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Unit 3

Day 1Day 2

Day 3

Day 4

Day 5

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Decision Making and Information Support

Information is the combination of heterogeneous

resources such as databases, text, and semi-structured

information bases.

The decision maker also has to plan and schedule

actions beyond the current point-in-time.

To make the results obtained from an informationsystem clear and useful for the decision maker

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Decision Support System (DSS)- Concepts

Decision Support System

It helps in making a decision and also in its performance

evaluation.

This system can be used to validate the decision byanalysis.

Types of decision

Programmable computerized, build around rules

Non- Programmable The rules are not fixed

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Decision Support System (DSS)- Concepts

Types of DSS

Stratus inquiry system

Operational and middle level management

Data analysis system Comparative analysis (ex inventory system)

Information analysis system

Data is analysed and information reports are generated

Accounting system Not for D-M, its keep track of major aspects of business.

Model based system

Its a one time and infrequent and provide guideline for mgmt.

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Decision Support System (DSS)- Concepts

DSS Models

Behavioral models

It is useful for understanding behavior amongst the business.

Ex: trend analysis, forecasting, and statistical analysis

Management science models

These model are developed on the principles of business mgmt.

A/C, and econometrics.

Ex: budgetary sys, cost a/c sys

Operations Research [or] models

Mathematical models, it represents real life problem situation.

Ex: methods of calculus, matrix algebra, probability

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Enterprise Information System

Integrate and coordinate their business processes

Offers

High quality of service,

Dealing with large volumes of data,

Capable of supporting some large organization

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Knowledge Management System

Knowledge :

Knowledge is the ability of a person to understand the

situation and act effectively.

Knowledge management :

Process define, capture, manipulate, store & develop

Effective use of knowledge depends on how a user

decides to perform the work.

Information Modeling of

knowledgeKnowledge

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Knowledge Management System

Knowledge Management System :

KMS deals with defining, acquisition, construction,

storage, delivery and application of knowledge.

KMS Architecture : KMS

Identification of

Knowledge

Definition ofcategorization

Surveying and

Locating

Build knowledge

structure

Knowledge

Generation

Process foracquisition

Manipulation and

modeling

Creation ofKDB

Knowledge

Delivery

Access Control

Application

methods

Storage and

Security

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Knowledge Management System

Identification ofKnowledge

Knowledge need to identify further process.

Category ofKnowledge

Workplace Acting effectively

Business Functioning effectively

Intellectual capital components Performing effectively

Knowledge generation

After identification, acquisition of knowledge Integrate knowledge for apply right place and right structure.

Build knowledge data base.

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Knowledge Management System

Knowledge Delivery

Made available to user for viewing, manipulating and

application

Tool forKM

Database mgmt tools

Seeking knowledge through SQL queries

Search engine tool

Locating specific info. Through algorithm

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Expert Systems

Behaves similarly to a human expert in a particular field.

Computerized expert system

Diagnose problems, predict future event and solve energy

problems. Agriculture

Improve yield.

Also used for

Design new product & system

Develop innovative insurance products.

Increase the quality of health care.

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Expert Systems

When to use Expert Systems

It is difficult, expensive and time consuming to develop.

Reduce risk

Irreplaceable human experts.

Solve difficult problems

More consistent

Faster than human experts.

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Expert Systems

Components of Expert Systems

Explanation

Facility

Inference

engine

Knowledge

base

Knowledge

base

acquisition

facility

User

Interface

Experts User

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Expert Systems

Knowledge base

Stores all relevant information, data, rules, case, and

relationships that the export system uses.

Tools and techniques :

Assembling human experts

Using fuzzy logic

Using rules

Using cases

Database

raw facts

Information and DS

information

Knowledge base

patterns and

relationships

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Expert Systems

The Inference Engine

Seek information and relationship from the knowledge

base.

Ex : sales demand

The explanation facility

An important part of an expert system.

Allows user or decision maker to understand how the

expert system arrived at certain conclusions or results.

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Expert Systems

The Knowledge Acquisition facility

A difficult task

Creating and updating the knowledge base.

Export

Knowledge

base

Knowledge

acquisition

facility

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Expert Systems

User Interface

It is for designing, creating, updating and using expert

systems.

Make the expert system for user and decision makers todevelop and use.

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Expert Systems

Export system development

Determining requirements

Identifying experts

Constructing expert system

components

Implementing results

Maintaining and reviewing system

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Expert Systems

Participant in developing and using expert system

The domain expert

Domain The area of knowledge addressed by the expert system.

The individual or group who has the expertise or knowledge one is

trying to capture in the expert system.

The knowledge engineer and knowledge users

Knowledge engineer training or experience in the design,

development, implementation and maintenance of an ES.

Knowledge users who uses and benefits from the ES.

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Enterprise Resource Planning

Deals with the planning and use of resource in the

business.

Resources are finance, materials, manufacturing

capacity and human resource.

ERP provide methodology of assessing the resourceneeds.

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Enterprise Systems

Enterprise systems, also known as enterprise resource

planning (ERP) systems,

Deals with the planning and use of resource in the

business.

Resources are finance, materials, manufacturing

capacity and human resource.

ERP provide methodology of assessing the resource

needs.

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ERP stands for: Enterprise Resource Planning systems

This is what it does: attempts to integrate all data and

processes of an organization into a unified system.

A typical ERP system will use multiple components of

computer software and hardware to achieve the

integration. A key ingredient of most ERP systems is the use of a

unified database to store data for the various system

modules.

What is ERP ?

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Definition of an ERP system

ERP or Enterprise Resource Planning systems aresoftware systems for businesses management

encompassing modules supporting functional areas

such as sales and marketing, finance, production,

distribution accounting, human resource management,

maintenance, inventory management, projectmanagement, transportation and e-business etc.

Enterprise Resource Planning ERP

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Features of an ERP system

Architecture of ERP system facilitates transparent

integration of modules providing flow of information

between all function within enterprise in real time.

Many different software are replaced by one integrated

system.

Reliable information access through common DBMS

Eliminates data and operational redundancies (no

duplication of work or data entries etc.)

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Enterprise Application Architecture

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Enterprise Application Architecture

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Traditional Silo View of Information

Systems

Within the business:

There are functions, each having its uses ofinformation systems

Outside the organizations boundaries:

There are customers and vendors

Functions tend to work in isolation

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Traditional View of Systems

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Enterprise Systems

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Benefits ofEnterprise Systems

Help to unify the firms structure and

organization: One organization

Management: Firm wide knowledge-basedmanagement processes

Technology: Unified platform

Business: More efficient operations & customer-

driven business processes

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Challenges ofEnterprise Systems

Difficult to build: Require fundamental changes in

the way the business operates

Technology: Require complex pieces of software

and large investments of time, money, and expertise

Centralized organizational coordination anddecision making: Not the best way for the firms to

operate

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Business and Technical Benefits

Automation of business transactions

Flexibility in changing the system catering to newerbusiness processes.

Coordination across business functions Coordination across geographical distances resulting in

better Managerial control

Consistent information and interface thus easier to

understand and work in

Single system

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