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Decision Support and Intelligent Systems
Decision Support and Intelligent Systems
Decision Support and Intelligent
www.ThesisScientist.com 1Decision Making
• Information is used to make decisions. Decision making is not
a single activity that takes place all at one.
• The process consists of several different activities that take
place at different times.
• The decision maker has to identify and understand problems.
• Once perceived, solutions must be designed; once solutions
are designed, choices have to be made about a particular
solution; finally, the solution has to be carried out and
Four different stages in decision making are
www.ThesisScientist.com 2Decision Support System
• The design support system basically helps the
information system in the intelligence phase to
identify the problem and then go to the design
phase for solution.
• The choice of selection criteria varies from
problem to problem.
• It is required to go through these phase again and
again till the satisfactory solution is found.
www.ThesisScientist.com 3Decision Making Stages
www.ThesisScientist.com 4Decision Support System
• A decision support system is an integrated set of
computer tool that allows a decision maker to interact
directly with computers to create information and it
useful in making semistructured and unstructured
• The software components for decisionsupport systems
are a language system which enables the user to
interact with the decisionsupport system, a problem
• A properly designed DSS is an interactive software
based system planned to help decision makers and to
identify and solve problems and make decisions.
• DSS serve the management, operations, and planning
levels of an organization and help to make decisions,
which may be rapidly changing and not easily specified in
• DSS are used to collect data, analyze and shape the data
that is collected, and make sound decisions or construct
strategies from analysis whether computers, databases,
or people are involved generally it does not matter.
• The nature of the decision is such that the decision
makers need a variety of information. The reason for
changing the demands is also because the methods of
decision making a change from time to time.
www.ThesisScientist.com 6DSS Types of Decisions
• Structured / Programmed Decisions :
– Schedule decisions
– Organization develops specific process for handling
– Rules of decision making system are predetermined
www.ThesisScientist.com 7DSS Types of Decisions
• Unstructured / Nonprogrammed Decisions :
– Repetitive decisions
– Handled by general problem solving process
– Decision taken by Decision Support Systems
– Rules of decision making system are not fixed or
– It requires every time the user has to go through the
– Decision support systems can be built in case of
programmable decision situation.
www.ThesisScientist.com 8DSS Types of Decisions
• Semistructured Decisions:
– Some decision procedures can be specified in
advance, but not enough to lead to a definite
www.ThesisScientist.com 9Decision Support System Models
• Types of Decision Support System Models :
– Behavioural Models
– Management Science Models
– Operation Research Models
Behavioural Models Management Science Models Operation Research Models
Types of Models
www.ThesisScientist.com 10Behavioural Models
– Behavioural Models :
• The decision maker can make the decisions for
such behavioral relationships.
For eg: The trend (development) analysis,
forecasting and statistical analysis models.
• The trend analysis indicates how different
variables behave in trend setting in the past and
hence in future.
– In Market Research method, they can forecast or judge the
behavior of the customers buying decisions. (i.e. The
questionnaire are designed and computerized to evaluate
customer’s buying behavioral).
www.ThesisScientist.com 11Management Science Models
– Management Science Models :
• These models are developed on the principles of the
business management, accounting and economics.
For eg: the budgetary systems, cost accounting system,
inventory management system.
• In the budgetary system, budgets are used for planning
• In all the organization, budgets are prepared with the
use of graphical representation in the form of line
charts or bar charts.
• For eg : Sales Budget, Production Budget
www.ThesisScientist.com 12Operation Research Models
– Operation Research Models :
• The Operation Research models are the mathematical models in
providing guidelines to managers for making effective decisions within
the state of the current information, or in seeking further information
if current knowledge is insufficient to reach a proper decision.
• Telecommunications/Road/Rail Network Design
• Organization Supply Chain Strategy
• JustinTime Manufacturing Planning
• Retail Shop floor Layout
• Revenue, Pricing and Promotions
• Demand Forecasting
• Project Planning
For eg : Linear Programming is mathematical modeling technique useful
for guiding quantitative decisions in business planning, industrial
engineering, and—to a lesser extent in the social and physical sciences.
www.ThesisScientist.com 13Benefits of Decision Support System
– Benefits of Decision Support System :
• Ability to view data and sensing the problem through the
• Ability to understand and evaluate the business
• Ability to understand the problem and its result, and ability
to judge the impact on business.
• Ability to evaluate the impact of any change in the business
performance and enabling to focus on the areas where
impact is negative.
• Ability to view the complex scenario or problem and to
analyze it and develop alternatives to solve the problem.
• Ability to make a better decisions due to quick analysis.
• Ability to control the risk exposure in decisions.
www.ThesisScientist.com 14Group Decision Support System
• Group Decision Support System
– Information technology supports decisionmaking
where there is a group participation. Such decision
support system is called as Group Decision Support
– GDSS has come to mean computer software and
hardware used to support group functions and
– GDSS supports Manager and Staff working in
www.ThesisScientist.com 15Group Decision Support System
• There are four configurations of group members
• Group members in one room operating on network with
common display screen to share the display for all members.
• Group members sit at their respective locations and use
their desktop to interact with other members.
• Group members are in different cities and they come
together through teleconferencing or video conferencing
with prior planning GDSS operations.
• Group members are at remote locations may be in different
countries and they come together through long distance
www.ThesisScientist.com 16GDSS Time/Place Environment
www.ThesisScientist.com 17WHY USE GDSS
• High level managers can spend 80 of their time
making decisions in groups. Applied correctly, GDSS
can reduce this time, arriving at a better decision
• GDSS provides the hardware, software, databases and
procedures for effective decision making.
www.ThesisScientist.com 18Advantages of GDSS
• Parallel Communication – eliminate monopolizing,
providing increased participation, better decisions
• Automated record keeping – no need to take notes,
they’re automatically recorded
• Ability for virtual meetings – only need hardware,
software and people connected
• Portability Can be set up to be portable…laptop
• Global Potential People can be connected across
www.ThesisScientist.com 19Disadvantages of GDSS
• Cost – infrastructure costs to provide the
hardware and software/room/network
connectivity can be very expensive
• Security – especially true when companies rent
the facilities for GDSS; also, the facilitator may be
a lower level employee who may leak information
• Technical Failure – power loss, loss of
connectivity, relies heavily on bandwidth and
LAN/WAN infrastructure properly setup system
should minimize this risk
www.ThesisScientist.com 20Enterprise Decision Support System
• The Enterprise Decision Support System is a
multidisciplinary organization that provides
technical and program/project leadership for
Departmental Information Technology,
applications and systems.
• Enterprise use decision support systems to
quickly perform complex analyses over large
amounts of data whose results are used to inform
critical business decisions.
www.ThesisScientist.com 21Enterprise and Decision Making
www.ThesisScientist.com 22Executive Decision Support System
• Executive Decision Support System is a
computerbased technology designed
specifically for the information needs of top
executives level and provides for:
– Rapid access to timely information;
– Direct access to management reports;
– Very user friendly and supported by graphics.
• Executive Decision Support Systems support
the informational roles of executives.
• Executive Support Systems – specialized
decision support systems designed to meet
the needs of senior management.
• Exception reporting – reporting of only the
results that deviate from a set of standards.
• Drill down reporting – investigating
information in increasing detail.
• Include analysis support, communications,
office automation and intelligence support.
• Knowledge is something that comes from
information processed by using data.
• Knowledge is applied by knowledge workers
who are involved in a particular job or task.
• People use their knowledge in making
decisions as well as many other actions
• Knowledge is information that is contextual,
relevant, and actionable.
www.ThesisScientist.com 25Data, Information and Knowledge
www.ThesisScientist.com 26Data, Information and Knowledge
refers to isolated facts such as individual
measurement No meaning on their own
fact about situation, person, events
www.ThesisScientist.com 27Knowledge Management
• Knowledge Management (KM) comprises a range
of strategies and practices used in an organization
to identify, create, represent, distribute, and
enable adoption of insights and experiences
• KM is a process that helps organizations identify,
select, organize, disseminate, and transfer
important information and expertise that are part
of the organization’s memory.
• KM is the process of systematically and actively
managing and leveraging stores of knowledge in
www.ThesisScientist.com 28Knowledge Management System
– Knowledge Management System refers to a (generally IT based)
system for managing knowledge in organizations for supporting
creation, capture, storage and distribution of information.
www.ThesisScientist.com 29Knowledge Management System
• Knowledge Management System
– Create : Knowledge must be created either within or
outside the organization. This is typically comprised of
iterative tacit and explicit loops until the knowledge is
ready for distribution for those outside the creating
– Store : Knowledge can be stored somewhere, either
tacitly or explicitly so that it is accessible for others to
find and use.
– Find : Those who need the specific knowledge must
then find out where it is, when they need it, by
searching in the right places and asking the right
www.ThesisScientist.com 30Knowledge Management System
– Acquire : Once the knowledge source is found, the
user will then go through the act of actually acquiring
it. This will involve gaining personal knowledge from
other humans or documented sources.
– Use : Once acquired, the knowledge can be put to use
towards some productive purpose.
– Learn : Having been used, perhaps repeatedly, the
user will learn what worked well and not so well as a
result of applying the knowledge gained. This can then
be taken as significant input into further iterations of
the knowledge creation and distribution process.
www.ThesisScientist.com 31Knowledge Management System
• IT that helps gather, organize, and share
business knowledge within an organization
• Hypermedia databases that store and
disseminate business knowledge. It may also
be called knowledge bases.
• Best practices, policies, business solutions
entered through the enterprise knowledge
www.ThesisScientist.com 32Knowledge Based Expert System
• A Knowledge Based System is a computer
program that uses artificial intelligence to
solve problems within a specialized domain
that ordinarily requires human expertise.
• Typical tasks for expert systems involve
classification, diagnosis, monitoring, design,
scheduling, and planning for specialized tasks.
• Knowledgebased system is a more general
than the expert system.
www.ThesisScientist.com 33KBS as Real world Problem Solvers
• Problemsolving power does not lie with smart
reasoning techniques nor clever search algorithms but
domain dependent realworld knowledge.
• Realworld problems do not have welldefined
• KBS allow this knowledge to be represented and
creates an explained solution.
• KBS draws upon the knowledge of human experts
captured in a knowledgebase to solve problems that
normally require human expertise.
• Uses Heuristic (causeandeffect) rather than
algorithms KBS as realworld problem solvers
www.ThesisScientist.com 34Knowledge Base
www.ThesisScientist.com 35Expert System
• Expert System is an extension of the decision support
• Expert system is an information system application that
captures the knowledge and expertise of a problem solver
or decision maker, and then simulates the ‘thinking’ of
that expert for those who have less expertise.
• Expert systems are implemented with artificial
intelligence technology, often called expert system shells.
• Expert System application areas in action
2.Telephone Network Maintenance
3.Detection of Common Metals
www.ThesisScientist.com 36Expert System Architecture
Architecture of a Typical Expert System
www.ThesisScientist.com 37Inference Engine
• An inference engine tries to derive answers from
a knowledge base.
• It is the brain of the expert systems that provides
a methodology for reasoning about the
information in the knowledge base, and for
• User Interface
– It enables the user to communicate with an expert
www.ThesisScientist.com 38Knowledge Engineer
• Knowledge Engineer
– A knowledge engineer is a computer scientist who
knows how to design and implement programs that
incorporate artificial intelligence techniques.
• Knowledge Engineering
– The art of designing and building the expert systems is
known as Knowledge Engineering, knowledge
engineers are its practitioners.
– Knowledge engineering relies heavily on the study of
human experts in order to develop intelligent skilled
www.ThesisScientist.com 39Knowledge Engineer
– The engineer then translates the knowledge into a
computer usable language, and designs an inference
engine, a reasoning structure, that uses the
– He/she also determines how to integrate the use of
uncertain knowledge in the reasoning process, and
what kinds of explanation would be useful to the end
– When the expert system is implemented, it may be:
– The inference engine is not just right
– Form of representation of knowledge is awkward
– An expert system is judged to be entirely successful
when it operates on the level of a human expert.
www.ThesisScientist.com 40Expert Systems
Characteristics of Expert System
• Like a human expert, an expert system is
• Be specialist : know facts and procedural rules
• Use heuristics : interpolate from known facts
• Justify its conclusions : to establish credibility and
• The user can ask: be able to learn : be able to
absorb new knowledge and apply it estimate the
reliability of its answer.
www.ThesisScientist.com 41Benefits of Expert System
• Benefits of Expert System
– Increased output and productivity
– Decreased decision making time
– Increased process and product quality
– Reduced downtime (machine failure detect and repair time)
– Capture of scarce expertise
– Easier equipment operation
– Elimination of the need for expensive equipment
– Operations in hazardous environments (no human required.)
– Ability to work with incomplete or uncertain information
– Knowledge transfer to remote locations
– Enhancement of other information systems
www.ThesisScientist.com 42Intelligent System
• Intelligent systems is a term that describes the various
commercial applications of AI.
• Artificial Intelligence (AI) is a subfield of computer science
– studying the thought processes of humans;
– recreating those processes via machines, such as
computers and robots.
• Behavior by a machine that, if performed by a human being,
would be considered intelligent.
• Turing test is a test for artificial intelligence, in which a human
interviewer, conversing with both an unseen human being
and an unseen computer, cannot determine which is which:
named for British Mathematician AI pioneer (Alan Turing).
www.ThesisScientist.com 43Artificial Intelligence
• A field of science and technology based on
disciplines such as computer science, biology,
psychology, linguistics, mathematics,
• At the machine level, think like human and act
like human means Artificial Intelligence.
• Goal is to develop computers that can think, see,
hear, walk, talk, and feel.
• Major thrust to development of computer
functions normally associated with human
intelligence reasoning, learning, problem solving
www.ThesisScientist.com 44Domains of Artificial Intelligence
• Domains of AI
– Three major areas
• Cognitive science
• Natural interfaces
• Cognitive science
– Focuses on researching how the human brain works how
humans think and learn
• Expert systems
• Adaptive learning systems
• Fuzzy logic systems
• Neural networks
• Intelligent agents
www.ThesisScientist.com 45Domains of Artificial Intelligence
– Produces robot machines with computer intelligence and
computer controlled, human like physical capabilities
• Natural interfaces
– Natural language and speech recognition
– Talking to a computer and having it understand
– Virtual reality
www.ThesisScientist.com 46Neural Networks
• Neural networks is a system of programs and data
structures that approximates the operation of the
• Neural networks are particularly good at recognizing
subtle, hidden and newly emerging patterns within
complex data as well as interpreting incomplete
www.ThesisScientist.com 47Virtual Reality
• Virtual reality is plainly speaking, seeing an imaginary
world, rather than the real one. Seeing, hearing,
smelling, testing, feeling. The imaginary world is a
simulation running in a computer. The sense data is
fed by some system to our brain.
• A medium composed of interactive computer
simulations giving users the feeling of being present
in the simulations.
www.ThesisScientist.com 48Why Virtual Reality is needed
– Operations in dangerous environments
• There are still many examples of people
working in dangerous or hardship
environments that could benefit from the use
of VRmediated teleportation.
• Workers in radioactive, space, or toxic
environments could be relocated to the safety
of a VR environment where they could handle
any hazardous materials without any real
danger using teleoperation or telepresence.
www.ThesisScientist.com 49Why Virtual Reality is needed
• Why Virtual Reality is needed
– Scientific Visualization
• Scientific Visualization provides the researcher with
immediate graphical feedback during the course of the
computations and gives him/her the ability to 'steer' the
• Application at NASA Ames Research Center is the Virtual
Planetary Exploration. It helps planetary geologists to
remotely analyze the surface of a planet. They use VR
techniques to roam planetary terrains.
• NASA VR Mars navigation simulation Geologists
remotely analyzing the surface of a planet at
www.ThesisScientist.com 50Why Virtual Reality is needed
• Why Virtual Reality is needed
• Until now experimental research and education in
medicine was mainly based on dissection and study of
plastic models. Computerized 3D human models
provide a new approach to research and education in
medicine. Experimenting medical research with virtual
patients will be a reality.
• We will be able to create not only realistic looking
virtual patients, but also histological and bone
structures. With the simulation of the entire physiology
of the human body.
www.ThesisScientist.com 51Why Virtual Reality is needed
• Why Virtual Reality is needed
– Education and training
• The most common example is the flight simulator. This
type of simulator has shown the benefits of simulation
environments for training. They have lower operating
costs and are safer to use than real aircraft.
• They also allow the simulation of dangerous scenarios
not allowable with real aircraft.
www.ThesisScientist.com 52Data Mining
– Data mining is the search for relationships and global patterns
that exist in large databases but are `hidden' among the vast
amount of data, such as a relationship between patient data and
their medical diagnosis.
– Data Mining is also known as knowledge Discovery in
– These relationships represent valuable knowledge about the
database and the objects in the database and, if the database is
a faithful mirror, of the real world registered by the database.
www.ThesisScientist.com 53Data Mining
– Data mining refers to using a variety of techniques to
identify nuggets of information or decisionmaking
knowledge in bodies of data, and extracting these in such a
way that they can be put to use in the areas such as
decision support, prediction, forecasting and estimation.
– The data is often voluminous, but as it stands of low value
as no direct use can be made of it; it is the hidden
information in the data that is useful.
www.ThesisScientist.com 54www.ThesisScientist.com 55Steps of a KDD Process
– Learning the application domain:
• relevant prior knowledge and goals of application
– Creating a target data set: data selection
– Data cleaning and preprocessing: (may take 60 of effort)
– Data reduction and transformation:
• Find useful features, dimensionality/variable reduction, invariant
– Choosing functions of data mining
• summarization, classification, regression, association, clustering.
– Choosing the mining algorithm(s)
– Data mining : search for patterns of interest
– Pattern evaluation and knowledge presentation
• visualization, transformation, removing redundant patterns, etc.
– Use of discovered knowledge
www.ThesisScientist.com 56Why is Data Mining necessary
• Make use of your data assets
• There is a big gap from stored data to
knowledge; and the transition won’t occur
• Many interesting things you want to find
cannot be found using database queries
“find me people likely to buy my products”
“Who are likely to respond to my promotion”
www.ThesisScientist.com 57Why Data Mining
• Credit ratings/targeted marketing:
– Given a database of 100,000 names, which persons are the least likely
to default on their credit cards
– Identify likely responders to sales promotions
• Fraud detection:
– Which types of transactions are likely to be fraudulent, given the
demographics and transactional history of a particular customer
• Customer relationship management:
– Which of my customers are likely to be the most loyal, and which are
most likely to leave for a competitor
www.ThesisScientist.com 58Data Warehouse
• Data Warehouse is a physical repository where
relational data are specially organized to provide
enterprisewide, cleansed data in a standardized
– Subject oriented, Integrated, Time Variant, Nonvolatile
– Webbased, Relational/multidimensional, Client/server,
– Include metadata
Data Warehousing is process of constructing and using data
warehouses which requires data integration, data cleaning, and
www.ThesisScientist.com 59Data Warehouse—SubjectOriented
– Organized around major subjects, such as
customer, product, sales
– Focusing on the modeling and analysis of data for
decision makers, not on daily operations or
– Provide a simple and concise view around
particular subject issues by excluding data that are
not useful in the decision support process
www.ThesisScientist.com 60Data Warehouse—Integrated
– Constructed by integrating multiple,
heterogeneous data sources
• relational databases, flat files, online transaction
– Data cleaning and data integration techniques are
• Ensure consistency in naming conventions, encoding
structures, attribute measures, etc. among different
– E.g., Hotel price: currency, tax, breakfast covered, etc.
• When data is moved to the warehouse, it is converted.
www.ThesisScientist.com 61Data Warehouse—Time Variant
– The time horizon for the data warehouse is
significantly longer than that of operational
• Operational database: current value data
• Data warehouse data: provide information from a
historical perspective (e.g., past 510 years)
– Every key structure in the data warehouse
• Contains an element of time, explicitly or implicitly
• But the key of operational data may or may not contain
www.ThesisScientist.com 62Data Warehouse—Nonvolatile
– A physically separate store of data transformed
from the operational environment
– Operational update of data does not occur in the
data warehouse environment
• Does not require transaction processing, recovery, and
concurrency control mechanisms
• Requires only two operations in data accessing:
– initial loading of data and access of data
www.ThesisScientist.com 63OLTP vs. OLAP
Divide IT systems into transactional (OLTP) and
In general, assume that OLTP systems provide
source data to data warehouses, whereas OLAP
systems help to analyze it.
– OLTP (online transaction processing)
• Major task of traditional relational DBMS
• Daytoday operations: purchasing, inventory, banking,
manufacturing, payroll, registration, accounting, etc.
– OLAP (online analytical processing)
• Major task of data warehouse system
• Data analysis and decision making
www.ThesisScientist.com 64OLTP Vs OLAP
www.ThesisScientist.com 65www.ThesisScientist.com 66Thank you