Chapter 1                                      Information as a Key ResourceThree aspects to information     Data vs Info...
  having access to information no matter where you are. Ideally, in other words, your location or       the information’s...
•   Shared Information - Traditional information sharing referred to one-to-one exchanges of data        between a sender ...
Decision Support And Artificial Intelligence :                                     Brain power for your BusinessTypes of D...
with vacancies). The system that organizes, stores and provides access to the data is called a        database system. In ...
working with geographic information systems. In the simplest terms, GIS is the merging of cartography,statistical analysis...
are now capable of beating humans. In May, 1997, an IBM super-computer called Deep Blue defeatedworld chess champion Gary ...
Picture sample of ARTIFICIAL INTELLICENCEAn expert system is a computer program that simulates the judgement and behaviour...
Neural Networks Can…       Learn and adjust to new circumstances on their own       Take part in massive parallel proces...
›   Data-mining agentsAn intelligent agent is software that assists people and act on their behalf. Intelligent agents wor...
between the "learning element", which is responsible for making improvements, and the "performanceelement", which is respo...
(1) providing a pro-active resource discovery;        (2) resolving the information impedance of information consumers and...
This agent uses information technology to find trends and patterns in an abundance of information frommany different sourc...
Components of a decision support system    5. database (or knowledge base),        A database is an organized collection o...
C. Geographic Information SystemA geographic information system is a system designed to capture, store, manipulate, analyz...
humans since ancient times and today with the advent of the computer and 50 years of research into AIprogramming technique...
Picture sample of ARTIFICIAL INTELLICENCEAn expert system is a computer program that simulates the judgement and behaviour...
•   Neural network (artificial neural network or ANN) – an artificial intelligence system that is        capable of findin...
›   Buyer agents or shopping bots            ›   User or personal agents            ›   Monitoring-and surveillance agents...
Learning has an advantage that it allows the agents to initially operate in unknown environments and tobecome more compete...
(1) providing a pro-active resource discovery;        (2) resolving the information impedance of information consumers and...
This agent uses information technology to find trends and patterns in an abundance of information frommany different sourc...
Understand your business, Products, Services and CustomersWho are your Customers?        Internet users        Online buye...
youve added them to your newsletter list and then send them the latest copy. Immediately       reinforce who you are, what...
3. Be prompt with inquiries              Example:                       PocketcentsMOVE MONEY EASILY & SECURELY      B2C P...
Advantages        Democratization        Environmental bonuses        Speed, efficiency, and convenience        Public...
Management information system (1)
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Management information system (1)

  1. 1. Chapter 1 Information as a Key ResourceThree aspects to information  Data vs Information  Personal dimension of information  Organizational dimension of informationData vs information • Data refers to the lowest abstract or a raw input which when processed or arranged makes meaningful output. It is the group or chunks which represent quantitative and qualitative attributes pertaining to variables. Information is usually the processed outcome of data. More specifically speaking, it is derived from data. Information is a concept and can be used in many domains.Business Intelligence(BI) is a broad category of computer software solutions that enables a company or organization to gaininsight into its critical operations through reporting applications and analysis tools. Tabular Form ChartDashboard Dimensions of information Personal Dimensions of InformationTime Dimension  Having access to information when you need it  Having information that describes the time period your considering  Location Dimension
  2. 2.  having access to information no matter where you are. Ideally, in other words, your location or the information’s location should not matter. You should be able to access information in a hotel room, at home, in the student center of your campus.Form Dimension  Having information in a form most useable  Free of errorsOrganizational Dimension of information  information flows  information granularityInformation flowsInformation granularity People as Key ResourceInformation and Technology LiteracyKey Points:  Technology is important today because information is important.  Technology is a set of tools for working with information. If we didn’t need to work with information, we would have little use for technology.  So, it’s important to know how to work with technology so you can better work with information.Key Term:  Technology- literate knowledge worker - a person who knows how and when to apply technology.  - can define what information they need, know how and where to obtain that information, understand the information once they receive it, and can act appropriately based on the information to help the organization achieve the greatest advantage.  Ethics - the principles and standards that guide our behaviour toward other people.  Hacker - a very knowledgeable computer user who uses his or her knowledge to invade other people’s computers. Information Technology as a key ResourceInformation Technology- Branch of engineering that deals with the use of computers to store, retrieve and transmit information.Ubiquitous Computing • Decentralized Computing - is the allocation of resources both hardware and software to each individual workstation or office location.
  3. 3. • Shared Information - Traditional information sharing referred to one-to-one exchanges of data between a sender and reliever. • Mobile Computing - Is a human-computer interaction by which a computer is expected to be transported during normal usage. Creating Business Vision for Information Technology Ethics, Security and PrivacyFour Categories of Ethical Issues • Privacy Issues • Accuracy Issues • Property Issues • Accessibility IssuesKey Information Security Terms • Threat • Exposure • Vulnerability • Risk • Information system controlsThreats to Privacy • Electronic Surveillance • Personal Information in Databases • Information on Internet Bulletin Boards, Newsgroups, and Social Networking Sites
  4. 4. Decision Support And Artificial Intelligence : Brain power for your BusinessTypes of Decisions You Face  Structured decision – processing a certain information in a specified way so that you will always get the right answer  Nonstructured decision – one for which there may be several “right” answers, without a sure way to get the right answer  Recurring decision – one that happens repeatedly  Nonrecurring (ad hoc) decision – one you make infrequentlyB. Decision Support SystemA decision support system (DSS) is a computer-based information system that supports business ororganizational decision-making activities. It is a collection of integrated software applications andhardware that form the backbone of an organization’s decision making process. DSSs serve themanagement, operations, and planning levels of an organization and help to make decisions, which maybe rapidly changing and not easily specified in advance.DSSs include knowledge-based systems. A properly designed DSS is an interactive software-basedsystem intended to help decision makers compile useful information from a combination of raw data,documents, and personal knowledge, or business models to identify and solve problems and makedecisions.Typical information that a decision support application might gather and present includes: inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.Components of a decision support system 1. database (or knowledge base), A database is an organized collection of data, usually in digital form. Data in the database are typically organized to model relevant aspects of reality (for example, the availability of rooms in hotels), in a way that supports processes requiring this information (for example, finding a hotel
  5. 5. with vacancies). The system that organizes, stores and provides access to the data is called a database system. In technical usage, the term may be narrowed to specify particular aspects of organized collection of data and may refer to the logical database, to the physical database as data content in computer data storage or to many other database sub-definitions. 2. model (i.e., the decision context and user criteria) A model is anything used in any way to represent anything else. Some models are physical objects, for instance, a toy model which may be assembled, and may even be made to work like the object it represents. The term conceptual model may be used to refer to models which are formed after a conceptualization process in the mind. Conceptual models represent human intentions or semantics. 3. user interface.The user interface, in the industrial design field of human–machine interaction, is the space whereinteraction between humans and machines occurs. The goal of interaction between a human and amachine at the user interface is effective operation and control of the machine, and feedback from themachine which aids the operator in making operational decisions. Examples of this broad concept ofuser interfaces include the interactive aspects of computer operating systems, hand tools, heavymachinery operator controls, and process controls. The design considerations applicable when creatinguser interfaces are related to or involve such disciplines as ergonomics and psychology.A user interface is the system by which people (users) interact with a machine. The user interfaceincludes hardware (physical) and software (logical) components. User interfaces exist for varioussystems, and provide a means of: Input, allowing the users to manipulate a system Output, allowing the system to indicate the effects of the users manipulation 4. Users A user is an agent, either a human agent (end-user) or software agent, who uses a computer or network service. A user often has a user account and is identified by a username (also user name). Other terms for username include login name, screen name (also screen name), nickname (also nick), or handle, which is derived from the identical Citizens Band radio term.C. Geographic Information SystemA geographic information system is a system designed to capture, store, manipulate, analyze, manage,and present all types of geographical data. The acronym GIS is sometimes used for geographicalinformation science or geospatial information studies to refer to the academic discipline or career of
  6. 6. working with geographic information systems. In the simplest terms, GIS is the merging of cartography,statistical analysis, and database technology. A geographic information system (GIS) integrateshardware, software, and data for capturing, managing, analyzing, and displaying all forms ofgeographically referenced information.A GIS can be thought of as a system—it digitally creates and "manipulates" spatial areas that may bejurisdictional, purpose, or application-oriented. Generally, a GIS is custom-designed for an organization.Hence, a GIS developed for an application, jurisdiction, enterprise, or purpose may not be necessarilyinteroperable or compatible with a GIS that has been developed for some other application, jurisdiction,enterprise, or purpose.In a general sense, the term describes any information system that integrates, stores, edits, analyzes,shares, and displays geographic information for informing decision making.GIS allows us to view, understand, question, interpret, and visualize data in many ways that revealrelationships, patterns, and trends in the form of maps, globes, reports, and charts.A GIS helps you answer questions and solve problems by looking at your data in a way that is quicklyunderstood and easily shared.GIS technology can be integrated into any enterprise information system framework.Artificial intelligence is a branch of computer science which aims at building machines that can think,feel and take decisions just like humans do. Before discussing its future prospects, lets understandexactly what artificial Intelligence is all about.In the area of robotics, computers are now widely used in assembly plants, but they are capable only ofvery limited tasks. Robots have great difficulty identifying objects based on appearance or feel, and theystill move and handle objects clumsily.Artificial Intelligence (AI) is the area of computer science focusing on creating machines that can engageon behaviours that humans consider intelligent. The ability to create intelligent machines has intriguedhumans since ancient times and today with the advent of the computer and 50 years of research into AIprogramming techniques, the dream of smart machines is becoming a reality. Researchers are creatingsystems which can mimic human thought, understand speech, beat the best human chess player, andcountless other feats never before possible. Find out how the military is applying AI logic to its hi-techsystems, and how in the near future Artificial Intelligence may impact our lives.Currently, no computers exhibit full artificial intelligence (that is, are able to simulate human behaviour).The greatest advances have occurred in the field of games playing. The best computer chess programs
  7. 7. are now capable of beating humans. In May, 1997, an IBM super-computer called Deep Blue defeatedworld chess champion Gary Kasparov in a chess match.AI research is highly technical and specialized, deeply divided into subfields that often fail tocommunicate with each other.[5] Some of the division is due to social and cultural factors: subfieldshave grown up around particular institutions and the work of individual researchers. AI research is alsodivided by several technical issues. There are subfields which are focussed on the solution of specificproblems, on one of several possible approaches, on the use of widely differing tools and towards theaccomplishment of particular applications. The central problems of AI include such traits as reasoning,knowledge, planning, learning, communication, perception and the ability to move and manipulateobjects.[6] General intelligence (or "strong AI") is still among the fields long term goals.[7] Currentlypopular approaches include statistical methods, computational intelligence and traditional symbolic AI.There are an enormous number of tools used in AI, including versions of search and mathematicaloptimization, logic, methods based on probability and economics, and many others.The field was founded on the claim that a central property of humans, intelligence—the sapience ofHomo sapiens—can be so precisely described that it can be simulated by a machine.[8] This raisesphilosophical issues about the nature of the mind and the ethics of creating artificial beings, issueswhich have been addressed by myth, fiction and philosophy since antiquity.[9] Artificial intelligence hasbeen the subject of optimism,[10] but has also suffered setbacks[11] and, today, has become anessential part of the technology industry, providing the heavy lifting for many of the most difficultproblems in computer science.[12]Artificial intelligence (AI) is the intelligence of machines and the branch of computer science that aimsto create it. AI textbooks define the field as "the study and design of intelligent agents “where anintelligent agent is a system that perceives its environment and takes actions that maximize its chancesof success. John McCarthy, who coined the term in 1955, defines it as "the science and engineering ofmaking intelligent machines."Artificial intelligence is a branch of computer science which aims at building machines that can think,feel and take decisions just like humans do. Before discussing its future prospects, lets understandexactly what artificial Intelligence is all about.
  8. 8. Picture sample of ARTIFICIAL INTELLICENCEAn expert system is a computer program that simulates the judgement and behaviour of a human or anorganization that has expert knowledge and experience in a particular field. Typically, such a systemcontains a knowledge base containing accumulated experience and a set of rules for applying theknowledge base to each particular situation that is described to the program. Sophisticated expertsystems can be enhanced with additions to the knowledge base or to the set of rules.In artificial intelligence, an expert system is a computer system that emulates the decision-makingability of a human expert. Expert systems are designed to solve complex problems by reasoning aboutknowledge, like an expert, and not by following the procedure of a developer as is the case inconventional programming. The first expert systems were created in the 1970s and then proliferated inthe 1980s. Expert systems were among the first truly successful forms of AI softwareAn expert system has a unique structure, different from traditional programs. It is divided into twoparts, one fixed, independent of the expert system: the inference engine, and one variable: theknowledge base. To run an expert system, the engine reasons about the knowledge base like a human.In the 80s a third part appeared: a dialog interface to communicate with users. This ability to conduct aconversation with users was later called "conversational".NEURAL NETWORKS • Neural network (artificial neural network or ANN) – an artificial intelligence system that is capable of finding and differentiating patterns • in simple term it can be used to help us predict future movement in the company
  9. 9. Neural Networks Can…  Learn and adjust to new circumstances on their own  Take part in massive parallel processing  Function without complete information  Cope with huge volumes of information  Analyze nonlinear relationshipsFuzzy logic-is a form of many-valued logic or probabilistic logic; it deals with reasoning that is approximate ratherthan fixedGenetic Algorithm  an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem  is routinely used to generate useful solutions to optimization and search problemsEvolutionary Principles of Genetic Algorithms 1. Selection – or survival of the fittest or giving preference to better outcomes 2. Crossover – combining portion of good outcomes to create even better outcomes 3. Mutation – randomly trying combinations and evaluating the success of eachGenetic Algorithms Can…  Take thousands or even millions of possible solutions and combining and recombining them until it finds the optimal solutionintelligent agent  Intelligent agent – software that assists you, or acts on your behalf, in performing repetitive computer-related tasks › Buyer agents or shopping bots › User or personal agents › Monitoring-and surveillance agents
  10. 10. › Data-mining agentsAn intelligent agent is software that assists people and act on their behalf. Intelligent agents work byallowing people to delegate work that they could have done, to the agent software. Agents can performrepetitive tasks, remember things you forgot, intelligently summarize complex data, learn from you andeven make recommendations to you.Two types of intelligent agent  Buyer agent or shopping bot – an intelligent agent on a Web sites that helps you, the customer, find products and services you wantSimple reflex agentsSimple reflex agents act only on the basis of the current percept, ignoring the rest of the percept history.The agent function is based on the condition-action rule: if condition then action.This agent function only succeeds when the environment is fully observable. Some reflex agents can alsocontain information on their current state which allows them to disregard conditions whose actuatorsare already triggered.Infinite loops are often unavoidable for simple reflex agents operating in partially observableenvironments. Note: If the agent can randomize its actions, it may be possible to escape from infiniteloops.Model-based reflex agentsA model-based agent can handle a partially observable environment. Its current state is stored insidethe agent maintaining some kind of structure which describes the part of the world which cannot beseen. This knowledge about "how the world works" is called a model of the world, hence the name"model-based agent".Goal-based agentsGoal-based agents further expand on the capabilities of the model-based agents, by using "goal"information. Goal information describes situations that are desirable. This allows the agent a way tochoose among multiple possibilities, selecting the one which reaches a goal stateUtility-based agentsGoal-based agents only distinguish between goal states and non-goal states. It is possible to define ameasure of how desirable a particular state is. This measure can be obtained through the use of a utilityfunction which maps a state to a measure of the utility of the state.Learning agentsLearning has an advantage that it allows the agents to initially operate in unknown environments and tobecome more competent than its initial knowledge alone might allow. The most important distinction is
  11. 11. between the "learning element", which is responsible for making improvements, and the "performanceelement", which is responsible for selecting external actions.Tools & Languages used to implement Intelligent AgentThere are many tools and languages used to implement intelligent agent and here are some of the toolsand languages listed below:Aglet, which is programming code that, can be transported along with state information. Aglets are Javaobjects that can move from one host on the Internet to another.Facile, which is a high-level, higher-order programming language for systems that require a combinationof complex data manipulation and concurrent and distributed computing. It combines Standard ML(SML), with a model of higher-order concurrent proc esses based on CCS. Facile is being used at ECRC todevelop Mobile Service Agents.Penguin, which is a Perl 5 module that provides a set of functions to (1) send encrypted, digitally signedPerl code to a remote machine to be executed; and (2) receive code and, depending on who signed it,execute it in an arbitrarily secure, limited compartment.Python, which is an interpreted, interactive, object-oriented programming language.Information AgentAn individual or a business entity that has the task of providing explanations of various transactions ofanother party to relevant persons who need to know the informationWhat are Information Agents?An information agent is a computational software entity (an intelligent agent) that may access one ormultiple, distributed, and heterogeneous information sources available, and pro-actively acquires,mediates, and maintains relevant information on behalf of its user(s) or other agents preferably just-in-time. In other words, information agents are supposed to cope with the difficulties associated with theinformation overload of the user. This implies their ability to semantically broker information by:
  12. 12. (1) providing a pro-active resource discovery; (2) resolving the information impedance of information consumers and providers; (3) offering value-added information services and products to the user or other agents.Monitoring-and-surveillance (predictive) agentsMonitoring and Surveillance Agents are used to observe and report on equipment, usually computersystems. The agents may keep track of company inventory levels, observe competitors’ prices and relaythem back to the company, watch stock manipulation by insider trading and rumours, etc.service monitoringUser agentPossible privacy issueAs with many other HTTP request headers, the information in the "User-Agent" string contributes to theinformation that the client sends to the server, since the string can vary considerably from user touser.[3]User agents, or personal agents, are intelligent agents that take action on your behalf. In this categorybelong those intelligent agents that already perform, or will shortly perform, the following tasks:* Check your e-mail, sort it according to the user’s order of preference, and alert you when importantemails arrive.* Play computer games as your opponent or patrol game areas for you.* Assemble customised news reports for you. There are several versions of these, including newshuband CNN.* Find information for you on the subject of your choice (portal search).* Fill out forms on the Web automatically for you, storing your information for future reference* Scan Web pages looking for and highlighting text that constitutes the “important” part of theinformation there* “Discuss” topics with you ranging from your deepest fears to sports* Facilitate with online job search duties by scanning known job boards and sending the resume toopportunities who meet the desired criteria (CRM solution)* Profile synchronisation across heterogeneous social networksData mining agents
  13. 13. This agent uses information technology to find trends and patterns in an abundance of information frommany different sources. The user can sort through this information in order to find whateverinformation they are seeking (CRM support).A data mining agent operates in a data warehouse discovering information. A ‘data warehouse’ bringstogether information from lots of different sources. “Data mining” is the process of looking through thedata warehouse to find information that you can use to take action, such as ways to increase sales orkeep customers who are considering defecting. Decision Support And Artificial Intelligence : Brain power for your BusinessTypes of Decisions You Face  Structured decision – processing a certain information in a specified way so that you will always get the right answer  Nonstructured decision – one for which there may be several “right” answers, without a sure way to get the right answer  Recurring decision – one that happens repeatedly  Nonrecurring (ad hoc) decision – one you make infrequentlyB. Decision Support SystemA decision support system (DSS) is a computer-based information system that supports business ororganizational decision-making activities. It is a collection of integrated software applications andhardware that form the backbone of an organization’s decision making process. DSSs serve themanagement, operations, and planning levels of an organization and help to make decisions, which maybe rapidly changing and not easily specified in advance.DSSs include knowledge-based systems. A properly designed DSS is an interactive software-basedsystem intended to help decision makers compile useful information from a combination of raw data,documents, and personal knowledge, or business models to identify and solve problems and makedecisions.Typical information that a decision support application might gather and present includes: inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.
  14. 14. Components of a decision support system 5. database (or knowledge base), A database is an organized collection of data, usually in digital form. Data in the database are typically organized to model relevant aspects of reality (for example, the availability of rooms in hotels), in a way that supports processes requiring this information (for example, finding a hotel with vacancies). The system that organizes, stores and provides access to the data is called a database system. In technical usage, the term may be narrowed to specify particular aspects of organized collection of data and may refer to the logical database, to the physical database as data content in computer data storage or to many other database sub-definitions. 6. model (i.e., the decision context and user criteria) A model is anything used in any way to represent anything else. Some models are physical objects, for instance, a toy model which may be assembled, and may even be made to work like the object it represents. The term conceptual model may be used to refer to models which are formed after a conceptualization process in the mind. Conceptual models represent human intentions or semantics. 7. user interface.The user interface, in the industrial design field of human–machine interaction, is the space whereinteraction between humans and machines occurs. The goal of interaction between a human and amachine at the user interface is effective operation and control of the machine, and feedback from themachine which aids the operator in making operational decisions. Examples of this broad concept ofuser interfaces include the interactive aspects of computer operating systems, hand tools, heavymachinery operator controls, and process controls. The design considerations applicable when creatinguser interfaces are related to or involve such disciplines as ergonomics and psychology.A user interface is the system by which people (users) interact with a machine. The user interfaceincludes hardware (physical) and software (logical) components. User interfaces exist for varioussystems, and provide a means of: Input, allowing the users to manipulate a system Output, allowing the system to indicate the effects of the users manipulation 8. Users A user is an agent, either a human agent (end-user) or software agent, who uses a computer or network service. A user often has a user account and is identified by a username (also user name). Other terms for username include login name, screen name (also screen name), nickname (also nick), or handle, which is derived from the identical Citizens Band radio term.
  15. 15. C. Geographic Information SystemA geographic information system is a system designed to capture, store, manipulate, analyze, manage,and present all types of geographical data. The acronym GIS is sometimes used for geographicalinformation science or geospatial information studies to refer to the academic discipline or career ofworking with geographic information systems. In the simplest terms, GIS is the merging of cartography,statistical analysis, and database technology. A geographic information system (GIS) integrateshardware, software, and data for capturing, managing, analyzing, and displaying all forms ofgeographically referenced information.A GIS can be thought of as a system—it digitally creates and "manipulates" spatial areas that may bejurisdictional, purpose, or application-oriented. Generally, a GIS is custom-designed for an organization.Hence, a GIS developed for an application, jurisdiction, enterprise, or purpose may not be necessarilyinteroperable or compatible with a GIS that has been developed for some other application, jurisdiction,enterprise, or purpose.In a general sense, the term describes any information system that integrates, stores, edits, analyzes,shares, and displays geographic information for informing decision making.GIS allows us to view, understand, question, interpret, and visualize data in many ways that revealrelationships, patterns, and trends in the form of maps, globes, reports, and charts.A GIS helps you answer questions and solve problems by looking at your data in a way that is quicklyunderstood and easily shared.GIS technology can be integrated into any enterprise information system framework.Artificial intelligence is a branch of computer science which aims at building machines that can think,feel and take decisions just like humans do. Before discussing its future prospects, lets understandexactly what artificial Intelligence is all about.In the area of robotics, computers are now widely used in assembly plants, but they are capable only ofvery limited tasks. Robots have great difficulty identifying objects based on appearance or feel, and theystill move and handle objects clumsily.Artificial Intelligence (AI) is the area of computer science focusing on creating machines that can engageon behaviours that humans consider intelligent. The ability to create intelligent machines has intrigued
  16. 16. humans since ancient times and today with the advent of the computer and 50 years of research into AIprogramming techniques, the dream of smart machines is becoming a reality. Researchers are creatingsystems which can mimic human thought, understand speech, beat the best human chess player, andcountless other feats never before possible. Find out how the military is applying AI logic to its hi-techsystems, and how in the near future Artificial Intelligence may impact our lives.Currently, no computers exhibit full artificial intelligence (that is, are able to simulate human behaviour).The greatest advances have occurred in the field of games playing. The best computer chess programsare now capable of beating humans. In May, 1997, an IBM super-computer called Deep Blue defeatedworld chess champion Gary Kasparov in a chess match.AI research is highly technical and specialized, deeply divided into subfields that often fail tocommunicate with each other.[5] Some of the division is due to social and cultural factors: subfieldshave grown up around particular institutions and the work of individual researchers. AI research is alsodivided by several technical issues. There are subfields which are focussed on the solution of specificproblems, on one of several possible approaches, on the use of widely differing tools and towards theaccomplishment of particular applications. The central problems of AI include such traits as reasoning,knowledge, planning, learning, communication, perception and the ability to move and manipulateobjects.[6] General intelligence (or "strong AI") is still among the fields long term goals.[7] Currentlypopular approaches include statistical methods, computational intelligence and traditional symbolic AI.There are an enormous number of tools used in AI, including versions of search and mathematicaloptimization, logic, methods based on probability and economics, and many others.The field was founded on the claim that a central property of humans, intelligence—the sapience ofHomo sapiens—can be so precisely described that it can be simulated by a machine.[8] This raisesphilosophical issues about the nature of the mind and the ethics of creating artificial beings, issueswhich have been addressed by myth, fiction and philosophy since antiquity.[9] Artificial intelligence hasbeen the subject of optimism,[10] but has also suffered setbacks[11] and, today, has become anessential part of the technology industry, providing the heavy lifting for many of the most difficultproblems in computer science.[12]Artificial intelligence (AI) is the intelligence of machines and the branch of computer science that aimsto create it. AI textbooks define the field as "the study and design of intelligent agents “where anintelligent agent is a system that perceives its environment and takes actions that maximize its chancesof success. John McCarthy, who coined the term in 1955, defines it as "the science and engineering ofmaking intelligent machines."Artificial intelligence is a branch of computer science which aims at building machines that can think,feel and take decisions just like humans do. Before discussing its future prospects, lets understandexactly what artificial Intelligence is all about.
  17. 17. Picture sample of ARTIFICIAL INTELLICENCEAn expert system is a computer program that simulates the judgement and behaviour of a human or anorganization that has expert knowledge and experience in a particular field. Typically, such a systemcontains a knowledge base containing accumulated experience and a set of rules for applying theknowledge base to each particular situation that is described to the program. Sophisticated expertsystems can be enhanced with additions to the knowledge base or to the set of rules.In artificial intelligence, an expert system is a computer system that emulates the decision-makingability of a human expert. Expert systems are designed to solve complex problems by reasoning aboutknowledge, like an expert, and not by following the procedure of a developer as is the case inconventional programming. The first expert systems were created in the 1970s and then proliferated inthe 1980s. Expert systems were among the first truly successful forms of AI softwareAn expert system has a unique structure, different from traditional programs. It is divided into twoparts, one fixed, independent of the expert system: the inference engine, and one variable: theknowledge base. To run an expert system, the engine reasons about the knowledge base like a human.In the 80s a third part appeared: a dialog interface to communicate with users. This ability to conduct aconversation with users was later called "conversational".NEURAL NETWORKS
  18. 18. • Neural network (artificial neural network or ANN) – an artificial intelligence system that is capable of finding and differentiating patterns • in simple term it can be used to help us predict future movement in the companyNeural Networks Can…  Learn and adjust to new circumstances on their own  Take part in massive parallel processing  Function without complete information  Cope with huge volumes of information  Analyze nonlinear relationshipsFuzzy logic-is a form of many-valued logic or probabilistic logic; it deals with reasoning that is approximate ratherthan fixedGenetic Algorithm  an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem  is routinely used to generate useful solutions to optimization and search problemsEvolutionary Principles of Genetic Algorithms 4. Selection – or survival of the fittest or giving preference to better outcomes 5. Crossover – combining portion of good outcomes to create even better outcomes 6. Mutation – randomly trying combinations and evaluating the success of eachGenetic Algorithms Can…  Take thousands or even millions of possible solutions and combining and recombining them until it finds the optimal solutionintelligent agent  Intelligent agent – software that assists you, or acts on your behalf, in performing repetitive computer-related tasks
  19. 19. › Buyer agents or shopping bots › User or personal agents › Monitoring-and surveillance agents › Data-mining agentsAn intelligent agent is software that assists people and act on their behalf. Intelligent agents work byallowing people to delegate work that they could have done, to the agent software. Agents can performrepetitive tasks, remember things you forgot, intelligently summarize complex data, learn from you andeven make recommendations to you.Two types of intelligent agent  Buyer agent or shopping bot – an intelligent agent on a Web sites that helps you, the customer, find products and services you wantSimple reflex agentsSimple reflex agents act only on the basis of the current percept, ignoring the rest of the percept history.The agent function is based on the condition-action rule: if condition then action.This agent function only succeeds when the environment is fully observable. Some reflex agents can alsocontain information on their current state which allows them to disregard conditions whose actuatorsare already triggered.Infinite loops are often unavoidable for simple reflex agents operating in partially observableenvironments. Note: If the agent can randomize its actions, it may be possible to escape from infiniteloops.Model-based reflex agentsA model-based agent can handle a partially observable environment. Its current state is stored insidethe agent maintaining some kind of structure which describes the part of the world which cannot beseen. This knowledge about "how the world works" is called a model of the world, hence the name"model-based agent".Goal-based agentsGoal-based agents further expand on the capabilities of the model-based agents, by using "goal"information. Goal information describes situations that are desirable. This allows the agent a way tochoose among multiple possibilities, selecting the one which reaches a goal stateUtility-based agentsGoal-based agents only distinguish between goal states and non-goal states. It is possible to define ameasure of how desirable a particular state is. This measure can be obtained through the use of a utilityfunction which maps a state to a measure of the utility of the state.Learning agents
  20. 20. Learning has an advantage that it allows the agents to initially operate in unknown environments and tobecome more competent than its initial knowledge alone might allow. The most important distinction isbetween the "learning element", which is responsible for making improvements, and the "performanceelement", which is responsible for selecting external actions.Tools & Languages used to implement Intelligent AgentThere are many tools and languages used to implement intelligent agent and here are some of the toolsand languages listed below:Aglet, which is programming code that, can be transported along with state information. Aglets are Javaobjects that can move from one host on the Internet to another.Facile, which is a high-level, higher-order programming language for systems that require a combinationof complex data manipulation and concurrent and distributed computing. It combines Standard ML(SML), with a model of higher-order concurrent proc esses based on CCS. Facile is being used at ECRC todevelop Mobile Service Agents.Penguin, which is a Perl 5 module that provides a set of functions to (1) send encrypted, digitally signedPerl code to a remote machine to be executed; and (2) receive code and, depending on who signed it,execute it in an arbitrarily secure, limited compartment.Python, which is an interpreted, interactive, object-oriented programming language.Information AgentAn individual or a business entity that has the task of providing explanations of various transactions ofanother party to relevant persons who need to know the informationWhat are Information Agents?An information agent is a computational software entity (an intelligent agent) that may access one ormultiple, distributed, and heterogeneous information sources available, and pro-actively acquires,mediates, and maintains relevant information on behalf of its user(s) or other agents preferably just-in-time. In other words, information agents are supposed to cope with the difficulties associated with theinformation overload of the user. This implies their ability to semantically broker information by:
  21. 21. (1) providing a pro-active resource discovery; (2) resolving the information impedance of information consumers and providers; (3) offering value-added information services and products to the user or other agents.Monitoring-and-surveillance (predictive) agentsMonitoring and Surveillance Agents are used to observe and report on equipment, usually computersystems. The agents may keep track of company inventory levels, observe competitors’ prices and relaythem back to the company, watch stock manipulation by insider trading and rumours, etc.service monitoringUser agentPossible privacy issueAs with many other HTTP request headers, the information in the "User-Agent" string contributes to theinformation that the client sends to the server, since the string can vary considerably from user touser.[3]User agents, or personal agents, are intelligent agents that take action on your behalf. In this categorybelong those intelligent agents that already perform, or will shortly perform, the following tasks:* Check your e-mail, sort it according to the user’s order of preference, and alert you when importantemails arrive.* Play computer games as your opponent or patrol game areas for you.* Assemble customised news reports for you. There are several versions of these, including newshuband CNN.* Find information for you on the subject of your choice (portal search).* Fill out forms on the Web automatically for you, storing your information for future reference* Scan Web pages looking for and highlighting text that constitutes the “important” part of theinformation there* “Discuss” topics with you ranging from your deepest fears to sports* Facilitate with online job search duties by scanning known job boards and sending the resume toopportunities who meet the desired criteria (CRM solution)* Profile synchronisation across heterogeneous social networksData mining agents
  22. 22. This agent uses information technology to find trends and patterns in an abundance of information frommany different sources. The user can sort through this information in order to find whateverinformation they are seeking (CRM support).A data mining agent operates in a data warehouse discovering information. A ‘data warehouse’ bringstogether information from lots of different sources. “Data mining” is the process of looking through thedata warehouse to find information that you can use to take action, such as ways to increase sales orkeep customers who are considering defecting.What is Electronic Commerce? Commonly known as e-commerce or e-comm, is the buying and selling of products or servicesover electronic systems such as the Internet and other computer networks.E-Commerce Business Models 1. Business to consumer (B2C): The B2C model sells goods or services to the consumer, generally using online catalog and shopping cart transaction systems. EXAMPLE: Amazon 2. Business to business (B2B): Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. EXAMPLEs: Cisco intranet services web meetings 3. Consumer to business (C2B): Consumers offer products and services to companies and the companies pay them. EXAMPLE: Google AdSense 4. Consumer to consumer (C2C): Consumers can post classified ads or offers to sell their property to other consumers. This offers some protection for consumers allowing them the chance to take advantage of the prices offered by motivated sellers. EXAMPLE: e-Bay
  23. 23. Understand your business, Products, Services and CustomersWho are your Customers? Internet users Online buyerWhat is the value of your products and services as perceived by your customer?Value Quality of Product Services ExpectationsDimensions of Quality • Performance -Product characteristics.  Availability  Reliability • Features -Secondary characteristics of a product. • Warranty - Public promise of quality product supported by a guarantee of customer satisfaction. • Price - Value of prouct.Find Customers and Establish Relationships 5 Key Ways to Build Customer Relationships 1. Build your network--its your sales lifeline. Your network includes business colleagues, professional acquaintances, prospective and existing customers, partners, suppliers, contractors and association members, as well as family, friends and people you meet at school, church and in your community. 2. Communication is a contact sport, so do it early and often. Relationships have a short shelf life. No matter how charming, enthusiastic or persuasive you are, no one will likely remember you from a business card or a one-time meeting. One of the biggest mistakes people make is that they come home from networking events and fail to follow up. Make the connection immediately. Send a "nice to meet you" e-mail or let these new contacts know
  24. 24. youve added them to your newsletter list and then send them the latest copy. Immediately reinforce who you are, what you do and the connection youve made. 3. E-mail marketing keeps relationships strong on a shoestring budget. Build your reputation as an expert by giving away some free insight. You have interesting things to say! An easy way to communicate is with a brief e-mail newsletter that shows prospects why they should buy from you. For just pennies per customer, you can distribute an e-mail newsletter that includes tips, advice and short items that entice consumers and leave them wanting more. E-mail marketing is a cost-effective and easy way to stay on customers minds, build their confidence in your expertise, and retain them. And its viral: Contacts and customers who find what you do interesting or valuable will forward your e-mail message or newsletter to other people, just like word of mouth marketing. 4. Reward loyal customers, and theyll reward you. According to global management consulting firm Bain and Co., a 5 percent increase in retention yields profit increases of 25 to 100 percent. And on average, repeat customers spend 67 percent more than new customers. So your most profitable customers are repeat customers. Are you doing enough to encourage them to work with you again? Stay in touch, and give them something of value in exchange for their time, attention and business. It doesnt need to be too much; a coupon, notice of a special event, helpful insights and advice, or news they can use are all effective. Just remember: If you dont keep in touch with your customers, your competitors will. 5. Loyal customers are your best salespeople. So spend the time to build your network and do the follow-up. Today there are cost effective tools, like e-mail marketing, that make this easy. You can e-mail a simple newsletter, an offer or an update message of interest to your network (make sure its of interest to them, not just to you). Then theyll remember you and what you do and deliver value back to you with referrals. Theyll hear about opportunities youll never hear about. The only way they can say, "Wow, I met somebody whos really good at XYZ. You should give her a call," is if they remember you. Then your customers become your sales force.* Business to Consumer 1. Communicate frequently 2. Offer customer rewards 3. Enhance customer service* Business to Business 1.Create a Database 2. Improve with time
  25. 25. 3. Be prompt with inquiries Example: PocketcentsMOVE MONEY EASILY & SECURELY B2C Payment Systems Credit cards Financial cybermediaries Electronic checks Electronic Bill Presentment and Payment Smart cards B2C Payment Systems Must move money and other information such as shipping address Digital wallets can help Digital wallet – software and information Software provides transaction security Information includes delivery information and other forms of necessary information B2B Payment Systems Business customers… Make large purchases Will not pay with credit card or financial cybermediary Use financial EDI Pay for many purchases at once (perhaps the end of the month) Security: The Pervading Concern Security is very important when moving money Some security measures… Encryption Secure Sockets Layers Secure Electronic Transactions Many, many othersThe Broadening of E-governmentE-government E-governance is the application of information and communication technology (ICT) fordelivering services, exchange of information communication transaction, integration various stand-onesystem and services between government-to-citizens (G2C), government-to-business (G2B),government-to-government (G2G) as well as back office processes and interactions within the entiregovernment framework.
  26. 26. Advantages  Democratization  Environmental bonuses  Speed, efficiency, and convenience  Public approval Disadvantages  Hyper-surveillance  Cost  Inaccessibility  False sense of transparency and accountability Government to Government (G2G) Government to government (G2G) is the electronic sharing of data and/or informationsystems between government agencies, departments or organizations. The goal of G2G is tosupport e-government initiatives by improving communication, data access and data sharing.Example: NEGIS (Northeast Gang Information System) Government to Business (G2B) Government-to-Business (G2B) is the online non-commercial interaction between local andcentral government and the commercial business sector, rather than private individuals (G2C), withthe purpose of providing businesses information and advice on e-business best practices. Government to Citizens (G2C) Government-to-Citizen (G2C) is the communication link between a government and privateindividuals or residents. Such G2C communication most often refers to that which takes placethrough Information and Communication Technologies (ICTs), but can also include direct mail andmedia campaigns. G2C can take place at the federal, state, and local levels. G2C stands in contrast toG2B, or Government-Business networks. International Government to Government Most member states have developed their own national E-Government strategy to developtheir national E-Government projects. The level of ”maturity” of every strategy is strictly related tospecific national factors, like the financial resources, the internet penetration, the eLiteracy of thepopulation, the organizational form or even their constitutional morphology. Government Spending Information Technology Responsible for state-wide IT planning, coordination, and initiatives. Ex. http://www.azgita.gov/

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