Chapter 11

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

CHAPTER 11

INTELLIGENT SYSTEMS IN BUSINESS

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Learning Objectives Describe artificial intelligence and compare it to conventional computing Identify the characteristics, structure, benefits,and limitations of expert systems Describe the major characteristics of natural language processing and voice technologies Describe neural computing and its capabilities Define intelligent agents and their role in IT Describe virtual reality

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Chapter Overview Artificial Intelligence and Intelligent Systems •Artificial Intelligence and Intelligent Behavior •Comparing Artificial and Natural •Conventional versus Al Computing •Commercial Artificial Intelligence Systems

Intelligent Agents •Characteristics of Intelligent Agents •Applications of Intelligent Agents

Other Intelligence Systems Expert Systems •Concepts of Expert Systems •Natural Language •Benefits and Limitations of Processing and Expert Systems Voice Technology •Processes and Components •Neural Computing of Expert Systems Card-Based •Illustrative Applications Reasoning •Expert Systems and the •Fuzzy Logic Internet/intranets

Virtual Reality: An Emerging Technology •What is Virtual Reality? •Applications of Virtual Reality?

Ethical and Global Issues of Intelligent Systems •Ethical and Social Issues •Legal Issues •Global Aspects of Intelligent Systems

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Case: Analog Devices Uses

Intelligent Systems to Support Sales

 The Problem faced a problem of matching products to customers efficiently in the very competitive ICs industry

 The Solution using an intelligent technology call case-based reasoning to improve the customer-company communication

 The Results quality of the service makes the difference in this competitive market

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Case (continued…) What have we learned from this case?? how an intelligent system solved a difficult business problem by improving the communication and collaboration between the company and its customers the intelligent system solution was integrated with other information technologies (CD-ROM, Internet, extranet, search engine) as well as with a DSS

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Intelligent Systems and Artificial Intelligence Artificial Intelligence (AI)

the branch of computer science that deals with ways of representing knowledge, using symbols rather than numbers, and heuristics, or rules of thumb, rather than algorithms for processing information involves studying the thought processes of humans deals with representing those processes via machines objectives: to make machines smarter to understand what intelligence is to make machines more useful

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Comparing Artificial and Natural Intelligence AI’s commercial advantages over natural intelligence • more permanent • less expensive • consistent and thorough • can be documented • ease of duplication and dissemination

Natural intelligence’s advantages over AI • creative • enables people to benefit form and directly use sensory experience • enables people to recognize relationships • enables people to make use of a wide context of experiences

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Conventional vs. AI Computing Dimension Processing Nature of input Search approach Explanation Focus Maintenance and update Reasoning capability

Artificial Intelligence Include symbolic conceptualization Can be incomplete

Conventional Programming Primarily algorithmic

Frequently uses rules and heuristics Provided Knowledge Relatively easy changes can be made in selfcontained modules Yes

Frequently based on algorithms Usually not provided Data, Information Usually difficult

Must be complete

No

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Commercial AI Systems Expert systems (ESs) Natural language technology Speech (voice) understanding Robotics and sensory systems Computer vision and scene recognition Intelligent computer-aided instruction (ICAI) Machine learning Handwriting recognizers

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Expert Systems Expertise is transferred from an expert to a computer and it is stored there

Users can call on the computer for specific advice as needed

The computer program advises the nonexperts and explains, if necessary, the logic behind the advice

The computer can make inferences and arrive at a conclusion

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Benefits of Expert Systems  Increased output and productivity  Increased quality and reliability  Capture of scarce expertise  Ability to operate in hazardous environment  Improved customer service  Human-like intelligence  Fault tolerance  Complex problem solving and decision making  Training capabilities  Reduction of cycle time and downtime

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Limitations of Expert Systems Limited expertise No single correct solution Natural cognitive limits Narrowly defined subject areas Occasional incorrect recommendations Limited vocabulary or jargon Cost Lack of trust by end users Biases

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

The Process of ES Consultation Environment User

Facts about the specific incident

User interface

Development Environment Knowledge bases Facts:What is know about the domain area Rules: Logical reference Knowledge engineer

Explanation facility

Recommended action

Knowledge acquisition

Inference engine draws conclusions Blackboard (workplace)

Expert and documented knowledge Knowledge refinement

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

The Components of ES The knowledge base contains knowledge necessary

for understanding, formulating, and solving problems The Blackboard is an area of working memory set aside for the description of a current problem The inference engine is essentially a computer program that provides a methodology for reasoning and formulating conclusions The user interface in ES allows for user-computer dialog usually presented as questions and answers, and sometime supplemented by graphics The explanation subsystem can trace responsibility for conclusions to their source

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

ESs and the Internet/Intranet Expert Systems provide knowledge and advice to large numbers of user

Support

Support

Net provide the opportunity to disseminate expertise and knowledge to mass audiences

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Other Intelligent Systems Natural Language Processing (NLP) Communicating with a computer in English or whatever language you may speak, instead of commands

Voice Technology Voice (speech) recognition and understanding allows users to communicate with a computer by speaking to it

Voice synthesis the technology by which computer ‘speak’

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Other Intelligent Systems (continued …)

 Neural Computing or Artificial Neural Network (ANN) emulates a biological neural network receives information from other neurons or from external sources, transform the information, and pass it on to other neurons or as external outputs value : useful for pattern recognition, learning, and the interpretation of incomplete inputs

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Other Intelligent Systems (continued …)

Case-Based Reasoning (CBR) basic idea: adapt solutions that were used to solve old problems and use them to solve new problems an extremely effective approach in complex cases used by itself or it can be combined with other reasoning paradigms used to facilitate and expedite knowledge acquisition and information system development, enhance learning and training, and generate explanations to users of systems

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Other Intelligent Systems (continued …)  Fuzzy Logic

deals with uncertainties by simulating the process of human reasoning, allowing the computer to behave less precisely and logically than conventional computers do rationale : not always a matter of true or false or black and white creative decision-making processes are often unstructured, playful, contentious, and rambling

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Intelligent Agents (IA) Characteristics of Intelligent Agents capability to work on their own (autonomy) exhibition of goal-oriented behavior transportable over networks (mobility) dedication to a single repetitive task ability to interact with humans, systems, and other agents inclusion of knowledge base ability to learn

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Applications of IA Application User interface agents Operating systems agents Spreadsheet agents Workflow and task management agents Software development agents

Description Monitor usage and suggest improvement. Add accounts, do group management, manage access, add/remove programs and devices, monitor licenses. Offer suggestions for improvements. Can tutor novice users. Administer workflow management monitor activities, alert, and remind. Assist in routine activities such as data filtering.

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Virtual Reality (VR) : Emerging Technology  What Is Virtual Reality (VR)?

most common definitions : interactive, computergenerated, three-dimensional graphics, delivered to the user through a head-mounted display technical definitions : environment and/or technology that provides artificially generated sensory cues sufficient to engender in the user some willing suspension of disbelief

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Applications of VR Application Manufacturing

Transportation Finance Architecture Military Medicine Marketing

Description

• Worker training • Design, testing, and virtual prototyping of products and processes • Engineering and ergonomic analysis • Simulation of assemble, production, and maintenance • Virtual aircraft mock-ups • New-car design and testing of cars in virtual accidents • View stock prices and characteristics • Display of building and other structures • Training and battlefield simulation • Training of surgeons and planning surgeries • Planning physical therapy • Store and product display • Electronic shopping

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Ethical and Global Issues Ethical and Society Issues Related to Intelligent Systems The Laws of Robotics Hal and Dave computer may refuse human orders

Virtual Reality peoples’ behavior in a world where the distinction between the real and the virtual is unclear

Privacy

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Ethical and Global Issues (continued …)

Legal and ethical Issues what is the value of an expert opinion when the expertise is encoded in a computer? who owns the knowledge in a knowledge base? should royalties be paid to experts who provide the knowledge to ES, and if so how much? can management force experts to contribute their expertise? who is an expert? what if several experts disagree?

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

Ethical and Global Issues (continued …)

Global Aspects of Intelligent Systems Foreign trade

Advising companies on how to exploit opportunities related to the NAFTA agreement

Foreign exchange transactions

FS System advises on trading currencies of various nations

Employee training

Intelligent systems cut the time to train employees online before they go to a foreign country

Weather forecasting

Climatic expert systems provide long-range climate forecasts

Automatic language translations

Intelligent systems translate languages, including voice in telephone conversations

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

What’s in IT for Me? For Accounting Intelligent systems are used extensively in auditing to uncover irregularities, uncover and prevent fraud

For Finance Intelligent systems can facilitate the use of spreadsheets and other computerized systems used in finance; and can help in reducing fraud in credit cards, stocks, and other financial markets

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

What’s in IT for Me? (continued …)  For Marketing Intelligent systems are partially useful in mining customer databases and predicting customer behavior

For Production/Operations Management Expert systems were developed for tasks ranging

Introduction to Information Technology Turban, Rainer and Potter Chapter 11 Intelligent Systems in Business

What’s in IT for Me? (continued …)  For Human Resource Management Intelligent agents can find resumes of applicants posted on the Web and sort them to match needed skill and can facilitate training and to manage fringe benefits programs Expert systems are used in evaluating candidates Neural computing is used to predict employee performance on the job and to pre