Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. C h a p t e r James A. O’Brien 9 Decision Support Systems

Eleventh Edition James A. O’Brien 2 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives Identify the changes taking place in the form and use of decision support in e-business enterprises. Identify the role and reporting alternatives of management information systems. Describe how online analytical processing can meet key information needs of managers. Explain the decision support system concept and how it differs from traditional management information systems.

Eleventh Edition James A. O’Brien 3 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives 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 Knowledge Portals Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. Give examples of several ways expert systems can be used in business decision-making situations.

Eleventh Edition James A. O’Brien 4 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. e-Business Decision Support Applications Customer Relationship Management Situation: What-if Scenario Analysis Supply Chain Management Knowledge/Innovation Management Enterprise Performance Monitoring Employee- Manager/ Customer/Partner

Eleventh Edition James A. O’Brien 5 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Decisions in the e-Business Strategic Management Tactical Management Operational Management Decisions Information Decision Characteristics Unstructured Semi-structured Structured (No fixed set of rules for producing same outcomes, Judgment plays a big role. (fixed rules & repeatable outcomes)

Eleventh Edition James A. O’Brien 6 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Management Information System Reports Periodic Scheduled Reports Periodic Scheduled Reports Exception Reports Demand Reports and Responses Demand Reports and Responses Push Reports Major Management Information Systems Reports

Eleventh Edition James A. O’Brien 7 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Online Analytical Processing OLAP Server OLAP Server Multi- dimensional database Corporate Databases Client PC Web-enabled OLAP Software Data is retrieved from corporate databases and staged in an OLAP multi-dimensional database Operational DB Data Marts Data Warehouse

Eleventh Edition James A. O’Brien 8 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Decision Support Systems What If-Analysis Sensitivity Analysis Goal-Seeking Analysis Optimization Analysis Important Decision Support Systems Analytical Models Important Decision Support Systems Analytical Models

Eleventh Edition James A. O’Brien 9 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Enterprise Information Portals and DSS Enterprise Information Portal Gateway Enterprise Information Portal User Interface Search Agents Search Agents OLAP Data Mining Data Mining Knowledge Management Knowledge Management Database Management Functions Data Mart Other Business Applications Operational Database Analytical Database Knowledge Base DSS What-If Models Sensitivity Models Goal-Seeking Models Optimization Models Internet Intranet Extranet

Eleventh Edition James A. O’Brien 10 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Attributes of Intelligent Behavior Think and reason Use reason to solve problems Learn or understand from experience Acquire and apply knowledge Exhibit creativity and imagination Deal with complex or perplexing situations Respond quickly and successfully to new situations. Recognize the relative importance of elements in a situation Handle ambiguous, incomplete,or erroneous information

Eleventh Edition James A. O’Brien 11 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Artificial Intelligence Applications Cognitive Science Applications Cognitive Science Applications Artificial Intelligence Artificial Intelligence Robotics Applications Robotics Applications Natural Interface Applications Natural Interface Applications Expert Systems Fuzzy Logic Genetic Algorithms Neural Networks Visual Perceptions Locomotion Navigation Tactility Natural Language Speech Recognition Multisensory Interface Virtual Reality

Eleventh Edition James A. O’Brien 12 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. AI Application Areas in Business Neural Networks Fuzzy Logic Systems Virtual Reality Expert Systems AI Application Areas in Business AI Application Areas in Business Intelligent Agents Genetic Algorithms

Eleventh Edition James A. O’Brien 13 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Intelligent Agents Interface Tutors Interface Tutors Presentation Agents Presentation Agents Network Navigation Agents Network Navigation Agents Role- Playing Agents Role- Playing Agents User Interface Agents Information Management Agents Search Agents Search Agents Information Brokers Information Brokers Information Filters Information Filters

Eleventh Edition James A. O’Brien 14 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Components of Expert Systems The Expert System Knowledge Base User Workstation Expert Advice User Interface Programs User Interface Programs Inference Engine Program Inference Engine Program Expert System Development Workstation Knowledge Engineering Knowledge Acquisition Program Knowledge Acquisition Program Expert and/or Knowledge Engineer Building Expert Systems: 1.Use ES shells 2.Use AI programming languages, e.g. Lisp, Prolog

Eleventh Edition James A. O’Brien 15 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. A Rule-Based Expert System Source: Laudon & Laudon, MIS 6 th Ed.

Eleventh Edition James A. O’Brien 16 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Expert System Applications Decision Management Diagnostic/Troubleshooting Maintenance/Scheduling Design/Configuration Selection/Classification Major Application Categories of Expert Systems Process Monitoring/Control

Eleventh Edition James A. O’Brien 17 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An Example of Fuzzy Logic Source: Laudon & Laudon, MIS 6 th Ed.

Eleventh Edition James A. O’Brien 18 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An Example of Neural Networks Source: Laudon & Laudon, MIS 6 th Ed.

Eleventh Edition James A. O’Brien 19 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Chapter Summary Decision support systems in business are changing. The growth of corporate intranets, extranets, and other web technologies have increased the demand for a variety of personalized, proactive, web-enabled analytical techniques to support DSS. Information systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational.

Eleventh Edition James A. O’Brien 20 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Chapter Summary (cont) Online analytical processing is used to analyze complex relationships among large amounts of data stored in multidimensional databases. Data mining analyzes large stores of historical data contained in data warehouses. Decision support systems are interactive computer-based information systems that use DSS software and a model base to provide information to support semi-structured and unstructured decision making.

Eleventh Edition James A. O’Brien 21 Introduction to Essentials for Information Systems Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Chapter Summary (cont) The major application domains in artificial intelligence include a variety of applications in cognitive sciences, robotics, and natural interfaces. Major AI application areas include: –Neural Networks –Fuzzy Logic –Genetic Algorithms –Virtual Reality –Intelligent Agents