleventh Edition 13 Intelligent Agents Interface Tutors Search Agents Presentation Agents User Interface Agents Information Management Agents Information Brokers Network Navigation Agents Information Filters RolePlaying Agents Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 14 Components of Expert Systems The Expert System Expert Advice User User Interface Programs Inference Engine Program Knowledge Base Workstation Expert System Development Knowledge Engineering Knowledge Acquisition Program Workstation Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Expert and/or Knowledge Engineer Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 7 Introduction to Information Systems James A. O’Brien Chapter 9 Introduction to Essentials for Information Systems Eleventh Edition 15 Expert System Applications Decision Management Diagnostic/Troubleshooting Maintenance/Scheduling Design/Configuration Major Application Categories of Expert Systems Selection/Classification Process Monitoring/Control Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 16 Chapter Summary • Decision support systems in business are changing. The growth of corporate intranets, extranets, and other web technologies have increased the demand for a variety of personalized, proactive, web-enabled analytical techniques to support DSS. • Information systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational. Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 8 Introduction to Information Systems James A. O’Brien Chapter 9 Introduction to Essentials for Information Systems Eleventh Edition 17 Chapter Summary (cont) • Online analytical processing is used to analyze complex relationships among large amounts of data stored in multidimensional databases. Data mining analyzes large stores of historical data contained in data warehouses. • Decision support systems are interactive computer-based information systems that use DSS software and a model base to provide information to support semi-structured and unstructured decision making. Irwin/McGraw-Hill James A. O’Brien Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Essentials for Information Systems Eleventh Edition 18 Chapter Summary (cont) • The major application domains in artificial intelligence include a variety of applications in cognitive sciences, robotics, and natural interfaces. • Major AI application areas include: – Neural Networks – Fuzzy Logic – Genetic Algorithms – Virtual Reality – Intelligent Agents Irwin/McGraw-Hill © 2002 McGraw-Hill Companies Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 9