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					Chapter 10 Complex Decisions and Artificial Intelligence The Strategic Management of Information Technology Transaction Processing System Input Process Systems Development Communication Information Output Process Flow Process Flow/Elements  Components/Elements  Responsibilities  Overview  Business Problems –  Data –  Complex, less structured Non-numerical, messy, complex relationship Artificial Intelligence – Goal is to make computers “think” like humans Specialized Problems Diagnostic  Speed  Consistency  Training  Building Expert Systems Knowledge Base  Knowledge Engineers  Case-Based Reasoning  Limitations of Expert Systems  Expert System Expert  Symbolic and/or Numeric Knowledge  Knowledge Base  Expert Decisions made by non-experts  Decision Support System Compared to Expert System DSS ESS Goal Help User Make Decision Provide Expert Advice Method Data Model Presentation General, limited by user Asks Questions Applies rules and Explains Narrow Domain Type of Problems Building Expert Systems Shell = Tool to Build Expert System  Knowledge Engineer Builds  Cooperative Expert Key  Components:  – –  Knowledge Base Information Engineer applies rules to new data for each conclusion Custom Program, Shell, or Pre-packaged Additional Issues to Consider Pattern Recognition/Neural Nets  Voice and Speech Recognition  Language Comprehension  Massively Parallel Computers  Robotics and Motion  Statistics, Uncertainty, Fuzzy Logic  Expert Systems Goal: Make same decision an expert would make with the same data  Capture and program expert’s knowledge  Advantage of speed and consistency  Expert Systems Problem Type Narrow, well-defined domain  Solutions require an expert  Complex logical processing  Handle missing, ill-structured data  Need a cooperative expert  Limitations of Expert Systems  Fragile Systems –  Small environment changes can force revision of all of the rules Mistakes – Who is responsible? Expert  Multiple Expert  Knowledge Engineer  Company that uses it  Limitations of Expert Systems  Vague Rules –  Rules can be hard to define Conflicting Experts – – With multiple opinions, who is right? Can diverse methods be combined? Limitations of Expert Systems  Unforeseen events – – – Events outside of domain can lead to nonsense decisions Human experts adapt Will human novice recognize a nonsense result? Artificial Intelligence Research Areas  Computer Science – – –  Parallel Processing Symbolic Processing Neural Networks Robotics Applications – – – – Visual Perception Tactility Dexterity Locomotion and Navigation Artificial Intelligence Research Areas  Natural Language – – –  Speech Recognition Language Translation Language Comprehension Cognitive Science – – – Expert Systems Learning Systems Knowledge-Based Systems Neural Networks Based on brain design  Hardware and software  Recognize patterns  – – – Design specifications Spiegel Catalogs Pick stocks Machine Vision  Advantages of Machine Vision – – –  Broader spectrum of light Will not suffer fatigue Damage less easy Literal – Problems less detection than processing Speech Recognition Voice: primarily ID  Speech  – –  Transcripts Hands-free operations Limitations – – – Need to train Accents and colds Synonyms, punctuation, context Artificial Intelligence Questions What is intelligence?  Can machines ever think like humans?  How do humans think?  Do we really want computers to think like us?  Artificial Intelligence Applications  Massively Parallel Processing – –  Robotics and Motion –  only if task can be split into independent pieces math computation and database searches welding and painting Statistics, Unclear, and Fuzzy Logic – use subjective and incomplete description Future Applications  Intelligent Agents – – – – Learn what you want from what you ask for and go get it for you Automated personal assistant Network traffic can be a problem Agents are independent of one another Product-Process Change Matrix Mass Customization Invention Dynamic Product Change Mass Production Continuous Improvement Stable Stable Process Change Dynamic Product-process change matrix Mass Production Dynamic Product Change Change conditions Periodic/forecastable changes in product market demand and process technology Strategy Production Key organizational tool Standardized, dedicated production process Workflows Serial, linear flow of work, executed to plan Employee roles Separate doers and thinkers Control system Centralized, hierarchical command system I/T alignment challenge Automation of manual processes to achieve cost justified efficiency enhancement Reliance on invention form to supply new product designs and new process tech.; linked with invention forms in single corporate entity Stable Critical synergy Stable Process Change Dynamic Invention Dynamic Product change Stable Change conditions Constant/unforecastable changes in product market demand and process technology Strategy Production of unique or novel product or process Key organization tool Specialization of creative or high craft skills Workflows Independent work Employee roles Professionals and craftspeople Control system System decentralized to specialized individuals and groups I/T alignment Development and distribution of customized systems Critical synergy Stable Mass production form supplied with new processes; operates in market niches too dynamic or small for mass production; sometimes incorporated into single corporate entity with multiproduct mass-production forms Dynamic Process change Figure 3 Product-process change matrix Mass Customization Dynamic Change conditions Constant/unforecastable changes in market demand; periodic/forcastable changes in process technology Strategy Low cost process differentiation within new markets Key organization tool Product change Workflows Employee roles Loosely coupled networks of modular, flexible processing units Customer/product unique value chains Network coordinator and on-demand processors Control system Hub and web system; centralized network coordination, independent processing control I/T alignment Integration of constantly changing network info processing/communication requirements; interoperability, data communication, and coprocessing critical to network efficiency Critical synergy Reliance on continuous improvement form for increasing process flexibility within processing units Stable Stable Dynamic Process change Figure 5 Product-process change matrix Continuous Improvement Dynamic Product change Change conditions Constant/unforecastable changes in process technology, periodic/forecastable changes in market demand Strategy Low cost process differentiation within mature markets Key organization tool Self-managing/cross-functional teams Workflows Employee roles Intensive and reciprocal workflow within teams Dual, combined doers and thinkers Control system Microtransformations; rapid and frequent switching between decentralized team decision making and team-managed command systems I/T alignment Design of cross-functional info and communication systems that support microtransformations Mass-customization form supplied with flexible new processes; sometimes functions as transition form in re-engineering to mass customization Stable Critical synergy Stable Dynamic Process change Figure 6 Product-process change matrix New core competence Phase 3 Redefinition Value -added process and services P E R F O R M A N C E Phase 2 Enhancement Excellence Phase 1 Automation Transition Barriers Efficiency F O C U S Internal Operations ORGANIZATIONAL FOCUS Customer and Supplier interface New Business Units
 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
									 
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                            