Download - CHAPTER 4 ANALYTICS, DECISION SUPPORT, AND ARTIFICIAL INTELLIGENCE Brainpower for Your Business
CHAPTER 4CHAPTER 4
ANALYTICS, DECISION ANALYTICS, DECISION SUPPORT, AND ARTIFICIAL SUPPORT, AND ARTIFICIAL
INTELLIGENCEINTELLIGENCE
Brainpower for Your BusinessBrainpower for Your Business
Opening Case:Opening Case:Online LearningOnline Learning
Notice the increase in online learning and the decrease in traditional enrollments.
Phases of Decision MakingPhases of Decision Making
IntelligenceIntelligence DesignDesign ChoiceChoice ImplementationImplementation
Types of DecisionsTypes of Decisions
Structured decisionStructured decision
Semi-Structured decisionSemi-Structured decision
Nonstructured decisionNonstructured decision
Types of DecisionsTypes of Decisions
Recurring decisionRecurring decision
Nonrecurring (ad hoc) decisionNonrecurring (ad hoc) decision
Decision Support SystemsDecision Support Systems
Decision support system (DSS)Decision support system (DSS)
Helps you analyze, but you must Helps you analyze, but you must know how to solve the problem, and know how to solve the problem, and how to use the results of the analysishow to use the results of the analysis
Components of a DSSComponents of a DSS
Model management componentModel management component
Data management componentData management component
User interface management User interface management componentcomponent
Geographic Information Geographic Information SystemsSystems
Geographic information system (GIS)Geographic information system (GIS) https://
www.youtube.com/watch?v=rokWdaGc3u4 Spatial information is any information in Spatial information is any information in
map formmap form Used to analyze information, generate Used to analyze information, generate
business intelligence, and make decisionsbusiness intelligence, and make decisions
DATA-MINING TOOLS AND DATA-MINING TOOLS AND MODELSMODELS
Business need IT-based analytics Business need IT-based analytics toolstools Databases and DBMSsDatabases and DBMSs Query-and-reporting toolsQuery-and-reporting tools Multidimensional analysis toolsMultidimensional analysis tools Digital dashboardsDigital dashboards Statistical toolsStatistical tools GISsGISs Specialized analyticsSpecialized analytics Artificial intelligenceArtificial intelligence
Our focus
Data-Mining: Predictive Data-Mining: Predictive AnalyticsAnalytics
Predictive analytics Predictive analytics highly computational data-mining highly computational data-mining
technology that uses information technology that uses information and business intelligence to build a and business intelligence to build a predictive model for a given predictive model for a given business applicationbusiness application
Insurance, retail, healthcare, Insurance, retail, healthcare, travel, financial services, CRM, travel, financial services, CRM, SCM, credit scoring, etcSCM, credit scoring, etc
Data-Mining: Predictive Data-Mining: Predictive Analytics ExampleAnalytics Example
Prediction goalPrediction goal What customers are most likely to What customers are most likely to
respond to a social media campaign respond to a social media campaign within 30 days by purchasing at least 2 within 30 days by purchasing at least 2 products in the advertised product line?products in the advertised product line?
Prediction indicatorsPrediction indicators Frequency of purchasesFrequency of purchases Proximity of date of last purchaseProximity of date of last purchase Presence on Facebook and TwitterPresence on Facebook and Twitter Number of multiple-product purchasesNumber of multiple-product purchases
Data-Mining: Text AnalyticsData-Mining: Text Analytics
Text analytics Text analytics uses statistical, AI, and linguistic uses statistical, AI, and linguistic
technologies to convert textual technologies to convert textual information into structured information into structured informationinformation
Gaylord Hotels uses text Gaylord Hotels uses text analytics to make sense of analytics to make sense of customer satisfaction surveyscustomer satisfaction surveys
Data-Mining: Endless Data-Mining: Endless AnalyticsAnalytics
Web analytics Web analytics – understanding and – understanding and optimizing Web page usageoptimizing Web page usage Search engine optimization (SEO) Search engine optimization (SEO) – –
improving the visibility of Web site using improving the visibility of Web site using tags and key termstags and key terms
HR analytics HR analytics – analysis of human – analysis of human resource and talent management dataresource and talent management data
Marketing analyticsMarketing analytics – analysis of – analysis of marketing-related data to improve product marketing-related data to improve product placement, marketing mix, etcplacement, marketing mix, etc
Data-Mining: Endless Data-Mining: Endless AnalyticsAnalytics
CRM analytics CRM analytics – analysis of CRM data to – analysis of CRM data to improve sales force automation, customer improve sales force automation, customer service, and supportservice, and support
Social media analyticsSocial media analytics – analysis of social – analysis of social media data to better understand media data to better understand customer/organization interaction dynamicscustomer/organization interaction dynamics
Mobile analytics Mobile analytics – analysis of data related – analysis of data related to the use of mobile devices to support to the use of mobile devices to support mobile computing and mobile e-commerce mobile computing and mobile e-commerce (m-commerce)(m-commerce)
Artificial IntelligenceArtificial Intelligence Artificial intelligence (AI)Artificial intelligence (AI)
Types of AI systems used in businessTypes of AI systems used in business1.1. Expert systemsExpert systems
2.2. Neural networksNeural networks
3.3. Genetic algorithmsGenetic algorithms
4.4. Agent-based technologiesAgent-based technologies AI systems deliver the conclusion AI systems deliver the conclusion
(rather than helping you analyze the (rather than helping you analyze the options)options)
Expert SystemsExpert Systems
Expert (knowledge-based) Expert (knowledge-based) systemsystem
Used for Used for Diagnostic problems (what’s wrong?)Diagnostic problems (what’s wrong?) Prescriptive problems (what to do?)Prescriptive problems (what to do?)
Expert System: ComponentsExpert System: Components1.1. Information TypesInformation Types
Problem facts Problem facts Domain expertiseDomain expertise ““Why?” informationWhy?” information
2.2. PeoplePeople Domain expertDomain expert Knowledge engineerKnowledge engineer Knowledge workerKnowledge worker
3.3. IT ComponentsIT Components Knowledge acquisitionKnowledge acquisition Knowledge base Knowledge base Inference engine Inference engine User interfaceUser interface Explanation module Explanation module
What Expert Systems Can and What Expert Systems Can and Can’t DoCan’t Do
An expert system canAn expert system can Reduce errorsReduce errors Improve customer serviceImprove customer service Reduce costReduce cost
An expert system can’tAn expert system can’t Use common senseUse common sense Automate all processes Automate all processes
Neural Networks and Fuzzy Neural Networks and Fuzzy LogicLogic
Neural network (NN) Neural network (NN)
(or artificial neural network (or artificial neural network (ANN))(ANN))
Learns through trainingLearns through training Finds patternsFinds patterns
Neural Networks Can…Neural Networks Can…
Learn and adjust to new circumstances Learn and adjust to new circumstances on their ownon their own
Take part in massive parallel processingTake part in massive parallel processingFunction without complete informationFunction without complete informationCope with huge volumes of informationCope with huge volumes of informationAnalyze nonlinear relationships Analyze nonlinear relationships
Fuzzy LogicFuzzy Logic Fuzzy logicFuzzy logic
a mathematical method of handling imprecise a mathematical method of handling imprecise or subjective informationor subjective information
Used to make ambiguous information such Used to make ambiguous information such as “short” usable in computer systemsas “short” usable in computer systems
ApplicationsApplications Google’s search engineGoogle’s search engine Washing machinesWashing machines Antilock breaks Antilock breaks
Genetic AlgorithmsGenetic Algorithms
Genetic algorithm (GA)Genetic algorithm (GA)
Takes thousands or even millions of Takes thousands or even millions of possible solutions, combining and possible solutions, combining and recombining them until it finds the recombining them until it finds the optimal solutionoptimal solution
Work in environments where no model Work in environments where no model of how to find the right solution existsof how to find the right solution exists
Genetic Algorithm: ExamplesGenetic Algorithm: Examples
Staples – determine optimal Staples – determine optimal package design characteristicspackage design characteristics
Boeing – design aircraft parts Boeing – design aircraft parts such as fan bladessuch as fan blades
Many retailers – better manage Many retailers – better manage inventory and optimize display inventory and optimize display areasareas
Agent-Based TechnologiesAgent-Based Technologies
Intelligent AgentsIntelligent Agents
Multi-Agent SystemsMulti-Agent Systems
Intelligent AgentsIntelligent Agents
Intelligent agentIntelligent agent Information agents or shopping/buyer Information agents or shopping/buyer
agentsagents Monitoring-and-surveillance agentsMonitoring-and-surveillance agents User or personal agents User or personal agents Data-mining agents Data-mining agents