chapter 6 global information systems, decision support systems, expert systems
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Chapter 6
Global information Systems,Decision Support Systems,
Expert Systems
Learning Outcome
Understands why multinational corporations must use global information systems
Able to explain typical software components
Understands the elements and use of Geographic Information Systems
Global information System (GIS)
Is the development of information systems and applications which is used to deliver information worldwide within a defined context.
Global IS Management
Many cultural, political, and geoeconomic realities that must be confronted in order for business to succeed in global market
Focus on developing global business IT strategies and managing global e-business applications and systems developments
Global IS Management
Political challenge countries have rules regulating or
prohibiting transfer of data across their national boundaries
Others severely restrict, tax or prohibit imports of hardware and software
Global IS Management
Geoeconomic challenges cost of living and labor costs in various
countries Cultural challenges
Differences in languages,cultural interests, religions, customs, social attitudes
Work styles and business relationships
Global IS Management
Define core business processes Identify the Core Systems to Coordinate
Centrally Make the Benefits Clear
Ability to switch information efficiently Vast improvement in production, operation and
supply and distribution Ability to optimized the use of corporate funds
over a much larger capital base
Growth of International Information Systems Transformation of industrial economies and
societies into knowledge- and information based economies.
Emergence of global economy and global world order
Many firms will be replaced by fast moving networked corporations that transcend national boundaries
Growth of International Information Systems Design and assemble of laptop computer:
CPU – designed and built in US DRAM – designed in US, built in Malaysia Screen – designed and assembled in Japan Keyboard – from Taiwan
Made possible because of international information and telecommunication systems
The Global Business Drivers
General Cultural Factors
Specific Business Factors
Global communication and transportation technologies
Global Markets
Development of global culture
Global production and operations
Political stability Global workforce
Global knowledge base Global economies of scale
Factors driving GIS
General cultural factors and specific business to consider
Growth of cheap international communication and transportation has created world culture
Political stability and growing global knowledge base that is widely shared contribute also to the world culture
Decision Support Systems (DSS)
Assist management in decision making by combining data, sophisticated analytical models and tools, and user-friendly software into single powerful systems that can support semi structured or unstructured decision making
Types of DSS
Model-driven DSS Stand alone systems isolated from major
organizational information systems that used some type of model to perform “what-if” and other analysis
Data driven DSS Analyze large pools of data found in major
organizational systems Support decision making by allowing users to extract
useful information that was previously buried in large quantity of data
Cargo Revenue OptimizationCargo Booking
Agent (1)
Cargo ReservationSystem (2)
CargoProf RevenueManagement System (3)
PassengerReservationSystem (4)
Passenger Booking Agent
Flight Schedule Server (5)
Cargo Revenue Optimization
(1) Booking agent requests a cargo reservation
(2) Cargo Reservation system passes the shipment details and customer contract rate to (3)CargoProf
Cargo Revenue Optimization
(4) Passenger reservation system feeds a passenger forecast to the flight schedule server's cargo capacity forecaster (5), which calculates expected cargo capacity each
night for every flight. It passes this capacity data to CargoProf, which
calculates for each flight with available cargo space the minimum prices that a booking must meet or exceed
Cargo reservation system then accepts or reject the request
Components of DSS
DSS Database – collection of current or historical data from a number of applications or groups
DSS Software System – contains the software tools that are used for data analysis
Common models are libraries of statistical models – able to anaylze series of data
Components of DSS
Optimizing models – determine the proper mix of products within a given market to maximize profits
Forecasting models – forecast sales. Sensitivity analysis models – ask “What-if”
questions repeatedly to determine the impact of changes in one or more factors on outcome
DSS user interface – easy interactions
Examples of DSS
ORGANIZATION
General Accident Insurance
Bank of America United Airlines
DSS APPLICATIONS
Customer buying patterns & fraud detection
Customer profiles Flight Scheduling &
passenger demand forecasting
Components of DSS
DSS Database
External Data
TPS
DSS Software System ModelsOLAP ToolsDatamining Tools
User Interface
User
Data Visualization
Easier for user to digest and act upon by using charts, tables, graphs, maps, digital images, three-dimensional presentations, animations, and other data visualization technologies
Geographic Information Systems
Are a special category of DSS that use data visualization technology to analyze and display data for planning and decision making in the form of digitized maps
Can assemble, store, manipulate and display geographically referenced information, tying data to points, lines, and areas on a map
Geographic Information Systems
To help state and local governments calculate emergency response times to natural disasters
To help banks identify the best locations for installing new branches or ATM terminals
Expert Systems
Information systems that solve problems by capturing knowledge for a very specific and limited domain of human expertise
Capture the knowledge of skilled employees in the form of a set of rules
Can assist decision making by asking relevant questions and explaining the reasons for adopting certain actions
A-BIf INC>50,000Ask about car paymentsElse EXIT
B - CIf car payment <10% of incomeAsk about mortgage paymentElse EXIT
C – DIf mortgage payment <20% of incomeGrant creditElse EXIT
D – EIf D ask about years employed
E - FIf years >4 Grant 10,000line Else Do G
FLimit 10,000
G - HIf years< 4Ask about other debt
H –FIf other debt < 5% ofIncome DoFElse DoI
I Limit 3,000
DGrant creditline
Expert Systems
A series of these rules can be knowledge base
Contains : IF-THENAI shell – is the programming environment
of an expert systemInference engine – strategy used to search
through the rule base in an expert system; can be forward or backward chaining
Expert Systems
Forward chaining – strategy for searching the rule base in an expert system that begins with the information entered by the user and searches the rule base to arrive at a conclusion
Backward chaining - strategy for searching the rule base in an expert system that acts like a problem solver beginning with a hypothesis and seeking out more information until the hypothesis is either proved or disproved