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Business Information Systems

This comprehensive overview covers decision-making processes within Business Information Systems, highlighting programmed versus nonprogrammed decisions. It emphasizes management information systems (MIS), decision support systems (DSS), and expert systems, detailing their characteristics, applications, and components. Important methods such as optimization, satisficing, and heuristics are discussed, alongside the role of artificial intelligence in enhancing decision-making capabilities. This resource is critical for understanding how information systems facilitate effective problem-solving in organizations.

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Business Information Systems

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  1. Business Information Systems Chapters 10 & 11

  2. Decision Making and Problem Solving

  3. Figure 10.1

  4. Programmed versus Nonprogrammed Decisions • Programmed decisions • Structured situations with well defined relationships • Quantifiable • Management information system Principles of Information Systems, Fifth Edition

  5. Programmed versus Nonprogrammed Decisions • Nonprogrammed decisions • Ill-structured situations with vague or changing relationships between variables • Not easily quantifiable in advance • Decision support systems Principles of Information Systems, Fifth Edition

  6. Problem Solving Approaches • Optimization: find the best solution • Satisficing: find a good solution • Heuristics: use rules of thumb Principles of Information Systems, Fifth Edition

  7. Figure 10.2

  8. An Overview of Management Information Systems

  9. Figure 10.3

  10. Figure 10.4

  11. Figure 10.4 cont’d

  12. Characteristics of an MIS • Fixed format, standard reports • Hard-copy or soft-copy reports • Uses internal data • User-developed reports • Users must request formal reports from IS department Principles of Information Systems, Fifth Edition

  13. Functional Aspects of the MIS

  14. Functional MIS Systems • Manufacturing • Marketing • Human Resources • Accounting • GIS Principles of Information Systems, Fifth Edition

  15. An Overview of Decision Support Systems

  16. Characteristics of Decision Support Systems • Handle lots of data from various sources • Support drill down analysis • Complex analysis, statistics, and forecasting • Optimization, satisficing, heuristics • Simulation • What-if analysis • Goal-seeking analysis Principles of Information Systems, Fifth Edition

  17. Figure 10.14

  18. Examples of a DSS • Meal Planning • Web-Based Decision Support Principles of Information Systems, Fifth Edition

  19. Components of a DSS

  20. Figure 10.16

  21. The Model Base • Financial models • Cash flow • Internal rate of return • Statistical analysis models • Averages, standard deviations • Correlations • Regression analysis • Graphical models • Project management models Principles of Information Systems, Fifth Edition

  22. Group Decision Support Systems

  23. Figure 10.17

  24. Characteristics of a GDSS • Ease of use • Flexibility • Decision-making support • Anonymous input • Reduction of negative group behavior • Parallel communication • Automated record keeping Principles of Information Systems, Fifth Edition

  25. Figure 10.18

  26. Figure 10.19

  27. Executive Support Systems

  28. Executive Support Systems (ESS) in Perspective • Tailored to individual executives • Easy to use • Drill down capabilities • Access to external data • Can help when uncertainty is high Principles of Information Systems, Fifth Edition

  29. An Overview of Artificial Intelligence

  30. The Nature of Intelligence • Learn from experience & apply the knowledge • Handle complex situations • Solve problems when important information is missing • Determine what is important Principles of Information Systems, Fifth Edition

  31. The Nature of Intelligence • React quickly & correctly to new situations • Understand visual images • Process & manipulate symbols • Be creative & imaginative • Use heuristics Principles of Information Systems, Fifth Edition

  32. Figure 11.1

  33. Table 11.1

  34. The Major Branches of Artificial Intelligence • Vision systems • Natural Language Processing • Learning systems • Neural networks • Robotics Principles of Information Systems, Fifth Edition

  35. An Overview of Expert Systems

  36. Characteristics of an Expert System • Can explain reasoning • Can provide portable knowledge • Can display “intelligent” behavior • Can draw conclusions from complex relationships • Can deal with uncertainty Principles of Information Systems, Fifth Edition

  37. Limitations of Expert Systems • Limited to narrow problems • Hard to use • Cannot easily deal with “mixed” knowledge • Cannot refine own knowledge base • Hard to maintain • Possible high development costs • Raise legal & ethical concerns Principles of Information Systems, Fifth Edition

  38. When to Use Expert Systems • High payoff • Preserve scarce expertise • Distribute expertise • Provide more consistency than humans • Faster solutions than humans • Training expertise Principles of Information Systems, Fifth Edition

  39. Fig 11.7

  40. Components of Expert Systems • The Knowledge Base • Rules • Cases • Fuzzy Logic • Inference Engines • Backward chaining • Forward chaining Principles of Information Systems, Fifth Edition

  41. Fig 11.12

  42. Advantages of Expert Systems Shells and Products • Easy to develop & modify • Use of satisficing • Use of heuristics • Development by knowledge engineers & users Principles of Information Systems, Fifth Edition

  43. Applications of Expert Systems & AI • Credit granting • Shipping • Information management & retrieval • Embedded systems • Help desks & assistance • Medical diagnosis • Whale Identification Principles of Information Systems, Fifth Edition

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