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    Storage                Manufacturing   Acceptance
                            Processes        Testing


                                 Storage    Packaging
Shipment       Dispatch

               Data Collection
•   Data feed through forms
•   Data feed through interfaces
•   Data cleaning
•   Data formatting
•   Data Storage
•   Past Data Storage and integration
    Defining Business Requirements
•   Reports Definition
•   Frequency of Reports Definition
•   Login Control
•   Information Control
•   Reporting formats definition
•   Software and hardware available
•   Software and hardware required
•   Gap Analysis
     Designing System Architecture
•   Creating Draft System Architecture
•   Customer Presentation
•   Customer Feedback
•   Designing Solution Architecture
•   Solution Variants
•   Generating Requirement Compliance
•   Gap Analysis
           Agreement Document
•   Agreement Document Definition
•   Non-Disclosure Agreement
•   Pricing of Services and Payment Schedule
•   Inclusion of Service Tax and VAT/Sales Tax
•   Change Management
•   Change Pricing Mechanism
•   Commercial terms and conditions
•   Jurisdiction decision
         Detailed Block Design
• Detailed Block Diagram design taking all customer
• Creating Systems Modules
• Creating Operating Systems Requirements
• Operating System License Definition and pricing
• Data Base Server Definition and User Licensing
• Database Server Pricing
• Hardware Requirements and hardware Pricing
• Networking Requirements and Network Pricing
                 Data Base Design
•   Architecture of Database
•   Tables Design
•   Stored Procedures Design
•   Triggers Design
•   Interfaces Design
•   Design of Data Integration Applications
•   Design of Reporting Applications
•   Security of Database
•   Logins and passwords management
•   Web interfaces and applications design
•   Data Downloading from web database
    Business Intelligence Applications
•   Generating Multi Dimensional Cubes
•   Generating Multiple Dimensions
•   Dimensional Analysis
•   KPI’s
•   Business Intelligence Analyzing Algorithms
•   Formula Storage
•   Reports Generation
         Systems Deployment
• Lab tested systems are deployed on customers
• Integration Customers existing systems
• Total System Integration
• System Beta Testing
• Gap analysis
• Design Modifications and Application Tuning
• Re-deloyment of applications
           Customer Training
• Training of Customer staff
• Training of Customer Information Technology
• Handover of Complete Systems
 Warranty and After Sales support
• Warranty of applications
• After sales support for 1 year
• Annual Maintenance Contract
       Information required at different
             management levels

         Levels of Management Decision
• Strategic management
       – Executives develop organizational goals, strategies,
         policies, and objectives
       – As part of a strategic planning process
• Tactical management
       – Managers and business professionals in self-directed
       – Develop short- and medium-range plans, schedules
         and budgets
       – Specify the policies, procedures and business
         objectives for their subunits

        Levels of Management Decision
• Operational management
       – Managers or members of self-directed teams
       – Develop short-range plans such as weekly
         production schedules

               Information Quality
• Information products whose characteristics,
  attributes, or qualities make the information
  more value
• Information has 3 dimensions:
       – Time
       – Content
       – Form

       Attributes of Information Quality

           Decision Structure
• Structured – situations where the procedures
  to follow when a decision is needed can be
  specified in advance
• Unstructured – decision situations where it is
  not possible to specify in advance most of the
  decision procedures to follow
• Semistructured - decision procedures that can
  be prespecified, but not enough to lead to a
  definite recommended decision

       Information Systems to support decisions

                   Management                       Decision Support
                   Information Systems              Systems
Decision support   Provide information about the    Provide information and
provided           performance of the               techniques to analyze
                   organization                     specific problems
Information        Periodic, exception, demand,     Interactive inquiries and
form and           and push reports and             responses
frequency          responses
Information        Prespecified, fixed format       Ad hoc, flexible, and
format                                              adaptable format

Information        Information produced by          Information produced by
processing         extraction and manipulation of   analytical modeling of
methodology        business data                    business data
       Decision Support Trends
• Personalized proactive decision analytics
• Web-Based applications
• Decisions at lower levels of management and
  by teams and individuals
• Business intelligence applications

       Business Intelligence Applications

             Decision Support Systems
• Provide interactive information support to
  managers and business professionals during the
  decision-making process
• Use:
       –   Analytical models
       –   Specialized databases
       –   A decision maker’s own insights and judgments
       –   Interactive computer-based modeling
• To support semistructured business decisions

       DSS components

                   DSS Model base
• Model base
       – A software component that consists of models
         used in computational and analytical routines that
         mathematically express relations among variables
• Examples:
       – Linear programming models,
       – Multiple regression forecasting models
       – Capital budgeting present value models

 Management Information Systems
• Produces information products that support
  many of the day-to-day decision-making
  needs of managers and business professionals
• Prespecified reports, displays and responses
• Support more structured decisions

          MIS Reporting Alternatives
• Periodic Scheduled Reports
       – Prespecified format on a regular basis
• Exception Reports
       – Reports about exceptional conditions
       – May be produced regularly or when exception occurs
• Demand Reports and Responses
       – Information available when demanded
• Push Reporting
       – Information pushed to manager

         Online Analytical Processing
       – Enables mangers and analysts to examine and
         manipulate large amounts of detailed and
         consolidated data from many perspectives
       – Done interactively in real time with rapid response

          OLAP Analytical Operations
• Consolidation
       – Aggregation of data
• Drill-down
       – Display detail data that comprise consolidated
• Slicing and Dicing
       – Ability to look at the database from different

       OLAP Technology

       Geographic Information Systems
       – DSS that uses geographic databases to construct
         and display maps and other graphics displays
       – That support decisions affecting the geographic
         distribution of people and other resources
       – Often used with Global Position Systems (GPS)

          Data Visualization Systems
       – DSS that represents complex data using interactive
         three-dimensional graphical forms such as charts,
         graphs, and maps
       – DVS tools help users to interactively sort,
         subdivide, combine, and organize data while it is
         in its graphical form.

                        Using DSS
• What-if Analysis
       – End user makes changes to variables, or
         relationships among variables, and observes the
         resulting changes in the values of other variables
• Sensitivity Analysis
       – Value of only one variable is changed repeatedly
         and the resulting changes in other variables are

                         Using DSS
• Goal-Seeking
       – Set a target value for a variable and then repeatedly
         change other variables until the target value is
       – How can analysis
• Optimization
       – Goal is to find the optimum value for one or more
         target variables given certain constraints
       – One or more other variables are changed repeatedly
         until the best values for the target variables are

                Data Mining
• Main purpose is to provide decision support
  to managers and business professionals
  through knowledge discovery
• Analyzes vast store of historical business data
• Tries to discover patterns, trends, and
  correlations hidden in the data that can help a
  company improve its business performance
• Use regression, decision tree, neural network,
  cluster analysis, or market basket analysis
        Market Basket Analysis
• One of most common data mining for
• The purpose is to determine what products
  customers purchase together with other

       Executive Information Systems
       – Combine many features of MIS and DSS
       – Provide top executives with immediate and easy
         access to information
       – About the factors that are critical to
         accomplishing an organization’s strategic
         objectives (Critical success factors)
       – So popular, expanded to managers, analysts and
         other knowledge workers

                 Features of an EIS
• Information presented in forms tailored to the
  preferences of the executives using the system
       – Customizable graphical user interfaces
       – Exception reporting
       – Trend analysis
       – Drill down capability

          Enterprise Interface Portals
       – Web-based interface
       – Integration of MIS, DSS, EIS, and other technologies
       – Gives all intranet users and selected extranet users
       – To a variety of internal and external business
         applications and services
• Typically tailored to the user giving them a
  personalized digital dashboard

       Enterprise Information Portal

  Knowledge Management Systems
• The use of information technology to help
  gather, organize, and share business
  knowledge within an organization

• Enterprise Knowledge Portals
       – EIPs that are the entry to corporate intranets that
         serve as knowledge management systems

       Enterprise Knowledge Portals

          Case 2 Artificial Intelligence
         The Dawn of the Digital Brain
• Numenta will translate the way the brain
  works into an algorithm that can run on a new
  type of computer
• The human brain does not work like a
• Intelligence, according to Hawkins, is pattern

       Artificial Intelligence (AI)
• A field of science and technology based on
  disciplines such as computer science, biology,
  psychology, linguistics, mathematics, and
• Goal is to develop computers that can
  simulate the ability to think, as well as see,
  hear, walk, talk, and feel

       Attributes of Intelligent Behavior
• Think and reason
• Use reason to solve problems
• Learn or understand from experience
• Acquire and apply knowledge
• Exhibit creativity and imagination
• Deal with complex or perplexing situations
• Respond quickly and successfully to new
• Recognize the relative importance of elements in
  a situation
• Handle ambiguous, incomplete, or erroneous

       Domains of Artificial Intelligence

            Cognitive Science
• Based in biology, neurology, psychology, etc.
• Focuses on researching how the human brain
  works and how humans think and learn

• Based in AI, engineering and physiology
• Robot machines with computer intelligence
  and computer controlled, humanlike physical

                 Natural Interfaces
• Based in linguistics, psychology, computer
  science, etc.
• Includes natural language and speech recognition
• Development of multisensory devices that use a
  variety of body movements to operate computers
• Virtual reality
       – Using multisensory human-computer interfaces that
         enable human users to experience computer-
         simulated objects, spaces and “worlds” as if they
         actually exist

             Expert Systems
• ES
• A knowledge-based information system (KBIS)
  that uses its knowledge about a specific,
  complex application to act as an expert
  consultant to end users

• KBIS is a system that adds a knowledge base
  to the other components on an IS

          Expert System Components
• Knowledge Base
       – Facts about specific subject area
       – Heuristics that express the reasoning procedures of an
         expert (rules of thumb)
• Software Resources
       – Inference engine processes the knowledge and makes
         inferences to make recommend course of action
       – User interface programs to communicate with end
       – Explanation programs to explain the reasoning
         process to end user

       Expert System Components

Methods of Knowledge Representation
• Case-Based – knowledge organized in form of
       – Cases: examples of past performance,
         occurrences and experiences
• Frame-Based – knowledge organized in a
  hierarchy or network of frames
       – Frames: entities consisting of a complex package
         of data values

Methods of Knowledge Representation
• Object-Based – knowledge organized in
  network of objects
       – Objects: data elements and the methods or
         processes that act on those data
• Rule-Based – knowledge represented in rules
  and statements of fact
       – Rules: statements that typically take the form of a
         premise and a conclusion
       – Such as, If (condition) then (conclusion)

        Expert System Benefits
• Faster and more consistent than an expert
• Can have the knowledge of several experts
• Does not get tired or distracted by overwork
  or stress
• Helps preserve and reproduce the knowledge
  of experts

           Expert System Limitations
•      Limited focus
•      Inability to learn
•      Maintenance problems
•      Developmental costs
•      Can only solve specific types of problems in a
       limited domain of knowledge

   Suitability Criteria for Expert Systems
• Domain: subject area relatively small and limited to
  well-defined area
• Expertise: solutions require the efforts of an expert
• Complexity: solution of the problem is a complex task
  that requires logical inference processing (not possible
  in conventional information processing)
• Structure: solution process must be able to cope with
  ill-structured, uncertain, missing and conflicting data
• Availability: an expert exists who is articulate and

                 Development Tool
• Expert System Shell
       – Software package consisting of an expert system
         without its knowledge base
       – Has inference engine and user interface programs

          Knowledge Engineer
• A professional who works with experts to
  capture the knowledge they possess
• Builds the knowledge base using an iterative,
  prototyping process

            Neural Networks
• Computing systems modeled after the brain’s
  mesh-like network of interconnected
  processing elements, called neurons
• Interconnected processors operate in parallel
  and interact with each other
• Allows network to learn from data it processes

                Fuzzy Logic
• Method of reasoning that resembles human
• Allows for approximate values and inferences
  and incomplete or ambiguous data instead of
  relying only on crisp data
• Uses terms such as “very high” rather than
  precise measures

                Genetic Algorithms
• Software that uses
       – Darwinian (survival of the fittest), randomizing,
         and other mathematical functions
       – To simulate an evolutionary process that can yield
         increasingly better solutions to a problem

                Virtual Reality (VR)
• Computer-simulated reality
• Relies on multisensory input/output devices
  such as
       – a tracking headset with video goggles and stereo
       – a data glove or jumpsuit with fiber-optic sensors
         that track your body movements, and
       – a walker that monitors the movement of your feet

            Intelligent Agents
• A software surrogate for an end user or a
  process that fulfills a stated need or activity
• Uses its built-in and learned knowledge base
• To make decisions and accomplish tasks in a
  way that fulfills the intentions of a user

• Also called software robots or bots

          User Interface Agents
• Interface Tutors – observe user computer
  operations, correct user mistakes, and provide
  hints and advice on efficient software use
• Presentation – show information in a variety of
  forms and media based on user preferences
• Network Navigation – discover paths to
  information and provide ways to view
  information based on user preferences
• Role-Playing – play what-if games and other roles
  to help users understand information and make
  better decisions
   Information Management Agents
• Search Agents – help users find files and
  databases, search for desired information, and
  suggest and find new types of information
  products, media, and resources
• Information Brokers – provide commercial
  services to discover and develop information
  resources that fit the business or personal needs
  of a user
• Information Filters – receive, find, filter, discard,
  save, forward, and notify users about products
  received or desired