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Lecture 1-Overview of Intelligence Systems and AI

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17 views32 pages

Lecture 1-Overview of Intelligence Systems and AI

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afranealfred40
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LECTURE 1

OVERVIEW OF BUSINESS INTELLIGENCE, ANALYTICS, DATA SCIENCE,


AND ARTIFICIAL INTELLIGENCE: SYSTEMS FOR DECISION SUPPORT
LEARNING OBJECTIVES

i. Understand the need for computerized support of managerial decision making.


ii. Understand the development of systems for providing decision-making support.
iii. Recognize the evolution of such computerized support to the current state of analytics/data
science and artificial intelligence.
iv. Describe the business intelligence (BI) methodology and concepts.
v. Understand the different types of analytics and review selected applications.
vi. Understand the basic concepts of artificial intelligence (AI) and see selected applications.
vii. Understand the analytics ecosystem to identify various key players and career opportunities.
CHANGING BUSINESS ENVIRONMENTS AND EVOLVING
NEEDS FOR DECISION SUPPORT AND ANALYTICS

• Big-bet, high-risk decisions.


• Cross-cutting decisions, which are repetitive but high risk that
require group work.
• Ad hoc decisions that arise episodically.
• Delegated decisions to individuals or small groups.
DECISION MAKING PROCESS
The four step managerial process:
• Define the problem
• Construct a model
• Identify and evaluate possible solutions
• Compare, choose, and recommend a solution to the problem
DECISION MAKING PROCESS
A more detailed process is offered by Quain (2018):
1. Understand the decision you have to make.
2. Collect all the information.
3. Identify the alternatives.
4. Evaluate the pros and cons.
5. Select the best alternative.
6. Make the decision.
7. Evaluate the impact of your decision.
THE INFLUENCE OF THE EXTERNAL AND
INTERNAL ENVIRONMENTS ON THE PROCESS

• Technology, IS, Internet, globalization, …


• Government regulations, compliance, …
• Political factors
• Economic factors
• Social and psychological factors
• Environment factors

• Need to make rapid decision, changing market conditions, …


TECHNOLOGIES FOR DATA ANALYSIS AND
DECISION SUPPORT
• Group communication and collaboration
• Improved data management
• Managing giant data warehouses and Big Data
• Analytical support
• Overcoming cognitive limits
• Knowledge management
• Anywhere, anytime support
• Innovation and artificial intelligence
DECISION-MAKING PROCESSES AND
COMPUTERIZED DECISION SUPPORT
FRAMEWORK
• What is “Decision making”?
• Simon’s Decision Making Process
• Proposed in 1977 by Herbert Alexander Simon (an American economist and political scientist)
• Includes three phases:
1. Intelligence
2. Design
3. Choice
4. [+] Implementation
5. [+] Monitoring
THE DECISION-MAKING PROCESS
DECISION-MAKING PROCESSES

Phase 1 - The Intelligence Phase: Problem (or Opportunity)


Identification
• Issues in data collection
• Problem classification
• Problem decomposition
• Problem ownership
DECISION-MAKING PROCESSES

Phase 2 - The Design Phase


• Models
Phase 3 - The Choice Phase
• Evaluating alternatives
Phase 4 - The Implementation Phase
• Implementing the solution

Phase 5 – Monitoring
• Phase 4 and 5 were not part of Simons’ original model
THE CLASSICAL DECISION SUPPORT
SYSTEM FRAMEWORK

• Degree of structuredness
• Structured, unstructured, semistructured problems

• Type of control
• Operational, managerial, strategic

• The decision Support matrix


• Computer support for …
• Structured decisions
• Unstructured decisions
• Semistructured problems
DECISION SUPPORT FRAMEWORK
KEY CHARACTERISTICS AND CAPABILITIES
OF DECISION SUPPORT SYSTEM (DSS)
COMPONENTS OF A DSS

• The Data
Management System
• DSS database
• Database management
system (DBMS)
• Data directory
• Query facility
COMPONENTS OF A DSS

• The Model Management Subsystem


• Model base
• MBMS
• Modeling language
• Model directory
• Model execution, integration, and command processor

• The User Interface Subsystem


• The Knowledge-Based Subsystem
EVOLUTION OF COMPUTERIZED DECISION SUPPORT TO
BUSINESS INTELLIGENCE, ANALYTICS, DATA SCIENCE

Figure 1.5 Evolution of Decision Support, Business Intelligence,


Analytics, and AI.
A FRAMEWORK FOR BUSINESS
INTELLIGENCE

• Definitions of business intelligence (BI)


• A brief history of BI
• The architecture of BI
• Data warehousing (DW) [as a foundation of BI]
• Business performance management (BPM)
• User interface (dashboard)

• Transaction processing versus analytics processing


• Appropriate planning and alignment of BI with the business strategy
EVOLUTION OF BUSINESS INTELLIGENCE
(BI)
THE ORIGINS AND DRIVERS OF BI
Figure 1.7 A High-Level Architecture of BI.

Source: Based on W. Eckerson. (2003). Smart Companies in the 21st Century:The Secrets of Creating
Successful Business Intelligent Solutions Seattle, WA: The Data Warehousing Institute, p. 32, Illustration 5.
DATA WAREHOUSE FRAMEWORK
A MULTIMEDIA EXERCISE IN BI
• Teradata University Network (TUN)
• BSI (Business Scenario Investigations) [like CSI]
• Go to
https://www.teradatauniversitynetwork.com/Library/Items/BSI-
The-Case-of-the-Misconnecting-Passengers/ or
www.youtube.com/watch?v=NXEL5F4_aKA
• Watch the video
• Analyze the video - www.slideshare.net/teradata/bsi-how-we-
did-itthe-case-of-the-misconnecting-passengers
ANALYTICS OVERVIEW
ANALYTICS OVERVIEW

• Three types of analytics


• Descriptive (or reporting) analytics …
• Predictive analytics …
• Prescriptive analytics …

• Analytics applied to different domains


• Analytics or data science?
• What is Big Data?
ANALYTICS EXAMPLES IN SELECTED
DOMAINS

• Sports Analytics—An Exciting Frontier for Learning and Understanding Applications of


Analytics
• Example 1: Business office
• Example 2: The Coach
• Healthcare—Humana Examples
• Example 1: Preventing Falls in a Senior Population
• Example 2: Define the Right Metrics
• Example 3: Predictive Models to Identify the Highest Risk Membership in a Health
Insurer
• Retail—Retail Value Chain …
• Image Analytics
ANALYTICS EXAMPLES IN SELECTED
DOMAINS
• Retail …

Figure 1.15 Example of Analytics Applications in a Retail Value Chain.

Source: Contributed by Abhishek Rathi, C E O, vCreaTek.com.


ARTIFICIAL INTELLIGENCE OVERVIEW

• What Is artificial intelligence (AI)?


• Technology that can learn to do things better over time.
• Technology that can understand human language.
• Technology that can answer questions.

• The major benefits of AI


• Reduction in the cost of performing work.
• Work can be performed much faster.
• Work is more consistent than human work.
• Increased productivity, profitability, …
THE LANDSCAPE OF AI

• Major technologies
• Knowledge-based technologies
• Biometric related technologies

• Tools and platforms …


• AI applications …
• Narrow (weak) versus general (strong) AI
• The three flavors of AI decisions
• Assisted intelligence
• Autonomous AI
• Augmented Intelligence
SOCIETAL IMPACTS OF AI

• Impact on agriculture
• Contribution to health and medical care
• Other societal applications
• Transportation
• Utilities
• Education
• Social services
• Smart cities
CONVERGENCE OF ANALYTICS AND AI

• Major differences between analytics and ai


• Why combine intelligent systems?
• How convergence can help?
• Big Data Is empowering AI technologies
• The convergence of AI and the IoT
• The convergence with blockchain and other technologies
• IBM and Microsoft support for intelligent systems convergence
OVERVIEW OF ANALYTICS ECOSYSTEM
THANK YOU.

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