Information systems

Management

Lecture 7
 http://www.ted.com/talks/jeremy_howard_the_wond
erful_and_terrifying_implications_of_computers_that
_can_learn#
http://www.ted.com/talks/pranav_mistry_the_thrillin
g_potential_of_sixthsense_technology

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 Artificial Intelligence is the field of science and
technology based on disciplines such as computer
science, biology, psychology, linguistics, mathematics
and engineering.
The goal of artificial intelligence is to develop
computers that can simulate the ability to think, as
well as see, hear, walk, talk and see.
The major thrust of artificial intelligence is the
simulation of computer functions normally associated
with human intelligence such as reasoning, learning
and problem solving
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 Attributes of intelligent behaviour
Think and reason
Use reason to solve problems
Learn and understand from experience
Acquire and apply knowledge
Exhibit creativity and imagination
Deal with complex and perplexing situations
Respond quickly and successfully to new situations
Recognise the relative importance of elements in a situation
Handle ambiguous, incomplete or erroneous information

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 Domains of artificial intelligence: cognitive science
applications, robotics applications, natural interface
applications
Cognitive science applications: based on research in biology,
neurology, psychology and mathematics.
Focuses on researching how human brain works and
humans think and learn.
Applications include development of expert systems,
knowledge-based systems, adoptive learning systems(chess
playing systems), fuzzy logic (semi structured problems,
incomplete /ambiguous data), neural networks(recognising
patterns and learning by processing sample problems),
generic algorithm (generate increasingly better solutions by
evolutionary process)
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 Robotics: artificial intelligence, engineering and,
physiology are the basic disciplines of robotics
Produces Robots machines with computer

intelligence and computer controlled,

humanlike physical capabilities
Natural interfaces: Development of natural languages
and speech recognition are major thrust of this
artificial intelligence.
Involves research and development in linguistics,
psychology, computer science.
Emerging application area is virtual reality to enable human
users to experience computer simulated objects, spaces,
activities and words as if they actually exist
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Commercial applications of artificial intelligence
Decision support
Intelligent work environment that will capture why and what
of engineered design and decision-making
Intelligent human computer interface that can understand
spoken language and gestures and facilitate problem-solving
Situation assessment and resource allocation software for
use in airlines, airports logistics centres
Information retrieval
Artificial intelligence based intranet and internet systems
that will convert information into simple presentations
Natural language technology to retrieve online information in
response to questions
Database mining for marketing trend analysis, financial
forecasting, maintenance cost reduction
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Commercial applications of artificial intelligence

Virtual reality
X-ray like vision that allows surgeons to see through the
intervening tissues to operate, monitor and evaluate disease
progression.
Automated animation interfaces that allow users to interact
with virtual objects via touch (used in surgery)
Robotics
Machine vision inspection systems for gauging, guiding,
identifying and inspecting products providing excellence

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Expert systems
Expert system is a knowledge-based information
system that uses its knowledge about a specific,
complex application area to act as an expert
consultant to end users
Knowledge can be represented in an expert system by
Case-based reasoning: representing knowledge in the form of
cases, past performance, occurrences and experiences
Frame-based knowledge: represented in the form of hierarchy
or network of frames. Frame is a collection of knowledge about
an entity
Object-based knowledge: represented by a network of objects.
Objects is a data element that includes both data and
methods/processes on that data
Rule-based knowledge: represented in the form of rules and
statements of facts
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Expert systems

Benefits of expert systems: they are faster and

consistent, can have knowledge of several experts,
does not get tired or distracted
Limitations of expert systems: a limited focus,
inability to learn, maintenance and development cost,
cannot solve problems requiring broad knowledge
and subjective problems solving.

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 Business intelligence : the infrastructure for
warehousing, integrating, reporting and analysing
data that comes from the business environment
Business analytics focuses more on tools and
techniques for analysing and understanding data.
Business intelligence and analytics is about
integrating information streams produced by the
company into a single , coherent enterprise wide set
of data and then using modelling, statistical analysis
tools and data mining tools for better decision
making
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Business intelligence environment
Data from the business environment: structured and
unstructured data from different sources including
mobile and internet. Data needs to be integrated,
organised and analysed for decision-making.
Business intelligence infrastructure: powerful
database system that captures all the relevant data
to operate the business. Must be combined and
integrated into data warehouses or series of
interrelated data marts
Business analytics toolset: software tools that
respond to questions posed by managers and track
progress of business using KPI
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 Managerial users and methods: managers impose
order on the analysis of data using a variety of
managerial methods that define strategic business
goals and specify how progress will be measured.
This includes business performance management,
balanced scorecard
Delivery platforms MIS,DSS,ESS
User interface: dashboards and scorecards on mobile
handsets

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Business intelligence and analytics capabilities

Production reports: predefined reports

Parameterized reports: by filtering data and isolating
impacts of parameters
Dashboards/scorecards: visual tools for presenting
performance data as defined by users
Ad hoc query/search/report creation
Drill down: move from high-level summary to a more
detailed view
Forecasts, scenarios, models: linear forecasting, what
if analysis, analysing data with statistical tools
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Uses of business intelligence redefined
production reports

sales Forecast sales, sales team performance,

cross selling, sales cycle times
Service/call center Customer satisfaction, service cost, resolution
rates, churn rates
marketing Campaign effectiveness, loyalty and attrition,
market basket analysis
Procurement and Direct and indirect spending, of contract
support purchases, supplier performance
Supply chain Backlog, fulfilment status, or the cycle time, Bill
of material analysis
financial Gen Ledger, accounts receivable and payable,
cash flow, profitability
Human resources Employee productivity, compensation, workforce
demographics, retention
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