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James A. O’Brien

Introduction to Information Systems

1

Chapter

9
E-Business
Decision Support

Irwin/McGraw-Hill


James A. O’Brien

2

Introduction to Information Systems

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.

Irwin/McGraw-Hill


James A. O’Brien

3

Introduction to Information Systems

Chapter Objectives



Explain how executive information systems can support the information
needs of executives and managers.




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.

Irwin/McGraw-Hill


Introduction to Information Systems

James A. O’Brien

Decisions in the E-Business
Decision Characteristics
Unstructured

Strategic
Management

f
In

Management

Structured
Operational
Management


Irwin/McGraw-Hill

n

Tactical

io
at

on

m

s

or

Semi-structured

De
cis
i

4


James A. O’Brien

5


Introduction to Information Systems

Management Information System Reports

Periodic
PeriodicScheduled
Scheduled
Reports
Reports

Exception
ExceptionReports
Reports

Major
Management

Demand
DemandReports
Reports
and
andResponses
Responses

Information
Systems Reports

Irwin/McGraw-Hill


Push
PushReports
Reports


James A. O’Brien

6

Introduction to Information Systems

Online Analytical Processing

Data is retrieved from corporate databases
and staged in an OLAP multi-dimensional
database

Corporate
Databases

Client PC
OLAP
OLAP
Server
Server

Multidimensional
Web-enabled OLAP
Software


Irwin/McGraw-Hill

database





Operational DB
Data Marts
Data Warehouse


James A. O’Brien

7

Introduction to Information Systems

Decision Support Systems

What
WhatIf-Analysis
If-Analysis

Sensitivity
SensitivityAnalysis
Analysis

Important

Important
Decision
Decision

Goal-Seeking
Goal-SeekingAnalysis
Analysis

Support
Support
Systems
Systems
Analytical
AnalyticalModels
Models

Irwin/McGraw-Hill

Optimization
OptimizationAnalysis
Analysis


Introduction to Information Systems

James A. O’Brien

8

Enterprise Information Portals and DSS

Internet

Extranet

Intranet

Enterprise Information Portal Gateway
Enterprise Information Portal User Interface

DSS
Search
Search

OLAP
OLAP

Agents
Agents

Data
Data
What-If Models

Mining
Mining

Sensitivity Models

Knowledge
Knowledge

Management
Management

Goal-Seeking Models
Optimization Models

Database Management Functions

Data

Operational

Mart

Database

Irwin/McGraw-Hill

Other
Business
Applications

Analytical

Knowledge

Database

Base



James A. O’Brien

9

Introduction to Information Systems

Artificial Intelligence Applications

Artificial
Artificial
Intelligence
Intelligence

Cognitive
Cognitive
Science
Science
Applications
Applications






Expert Systems
Fuzzy Logic
Genetic Algorithms
Neural Networks


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Robotics
Robotics
Applications
Applications






Visual Perceptions
Locomotion
Navigation
Tactility

Natural
Natural
Interface
Interface
Applications
Applications







Natural Language
Speech Recognition
Multisensory Interface
Virtual Reality


James A. O’Brien

10

Introduction to Information Systems

AI Application Areas in Business

Neural
NeuralNetworks
Networks

Fuzzy
FuzzyLogic
LogicSystems
Systems

Genetic
GeneticAlgorithms
Algorithms

Virtual
VirtualReality
Reality

AI
AIApplication
Application
Areas
Areasinin

Intelligent
IntelligentAgents
Agents

Business
Business
Expert
ExpertSystems
Systems

Irwin/McGraw-Hill


James A. O’Brien

11

Introduction to Information Systems

Intelligent Agents

Interface
Interface
Tutors

Tutors
Search
Search
Agents
Agents

Presentation
Presentation
Agents
Agents

User
Interface
Agents

Information
Management
Agents

Information
Information
Brokers
Brokers

Network
Network
Navigation
Navigation
Agents
Agents


Information
Information
RoleRolePlaying
Playing
Agents
Agents

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Filters
Filters


Introduction to Information Systems

James A. O’Brien

12

Components of Expert Systems
The
The Expert
Expert System
System
Expert
Advice

User


User
User

Inference
Inference

Interface
Interface

Engine
Engine

Knowledge

Programs
Programs

Program
Program

Base

Workstation

Expert
Expert System
System Development
Development

Knowledge

Engineering

Knowledge
Knowledge
Acquisition
Acquisition
Program
Program
Workstation

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Expert and/or
Knowledge Engineer


Introduction to Information Systems

James A. O’Brien

13

Expert System Applications

Decision
DecisionManagement
Management

Diagnostic/Troubleshooting
Diagnostic/Troubleshooting


Maintenance/Scheduling
Maintenance/Scheduling

Design/Configuration
Design/Configuration

Major
Application

Selection/Classification
Selection/Classification

Categories
of Expert Systems
Process
ProcessMonitoring/Control
Monitoring/Control

Irwin/McGraw-Hill


James A. O’Brien

14

Introduction to Information Systems

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.

Irwin/McGraw-Hill


James A. O’Brien

15

Introduction to Information Systems

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 semistructured and unstructured decision making.

Irwin/McGraw-Hill


James A. O’Brien

16

Introduction to Information Systems

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


Irwin/McGraw-Hill



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