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Decision Support

in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Decision Support
Systems

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-1

Learning Objectives
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

1. Identify the changes taking place in


the form and use of decision support
in business.
2. Identify the role and reporting
alternatives of management
information systems.
3. Describe how online analytical
processing can meet key information
needs of managers.
4. Explain the decision support system
concept and how it differs from
traditional management information
systems.

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-2

Learning Objectives
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

5. Explain how the following information


systems can support the information
needs of executives, managers, and
business professionals:
a) Executive information systems
b) Enterprise information portals
c) Enterprise management systems

6. Identify how neural networks, fuzzy


logic, genetic algorithms, virtual reality,
and intelligent agents can be used in
business.
7. Give examples of several ways expert
systems can be used in business decisionmaking situations.
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-3

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

Decision Support in
Business
Diverse Information and
Decision Making Needs
Varied MIS, DSS, and
Other Information
Systems
Real World Case 1- Ben
& Jerrys and GE Plastics
Click to go to
Case 1

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-4

Decision Support in Business

KEY TERMS
BACK NEXT

of Decision Makers

Decision Structure
Unstructured

Information Characteristics
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope

Strategic
Management

cis

Tactical Management

De

Semi-Structured

ion

Executives & Directors

Business Unit Management


Self-Directed Teams

Operational
Management

Structured

on
ati
rm

Real World Cases

Information Requirements

o
Inf

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Prespecified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus

Operating Management & Self-Directed Teams

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-5

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Characteristics of Information Products

Time Dimension
Content Dimension
Form Dimension
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-6

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Decision Structure

Structured Decisions
Semistructured
Unstructed

Real World Cases

KEY TERMS
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END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-7

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Decision Support Trends


Focus on Personalized
Decision Support
Modeling
Information Retreival
Data Warehousing
What-if Scenarios
Reporting

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-8

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Decision Support Trends

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-9

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Decision Support Trends

Meeting the Data Analysis


and Proactive Decision
Support Requirements
Business Stakeholder
Requirements
Information at Your
Fingertips
Do-It-Yourself Data
Analysis

Decision
Support Response
Personalized, Proactive
Decision Analytics and
Web-based Applications

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-10

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Decision Support Trends

Developing Business Intelligence


Decision
Support
Systems
Management
Information
Systems

Business
Intelligence
Data
Mining

Real World Cases

Knowledge
Management
Systems
Online
Analytical
Processing

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-11

Decision Support in Business


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Decision Support Trends

Developing Business Intelligence

Cisco Systems: DSS Dashboard

Need for Universal Access to


Real-Time Information
Introduction of Dashboard
Some Data is Batched
Merged Data Provides RealTime Information System

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-12

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Management Information Systems


Management Reporting Alternatives

Periodic Scheduled
Reports
Exception Reports
Less Information
Overload

Demand Reports and


Responses
Push Reporting

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-13

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Management Information Systems


Management Reporting Alternatives
Components of a Marketing Information System
CLIENTS
INTERNAL
DATABASES

Sales Prospects
and Rivals News

SERVER
Rivals News and
Company News

Sales Prospects

Rivals News
Sales Prospects
and Company
News

Customer
Data

Sales
Data
News Wires

Company News
The Server Filters
Information Based
on Users Custom
Requirements

Inventory
Data

Via the Internet

Firewall

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-14

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Management Information Systems


Management Reporting Alternatives

Microsoft: The Impact of IT on


District Sales Managers

Use of MS Sales Software


Discovery of Poor Sales Among
Large Dealers Hidden by Large
Sales by Small Dealers
Use of Numbers to be a Business
Thinker
Breadth of Managers Role
Enhanced by Digital Tools
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-15

Online Analytical Processing

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

OLAP

Consolidation
Drill-Down
Slicing and Dicing

Real World Cases

KEY TERMS
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END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-16

Online Analytical Processing

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

OLAP

Use of Excel for OLAP

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-17

Online Analytical Processing

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

OLAP

Use of Specialized Servers and


Multidimensional Databases
OLAP Server
Client PCs
Corporate
Databases

Multidimensional
Database
Spreadsheets
Statistical Packages
Web-Enabled
OLAP Software

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

Data are retrieved from


corporate databases and
staged in an OLAP
multidimensional database
for retrieval by front-end
systems

Operational
Databases
Data Marts
Data Warehouse

9-18

Online Analytical Processing


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

International Rectifier: OLAP


for Decision Support
Producer of Power
Management Semiconductors
Use of Hyperion Solutions
Essbase
Allows Workstations to
Retrieve Data from AS/400s
Realized Extensive Savings
Use of Common Databases
Provides Uniform Definitions
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-19

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

DSS Uses:

Analytical Models
Specialized Databases
Decision Makers Own
Insights and Judgments
An Interactive, ComputerBased Modeling Process to
Support Semistructured and
Unstructured Business
Decisions
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-20

Decision Support Systems

Components of Web-Enabled Marketing DSS

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Legacy
Software

Web
Browser

Other
Software

User Interface Functions


Hyperlinked Multimedia, 3-D Visualization
Model Management Functions
Analytical Modeling, Statistical Analysis
Data Management Functions

Data Extraction, Validation, Sanitation, Integration, and Replication

Real World Cases

KEY TERMS
BACK NEXT

END

Operational
Data

Sales
Market
Data
Data
Data Marts and Other Databases

Copyright 2005, McGraw-Hill/Irwin, Inc.

Customer
Account
Data
9-21

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Web-Enabled DSS at PepsiCo


Development of a Risk
Management DSS to
Minimize PepsiCo Losses
Claims Data Updated
Weekly on INFORM Risk
Management System
INFORM Accessed by
Managers Who Plan Ways to
Minimize Risks and Losses

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-22

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Examples of Special Purpose


DSS Packages

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-23

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Eli Lilly: Data Visualization for


Decision Support
Use of Spotfires DecisionSite
Software Combining Visualization
and Database Querying Capability
$100,000 Plus Software 16,000
Licensed Users
Launched Multiple Queries in
Rapid Succession and Saw the
Results Graphically Onscreen
Supports Real Time Collaboration

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-24

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Using Decision Support

What-if Analysis
Sensitivity Analysis
Goal-Seeking Analysis
Optimization Analysis

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-25

Decision Support Systems


Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Using Decision Support

Example of What-if Analysis

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-26

Decision Support Systems

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Lexis-Nexis: Web Tools for


Decision Support
Use of MicroStrategy DSS
Software
Web-Based Tools for Data
Acquisition for Subscribers
Data Warehouse Supports
Extensive User and Use
Analysis
Also Analyzes and Models
Business Processes
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-27

Decision Support Systems

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Data Mining for Decision


Support

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-28

Decision Support Systems

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

KeyCorp and Peoples Bank: Data


Mining DSS

Use of IBMs DecisionEdge for


Relationship Marketing
Data Mining and Analysis System
Increased Direct Mail Response
Rate from 1% to 10%
Package Includes Analytical Tools,
a Mining Data Tool, IndustrySpecific Data Models, and
Consulting Services
High Costs May Limit
Applications of the Package
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-29

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Executive Information Systems


Features of an EIS

Critical Success Factors


(CSF)
Ability to Drill Down
Trend Analysis
Exception Reporting
Use Spread to Middle
Management and
Business Professionals
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-30

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Executive Information Systems


A Web-Based EIS

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-31

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Executive Information Systems


EIS at Conoco and KeyCorp

Conoco A Very Large System


with Thousands of Users
Wide Variety of Data Sources
Analysis of Internal Operations
Improved Productivity and
Decision Making
Significant Cost Savings
KeyCorp Banking Company
Experienced Similar Results
Keynet EIS System Nicknamed
Everyones Information System

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-32

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Enterprise Portals and


Decision Support

Web-Based Interface
Integration of MIS, DSS, EIS,
and Other Technologies

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-33

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Enterprise Portals and


Decision Support
AmeriKing Inc.: The
Business Value of EIS

Large Burger King


Franchisee with Poor
Technology Infrastructure
Launched Intranet Portal
Used Web Browsers for
Access
Dramatic Savings and Much
Better Performance
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-34

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Enterprise Portals and


Decision Support

Components of an EIS Portal


Sales
VP
Managers
Sales Reps

Marketing
VP
Managers
Analysts

Corporate

Engineering
VP
Managers
Engineers

Search

Query

Calendaring

Channels/
News

CXO
VPs
Managers
Analysts

Enterprise Portal Server


Administration
Security

APIs

Metadata Management
Inferencing

Contextualization

Other
Employees
Suppliers
Customers
e-Mail/
Chat

Load Balancing
Dynamic Profiling

Hyperlinking

DSS Tools
Data Mining
OLAP
Other Tools

Indexing

Search Agents

Taxonomy
Portal Gateway

Real World Cases

KEY TERMS
BACK NEXT

END

Operational
Databases

Analytic
Databases

Data
Business
Warehouse Applications

Copyright 2005, McGraw-Hill/Irwin, Inc.

Intranets
Extranets

Internet
Web
9-35

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Knowledge Management
Systems

Enterprise Knowledge Portals


Qwest Communications: Web
Knowledge Management System

Used to Provide All Needed


Knowledge to Call Center
Representatives
Accuracy and Completeness Was
Vital
InfoBuddy System Pushed New
Information to Appropriate Users

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-36

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Knowledge Management
Systems

Enterprise Knowledge Portal

Web User (Employee/Customer)

Single Point of Access to all Corporate Data


Personalized Views of News and Data
Collaboration Tools

Enterprise Knowledge Portal

Community Work Areas

Portal Server with Knowledge


Management Engine/Server
Component
Automatically Crawls (Searchers)
Structured or Unstructured Data
Sources
Categorizes Searched Data, Tags, and
Hyperlinks Information
Automatically Builds User Profiles
Based on Activity

Data Sources

Structured Data Sources

ERP
Database

CRM
Database

Other
Databases

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

Unstructured Data Sources

e-Mail
Groupware

File System
Documents
Presentations

Web
Internet
Intranet
Extranet

Enterprise Knowledge

Enterprise
Knowledge
Base

9-37

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Artificial Intelligence
Technologies in Business

AI Being Used to Improve DSS


Used for Information
Distribution and Retrieval,
Database Mining, Product
Design, Manufacturing,
Inspection, Training, User
Support, and Much More

Real World Case 2Wal-Mart, BankFinancial,


Click to go to
and HP
Case 2
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-38

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Overview of AI

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-39

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Field of Science and


Technology Based Upon
Disciplines:
Computer Science
Biology
Psychology
Linguistics
Mathematics
Engineering
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-40

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

The Domains of AI

Cognitive Science

Human Information
Processing
Knowledge-Based Systems
Fuzzy Logic
Fuzzy Data
Neural Networks
Intelligent Agents

Robotics
Natural Interfaces
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-41

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

The Domains of AI
Artificial
Intelligence

Cognitive
Science
Applications
Expert Systems
Learning Systems
Fuzzy Logic
Genetic Algorithms
Neural Networks
Intelligent Agents
Copyright 2005, McGraw-Hill/Irwin, Inc.

Robotics
Applications
Visual Perception
Tactility
Dexterity
Locomotion
Navigation

Natural
Interface
Applications
Natural Languages
Speech Recognition
Multisensory Interfaces
Virtual Reality

9-42

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Commercial Applications of AI

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-43

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Neural Network Application

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-44

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Neural Nets at Go.com

A Targeted Marketing
Service
Targets Ads on Internet
Search Engine to the
Users Interests
Used to Build Up Web Site
and Repeat Business
Provides Analysis of
Customer Buying Patterns
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-45

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Fuzzy Logic Systems

Resembles Human Reasoning


Allowing Approximations and
Inferences, Use of Ambiguous
Data
Fuzzy Data
Fuzzy Rules
Data is Deliberately
Imprecise
Fuzzy Logic Can Process This
Imprecise Data
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-46

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Fuzzy Logic Systems


Fuzzy Logic Rules
Risk should be acceptable
If debt-equity is very high
then risk is positively increased
If income is increasing
then risk is somewhat decreased
If cash reserves are low to very low
then risk is very increased
If PE ratio is good
Then risk is generally decreased

Fuzzy Logic SQL Query


Select companies
from financials
where revenues are very large
and pe_ratio is acceptable
and profits are high to very high
and (income/employee_tot) is reasonable

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-47

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Genetic Algorithms

Uses Darwinian,
Randomizing, and Other
Mathematical Functions
Stimulates Evolutionary
Process That Can Yield
Better Problem Solutions
Mutations
Crossovers
Selections

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-48

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

GEs Engeneous
Design of a Boeing 777 Engine
Used Genetic Algorithm
Application
Used to Develop More Efficient
Fan Blades
Estimated Billions of Years to
Evaluate the Astronomical
Number of Performance and Cost
Combinations
Engenious Expert System Offered
Optimal Solution in a Week
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-49

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Business Use of Genetic Algorithm

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-50

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Virtual Reality (VR)

Computer Simulated
Reality
Multisensory
Input/Output Devices
Data Glove
Walker
Creating Telepresence
With Sight, Sound, and
Touch

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-51

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Virtual Reality (VR)

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-52

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

VR at Morgan Stanley

Market Risks Department


Uses VR Models Financial
Risks in Varied Market
Conditions
Displays 3-Dimensional
Results of Risk Analysis
VR Makes Easier Intuitive
Connections than 2-D or
Tables of Numbers

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-53

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Intelligent Agents

Use of Software
Surrogates
Software Robots Bots
Many Types of Intelligent
Agents

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-54

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Intelligent Agents

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-55

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Intelligent Agents

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-56

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Dow Jones & Co.: Intelligent Web Agents

Use to Compare Prices or


Other Characteristics
600,000 Customers Search
Stories from 6,000 Publications
Dow Uses Intelligent Agents
and Other AI Technologies to
Manage the Process
Results on Web Page or EMailed to User
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-57

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Expert Systems

Components of an
Expert System
Knowledge Base
Software Resources
Inference Engine
Program
Expert System
Applications
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-58

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Expert Systems

The Expert System


Expert System Software
Expert
Advice

User
Interface
Programs

Inference
Engine
Program

Knowledge
Base

User
Workstation

Expert System Development

Knowledge
Acquisition
Program

Real World Cases

Knowledge
Engineering

KEY TERMS
Workstation
BACK NEXT

Expert and/or
Knowledge Engineer

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-59

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Expert Systems

IBM Network Management

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-60

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Cutler-Hammer: Strategic Expert System

Expert System Pioneers in 1995


with Bid Manager
Allows Easy Configuring of
Complex Products
Automatic Checks on
Engineering
Expert System Proved Itself
Boosted Sales, Productivity,
and Profits
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-61

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Major Application Categories

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-62

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Benefits of Expert Systems


Limitations of Expert Systems
Criteria for Suitable
Applications

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-63

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Expert Systems

Developing Expert
Systems
Expert System Shell
Knowledge Engineering

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-64

Artificial Intelligence
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Visual Rule Studio and VB

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-65

Artificial Intelligence

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

ES Development at
MacMillan Bloedel

Forest Products Conglomerate


Used ES to Capture
Knowledge of Plant
Operations
Used ACQUIRE Expert
System
Provides Quality Maintenance
and Operations Advice to Mill
Operators
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-66

Summary

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

Information, Decisions,
and Management
Decision Support Trends
Management
Information Systems
OLAP and Data Mining
Decision Support
Systems

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-67

Summary

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Executive Information
Systems
Enterprise
Information and
Knowledge Portals
Artificial Intelligence
AI Technologies
Expert Systems

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-68

KEY TERMS

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Analytical Modeling
a. Goal-Seeking Analysis
b. Optimization Analysis
c. Sensitivity Analysis
d. What-if Analysis
Artificial Intelligence
a. Application Areas
b. Domains
Business Intelligence
Data Mining
Data Visualization System
Decision Structure
Decision Support System
Decision Support Trends
DSS Components
Enterprise Information Portal
Enterprise Knowledge Portal
Executive Information System
Expert System
a. Applications
b. Benefits and Limitations
c. Components
d. System Development

Expert System Shell


Fuzzy Logic
Genetic Algorithms
Geographic Information
System
Inference Engine
Intelligent Agent
Knowledge Base
Knowledge Engineer
Knowledge Management
System
Level of Management Decision
Making
Management Information
System
Model Base
Neural Network
Online Analytical Processing
Reporting Alternatives
Robotics
Virtual Reality

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-69

Optional Case Studies


Real World Case 1
Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Ben & Jerrys and GE Plastics:


The Business Value of Business
Intelligence

Click to go to
Case 1

Real World Case 2

Wal-Mart - BankFinancial and


HP: The Business Value of AI
Technologies

Click to go to
Case 2

Real World Case 3

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Click to go to
Case 3

Real World Case 4

Boehringer Ingelheim: Using WebBased Tools for Financial Analysis


and Reporting
Copyright 2005, McGraw-Hill/Irwin, Inc.

Click to go to
Case 4

9-70

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Module IV Development Processes

Developing
Business/IT
Solutions

Real World Cases

Chapter 10

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-71

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

1- What is business
intelligence? Why are BI
systems becoming such a
popular business
application of IT?
Return to
Chapter 9

Real World Cases

KEY TERMS
BACK NEXT

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-72

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

Business Intelligence are Programs


that Crunch Huge Quantities of
Data in Search of Trends, Problems,
or New Business Opportunities
BI Systems are Becoming a Popular
Business Application of IT Due to:
BI Software Helps Deliver on
Investments
Software Costs ($35,000-$75,000)
BI Promise-Anyone Can Use
Technology

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-73

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

2- What is the business value


of Ben & Jerrys business
intelligence system? Is
their BI system an MIS or
DSS? Explain.

Real World Cases

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-74

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence
The Business Value Would Include:
Ben & Jerry's:
Depends on BI Software for Statistics
Shortened Time to Close Monthly
Books
Sales Team Can Check Specifics on
Sales
Marketing Can Check Orders Online
Finance Adds Numbers to Journals
Consumer Affairs Checks for
Complaints

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-75

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence
The Business Value Would Include:
Both MIS and DSS Should be Used
Students should be able to provide
several points based upon reading the
chapter. These points would include:
"Business Intelligence"-Use of
Software Tools
Trends in Decision Support
Types/Levels of Decision
Are You Able to Argue the Point?

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-76

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

3- What are the benefits and


limitations of the digital
cockpits of GE Plastics?
Are these an example of an
MIS or DSS? Explain.
Return to
Chapter 9

Real World Cases

KEY TERMS
BACK NEXT

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-77

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

Benefits Would Include:

Change Culture to Common


Look
Continuously Updated Online
Display
Managers Access to Essential
Data
Reduce Analysts
from 12
to 6
Return to
Chapter 9

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-78

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

Limitations Would Include:


Day Old Business
Intelligence Numbers
Live Data Cost Ten Times
Old Data
Return to
Chapter 9

Real World Cases

KEY TERMS
BACK NEXT

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-79

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Ben & Jerrys and GE


Plastics: The Business Value
of Business Intelligence

Limitations Would Include:

Day Old Business Intelligence


Numbers
Live Data Cost Ten Times Old
Data
Both MIS and DSS
Can
Be Used
Return to
Chapter 9

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-80

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

1- What is the business


value of AI technologies in
business today? Use
several examples from the
case to illustrate your
answer.
Return to
Chapter 9

KEY TERMS
BACK NEXT

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-81

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

Business Values Can Be Illustrated by:

AI Software Helps Engineers Create Better


Jet Engines
AI Technology Boosts Productivity
Gains Insights Into Huge Data on Human
Genome
Use Neural Networks to Detect Credit-Card
Fraud
Qualify for Debit Card Insurance
Uncover Patterns/Relationships Eluded in
Human Searches
Banks Use This to Predict Customer Behavior

KEY TERMS
BACK NEXT

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-82

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

2- What are some of the


benefits and limitations of
data mining for business
intelligence? Use
BankFinancials
experience to illustrate
your answer.

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-83

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies
Benefits Would Include:
Mining Cost-Savings and
Revenue-Boosting Ideas
Accurately Targets Customer
Promotions
Helps Users Set Up Predictive
Models
Reduce Models for the Bank 50%
to 70%
Predicts Customer Churn, the
Rate Customers Come and Go

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-84

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

3- Why have banks and


other financial institutions
been leading users of AI
technologies like neural
networks? What are the
benefits and limitations
of this technology?
Return to
Chapter 9

KEY TERMS
BACK NEXT

Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

9-85

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

END

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

Banks and Others Benefits Would


Include:

Detecting Credit-Card
Fraud
Use Models to Predict
Customer Behavior
Revenue Enhancing
Cost Reduction

Return to
Chapter 9

Return to
Cases Page

Copyright 2005, McGraw-Hill/Irwin, Inc.

9-86

Decision Support
in Business
Decision Support
Trends
Management
Information
Systems
Decision Support
Systems
Knowledge
Management
Systems
Section II
Business and AI
Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

Limitations Would Include:

Biggest Problem is Getting


Data
Access Correct Data Needed
for Predictive Models
Dealing with Disparate Data
Sources

Return to
Chapter 9

Real World Cases

KEY TERMS
BACK NEXT

Return to
Cases Page

END
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Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
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Wal-Mart - BankFinancial
and HP: The Business
Value of AI Technologies

Limitations Would Include:

Biggest Problem is Getting


Data
Access Correct Data Needed
for Predictive Models
Dealing with Disparate Data
Sources
Systems Integration
and Interface Work is Needed

Return to
Chapter 9

Return to
Cases Page

END
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Neural Networks
Fuzzy Logic
Genetic
Algorithms
Expert Systems

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

1- Do you agree with Proctor


& Gamble that a supply
chain should be called a
supply network? Why or
why not?

Real World Cases

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Algorithms
Expert Systems
Real World Cases

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END

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Discussion Points Include:


Supply Network More
Complex than Supply
Chain
Agent-Based Modeling
More Sophisticated
Computer Modeling Adds
Additional Dimension
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Genetic
Algorithms
Expert Systems

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

2- What is the business value


of agent-based modeling?
Use P&G and other
companies in this case as
examples.

Real World Cases

KEY TERMS
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END
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Algorithms
Expert Systems
Real World Cases

KEY TERMS
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Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Discussion Points Include:

P&G Performs What-if Simulations


P&G to Relax Rigid Rules to Improve
Overall Performance of the Supply
Network
P&G Convinced that Cultural Changes
are Good
No Need for More Flexibility in
Manufacturing
Need for More Flexibility in Distribution
Southwest Airlines Used Agent-Based
Modeling

END
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Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Discussion Points Include:

Air Liquide America LP Reduced


Production/Distribution Costs
Merck & Co. Found Efficient Ways to
Distribute Anti-HIV Drugs in
Zimbabwe
Ford Motor Co. Simulated Buyer
Preferences
Edison Chouest Offshore LLC
Optimized Deployment of Service and
Supply Vessels in the Gulf of Mexico

END
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Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

3- Visit the website of


NuTech Solutions. How
does NuTech use AI
techniques to help
companies gain adaptive
business intelligence? Give
several examples from the
website case studies.
Return to
Cases Page

END
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Genetic
Algorithms
Expert Systems
Real World Cases

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Examples From Site Include:

Branch Banking and Trust ARROW


ChevronTexaco Scheduling Optimization
DaimlerChrysler Aerospace Engineering
Design Optimization
Dutch Ministry of Traffic Scheduling
Optimization
F. E. Bording Supply Network Optimization
General Motors Vehicle Distribution System
U. S. Internal Revenue Service Expert
System Development
Kraftwerksunion (KWU)
Scheduling
Optimization

KEY TERMS
BACK NEXT

Return to
Cases Page

END
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Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Examples From Site Include:

Major Automaker Marketing


Diffusion
Major Producer Resource Allocation
Optimization
Major Telecom Company Engineering
Design Optimization
Major U. S. Automaker Data Mining
Major U. S. Bank Vehicle Distribution
System
NASA Modeling and Simulation
Return to
Cases Page

END
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Genetic
Algorithms
Expert Systems
Real World Cases

Proctor & Gamble and Others:


Using Agent-Based Modeling
for Supply Chain Management

Examples From Site Include:

Major Automaker Marketing Diffusion


Major Producer Resource Allocation
Optimization
Major Telecom Company Engineering
Design Optimization
Major U. S. Automaker Data Mining
Major U. S. Bank Vehicle Distribution
System
NASA Modeling and Simulation
Nasdaq Modeling and
Simulation

KEY TERMS
BACK NEXT

Return to
Cases Page

END
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Algorithms
Expert Systems

Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

1- What are the Business


Benefits and Limitations of
Boehringers Web-Based
Financial Analysis and
Reporting Systems?

Real World Cases

KEY TERMS
BACK NEXT

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Cases Page

END
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Real World Cases

KEY TERMS
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Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

Discussion Points Would Include

Rapidly Consolidate and Present Key


Financial Data on a Daily, Weekly or
Monthly Basis Which Allows it to Drill
Down and Draw Conclusions Based on the
Latest Data
Boehringer Able to Close its Books for Most
of its Divisions in Just Two Hours vs. a
Three Day Requirement in the Past
Accounting Can Spot Product Sales Trends
and Track Expenses Quickly
Boehringer Can Create Multidimensional
Views of
Profit and Loss Data
Return to
Cases Page

END
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Algorithms
Expert Systems

Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

2- Which of Boehringers
financial analysis and
reporting systems are MIS
tools? DSS tools? Why?

Real World Cases

KEY TERMS
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END
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Expert Systems
Real World Cases

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Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

Discussion Points Would Include

Decision Support Provided

MIS Provide Information About the


Performance of Boehringer
DSS Provide Information and Decision
Support Techniques to Analyze Specific
Problems or Opportunities

Information Form and Frequency

MIS Periodic, Exception, Demand,


and Push Reports and Responses
DSS Interactive Inquiries and
Responses

END
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Algorithms
Expert Systems
Real World Cases

KEY TERMS
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Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

Discussion Points Would Include

Information Format

MIS - Prespecified, Fixed Format


DSS Ad Hoc, Flexible, and
Adaptable Format

Information Processing
Methodology

MIS Information Produced by


Extraction and Manipulation of
Business Data
DSS Information Produced by
Analytical Modeling of Business Data

END
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Algorithms
Expert Systems
Real World Cases

Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

3- How could the Cognos


tools used by Boehringer be
used for marketing and
other business analysis and
reporting applications?
Visit the Cognos website to
help you answer.

KEY TERMS
BACK NEXT

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Cases Page

END
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Genetic
Algorithms
Expert Systems

Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

Discussion Points Would Include

Use of the Cognos Tools by the


Marketing Staff to Increase
Boehringers Competitive
Position and their Customer
Relationship Management System
Training of the Marketing Staff to
Use the Cognos Tools

Real World Cases

KEY TERMS
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Genetic
Algorithms
Expert Systems
Real World Cases

KEY TERMS
BACK NEXT

Boehringer Ingelheim: Using


Web-Based Tools for Financial
Analysis and Reporting

Discussion Points Would Include

Use of the Cognos Tools by the


Marketing Staff to Increase
Boehringers Competitive Position
and their Customer Relationship
Management System
Training of the Marketing Staff to
Use the Cognos Tools
Ability of Boehringers IT Staff to
Implement the System in All
Divisions
Return to
Cases Page

END
Copyright 2005, McGraw-Hill/Irwin, Inc.

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