Intelligent Information Systems and Problem Solving WAES2105 Course Introduction Lecturer: Md Nor Ridzuan Daud http://perd...
Artificial Intelligence <ul><li>Behavior  by a machine that, if performed by a human being, would be considered  intellige...
AI Objectives <ul><li>Make machines  smarter  (primary goal) </li></ul><ul><li>Understand what  intelligence  is (Nobel La...
Signs of Intelligence   <ul><li>Learn  or  understand  from experience </li></ul><ul><li>Make sense out of ambiguous or co...
More Signs of Intelligence <ul><li>Understand  and  infer  in ordinary, rational ways </li></ul><ul><li>Apply  knowledge  ...
What is data? <ul><li>Data  is representation of facts, concepts, or instructions in a formalized manner suitable for comm...
What is an information? <ul><li>Information  is data that has been processed into a form that is  meaningful to the recipi...
What is information technology? <ul><li>All forms of technology applied to  processing, storing, and transmitting informat...
From information to knowledge <ul><li>Knowledge  is a strategic resource for many organizations.  </li></ul><ul><li>Knowle...
How do people interpret information? 1. Decision problem  – the nature of the problem.  Which problem dominates the others...
How do people interpret information? <ul><li>2. Organization setting  – culture of the organization in approaching problem...
<ul><li>Deductive  – use a generic model to decide on specific problem. The generic model is used repetitively over time. ...
Types of decisions <ul><li>Strategic Planning </li></ul><ul><li>develops objectives and long term planning </li></ul><ul><...
Examples of operation, tactics and strategy in different sectors <ul><li>Monitor competitors </li></ul><ul><li>New product...
Operation, Tactics and Strategy <ul><li>Operation </li></ul><ul><ul><li>day to day </li></ul></ul><ul><ul><li>well spell-o...
Examples of decisions that need support Market planning and research  :  Pricing decision for each customer. The decision ...
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Waes2105 S1

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Waes2105 S1

  1. 1. Intelligent Information Systems and Problem Solving WAES2105 Course Introduction Lecturer: Md Nor Ridzuan Daud http://perdana.fsktm.um.edu.my/~ridzuan/waes2105.htm
  2. 2. Artificial Intelligence <ul><li>Behavior by a machine that, if performed by a human being, would be considered intelligent. </li></ul><ul><li>“… study of how to make computers do things at which, at the moment, people are better” (Rich and Knight,1991) </li></ul><ul><li>Theory of how the human mind works (Mark Fox) </li></ul>Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson 6th ed, Copyright 2001, Prentice Hall, Upper Saddle River, NJ
  3. 3. AI Objectives <ul><li>Make machines smarter (primary goal) </li></ul><ul><li>Understand what intelligence is (Nobel Laureate purpose) </li></ul><ul><li>Make machines more useful (entrepreneurial purpose) </li></ul><ul><li>(Winston and Prendergast, 1984) </li></ul>Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson 6th ed, Copyright 2001, Prentice Hall, Upper Saddle River, NJ
  4. 4. Signs of Intelligence <ul><li>Learn or understand from experience </li></ul><ul><li>Make sense out of ambiguous or contradictory messages </li></ul><ul><li>Respond quickly and successfully to new situations </li></ul><ul><li>Use reasoning to solve problems </li></ul>Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson 6th ed, Copyright 2001, Prentice Hall, Upper Saddle River, NJ
  5. 5. More Signs of Intelligence <ul><li>Understand and infer in ordinary, rational ways </li></ul><ul><li>Apply knowledge to manipulate the environment </li></ul><ul><li>Think and reason </li></ul><ul><li>Recognize the relative importance of different elements in a situation </li></ul>Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson 6th ed, Copyright 2001, Prentice Hall, Upper Saddle River, NJ
  6. 6. What is data? <ul><li>Data is representation of facts, concepts, or instructions in a formalized manner suitable for communication, interpretation, or processing by humans or by automatic means. </li></ul><ul><li>  </li></ul><ul><li>Data inside an organization could be: </li></ul><ul><li>originated from internal operations (e.g. transaction receipt) </li></ul><ul><li>originated from external entities such as suppliers or customers (e.g. purchase order) </li></ul>
  7. 7. What is an information? <ul><li>Information is data that has been processed into a form that is meaningful to the recipient and is of real perceived value in current or prospective decisions (Davis & Olson, 1985). </li></ul>
  8. 8. What is information technology? <ul><li>All forms of technology applied to processing, storing, and transmitting information in electronic form . Physical equipments – fax, computers, PDAs, scanners etc. </li></ul><ul><li>Information systems – organized procedures that process and/or communicate information. </li></ul><ul><li>  </li></ul><ul><li>Information system processed data to turn into an information . Human will interpret the information to suit their needs. The style of presentation is important to drive the right interpretation. </li></ul>
  9. 9. From information to knowledge <ul><li>Knowledge is a strategic resource for many organizations. </li></ul><ul><li>Knowledge = information plus know-how (Kogut and Zender, 1992) </li></ul><ul><li>Knowledge is more than an information that one understand the best way to use the information in solving a particular problem , deals with a product or service or make contribution using his/her knowledge to an organization. Knowledge is built over the years. </li></ul><ul><li>  </li></ul><ul><li>Anderson Consulting has 45,000 employees and most of them use their knowledge to earn income. </li></ul><ul><li>Types of knowledge: </li></ul><ul><li>  Tacit (understood indirectly) – riding bicycle </li></ul><ul><li> Explicit (clear and exact) – formal education </li></ul>
  10. 10. How do people interpret information? 1. Decision problem – the nature of the problem. Which problem dominates the others ? Which problem has higher urgency than the others?  e.g. Bank decision for merging with stock brokerage firm compare to lease additional office space. Organizational setting Cognitive style of decision maker Personal and situational factors Decision problem Information Interpretation and Use
  11. 11. How do people interpret information? <ul><li>2. Organization setting – culture of the organization in approaching problems. Over the years, employees will be influenced the way they think/decide by the corporate culture. </li></ul><ul><li>  </li></ul><ul><li>3. Personal & situational factors – people interpret information or make decision based on their position and portfolios. Finance executive look at financial problems or sales executive look at sales problems. </li></ul><ul><li>  </li></ul><ul><li>4. Cognitive style – two types of decision makers which are analytical and heuristics. Analytical will look at qualitative information and heuristic will look at concepts and intuitive. </li></ul>
  12. 12. <ul><li>Deductive – use a generic model to decide on specific problem. The generic model is used repetitively over time. </li></ul><ul><li>Inductive – make a general observation on several situations and determine a generic model to represent. The generic model is used repetitively over time. </li></ul>Model of interpreting the information generic model problem decision observation/discover generic model
  13. 13. Types of decisions <ul><li>Strategic Planning </li></ul><ul><li>develops objectives and long term planning </li></ul><ul><li>requires substantial investment and effort </li></ul><ul><li>Managerial Control </li></ul><ul><li>concern the use of resources in organization to achieve overall target. For example, an accountant tries to determine the reason for a difference between actual and budgeted costs. </li></ul><ul><li>  </li></ul><ul><li>Operational control </li></ul><ul><li>decision covers day-to-day problems. What item should be produced today? </li></ul>
  14. 14. Examples of operation, tactics and strategy in different sectors <ul><li>Monitor competitors </li></ul><ul><li>New products </li></ul><ul><li>New markets </li></ul><ul><li>Determine pricing </li></ul><ul><li>Promotional campaigns </li></ul><ul><li>Select marketing media </li></ul><ul><li>Reward salesperson </li></ul><ul><li>Survey customers </li></ul><ul><li>Monitor promotions </li></ul>Marketing <ul><li>New GL system </li></ul><ul><li>Debt vs equity </li></ul><ul><li>International taxes </li></ul><ul><li>Inventory evaluation </li></ul><ul><li>Depreciation method </li></ul><ul><li>Finance short/long term </li></ul><ul><li>Categorize assets </li></ul><ul><li>Assign expenses </li></ul><ul><li>Produce reports </li></ul>Accounting <ul><li>New factory </li></ul><ul><li>New products </li></ul><ul><li>New industry </li></ul><ul><li>Rearrange work area </li></ul><ul><li>Schedule new products </li></ul><ul><li>Change inventory method </li></ul><ul><li>Machine settings </li></ul><ul><li>Worker schedule </li></ul><ul><li>Maintenance schedule </li></ul>Production Strategy Tactics Operations Sector
  15. 15. Operation, Tactics and Strategy <ul><li>Operation </li></ul><ul><ul><li>day to day </li></ul></ul><ul><ul><li>well spell-out </li></ul></ul><ul><ul><li>generate data or work on data </li></ul></ul><ul><ul><li>more structured </li></ul></ul><ul><li>Tactics </li></ul><ul><ul><li>leader position like manager </li></ul></ul><ul><ul><li>short-term planning i.e. less than a year </li></ul></ul><ul><ul><li>diagnostic situations </li></ul></ul><ul><ul><li>narrow outlook </li></ul></ul><ul><li>Strategy </li></ul><ul><ul><li>long term </li></ul></ul><ul><ul><li>broader aspects of decision </li></ul></ul><ul><ul><li>affect the company’s direction </li></ul></ul>
  16. 16. Examples of decisions that need support Market planning and research : Pricing decision for each customer. The decision is based on shipping patterns recognized by statistical tools used to analyze data collected daily. This can provide competitive advantage because discounts can be offered to valuable customers, yet large profits can be realized. Operation and strategic planning : Decision whether computer hub satellite network needs to be expanded after monitoring, analyzing and reporting on subtle market trends. Sales support : Support for top management by generating daily sales summaries and details by region, division, salesperson and product. The reports identify lost business, rescued business and new business and they can be generated on demand beside the periodic report. The special report are customized and comparisons and trends can be provided to managers.

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