Unit 3

Day 1
Day 2
Day 3
Day 4
Day 5
 Decision Making and Information Support

• Information is the combination of heterogeneous

resources such as databases, text, and semi-structured
information bases.

• The decision maker also has to plan and schedule

actions beyond the current point-in-time.

• To make the results obtained from an information

system clear and useful for the decision maker
Decision Support System (DSS)- Concepts

Decision Support System

• It helps in making a decision and also in its performance
evaluation.
• This system can be used to validate the decision by
analysis.

Types of decision
• Programmable  computerized, build around rules
• Non- Programmable  The rules are not fixed
 Decision Support System (DSS)- Concepts

Types of DSS
• Stratus inquiry system
– Operational and middle level management
• Data analysis system
– Comparative analysis (ex  inventory system)
• Information analysis system
– Data is analysed and information reports are generated
• Accounting system
– Not for D-M, its keep track of major aspects of business.
• Model based system
– It’s a one time and infrequent and provide guideline for mgmt.
 Decision Support System (DSS)- Concepts

DSS Models
• Behavioral models
– It is useful for understanding behavior amongst the business.
– Ex: trend analysis, forecasting, and statistical analysis
• Management science models
– These model are developed on the principles of business mgmt.
A/C, and econometrics.
– Ex: budgetary sys, cost a/c sys…
• Operations Research [or] models
– Mathematical models, it represents real life problem situation.
– Ex: methods of calculus, matrix algebra, probability…
 Knowledge Management System

Knowledge :
• Knowledge is the ability of a person to understand the
situation and act effectively.
Knowledge management :
• Process  define, capture, manipulate, store & develop
• Effective use of knowledge depends on how a user
decides to perform the work.

Information Modeling of Knowledge

knowledge
 Knowledge Management System

Knowledge Management System :

• KMS deals with defining, acquisition, construction,
storage, delivery and application of knowledge.
KMS Architecture : KMS

Identification of Knowledge Knowledge

Knowledge Generation Delivery

Definition of Process for

Access Control
categorization acquisition

Surveying and Manipulation and Application

Locating modeling methods

Build knowledge Storage and

Creation of KDB
structure Security
 Knowledge Management System

Identification of Knowledge
• Knowledge need to identify further process.
• Category of Knowledge
– Workplace  Acting effectively
– Business  Functioning effectively
– Intellectual capital components  Performing effectively

Knowledge generation
• After identification, acquisition of knowledge
• Integrate knowledge  for apply right place and right structure.
• Build knowledge data base.
 Knowledge Management System

Knowledge Delivery
• Made available to user for viewing, manipulating and
application

Tool for KM
• Database mgmt tools
– Seeking knowledge through SQL queries
• Search engine tool
– Locating specific info. Through algorithm
 Expert Systems

• Behaves similarly to a human expert in a particular field.

• Computerized expert system
– Diagnose problems, predict future event and solve energy
problems.
• Agriculture
– Improve yield.
• Also used for
– Design new product & system
– Develop innovative insurance products.
– Increase the quality of health care.
 Expert Systems

When to use Expert Systems

It is difficult, expensive and time consuming to develop.

• Reduce risk
• Irreplaceable human experts.
• Solve difficult problems
• More consistent
• Faster than human experts.
 Expert Systems

Components of Expert Systems

Explanation Inference
Facility engine

Knowledge
Knowledge base User
base acquisition Interface
facility

Experts User
 Expert Systems

Knowledge base
• Stores all relevant information, data, rules, case, and
relationships that the export system uses.
Knowledge base
Database Information and DS
patterns and
raw facts information
relationships

• Tools and techniques :

– Assembling human experts
– Using fuzzy logic
– Using rules
– Using cases
 Expert Systems

The Inference Engine

• Seek information and relationship from the knowledge
base.
• Ex :  sales demand

The explanation facility

• An important part of an expert system.
• Allows user or decision maker to understand how the
expert system arrived at certain conclusions or results.
 Expert Systems

The Knowledge Acquisition facility

• A difficult task
• Creating and updating the knowledge base.

Knowledge
Knowledge acquisition
base facility

Export
 Expert Systems

User Interface
• It is for designing, creating, updating and using expert
systems.
• Make the expert system for user and decision makers to
develop and use.
 Expert Systems

Export system development

Determining requirements

Identifying experts

Constructing expert system

components

Implementing results

Maintaining and reviewing system

 Expert Systems

Participant in developing and using expert system

• The domain expert
Domain  The area of knowledge addressed by the expert system.

The individual or group who has the expertise or knowledge one is

trying to capture in the expert system.

• The knowledge engineer and knowledge users

Knowledge engineer  training or experience in the design,
development, implementation and maintenance of an ES.
Knowledge users  who uses and benefits from the ES.
 Enterprise Systems

Enterprise systems, also known as enterprise resource

planning (ERP) systems,

Deals with the planning and use of resource in the

business.

Resources are finance, materials, manufacturing

capacity and human resource.

ERP provide methodology of assessing the resource

needs.
 What is ERP ?

• ERP stands for: Enterprise Resource Planning systems

• This is what it does: attempts to integrate all data and

processes of an organization into a unified system.

• A typical ERP system will use multiple components of

computer software and hardware to achieve the
integration.
• A key ingredient of most ERP systems is the use of a
unified database to store data for the various system
modules.
 Enterprise Resource Planning ERP

Definition of an ERP system

• ERP or Enterprise Resource Planning systems are

software systems for businesses management
encompassing modules supporting functional areas
such as sales and marketing, finance, production,
distribution accounting, human resource management,
maintenance, inventory management, project
management, transportation and e-business etc.
 Features of an ERP system

• Architecture of ERP system facilitates transparent

integration of modules providing flow of information
between all function within enterprise in real time.

• Many different software are replaced by one integrated

system.

• Reliable information access through common DBMS

• Eliminates data and operational redundancies (no

duplication of work or data entries etc.)
Enterprise Application Architecture
Enterprise Application Architecture
 Traditional “Silo” View of Information
Systems

Within the business:

• There are functions, each having its uses of
information systems

Outside the organization’s boundaries:

• There are customers and vendors

• Functions tend to work in isolation

Traditional View of Systems
Enterprise Systems
 Benefits of Enterprise Systems
• Help to unify the firm’s structure and
organization: One organization

• Management: Firm wide knowledge-based

management processes

• Technology: Unified platform

• Business: More efficient operations & customer-

driven business processes
 Challenges of Enterprise Systems

• Difficult to build: Require fundamental changes in

the way the business operates

• Technology: Require complex pieces of software

and large investments of time, money, and expertise

• Centralized organizational coordination and

decision making: Not the best way for the firms to
operate
 Business and Technical Benefits
• Automation of business transactions
• Flexibility in changing the system catering to newer
business processes.
• Coordination across business functions
• Coordination across geographical distances resulting in
better Managerial control
• Consistent information and interface thus easier to
understand and work in
• Single system
 Prime Reasons for Implementing ERP

• Need for common platform

• Process improvement.
• Data visibility that could be used to improve operating
decisions.
• Operation cost reductions.
• Increased customer responsiveness.
• Improved strategic decision making
• Personal Improvement