Expert systems are a technique for capturing human expertise in a specific domain through a set of rules. They lack the breadth of knowledge of human experts but can perform limited tasks like diagnosing machines. Expert systems provide benefits to organizations by helping make high-quality decisions with fewer people in structured decision-making situations. They work by using a knowledge base of rules to model human knowledge and arrive at known, limited outcomes.

1. EXPERT SYSTEMS JISHA, LEKSHMY & RAESHMI

2. Capturing Knowledge: EXPERT SYSTEMS are an intelligent technique for capturing tacit knowledge in a very specific and limited domain of human expertise. Captures the knowledge of skilled employees, in the form of a set of rules , in a software system that can be used by others in the org.

3. Human Experts v/s Expert Systems: EXPERT SYSTEMS lack the breadth of knowledge and the understanding of fundamental principles of a human expert. Perform very limited tasks that can be performed by professionals in a few minutes or hours, such as Diagnosing a malfunctioning machine. Determining whether to grant credit for a loan. Problems that can’t be solved by human experts in the same short period of time are far too difficult for an expert system.

4. Why expert systems? By capturing human expertise in limited areas, expert systems can provide benefits, helping organization make high quality decisions with fewer people . Today, expert systems are widely used in business in discrete, highly structured decision-making situations.

5. HOW EXPERT SYSTEMS WORK: KNOWLEDGE BASE : the model of human knowledge used by expert systems. It consists of a series of rules. The rules are interconnected; The number of outcomes is known in advance and is limited.

6. If mortgage payment < 20% of income  Grant credit. Else EXIT. Grant credit line If years ≥ 4, Grant 10,000 line. Else do G. If other debt<5% of income Do F, Else do I Limit 10,000 Limit 3,000 If D ask about years employed. If years<4, Ask About other debt. IF INC> 50,000 Ask about car payments. Else EXIT If car payment <10% of income. Ask about mortgage payment. Else EXIT. A B C D F I E G H Rules for a simple credit-granting expert systems.

7. SUCCESSFUL EXPERT SYSTEMS Galerio Kaufhof , a German superstore chain, uses a rule-based system to help it manage more than 120,000 deliveries of goods that it receives each day , ranging from clothing to complex electronics and fine china. Inspecting each delivery is time consuming and expensive, but the company wants to make sure that it is receiving goods that are not damaged or defective.

8. What did ‘ Kaufhof ’ do? Kaufhof implemented a rule-based system that identifies high-risk deliveries and passes along lower-risk ones automatically. The system scans delivery labels and identifies each delivery in terms of its size, type of product, whether the product is a new product, and the supplier’s past history of deliveries to Kaufhof. Deliveries of large numbers of complex products that are new or that have suppliers with unfavorable delivery histories are carefully inspected, whereas other deliveries are passed on without inspection.

9. AnOther Example: Countrywide Funding Corporation in Pasadena, California, is a loan-underwriting firm with about 400 underwriters in 150 offices around the country. The company developed a PC-based expert system to make preliminary creditworthiness decisions on loan requests.

10. REFERENCE: MANAGEMENT INFORMATION SYSTEMS: Managing the digital firm, ninth edition Kenneth C. Laudon, Jane P. Laudon

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