MOD 2
Kinds of Information systems
Transaction Processing Information Systems
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 transaction processing system

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Monitors
Collects
Stores
Processes
Disseminates information
for all routine core business transactions.
The primary goal of TPS is to provide all the information needed to
keep the business running properly and efficiently.
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
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.
Data entry & input
Processing
Documents:
Internally generated
transactions:
• shipped orders
Documents
& reports
• pick list
Database
• cheques to vendors
• receiving notices
• purchase orders
• employee time
cards
Database
update:
• paycheques
Operational reports:
Externally
generated
transactions:
• customer orders
• inventory
• customer orders
• vendor invoices
• customer payments
• purchase orders
• customers
• suppliers
• finished product
inventory status
• raw materials;
packing materials;
spare parts;
inventory status

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.
Notice of the
event
Event
Response
TPS program
Transaction
keyed
Reports
TPS
Databas
e
Objectives of TPS

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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
TPS characteristics

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
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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.
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.
On-line Schematic
Terminal
Terminal
Terminal
Output
Immediate
processing
of each
transaction
Terminal
Terminal
Terminal
TYPES OF TPS

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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.
Batch Schematic
Data entry
of accumulated
transactions
Input
(batched)
Output
Disadvantages in batch processing

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Processing schedule predetermined
Errors unable to be corrected during
processing
Sorting transaction data- expensive and time
consuming

Example of batch transaction processing

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Cheque clearance
Bill generation
Credit card sales transaction
Example of real time transaction processing

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Reservation systems
Hotels
Point of sales terminals
Library systems
Point-of-Sale Transaction
Processing System
Customer’s
receipt
Point-of-sale
transaction
Scanner
Quantity, processing
Date,
system
time
Inventory
database
UPC and
quantity
UPC
UPC
Item, quantity,
date, time, price
Price
Item
database
Purchases
database
Management
information
system
Exception
report
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
Difference b/w real time and batch
Real time

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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 occurbut often tolerated
not practical to shut down
whole system ( infrequent
errors)
Batch
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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.
Model of TPS
Order
Acknowledgement
Current
Records
Product
Customer
Inventory
Business
Rules
Accepted
Orders
Transaction Processing System
TPS Model: Customer order processing & acceptance
Customer
Order:
Mail/E-mail
Customer
Order
Through
Web
E-mail
To Customer
Customer
Order data
processing
Customer
Order Transaction
Processing System
Trigger Order
Acknowledgement
(TPS)
Update
Order
book
Customer
Type Check
Credit
Terms
Check
Credit
Limit
check
Delivery
date
check
Business Rules based processing
Reserve
stock
What is Office Automation?

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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.
Office Management
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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.

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.
Need for Office Automation

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Storage space
Cost of processing
Paper Cost

Types of functions integrated by office
automation systems include

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electronic publishing;
electronic communication;
electronic collaboration;
image processing; and
office management.

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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.
Electronic Publishing

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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.

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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.
Electronic Communication

Electronic communication systems include
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electronic mail (e-mail),
voice mail,
facsimile (fax), and
desktop videoconferencing.
Electronic Mail
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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.
Voice Mail
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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.
Facsimile.

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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.
Desktop Videoconferencing

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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-toface meetings of individuals.
Electronic Collaboration

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
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.
Tele conferencing rooms
Telecommuting and Collaborative
Systems

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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.


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.

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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.
Image Processing
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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.
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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.
Management Information Systems (MIS)

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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
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
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 data
PROCESSING: simple models
OUTPUTS: summary reports
USERS: middle managers
DECISION-MAKING: structured to semi-structured
E.g. annual budgeting
A SAMPLE MIS REPORT
Objectives of MIS

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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.
Characteristics of MIS
1. 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.
Scope of MIS
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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.
Employees
Corporate
databases
of
internal
data
Business
transactions
Transaction
processing
systems
Databases
of
valid
transactions
Databases
of
external
data
Management
information
systems
Corporate
intranet
Application
databases
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Operational
databases
Input and
error list
Scheduled
reports
Decision
support
systems
Executive
support
systems
Expert
systems
Outputs of a
Management Information System

Scheduled reports

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Key-indicator report

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Summarizes the previous day’s critical activities
Typically available at the beginning of each day
Demand report


Produced periodically, or on a schedule (daily, weekly,
monthly)
Gives certain information at a manager’s request
Exception report

Automatically produced when a situation is unusual or
requires management action
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
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-level
INPUTS: low volume data
PROCESSING: simulations, analysis
OUTPUTS: decision analysis
USERS: professionals, staff managers
DECISION-MAKING: semi-structured
EXAMPLE: sales region analysis
Decision Support Systems

Decision support systems use the following to
support the making of semi-structured business
decisions

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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
DSS Components
10-54
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
Decision Support Framework.
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.
The DSS and its Computing Environment
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.
Using DSS in Market Segmentation


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
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.
Levels of Managerial Decision Making
10-61
Decision Structure

Structured (operational)


Unstructured (strategic)


The procedures to follow when decision
is needed can be specified in advance
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
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 problems
Information
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 produced by
extraction and manipulation
of business data
Information produced by
analytical modeling of
business data
Information
processing
methodology
10-63
Decision Support Trends

The emerging class of applications focuses
on

Personalized decision support

Modeling

Information retrieval

Data warehousing

What-if scenarios

Reporting
10-64
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
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
Using Decision Support Systems

Sensitivity Analysis


Goal-seeking Analysis


Observing how repeated changes to a single variable
affect other variables
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
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
Group Support Systems



Goal: to support groupwork
Increase benefits / decrease losses of
collaboration
Based on



Nominal Group Technique
Delphi Method
Electronic Meeting System (EMS)
How GDSS Contributes to Problem Solving



Improved communications
Improved discussion focus
Less wasted time
GDSS Environmental Settings

Synchronous exchange



Asynchronous exchange

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
Members meet at same time
Committee meeting is an example
Members meet at different times
E-mail is an example
More balanced participation.
GDSS Types

Decision rooms

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Local area decision network


Members interact using a LAN
Legislative session


Small groups face-to-face
Parallel communication
Anonymity
Large group interaction
Computer-mediated conference

Permits large, geographically dispersed group
interaction
Groupware

Functions



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
E-mail
FAX
Voice messaging
Internet access
Lotus Notes


Popular groupware product
Handles data important to managers
Groupware

Lotus Notes / Domino Server
Includes Learning Space






Netscape Collabra Server
Microsoft NetMeeting
Novell Groupwise
GroupSystems
TCBWorks
WebEx
Cool Rooms
US Air Force
Cool Rooms
IBM Corp.
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
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
Components of an Expert System
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
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)
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
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
Expert System Application Categories

Design/Configuration




Computer option installation
Manufacturability studies
Communications networks
Selection/Classification




Material selection
Delinquent account identification
Information classification
Suspect identification
Expert System Application Categories

Process Monitoring/Control




Machine control (including robotics)
Inventory control
Production monitoring
Chemical testing
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
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
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
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
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
User
Instructions &
information
Solutions &
explanations
Knowledge
User
interface
Inference
engine
Expert
system
Development
engine
Expert and
knowledge engineer
Knowledge
base
Problem
Domain
An Expert
System Model
Expert System Model

User interface


Knowledge base


Houses accumulated knowledge
Inference engine



Allows user to interact with system
Provides reasoning
Interprets knowledge base
Development engine

Creates expert system
User Interface

User enters:



Instructions
Information
}
Menus, commands, natural language, GUI
Expert system provides:


Solutions
Explanations of


Questions
Problem solutions
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.
Capabilities of Expert Systems
Strategic goal setting
Planning
Design
Decision making
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
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
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
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
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
Expert System Disadvantages


Can’t handle inconsistent knowledge
Can’t apply judgment or intuition
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
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
Expert Systems Development
Determining requirements
Identifying experts
Construct expert system components
Implementing results
Maintaining and reviewing system
Domain
• The area of knowledge
addressed by the
expert system.
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
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 level
INPUTS: aggregate data; internal and external
PROCESSING: interactive
OUTPUTS: projections
USERS: senior managers
DECISION-MAKING: highly unstructured
EXAMPLE: 5 year operating plan
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.

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
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)
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.
Architecture of ESS Application
TPS
Data
OAS
Data
MIS
Data
DSS
Models
ESS program
Requests
Administrative
Support
Work station
Responses
Executive
work station
Graphs
Reports
ESS
Models
Executive MIS
Major Types of Information Systems
TYPES OF SYSTEM S
Strate gic Le ve l Sys te ms
5-ye ar
5-ye ar
5-ye ar
Profit
ope rating budge t
s ale s tre nd planning
plan
fore cas ting fore cas ting
ESS
M IS
Sale s
manage me nt
DSS
Sale s re gion
analys is
KWS
Engine e ring
work s tations
OAS
Word
proce s s ing
Inve ntory
Control
Production
Sche duling
Orde r Track ing
M anage me nt-Le ve l Sys te ms
Capital
Annual
Re location
Inve s tme nt analys is analys is
budge ting
Cos t
analys is
Knowle dge -Le ve l Sys te ms
Graphics
work s tations
Plant s che duling
M anufacturing
Finance
M anage rial
work s tations
Ele ctronic
Cale ndars
Ope rational Le ve l Sys te ms
Se curitie s
Payroll
trading
Accounts payable
Orde r proce s s ing M ate rial move me nt Cas h
manage me nt
control
Sale s and
mark e ting
Pricing/profitability Contract cos t
analys is
analys is
Docume nt
Imaging
M achine control
TPS
M anpowe r
planning
Compe ns ation
Training & de ve lopme nt
Accounts re ce ivable Employe e re cord k e e ping
Accounting
Human
Re s ource s
End of Module 2
Thank you