The system concept becomes even more useful

by including two additional components: feedback and

control. A system with feedback and control components
is sometimes called a cybernetic system, that is, a self-
monitoring, self-regulating system.
Feedback is data about the performance of a system. For
example, data about sales performance is feedback to a
sales manager.
Control involves monitoring and evaluating feedback to
determine whether a system is moving toward the
achievement of its goal. The control function then makes
necessary adjustments to a system’s input and porcessing
components to ensure that it produces proper output. For
example, a sales manager exercises control when
reassigning salespersons to new sales territories after
evaluating feedback about their sales performance.
 COMPONENTS OF AN
INFORMATION SYSTEM
An information system depends on the
resources of people (end users and IS specialists),
hardware (Machines and media), software
(programs and procedures), data (data and
knowledge bases), and networks (communications
media and network support) to perform input,
processing, output, storage, and control activities
that convert data resources into information
products.
 DATA VERSUS INFORMATION
The word data is the plural of datum, though
data commonly represents both singular and plural
forms. Data are raw facts or observations, typically
about physical phenomena or business transactions.
For example, a spececraft launch or the sale of an
automobile would generate a lot of data describing
those events.
People often use the terms data and information
interchangeably. However, it is better to view data as
raw material resources that are processed into
finished information products. Then we can define
information as data that have been converted into a
meaningful and useful context for specific end users.
 CROSS FUNCTIONAL
ENTERPRISE APPLICATIONS
Many companies today are using
information technology to develop integrated
cross-functional enterprise systems that cross
the boundaries of traditional business
functions in order to reengineer and improve
vital business processes all across the
enterprise.
 ENTERPRISES APPLICATION
ARCHITECTURE
Enterprise application architecture, which
illustrates the interrelationships of the major
cross-functional enterprise applications that
many companies have or are installing today.
Enterprise resource planning (ERP)
concentrates on the efficiency of a firm’s
internal production, distribution, and financial
processes. Customer relationship
management (CRM)
focuses on acquiring and retaining profitable customers via
marketing, sales, and service processes. Partner
relationship management (PRM) aims at acquiring and
retaining partners who can enhance the selling and
distribution of a form’s products and services. Supply chain
management (SCM) focuses on developing the most
efficient and effective sourcing and procurement processes
with suppliers for the products and services needed by a
business. Knowledge management (KM) applications focus
on providing a firm’s employees with tools that support
group collaboration and decision support.
How does a business interconnect some of the cross-
functional enterprise system? Enterprise Application
Integration (EAT) software is being used by many
companies to connect their major e-business applications.
 EAI software can integrate the fron-office and
back-office applications of a business so they work
together in a seamless, integrated way.

Enterprise application integration software

interconnects fron-office and back-office
 ENTERPRISES COLLABORATION
SYSTEMS
Enterprise collaboration systems (ECS)
are cross-functional information systems that
enchance communication, coordination, and
collaboration among the members of business
teams and workgroups. Information
technology, especially Internet technologies,
provides tools to help us collaborate-to
communicate ideas, share resources, and
coordinate our cooperative work efforts as
members of the many formal and informal
process and project teams and workgroups
that make up many of today’s organizations.
Thus, the goal of enterprise collaboration
systems is to enable us to work together more
easily and effectivly by helping us to :

 Communicate

 Coordinate

 Collaborate
Electronic communications, conferencing, and
collaborative work software tools enhance
enterprise collaboration.
 EXECUTIVE INFORMATION
SYSTEM
Executive Information Systems (EIS) are
information systems that combine many of the features
of management information systems and decision
support systems.
The first goal of executive information systems
was to provide top executives with immediate and easy
access to information about a firm’s critical success
factors (CSFs), that is, key factors that are critical to
accomplishing an organization’s strategic objectives. For
example, the executives of a retail store chain would
probably consider factors such as its e-commerce
versus traditional sales results or its product line mix to
be critical to its survival and success.
 ARTIFICIAL INTELLIGENCE
TECHNOLOGIES IN BUSINESS
Artificial intelligence (AI) technologies are
being used in a variety of ways to improve the
decision support provided to managers and business
professionals in many companies.
What is artifical intelligence? Artificial
Intelligence (AI) is a field of science and technology
based on disciplines such as computer science,
biology, psychology, linguistics, mathematics, and
engineering. The goal of AI is to develop computers
that can simulate the ability to think, as well as see,
hear, walk, talk and feel.
THE DOMAINS OF ARTIFICAL
INTELLIGENCE
Congnitive Science – This area of artifical
intelligence is based on research in biology,
neurology, psychology, mathematics, and
many allied disciplines. It focuses on
researching how the human brain works and
how humans think and learn.

Robotics – AI, engineering, and physiology

are the basic disciplines of robotics. This
technology produces robot machines with
computer intelligence and computer
controlled, human like physical capabilities.
Natural Interfaces – The development of
natural interfaces is considered a major area
of AI applications and is essential to the
natural use of computers by humans. For
example, the development of natural
languages and speech recognition are major
thrusts of this area of AI.

This involves research and development

in linguistics, psychology, computer science,
and other disciplines.
 EXPERT SYSTEMS
An expert system (ES) is a knowledge-
based information system that uses its
knowledge about a specific, complex application
area to act as an expert consultant to end users.
Expert systems provide answers to questions in
a very specific problem area by making
humanlike inferences about knowledge contained
in a specialized knowledge base.
So expert systems can provide decision
support to end users in the form of advice from
an expert consultant in a specific problem area.
 BENEFITS OF EXPERT
SYSTEMS
An expert system captures the expertise
of an expert or group of experts in a
computer-based information system. Thus, it
can outperform a single human expert in
many problem situations. That’s because an
expert system is faster and more consistent,
can have the knowledge of several experts,
and does not get tired or distracted by over
work or stress.
 LIMITATIONS OF EXPERT
SYSTEMS
The major limitations of expert systems
arise from their limited focus, inability to learn,
maintenance problems, and developmental cost.
Expert systems excel only in solving specific
types of problems in a limited domain of
knowledge.

Expert systems may also be difficult and costly to

develop and maintain properly.
 NEURAL NETWORKS
Neural Networks are computing systems modeled after
the brain’s meshlike network of interconnected processing
elements, called neurons. However, like the brain, the
interconnected processors in a neural network operate in
parallel and interact dynamically with each other. This
enables the network to “learn” from data it processes.

It learns to recognize patterns and relationships in this

data. The more data examples it receives as input, the better
it can learn to duplicate the results of the examples it
processes.

For example, a neural network can be trained to learn

which credit characteristics result in good or bad loans.
 MODERN NEUROSURGERY:
NEURAL NETS HELP SAVE LIVES
A new technique, which is a combination of
hardware and software, has been developed which gives
neurosurgeons the ability to find way through the brain
while doing less damage as they operate. The primary
piece of the hardware is a robotic probe that has on its tip
several miniature sensors: an endoscope that transmits
images and instruments that measure tissue density and
blood flow. This probe is inserted into the brain and guided
through it by a robotic mechansim which is more precise
and accurate than human hands.
This new technique gives surgeons finer control of
surgical instruments during delicate brain operations.
Overall, the new technique will increase the safety,
accuracy, and efficiency of surgical procedures
 FUZZY LOGIC SYSTEMS
In spite of the funny name, Fuzzy logic systems
represent a small, but serious application of AI in
business. Fuzzy logic is a method of reasoning that
resembles human reasoning since it allows for
approximate values and inferences (fuzzy logic) and
incomplete and incomplete or ambiguous data (fuzzy
data) instead of relying only on crisp data, such as
binary (yes/on) choices.
Many models of Japanese-made products also feature
fuzzy logic microprocessors. The list is growing, but
includes autofocus cameras, autostabilizing camcorders,
energy-efficient air conditioners, self adjusting washing
machines, and automatic transmissions.
 VIRTUAL REALITY
Virtual reality (VR) is a computer-simulated
reality. Virtual reality is a fast-growing area of
artificial intelligence. So virtual reality relies on
multisensory input/output devices such as a tracking
head-set with video goggles and stereo earphones,
a data glove or jumpsuit with fiber-optic sensors that
track your body movements, and a walker that
monitors the movement of your feet.
For example, you can enter a computer-
generated virtual world, look around and observe its
contents, pick up and move objects, and move
around in it at will.
 VR
APPLICATIONS
Current applications of virtual reality are
wide ranging and include computer-aided
design (CAD), medical diagnostics and
treatment, scientific experimentation in many
physical and biological sciences, flight
simulation for training pilots and astronauts,
product demonstrations, employee training,
and entertainment.