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 Other
and Intelligent Systems Expert Systems Intelligence Systems
•Artificial Intelligence •Concepts of Expert Systems •Natural Language
and Intelligent Behavior •Benefits and Limitations of Processing and
•Comparing Artificial Expert Systems Voice Technology
and Natural •Processes and Components •Neural Computing
•Conventional versus of Expert Systems Card-Based
Al Computing •Illustrative Applications Reasoning
•Commercial Artificial •Expert Systems and the •Fuzzy Logic
Intelligence Systems Internet/intranets

Virtual Reality: An Ethical and Global Issues

Intelligent Agents Emerging Technology of Intelligent Systems
•Characteristics of •What is Virtual Reality? •Ethical and Social Issues
Intelligent Agents •Applications of Virtual •Legal Issues
•Applications of Reality? •Global Aspects of
Intelligent Agents 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 Natural intelligence’s

over natural intelligence advantages over AI
• creative
• more permanent • enables people to benefit
• less expensive form and directly use
• consistent and thorough sensory experience
• can be documented • enables people to recognize
• ease of duplication and relationships
dissemination • 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 Artificial Intelligence Conventional Programming
Processing Include symbolic Primarily algorithmic
conceptualization
Nature of Can be incomplete Must be complete
input
Search Frequently uses Frequently based on
approach rules and heuristics algorithms
Explanation Provided Usually not provided
Focus Knowledge Data, Information
Maintenance Relatively easy changes Usually difficult
and update can be made in self-
contained modules
Reasoning Yes No
capability
 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 Users can The

transferred call on the computer
from an expert computer for can make
to a computer specific inferences
and it is stored advice as and arrive at
there needed a conclusion

The computer program

advises the nonexperts and
explains, if necessary, the
logic behind the advice
 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
 Liability issues
 Introduction to Information Technology
Turban, Rainer and Potter
Chapter 11 Intelligent Systems in Business

The Process of ES
Consultation Environment Development Environment
Use
Use Knowledge
rr Knowledgebases
bases
Facts about the Facts:What
Facts:Whatisisknow
knowabout
aboutthe
the
specific incident domain area
domain area
Rules:
Rules: Logicalreference
Logical reference
User
User
interface
interface Knowledg
Knowledg
Explanation ee
Explanation engineer
facility
facility engineer
Knowledge
acquisition
Inference Expert
Expertand
Inferenceengine
engine and
documente
Recommended draws conclusions
draws conclusions documente
Recommended dd
action
action knowledge
knowledge
Blackboard
Blackboard Knowledge
Knowledge
(workplace)
(workplace) refinement
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 Net
Systems Support

provide the
provide knowledge opportunity to
and advice to large Support disseminate expertise
numbers of user 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 Description
User interface Monitor usage and suggest
agents improvement.
Operating Add accounts, do group management,
systems agents manage access, add/remove programs
and devices, monitor licenses.
Spreadsheet Offer suggestions for improvements.
agents Can tutor novice users.
Workflow and Administer workflow management -
task management monitor activities, alert, and remind.
agents
Software Assist in routine activities such as
development data filtering.
agents
 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, computer-
generated, 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 Description
Manufacturing • Worker training
• Design, testing, and virtual prototyping
of products and processes
• Engineering and ergonomic analysis
• Simulation of assemble, production, and
maintenance
Transportation • Virtual aircraft mock-ups
• New-car design and testing of cars in virtual
accidents
Finance • View stock prices and characteristics
Architecture • Display of building and other structures
Military • Training and battlefield simulation
Medicine • Training of surgeons and planning surgeries
• Planning physical therapy
Marketing • 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