chapter 4 MIS
what is artificial intelligence (AI)
- AI -- the science of making machines imitate human thinking and behavior, can replace human decision making in som instances types: - expert systems - neural networks (and fuzzy logic) - genetic algorithms - intelligent agents ( or agent-based technologies)
what is Decision support system (DSS)
- Decision Support System (DSS) -- a highly flexible and interactive system that is designed to support decision making when the problem is not structured
what are expert systems, and what can they be used for
- Expert (knowledge-based) systems -- an artificial intelligence system that applies reasoning capabilities to reach a conclusion used for - diagnostic problems ( what's wrong?) - prescriptive problems (what to do?)
what is fuzzy logic, and what is it used for
- Fuzzy Logic -- a mathematical method of handling imprecise or subjective information - used to make ambiguous info such as "short" usable in computer systems
what is Geographic information systems (GIS)
- GIS -- DSS designed specifically to analyze spatial information (any info in map form) - Businesses use GIS software to analyze info, generate business intelligence, and make decisions
what are genetic algorithms
- Genetic algorithm -- an artificial intelligence system that mimics the evolutionary, survival of the fittest process to generate increasingly better solutions to a problem
what are neural networks
- Neural network ( Artificial neural network or ANN) -- an artificial intelligence system that is capable to finding and differentiating patterns
what are structured and non-structured decisions
- Structured decision -- processing a certain information in a specified way so that you will always get the right answer - the nonstructured decision -- one for which there may be several "right" answers, without a sure way to get the right answer
what are the management levels
- Top Management - concerned with long-range strategic planning, need information to help them plan future growth and direction of the org. - Middle Management - deal with control planning, tactical planning, and decision making -Low Management - day to day operational matters, monitor the employees
what is decision support systems (DSS)
- decision making on the detailed data of tps - decision models
what is executive support systems (ESS)
- designed for top management - ease of use - access about performance and provide capsule summaries
what are predictive analytics
- highly computational process of measuring and predicting customer behavior/attitudes - uses a combination of statistics, probability, ops management methods, AI tools, data mining, and predictive modeling types - text - natural language analysis - content - audio, video, graphical - web - web traffic analysis
what are monitoring and surveillance agents
- intelligent agents that constantly observe and report on some entity of interest, a network, or manfufacturing equipment,
what are information agents
- intelligent agents that search for info of some kind and bring it back EX: buyer agent or shopping bot -- an intellient agent on a web site that helps you, the customer, find products and services your want
what can neural network do
- learn and adjust to new circumstances on their own - take part in massive parallel processing - function without complete info - cope with huge volumes of info - analyze nonlinear relationships
what is Analytic Hierarchy Process (AHP)
- multiple pair-wise comparison analysis techniques - DSS generator with Microsoft excel - create n x n matrix: factors influence you decision x alternatives (candidates = decision items) of interest - as the size of n increases, decision maker can not manage logical relationship of every components
what does low management consist of
- operational level - deals with data - data collection and retention - work in process - support daily activities - sales, cash deposits, payroll, credit decisions, inventories, material flows
what are recurring and nonrecurring decisons
- recurring decision -- happens repeatedly - nonrecurring (ad hoc) decision -- one you make infrequently
what are intelligent agents
- software that assists you, or acts on your behalf, in performing repetitive computer-related tasks types - informative agents - monitoring-and-surveillance or predictive agents - data-mining agents - user or personal agents
what is transaction processing systems (TPS)
- sometimes called a data processing system (DP) - day - to - day transactions: basic accoutning activities, customer orders, inventory
what does top management planning consist of
- strategic level, support long-term decision making, scanning the environment (using SWOT analysis). How is our organization performing compared to competitiors
what is management information systems (MIS)
- summarizes the detail data of TPS - use databases - intergrate data across areas
what does middle management consist of
- tactical level - monitoring, planning, controlling, and decision making for organizational activities - support weekly/monthly reports - are we meeting goals of organization
what can genetic algorithms do
- take thousands or even millions of possible solutions and combine and recombine them until it finds the optimal solution - work in environments where no model of how to find the right solution exists
what are the flows among management levels and department levels
- vertical flows among management levels - horizontal flows among department levels
what are the components of DSS
1). Model management component -- consists of both the DSS models and the model management system 2). Data management component -- stores and maintains the info that you want your DSS to use 3). User Interface management component -- allows you to communicate with the DSS
what are the three evolutionary principles of genetic algorithms
1). Selection -- or survival of te fittest or giving preference to better outcomes 2). Crossover -- combining portions of good outcomes to create even better outcomes 3). Mutations -- randomly tryign combinations and evaluating the success fo each
how do you use AHP
1). input values from 0 to 9 (natural numbers) 2). enter all six pairwise comparison values in the upper diagonal. - the values in the lower diagonal will be added with reciprocal values for each comparison 3). logic of transitivity: A>B and b>C implies A>C 4). from the initial components values, Check Consistency Index (CI), it should be <0.1
what are the phases of decision making
1). intelligence -- find or recognize a problem, need or opportunity 2). design -- consider possible ways of solving the problem 3). Choice -- weigh the merits of each solution 4). implementaton -- carry out the solution
what expert systems can and can't do
Can do - reduce errors - improve customer service - reduce cost Can't do - use common sense - automate all processes
what is TPS, MIS, DSS, and ESS
TPS - transaction processing system MIS - management information system DSS - decision support system ESS - executive support system
what are data mining agents
operates in a data warehouse discovering info