Chapter 4Chapter 4Decision Support System & Artificial Intelligence

Definition of decisionDefinition of decisionDecision making process is one of the

most important activity.4 types of decision;

◦Structured – information processing using forms to get the most accurate & correct answer

◦Non-structured – information processing where there is few correct answers, no forms/rules.

◦Recurring – decision that happen repeatedly & often periodically.

◦Non-Recurring – decision made infrequently & have different criteria to use each time.

Decision making processDecision making process4 phases;

INTELLIGENCE

Find what to fix

DESIGNFind solution

CHOICEChoose a solution

IMPLEMENTATION

Apply the solution

Decision making processDecision making processIntelligence (find what to fix)

◦Find & recognize a problem/need/opportunity (also called diagnostic phase of decision making)

Design (find solution)◦Possible ways of solving problem &

develop all the possible solutions you canChoice (pick a solution)

◦Analyzing every possible solution, the effect & choosing the best depending on cost, implementation & employees demand.

Implementation (apply the solution)◦ Implementing the solution, evaluating the

outcome & make necessary changes.

Types of decision support Types of decision support systemsystem

Decision Support SystemDecision Support SystemAllows you to locate & use

information effectively to help decision making in non-structured problem.

An alliance between decision maker & specialized support provided by IT

Advantages;◦ Improves productivity◦ Improves understanding◦ Improves work speed◦Reduces complex problem◦Reduces cost

Components of decision Components of decision support systemsupport system

Data management in DSSData management in DSSContains DSS information & DSS

database management system.3 main sources of information;

◦Organizational information – any information obtained from the organization. Ex. Sales data

◦External information – information obtained from another organization. Ex. From internet

◦Personal information – information obtained from own insights & experience.

Model management in Model management in DSSDSSModel represents event, facts or

situation that occurs.DSS models may include; what-if

model, optimization model, goal-seeking model & statistical model allowing you to analyze in many different ways.

Model management system stores & maintains the DSS models. Its function of managing model is similar to that of database management system.

User interface User interface managementmanagementConsists of user interface & user

interface management system.It allows user to key in

information, instruction and model to the system

Group Decision Support Group Decision Support System (GDSS)System (GDSS)Facilitates the formulation & the

solutions to problems by a team.GDD facilitates GDSS process by

integrating a group with;◦Groupware◦DSS capabilities◦Telecommunication

Phase of Decision Making in Phase of Decision Making in GDSSGDSS

Brainstorming – group members will come up with ideas to solve problem

Issue categorization & analysis – group members will sort the ideas based on the classification & the idea will be evaluated.

Ranking & voting – every group member will chose the suitable ideas in solving the problem. Highest voted idea will be selected.

Main components in GDSSMain components in GDSSMain components;

◦Individual in GDSS◦Information Technology Hardware in

GDSS

Individual◦2 functions of individual in GDSS

Group members solve the problem – every member needs to cooperate & exchange ideas.

Facilitator who helps group to achieve goals – technical & non-technical role

Main components in GDSSMain components in GDSSInformation Technology Hardware in

GDSS◦Contains groupware, DSS &

telecommunication◦Groupware GDSS – any kind of

software that allows a team to communicate & share documents. Able to support 3 phases of decision making. Obtain idea (brainstorming) Analyze idea (issue categorization) Perform vote (ranking & voting)

Group Decision Support Group Decision Support System (GDSS)System (GDSS)DSS capabilities

◦Depends to the type of decision made. The method of analysis such as what-if analysis, statistical analysis etc need to be used by information to present decision.

Telecommunication network◦The hardware & software that

connects computers.

Geographical Information Geographical Information System (GIS)System (GIS)

Specially designed to work with spatial information.

Spatial information – any information that can be shown in map form such as electrical line & roads.

GIS assists business from viewpoint of;◦ Determine which area is suitable to open a branch

based on the area’s population ◦ Determine the possibility of total client in specific

area.◦ Hold the promotion & advertisement based by sale

that is made.◦ Determine the optimal location of a new

distribution outlet.

Geographical Information Geographical Information System (GIS)System (GIS)

Business geography – when business combines textual information & spatial information.

GIS is a combination of graphic technology & database.

GIS manipulates the spatial information & produce graphical result.

Types of Artificial Intelligence Types of Artificial Intelligence SystemSystemThe techniques & software that enables

computers to mimic human behavior in various ways.

4 types of AI;◦ Expert System – reasons thru problems & advice

in a form of conclusion/ recommendations◦ Neural Networks – can be programmed to

recognize patterns◦ Genetic Algorithms – imitates evolution

characteristics, implement the process of suitability to produce better decision.

◦ Intelligent Agents – move around computer/networks to perform repetitive process on its own & adapt to your preferences.

Expert systemExpert systemComponents of Expert System

Expert systemExpert systemInformation types

◦ Domain expertise – set of problem solving steps◦ ‘why’ information – information to inform about

something◦ Problem facts – symptoms of & assertions about

your problem.

People ◦ Domain expert role – provides problem solving

strategies◦ Knowledge engineer role – IT specialist who

formulates the domain expertise into expert system

◦ Knowledge worker role – a person who uses expert system.

Expert systemExpert systemInformation Technology components;

◦Knowledge base – stores the rules made by knowledge engineer.

◦Knowledge acquisition – used to enter the rules

◦Inference engine – takes your problems facts & searches the knowledge base for rules that fit.

◦User interface – interface of a system that you use to run the consultation.

◦Explanation module – keeping the ‘why’ information

Neural NetworksNeural NetworksImitates a person’s capability to

classify certain things.Suitable for identifying, classifying &

forecasting based on collected information

Ex; DNA patterns, asimo..

Genetic AlgorithmsGenetic AlgorithmsSuitable to decide on a decision that

has various possibilities of settlement.Uses 3 evaluation concepts, that are;

◦ Selection – process to select best solution◦ Crossover – process of combining few

solutions◦ Mutation – process to change a solution

randomly.◦ Ex ; criminal face sketch.

Intelligent AgentIntelligent AgentBuilt from one or more modern

technology software including expert system, genetic algorithms & object oriented programming.

4 types of intelligent agent;◦Find-and-retrieve agents◦User agents◦Monitor & surveillance agent◦Data-mining agents

Intelligent AgentIntelligent AgentComponents of Intelligent

agents;◦Autonomy – act without you telling

every step◦Adaptivity – discovering, learning &

taking action independently.◦Sociability – able to confer with other

agents.