1. Succeeding with Technology: Second Edition
Chapter 9: Information, Decision Support, Artificial Intelligence, and Special-Purpose Systems
Succeeding with Technology: Second Edition

2. Succeeding with Technology
Objectives
Define the stages of decision making and problem solving
Discuss the use of management information systems in providing reports to help solve structured problems
Describe how decision support systems are used to solve nonprogrammed and unstructured problems
Succeeding with Technology

3. Objectives (continued)
Explain how a group decision support system can help people and organizations collaborate on team projects
Discuss the uses of artificial intelligence and special- purpose systems
Succeeding with Technology

4. Decision Making and Problem Solving
Process that takes place in three stages
Intelligence
Design
Choice
Succeeding with Technology

5. Decision Making and Problem Solving (continued)
Intelligence stage
Identify and define potential problems or opportunities
Design stage
Develop alternative solutions
Choice stage
Select a course of action
Succeeding with Technology

6. Decision Making and Problem Solving (continued)
Includes and goes beyond decision making
Implementation stage
Action is taken to put the solution into effect
Monitoring stage
Decision makers evaluate the implementation of the solution
Succeeding with Technology

7. Decision Making and Problem Solving (continued)
Reactive problem-solving approach
Wait until problem surfaces before taking action
Proactive approach
Seek out potential problems before they become serious
Succeeding with Technology

8. Succeeding with Technology

9. Succeeding with Technology

10. Programmed versus Nonprogrammed Decisions
Made using a rule, procedure, or quantitative method
Management information systems
Often used to support programmed decisions
Nonprogrammed decisions
Deal with unusual or exceptional situations
Succeeding with Technology

11. Succeeding with Technology

12. Optimization and Heuristic Approaches
Optimization model
Will find the best solution
Utilizes problem constraints
Heuristics (“rules of thumb”)
Commonly accepted guidelines
Usually find a good solution, but not the optimal solution
Succeeding with Technology

13. Succeeding with Technology

14. Management Information System
Often used to
Support programmed decisions made in response to structured problems
Primary purpose
To help individuals and organizations achieve their goals
Succeeding with Technology

15. Inputs to a Management Information System
Input data can originate from internal or external sources
TPS
Most significant internal source of data for the MIS
Major activity is to capture and store data resulting from ongoing transactions
Databases
Supply data to MIS
Succeeding with Technology

16. Succeeding with Technology

17. Outputs of a Management Information System
Scheduled reports
Produced periodically or on a schedule
Key-indicator report
Special type of scheduled report
Summarizes previous day’s critical activities
Available at the beginning of each workday
Succeeding with Technology

18. Outputs of a Management Information System (continued)
Demand reports
Give certain information at a person’s request
Exception reports
Automatically produced when a situation is unusual or requires action
Used to help fight terrorism
Succeeding with Technology

19. Decision Support Systems
Focus is on decision-making effectiveness
Should assist people and organizations with all aspects of decision making
The approach realizes that people, not machines, make decisions
Succeeding with Technology

20. Succeeding with Technology

21. Characteristics of a Decision Support System
Handle a Range of Data
Obtain and Process Data from Different Sources
Provide Report and Presentation Flexibility
Perform complex, sophisticated analysis and comparisons using advanced software packages
Succeeding with Technology

22. Characteristics of a Decision Support System (continued)
Support Optimization and Heuristic Approaches
Perform What-if and Goal-seeking Analysis
What-if analysis
Process of making hypothetical changes to problem data and observing the impact on the results
Goal-seeking analysis
Process of determining what problem data is required for a given result
Simulation
DSS attempts to mimic an event that could happen in the future
Succeeding with Technology

23. Succeeding with Technology

24. The Group Decision Support System
DSS approaches
Many not suitable for a group decision-making environment
Group decision support system (GDSS)
Also called a computerized collaborative work system
Hardware, software, people, databases, and procedures needed to provide effective support in group decision-making settings
Succeeding with Technology

25. Succeeding with Technology

26. Characteristics of a GDSS
Special Design
Flexibility
Anonymous Input
Reduction of Negative Group Behavior
Support of positive group behavior
Succeeding with Technology

27. GDSS Software or Groupware
Helps with joint work group scheduling, communication, and management
Lotus Notes
Popular groupware package
Can capture, store, manipulate, and distribute memos and communications
Using groupware
Gives every employee rapid access to a vast source of information
Succeeding with Technology

28. Artificial Intelligence and Special-Purpose Systems
Artificial intelligence (AI)
Computers with ability to mimic or duplicate the functions of the human brain
Advances in AI
Have led to systems that work like the human brain to recognize complex patterns
Succeeding with Technology

29. Artificial Intelligence and Special-Purpose Systems
AI systems are helping to
Make medical diagnoses
Explore for natural resources
Determine what is wrong with mechanical devices
Succeeding with Technology

30. Succeeding with Technology

31. The Difference Between Natural and Artificial Intelligence
One driving force behind AI research
An attempt to understand how human beings actually reason and think
Turing Test
Attempts to determine if the responses from a computer with intelligent behavior are indistinguishable from responses from a human
No computer has passed
Succeeding with Technology

32. Succeeding with Technology

33. Components of Artificial Intelligence
Robotics
Vision systems
Natural language processing
Learning systems
Neural networks
Genetic algorithms
Intelligent agents
Expert systems
Succeeding with Technology

34. Succeeding with Technology

35. Succeeding with Technology
Robotics
Developing mechanical or computer devices to
Perform tasks that require a high degree of precision
Contemporary robotics
Combine high-precision machine capabilities and sophisticated controlling software
Succeeding with Technology

36. Succeeding with Technology

37. Succeeding with Technology
Vision Systems
Include hardware and software that
Permit computers to capture, store, and manipulate visual images and pictures
Can be used to give robots “sight”
U.S. Justice Department
Makes use of vision systems to perform fingerprint analysis
Succeeding with Technology

38. Succeeding with Technology

39. Natural Language Processing
Referred to as speech recognition
Allows computers to
Understand and react to commands made in a “natural” language
Three major challenges of natural language
Interpreting ambiguous words
Sentence parsing
Being able to interpret the unique ways in which people pronounce words
Succeeding with Technology

40. Succeeding with Technology

41. Succeeding with Technology
Learning Systems
Combination of software and hardware
Allows computer to change how it functions or reacts to situations based on feedback
Learning systems software
Requires feedback on the results of its actions or decisions
Succeeding with Technology

42. Succeeding with Technology
Neural Networks
Act like or simulate the functioning of a human brain
Features of neural networks
Ability to retrieve information
Fast modification of stored data
Ability to discover relationships and trends in large databases
Ability to solve complex problems for which all information is not present
Succeeding with Technology

43. Succeeding with Technology
Fuzzy Logic
Deals in probabilities rather than absolutes
Example of fuzzy logic
Unclear terms, like “tall” or “many”
Fuzzy logic theory
Allows people to incorporate interpretations and relationships that are not completely precise
Succeeding with Technology

44. Succeeding with Technology
Genetic Algorithms
An approach to solving large, complex problems
Based on the theory of evolution
First step in generating the algorithm
Change or vary a number of competing solutions to the problem
Second step
Select only the best models or algorithms, which continue to evolve
Succeeding with Technology

45. Succeeding with Technology

46. Succeeding with Technology
Intelligent Agents
Also called an intelligent robot or bot
Consist of
Programs and a knowledge base used to perform a specific task
Used by the U.S. Army to
Route security clearance information for soldiers
Succeeding with Technology

47. Succeeding with Technology
Expert Systems
Act or behave like a human expert in a field or area
Computerized expert systems have been developed to
Diagnose diseases given a patient’s symptoms
Suggest the cause of a mechanical failure of an engine
Succeeding with Technology

48. Succeeding with Technology
Specialized Systems
Virtual Reality Systems
Computer-simulated environment or event
Geographic Information Systems
Capable of storing, manipulating, and displaying geographic or special information
Succeeding with Technology

49. Succeeding with Technology

50. Specialized Systems (continued)
Game Theory Systems
Develop strategies for people who are competing against each other
Other Specialized Systems
Informatics
Combines traditional disciplines with computer systems and technology
Bioinformatics: combines biology and computer science
Succeeding with Technology

51. Succeeding with Technology

52. Succeeding with Technology
Summary
Three phases of decision making
Intelligence, design, and choice
Problem solving
Takes decision making a step further
Implements the choice
Monitors the effects of the decision
MIS
Provide managers with insight into the regular operations of the organization
Output
Scheduled reports, demand reports, and exception reports
Succeeding with Technology

53. Succeeding with Technology
Summary (continued)
Decision support systems
Can handle large amount of data
Can obtain and process data from different sources
Can provide report and presentation flexibility
Group decision support system (GDSS)
A computerized collaborative work system
Artificial intelligence (AI) includes
Robotics
Learning systems
Neural networks
Succeeding with Technology