Succeeding with Technology: Second Edition Chapter 9: Information, Decision Support, Artificial Intelligence, and Special-Purpose Systems Succeeding with Technology: Second Edition

Succeeding with Technology Objectives Define the stages of decision making and problem solving Discuss the use of management information systems in providing reports to help solve structured problems Describe how decision support systems are used to solve nonprogrammed and unstructured problems Succeeding with Technology

Objectives (continued) Explain how a group decision support system can help people and organizations collaborate on team projects Discuss the uses of artificial intelligence and special- purpose systems Succeeding with Technology

Decision Making and Problem Solving Process that takes place in three stages Intelligence Design Choice Succeeding with Technology

Decision Making and Problem Solving (continued) Intelligence stage Identify and define potential problems or opportunities Design stage Develop alternative solutions Choice stage Select a course of action Succeeding with Technology

Decision Making and Problem Solving (continued) Includes and goes beyond decision making Implementation stage Action is taken to put the solution into effect Monitoring stage Decision makers evaluate the implementation of the solution Succeeding with Technology

Decision Making and Problem Solving (continued) Reactive problem-solving approach Wait until problem surfaces before taking action Proactive approach Seek out potential problems before they become serious Succeeding with Technology

Succeeding with Technology

Succeeding with Technology

Programmed versus Nonprogrammed Decisions Made using a rule, procedure, or quantitative method Management information systems Often used to support programmed decisions Nonprogrammed decisions Deal with unusual or exceptional situations Succeeding with Technology

Succeeding with Technology

Optimization and Heuristic Approaches Optimization model Will find the best solution Utilizes problem constraints Heuristics (“rules of thumb”) Commonly accepted guidelines Usually find a good solution, but not the optimal solution Succeeding with Technology

Succeeding with Technology

Management Information System Often used to Support programmed decisions made in response to structured problems Primary purpose To help individuals and organizations achieve their goals Succeeding with Technology

Inputs to a Management Information System Input data can originate from internal or external sources TPS Most significant internal source of data for the MIS Major activity is to capture and store data resulting from ongoing transactions Databases Supply data to MIS Succeeding with Technology

Succeeding with Technology

Outputs of a Management Information System Scheduled reports Produced periodically or on a schedule Key-indicator report Special type of scheduled report Summarizes previous day’s critical activities Available at the beginning of each workday Succeeding with Technology

Outputs of a Management Information System (continued) Demand reports Give certain information at a person’s request Exception reports Automatically produced when a situation is unusual or requires action Used to help fight terrorism Succeeding with Technology

Decision Support Systems Focus is on decision-making effectiveness Should assist people and organizations with all aspects of decision making The approach realizes that people, not machines, make decisions Succeeding with Technology

Succeeding with Technology

Characteristics of a Decision Support System Handle a Range of Data Obtain and Process Data from Different Sources Provide Report and Presentation Flexibility Perform complex, sophisticated analysis and comparisons using advanced software packages Succeeding with Technology

Characteristics of a Decision Support System (continued) Support Optimization and Heuristic Approaches Perform What-if and Goal-seeking Analysis What-if analysis Process of making hypothetical changes to problem data and observing the impact on the results Goal-seeking analysis Process of determining what problem data is required for a given result Simulation DSS attempts to mimic an event that could happen in the future Succeeding with Technology

Succeeding with Technology

The Group Decision Support System DSS approaches Many not suitable for a group decision-making environment Group decision support system (GDSS) Also called a computerized collaborative work system Hardware, software, people, databases, and procedures needed to provide effective support in group decision-making settings Succeeding with Technology

Succeeding with Technology

Characteristics of a GDSS Special Design Flexibility Anonymous Input Reduction of Negative Group Behavior Support of positive group behavior Succeeding with Technology

GDSS Software or Groupware Helps with joint work group scheduling, communication, and management Lotus Notes Popular groupware package Can capture, store, manipulate, and distribute memos and communications Using groupware Gives every employee rapid access to a vast source of information Succeeding with Technology

Artificial Intelligence and Special-Purpose Systems Artificial intelligence (AI) Computers with ability to mimic or duplicate the functions of the human brain Advances in AI Have led to systems that work like the human brain to recognize complex patterns Succeeding with Technology

Artificial Intelligence and Special-Purpose Systems AI systems are helping to Make medical diagnoses Explore for natural resources Determine what is wrong with mechanical devices Succeeding with Technology

Succeeding with Technology

The Difference Between Natural and Artificial Intelligence One driving force behind AI research An attempt to understand how human beings actually reason and think Turing Test Attempts to determine if the responses from a computer with intelligent behavior are indistinguishable from responses from a human No computer has passed Succeeding with Technology

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Components of Artificial Intelligence Robotics Vision systems Natural language processing Learning systems Neural networks Genetic algorithms Intelligent agents Expert systems Succeeding with Technology

Succeeding with Technology

Succeeding with Technology Robotics Developing mechanical or computer devices to Perform tasks that require a high degree of precision Contemporary robotics Combine high-precision machine capabilities and sophisticated controlling software Succeeding with Technology

Succeeding with Technology

Succeeding with Technology Vision Systems Include hardware and software that Permit computers to capture, store, and manipulate visual images and pictures Can be used to give robots “sight” U.S. Justice Department Makes use of vision systems to perform fingerprint analysis Succeeding with Technology

Succeeding with Technology

Natural Language Processing Referred to as speech recognition Allows computers to Understand and react to commands made in a “natural” language Three major challenges of natural language Interpreting ambiguous words Sentence parsing Being able to interpret the unique ways in which people pronounce words Succeeding with Technology

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Succeeding with Technology Learning Systems Combination of software and hardware Allows computer to change how it functions or reacts to situations based on feedback Learning systems software Requires feedback on the results of its actions or decisions Succeeding with Technology

Succeeding with Technology Neural Networks Act like or simulate the functioning of a human brain Features of neural networks Ability to retrieve information Fast modification of stored data Ability to discover relationships and trends in large databases Ability to solve complex problems for which all information is not present Succeeding with Technology

Succeeding with Technology Fuzzy Logic Deals in probabilities rather than absolutes Example of fuzzy logic Unclear terms, like “tall” or “many” Fuzzy logic theory Allows people to incorporate interpretations and relationships that are not completely precise Succeeding with Technology

Succeeding with Technology Genetic Algorithms An approach to solving large, complex problems Based on the theory of evolution First step in generating the algorithm Change or vary a number of competing solutions to the problem Second step Select only the best models or algorithms, which continue to evolve Succeeding with Technology

Succeeding with Technology

Succeeding with Technology Intelligent Agents Also called an intelligent robot or bot Consist of Programs and a knowledge base used to perform a specific task Used by the U.S. Army to Route security clearance information for soldiers Succeeding with Technology

Succeeding with Technology Expert Systems Act or behave like a human expert in a field or area Computerized expert systems have been developed to Diagnose diseases given a patient’s symptoms Suggest the cause of a mechanical failure of an engine Succeeding with Technology

Succeeding with Technology Specialized Systems Virtual Reality Systems Computer-simulated environment or event Geographic Information Systems Capable of storing, manipulating, and displaying geographic or special information Succeeding with Technology

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Specialized Systems (continued) Game Theory Systems Develop strategies for people who are competing against each other Other Specialized Systems Informatics Combines traditional disciplines with computer systems and technology Bioinformatics: combines biology and computer science Succeeding with Technology

Succeeding with Technology

Succeeding with Technology Summary Three phases of decision making Intelligence, design, and choice Problem solving Takes decision making a step further Implements the choice Monitors the effects of the decision MIS Provide managers with insight into the regular operations of the organization Output Scheduled reports, demand reports, and exception reports Succeeding with Technology

Succeeding with Technology Summary (continued) Decision support systems Can handle large amount of data Can obtain and process data from different sources Can provide report and presentation flexibility Group decision support system (GDSS) A computerized collaborative work system Artificial intelligence (AI) includes Robotics Learning systems Neural networks Succeeding with Technology