Expert Systems

An expert system is a computer program that is designed to hold the accumulated knowledge of one or more domain experts

A Human Experts
Consider several examples:
A doctor Chess grand's-master Financial wizard A chef

What is different between them? Can you say that one is more intelligent that another?

Computer Vs Mind
Computer use pre-programmed algorithms Obviously, our mind do not work like computers: different people usually solve problems in their own ways, and you even may solve the same problem differently every time Some scientists believe that cognition (or intelligence) is somewhat independent of the architectural implementation

Intelligent Vs Expertise
Expertise and intelligence are not the same things (although they are related) Expertise requires long time to learn Expertise is a large amount of knowledge (in some domain) Expertise is easily recalled Intelligence allows you to use your expertise (apply the knowledge) Expertise enables you to find solution much faster
4

WHAT ARE EXPERT SYSTEMS?

An Expert System (ES) is a computer-based system (mainly software) that uses knowledge and facts, and apply an appropriate reasoning technique to solve problems in a given field (domain) that normally require the services of human experts.

What is Expert System

A computer application that performs a task that would otherwise be performed by a human expert. A model and associated procedure that exhibits, within a specific domain, a degree of expertise in problem solving that is comparable to that of a human expert. An expert system is a computer system which emulates the decision-making ability of a human expert.

Why use Expert Systems?

Experts are not always available. An expert system can be used anywhere, any time. Human experts are not 100% reliable or consistent Experts may not be good at explaining decisions Cost effective

Fundamental Characteristic of an ES
Narrow specialized domain High quality performance Rules of thumb Explanation capability Employ symbolic reasoning

QUALIFYING CHARACTERISTICS OF EXPERT SYSTEMS

ES are appropriate in domains when/where: there are no established theories human expertise is scarce or in high demand, but recognized experts exist the information is fuzzy, inexact or incomplete the domain is highly specific

QUALIFYING CHARACTERISTICS OF EXPERT SYSTEMS Contd

ES are not suitable when/where: applications are calculative or deterministic in nature a formula or model exists human experts are plentiful not integral into existing systems end users have to build the knowledge base

10

Designing ES
The process of building ES is called Knowledge Engineering, consist of three stages : i. Knowledge acquisition : the process of getting the knowledge from experts ii. Knowledge representation : selecting the most appropriate structures to represent the knowledge iii. Knowledge validation :testing that the knowledge of ES is correct and complete

11

Applications of Expert Systems

PUFF: Medical system for diagnosis of respiratory conditions

PROSPECTOR: Used by geologists to identify sites for drilling or mining

Applications of Expert Systems

MYCIN: Medical system for diagnosing blood disorders. First used in 1979

DESIGN ADVISOR: Gives advice to designers of processor chips

Applications of Expert Systems

PUFF: Medical system for diagnosis of respiratory conditions

PROSPECTOR: Used by geologists to identify sites for drilling or mining

ROLE OF INFORMATION SYSTEM IN STRATEGIC MANAGEMENT

What is Strategy?
Strategy Definitions
Strategy
A game plan Early 1990s definition:

A well coordinated set of objectives, policies, and plans aimed at securing a long-term competitive advantage. A vision for the organization that is implemented. a careful plan or method the art of devising or employing plans toward a goal the art and science of military command exercised to meet the enemy in combat under advantageous circumstances

Websters Dictionary

Fundamentals of Strategic Advantage

The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company strategic advantage over the competitive forces it faces in the global marketplace.
17

Competitive Strategy Concepts

A firm can survive and succeed in the long-run if it successfully develops strategies to confront five competitive forces that shape the structure of competition in its industry.

18

Porter`s Five forces

Rivalry of competitors within its industry Threat of new entrants Threat of substitutes Bargaining power of customers Bargaining power of suppliers

19

COMPETITIVE STRATEGY CONCEPTS Businesses can develop competitive strategies to confront the actions of the competitive forces they confront in the market place. Cost leadership strategy Differentiation strategy Innovation strategy Growth strategies Alliance strategies
20

 Become a low-cost producer of products and services Find ways to help suppliers or customers reduce their costs Increase the costs of competitors

Cost Leadership Strategy

21

Develop new products and services Enter new markets or marketing segments Establish new business alliances Find new ways of producing products and services Find new ways of distributing products and services

Innovation Strategy

22

 Significantly expand the companys capacity to produce goods and services Expand into global markets Diversify into new products and services Integrate into related products and services

Growth Strategies

23

 Establish new business linkages and alliances With customers, suppliers, competitors, consultants and other companies Mergers, acquisitions, joint ventures, forming virtual companies

Alliance Strategies

24

Strategic Roles for Information Systems

Information technology can be used to implement a variety of these competitive strategies.

25

Information Systems as a Strategic Resource

Inwardly Strategic
focused on internal processes

Outwardly Strategic
aimed at direct competition beat competitors

lower costs increase employee productivity improve teamwork enhance communication

new services new knowledge that leads to new services

Strategic Competitive Advantage

Those qualities that allow a company to earn aboveaverage profits within an industry
Low cost Unique product

Three generic strategies to achieve competitive advantage

Cost leadership strategy Differentiation strategy Focus strategy

10-27

Sustainable Competitive Advantage

Four approaches lead to sustainable competitive advantage
Create barriers to entry through patents, monopoly, or technical expertise Be the first to develop systems with high switching costs Develop the technologies that change the underlying nature of the industry Cultivate and hire people with excellent information systems management skills

10-28

Improving Business Operations

By improving operation efficiency a firm may be able to:
Dramatically cut costs Improve the quality & delivery of its product or service Business process reengineering can improve operational efficiency Adopt a low-cost leadership strategy Increase quality and service by choosing a product differentiation strategy
29

Promoting Business Innovation

Investments in information systems technology can result in the development of new products, services, and processes. This can:
Create new business opportunities Enable a firm to enter new markets Enable a firm to enter into new market segments of existing markets
30

A Strategic Information Base

Information systems allow a firm to develop a strategic information base that can provide information to support the firms competitive strategies. These resources are being used in such areas as:
Strategic planning Marketing campaigns Erecting barriers to entry for competitors Finding better ways to lock in customers and suppliers
31

Challenges of Strategic IS
The IS function can help managers develop competitive weapons that use IT to implement a variety of competitive strategies to meet the challenges of competitive forces that confront any organization.

32

Challenges of Strategic IS
Successful strategic information systems are not easy to develop and implement. They may require major changes in the way a business operates, and in their relationships with customers, suppliers, competitors, internal and external stakeholders, and others.

33