UNIT
I
Management
information system:
A Management
Information System is an information system that evaluates, analyzes, and
processes an organization's data to produce meaningful and useful information
based on which the management can take right decisions to ensure future growth
of the organization.
Information
systems and technologies have become a vital component of successful businesses
and organizations. They thus contribute
an essential field of study in business administration and management. Information technologies including
internet-based information systems can help all kinds of business improve the
efficiency and effectiveness of their business processes, managerial decision
making, and workgroup collaboration and thus strengthen their competitive
positions in a rapidly changing marketplace.
The field of
information systems encompasses many complex technologies, abstract behavioural
aspects and specialized applications in countless business and non-business
areas. As a manager or business end
user, it is not necessary to absorb all of this knowledge.
A conceptual
framework is given which outlines what end users need to know about
information systems? This framework
focuses on 5 major areas of information systems knowledge needed by business
end users.
i)
Foundation Concepts: Fundamental behavioural and technical
concepts that will help to understand the importance and use of information
systems.
ii)
Technology concepts: major concepts, developments and management
issues in information technology – (i.e) hardware, software, network, database
management and other information processing technologies.
iii)
Application concepts: The major uses of information systems are for
the operations, management, and competitive advantage of an enterprise.
iv)
Development Concepts: How end users/information specialists develop
information systems solutions to business problems using fundamental
problem-solving and developmental technologies.
v)
Management concepts: The challenges of effectively and ethically
managing the resources and business strategies involved in using information
technology at the end user enterprise and global levels of a business.
What is
Management Information System (MIS)?
MIS is not new;
only its computerization is new. Before
computers, MIS techniques existed to supply managers with the information that
would permit them to plan and control operations. The computer has added one or more
dimensions, such as speed, accuracy, and increased volumes of data, that helps
in effective decision making by the management. The
scope and purpose of MIS is better understood if each part of the term
is well defined. Thus,




Management Management comprises the processes or
activities that describe what managers do in the operation of their
organization: plan, organize, initiate, and control operations. They plan by setting strategies and goals and
selecting the best course of action to achieve the plan. They organize the tasks necessary for the
operational plan, set these tasks up into homogeneous groups and assign
authority delegation. They control the
performance o fthe work by setting performance standards and avoiding
deviations from standard.
Because decision making is such a
fundamental prerequisite to each of the foregoing processes, the job of an MIS
becomes that of facilitating decisions necessary for planning, organizing, and
controlling the work and functions of the business.
Information
Data must be distinguished from information,
and this distinction is clear and important for our purposes. Data are facts and figures that are not
currently being used in a decision process and usually take the form of
historical records that are recorded and filed without immediate intent to
retrieve for decision-making. An example
would be any one of the supporting documents, ledgers, and so on that comprise
the source material for profit and loss statements.
Information
consists of data that have been retrieved, processed, or otherwise used for
informative purpose, argument or as a basis for forecasting or
decision-making. Example: ledger to be used by internal management for
profit planning and control.
Systems
A system can be
described simply as a set of elements joined together for a common
objective. A subsystem is a part of
larger system with which we are concerned.
All systems are parts of larger systems.
For ex. Organisation is the system and the parts (divisions, departments,
functions, units etc.) are the subsystems.
Thus MIS is a system that is
designed to provide information support to management for decision-making
purpose.
Definition of
MIS
1) Gordon
B.Davis defines Management Information System as
(i)
An
integrated user machine system,
(ii)
For
providing information,
(iii)
To
support the operations, management and decisionmaking functions in an
organization.
The system utilizes:
(i) Computer
hardware and software,
(ii)Manual procedures,
(iii)
Models
for analysis, planning, control, and decision-making, and
(iv)
A
database.
2) Jerome
Kanter defines MIS as
“A system that aids management in
making, carrying out and controlling decisions”
Characteristics
of MIS
Jerome Kanter in
his work titled “Management Information Systems” mentions several
characteristics of MIS. Some of them are
as follows:
(i)
MIS is management oriented: The designing
of MIS takes care of the managers, who meet the information requirement. The development of the system starts after deciding
the management needs and keeping in view the overall objectives of the
management.
(ii)
Management directed: Since MIS requires heavy planning and
investment; management is deeply involved in the design, implementation and
maintenance of the system.
(iii)
Integrated System:
MIS is the ‘Catalyst and Nervecentre’ of an organization. It has a number of subsystems. In order to make these systems effective, it
becomes necessary that they have to be viewed as an integrated system, so that
the result is balanced. It binds
together databases of all subsystems of the business system and through
information interchange, integrates the organization.
(iv)
Avoids redundancy in data storage: Since MIS is
an integrated system, it avoids unnecessary duplication and redundancy in data
gathering and storage.
(v)
Common data flow:
To achieve the objective of integration and to avoid duplication and
redundancy, data capturing is usually confined to original source and it is
done only once. Common data flow tries
to utilize minimum data processing effort and strives to minimize the number of
output documents and reports. This type
of integration can avoid duplication, simplify operations and produce an
effective MIS. But separate files should
be opened which is significant to one application with the use of common data
flow
(vi)
Heavy Planning element: Design and implementation of MIS requires
detailed and meticulous planning of such activities as acquisition and
deployment of hardware, software, human ware, data processing operations, information
presentation and feedback.
(vii)
Subsystem concept: MIS gives provision for
breaking into various subsystems based on the activity as well the functions of
the organizations, so that effective implementation of each subsystem is
possible at a time.
(viii)
Common database: It acts as a master that holds
the functional subsystems together. It
achieves this aim by allowing access to different master files of data to
several functional subsystems. Data
requirements for different levels of management also support the need of more
than one database, unique databases and common database.
(ix)
Flexibility and ease of use: The MIS is
designed flexible enough to accommodate new requirements. The system is easy to operate so that not
much computer skills are required on the part of the user to access database
for information or for carrying out special analysis of data.
Objectives of
MIS
Capturing
Data: Capturing
contextual data, or operational information that will contribute in decision
making from various internal and
external sources of organization.
Processing Data: The captured data is processed
into information needed for planning, organizing, coordinating, directing and
controlling functionalities at strategic, tactical and operational level.
Processing data means:
making
calculations with the data
sorting data
classifying
data and
summarizing
data
Information Storage: Information or processed data
need to be stored for future use.
Information
Retrieval: The system should be able to retrieve this information from the
storage as and when required by various users.
Information
Propagation: Information or the finished product of the MIS should be
circulated to its users periodically using the organizational network.
CHARACTERISTICS OF
MIS
Following are the characteristics of an MIS:
Ø
It
should be based on a long-term planning.
Ø
It
should provide a holistic view of the dynamics and the structure of the
organization.
Ø
It
should work as a complete and comprehensive system covering all interconnecting
sub-systems within the organization.
Ø
It
should be planned in a top-down way, as the decision makers or the management
should actively take part and provide clear direction at the development stage
of the MIS.
Ø
It
should be based on need of strategic, operational and tactical information of
managers of an organization.
Ø
It
should also take care of exceptional situations by reporting such situations.
Ø
It
should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can take
actions on the basis of such predictions.
Ø
It
should create linkage between all sub-systems within the organization, so that
the decision makers can take the right decision based on an integrated view.
Ø
It
should allow easy flow of information through various sub-systems, thus
avoiding redundancy and duplicity of data. It should simplify the operations
with as much practicability as possible.
Ø
Although
the MIS is an integrated, complete system, it should be made in such a flexible
way that it could be easily split into smaller sub-systems as and when
required.
Ø
A
central database is the backbone of a well-built MIS.
TYPES
OF MIS
A management
information system (MIS) is a computer-based system that provides the
information necessary to manage an organization effectively. An MIS should be
designed to enhance communication among employees, provide an objective system
for recording information and support the organization's strategic goals and
direction.
1.
TRANSACTION PROCESSING SYSTEM
Transaction-processing
systems are designed to handle a large volume of routine, recurring
transactions. They were first introduced in the 1960s with the advent of
mainframe computers. Transaction-processing
systems are used widely today. Banks use them to record deposits and payments
into accounts. Supermarkets use them to record sales and track inventory.
Managers often use these systems to deal with such tasks as payroll, customer
billing and payments to suppliers. 2. OPERATION INFORMATION SYSTEM
Operations
information systems were introduced after transaction-processing systems. An
operations information system gathers comprehensive data, organizes it and
summarizes it in a form that is useful for managers. These types of systems
access data from a transaction-processing system and organize it into a usable
form. Managers use operations information systems to obtain sales, inventory,
accounting and other performance-related information
3.
DECISION SUPPORT SYSTEM
A
DSS is an interactive computer system that can be used by managers without help
from computer specialists. A DSS provides managers with the necessary
information to make informed decisions. A DSS has three fundamental components:
database management system (DBMS), which stores large amounts of data relevant
to problems the DSS has been designed to tackle; model-based management system
(MBMS), which transforms data from the DBMS into information that is useful in
decision-making; and dialog generation and management system (DGMS), which
provides a user-friendly interface between the system and the managers who do
not have extensive computer training.
4. EXPERT SYSTEMS AND ARTIFICIAL INTELLIGENCE
Expert systems and artificial
intelligence use human knowledge captured in a computer to solve problems that
ordinarily need human expertise. Mimicking human expertise and intelligence
requires the computer to do the following: recognize, formulate and solve a
problem; explain solutions; and learn from experience. These systems explain
the logic of their advice to the user; hence, in addition to solving problems
they also can serve as a teacher. They use flexible thinking processes and can
accommodate new knowledge.
BENEFITS
OF MIS
The benefits of MIS
systems to businesses, governments, scientists, universities, students,
nonprofits and all other entities are diversified. Some of the examples include
the following:
Implementation of Management by Objectives (MBO) techniques: MIS
allows all participants, both management and staff, to view, analyze, and
interpret useful data to set goals and objectives.
Generates competitive advantages: Businesses succeed or fail
based on how they face competitive challenges. MIS, if implemented properly,
provides a wealth of information to allow management to construct effective
plans to meet, and beat, their competitors.
Fast reaction to
market changes: The victory often goes to the quick, not necessarily the best.
MIS can deliver facts, data and trends to businesses with lightning speed.
Having this information allows companies to react quickly to market changes,
regardless of the type (positive or negative) of volatility.
EVOLUTIONS
OF MIS
Before the 1960s, the
role of most information systems was simple. They were mainly used for
electronic data processing (EDP), purposes such as transactions processing,
record-keeping and accounting. EDP is often defined as the use of computers in
recording, classifying, manipulating, and summarizing data. It is also called
transaction processing systems (TPS), automatic data processing, or information
processing. Transaction processing systems as the name implies process data
gotten from business transactions, update operational databases, and produce
business documents. Examples: sales and inventory processing and accounting
systems.
In the 1960s, another
role was added to the use of computers: the processing of data into useful
informative reports. The concept of management information systems (MIS) was
born. This new role focused on developing business applications that provided
managerial end users with predefined management reports that would give
managers the information they needed for decision-making purposes.
By the 1970s, these
pre-defined management reports were not sufficient to meet many of the
decision-making needs of management. In order to satisfy such needs, the
concept of decision support systems (DSS) was born. The new role for
information systems was to provide managerial end users with ad hoc and
interactive support for their decision-making processes.
Decision
support systems (DSS)
– provide interactive ad hoc support for the decision-making processes of
managers and other business professionals. Examples: product pricing,
profitability forecasting and risk analysis systems. In the
1980s, the introduction of microcomputers into the workplace ushered in a new
era, which led to a profound effect on organizations. The rapid development of
microcomputer processing power (e.g. Intel‘s Pentium microprocessor),
application software packages (e.g. Microsoft Office), and telecommunication
networks gave birth to the phenomenon of end user computing. End users could
now use their own computing resources to support their job requirements
instead of waiting for the indirect
support of a centralized corporate information services department. It became
evident that most top executives did not directly use either the MIS reports or
the analytical modelling capabilities of DSS, so the concept of executive
information systems (EIS) was developed.
Executive
information systems –
provide critical information from MIS, DSS and other sources, tailored to the
information needs of executives. Examples: systems for easy access to analysis
of business performance, actions of all competitors, and economic developments
to support strategic planning Moreover, breakthroughs occurred in the
development and application of artificial intelligence (AI) techniques to
business information systems. With less need for human intervention, knowledge
workers could be freed up to handle more complex tasks. Expert systems (ES) and
other knowledge management systems (KMS) also forged a new role for information
systems. ES can serve as consultants to users by providing expert advice in
limited subject areas.
Expert systems:
knowledge-based systems that provide expert advice and act as expert
consultants to users. Examples: credit application advisor, process monitor,
and diagnostic maintenance systems.
Knowledge management
systems: knowledge-based systems that support the creation, organization and
dissemination of business knowledge within the enterprise. Examples: intranet
access to best business practices, sales proposal strategies and customer
problem resolution systems.
The mid- to late 1990s saw the
revolutionary emergence of enterprise resource planning (ERP) systems. This
organization-specific form of a strategic information system integrates all
facets of a firm, including its planning, manufacturing, sales, resource management,
customer relations, inventory control, order tracking, financial management,
human resources and marketing – virtually every business function. The primary
advantage of these ERP systems lies in their Types of
Information Systems
Transaction Processing Systems
Transaction processing systems (TPS) are the basic business
systems that serve the operational level of the organization. A transaction
processing system is a computerized system that performs and records the daily
routine transactions necessary to the conduct of the business [4]. At the
lowest level of the organizational hierarchy we find the transaction processing
systems that support the day-to-day activities of the business
Process Control Systems
Process control systems is Monitor
and control industrial or physical processes. Examples: petroleum refining,
power generation, and steel production systems. For example, a petroleum
refinery uses electronic sensors linked to computers to monitor chemical
processes continually and make instant (real-time) adjustments that control the
refinery process [1] .A process control system comprises the whole range of:
equipment, computer programs, operating procedures
Enterprise Collaboration Systems
(Office Automation Systems) Office automation systems are one of the most
widely used types of information systems that will help managers control the
flow of information in organizations [9]. Enterprise collaboration systems
(office automation systems) are enhance team and workgroup communications and
productivity [1].Office automation systems are other types of information
systems are not specific to any one level in the organization but provide
important support for a broad range of users [7]. Office information systems
are designed to support office tasks with information technology. Voice mail,
multimedia system, electronic mail, video conferencing, file transfer, and even
group decisions can be achieved by office information systems
Decision Support Systems
A Decision Support System is a
computer based system intended for use by a Particular manager or usually a
group of managers at any organizational level in
Expert Systems
Expert systems are the category of
AI which has been used most successfully in building commercial applications .According
to O’Brien & Marakas Expert systems
are Knowledge-based systems that provide expert advice and act as expert
consultants to users. According to Patterson an expert system is a computer
program that tries to emulate human reasoning. According to Shim Expert System
is a set of computer programs that perform a task at the level of a human
expert.
Strategic Information Systems
Strategic information systems apply
information technology to a firm’s products, services, or business processes to
help it gain a strategic advantage over its competitors. According to Belle, et
al.,Strategic information systems are an important special type of
organizational information system is used to secure or sustain competitive
advantage in the market place
KNOWLEDGE MANAGEMENT
SYSTEM
All the systems we are discussing here come under
knowledge management category. A knowledge management system is not radically
different from all these information systems, but it just extends the already
existing systems by assimilating more information.
As we have seen, data is raw facts, information is
processed and/or interpreted data, and knowledge is personalized information.
WHAT
IS KNOWLEDGE
v Personalized
information
v State
of knowing and understanding
v An
object to be stored and manipulated
v A
process of applying expertise
v A
condition of access to information
v Potential
to influence action
SOURCES
OF KNOWLEDGE OF AN ORGANISATION
Intranet
Data
warehouses and knowledge repositories
Decision support tools
Groupware for
supporting collaboration
Networks of
knowledge workers
Internal
expertise
Definition of KMS
A knowledge management system comprises a range of
practices used in an organization to identify, create, represent, distribute,
and enable adoption to insight and experience. Such insights and experience
comprise knowledge, either embodied in individual or embedded in organizational
processes and practices.
PURPOSE
Ø
Improved
performance
Ø
Competitive
advantage
Ø
Innovation
Ø
Sharing
of knowledge
Ø
Integration
Ø
Continuous
improvement by:
Ø
Driving
strategy
Ø
Starting
new lines of business
Ø
Solving
problems faster
Ø
Developing
professional skills
Ø
Recruit
and retain talent 

Conceptual
Structure of MIS
The conceptual
structure of MIS is defined as a federation of functional subsystems, each of
which is divided into four major information processing components like
transaction processing, operational control information system support,
management control information support and strategic planning information
system support. Each of the functional
subsystems of the information system has some unique data files that are used
only by that subsystem. There are also
files that need to be available for general retrieval. These files are organized into a general
database managed by a database management system. There is also common software in addition to
application programs written specially to each subsystem. Each subsystem has linkage to the common
applications that serve multiple functions.
There are also many analytical and decision models that can be used by
many applications.
The Management
Information System as a Pyramid
Given below is
MIS as a pyramid. The amount of
information processing resources required varies by level of management
activity. Transaction processing is
substantially more significant in terms of processing time, data volume etc.,
than strategic planning and provides the base for all other internal
information support. The concept of the large transaction processing base and a
fairly small strategic planning component can be visualized as a pyramid. The lower part of the pyramid describes
structured, well defined procedures and decisions; while the top part represents
more adhoc, unstructured processes and decisions. The bottom levels are of more use to clerical
personnel and lower-level managers, while the higher levels apply primarily to
top management.
EXPERT SYSTEMS
- One of the most practical & widely
implemented applications of artificial intelligence in business is the
development of expert systems and other knowledge-based information
systems.
- A Knowledge-Based Information System (KBIS)
adds a knowledge base to the major components found in other type of
computer-based information 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 provides answer to questions in
a very specific problem area by making human like inferences about
knowledge contained in a specialised knowledge base.
- They must be able to explain their reasoning
process and conclusions to a user.
- So expert systems can provide decision support
to end users in the form of advice from an expert consultant in a specific
problem area.
Components
of an Expert System:
The components of an
expert system include a knowledge base and software modules that perform
inferences on the knowledge and communicate answers to a user’s questions.
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Knowledge
Base:
- The Knowledge Base of an expert system contains
(1) facts about a specific subject area (for ex., John is an analyst) and
(2) heuristics (rules of Thumb) that express the reasoning procedures of
an expert on the subject (for ex, If John is an analyst, Then he needs a
workstation)
- There are many ways that knowledge is
represented in expert systems. Examples are rule-based, frame based,
object-based and case-based methods of knowledge representation.
Methods
of Knowledge Representation:
- Case-Based
Reasoning Representing knowledge in an expert system’s
knowledge base in the form of cases that is example of past performance,
occurrences and experiences.
- Frame-Based
Knowledge represented in the form of a hierarchy or
not-work of frames. A frame is a
collection of knowledge about an entity consisting of a complex package of
data values describing its attributes.
- Object-Based
knowledge Knowledge represented as a network of objects.
An object is a data element that includes both data and the methods or
processes that act on those data.
- Rule-Based
knowledge Knowledge represented in the form of rules and
statements of fact. Rules are statements that typically take the form of a
premise and a conclusion such as: If(condition), then(Conclusion).
Software
Resources:
·
An expert system software package contains an
inference engine and other programs for refining knowledge and communicating
with users.
- The Inference engine program processes the
knowledge (such as rules and facts) related to a specific problem.
- It then makes associations and inferences
resulting in recommended courses of action for a user.
- User interface programs for communicating with
end users are also needed, including an explanation program to explain the
reasoning process to a user if requested.
- Knowledge acquisition programs are not part of
an expert system but are software tools for knowledge base development, as
are expert system shells, which are used for developing expert systems.
Expert System
Applications:
- Using an expert system involves an interactive
computer based session in which the solution to a problem is explored,
with the expert system acting as a consultant to an end user.
- The expert system asks questions of the user,
searches its knowledge base for facts and rules or other knowledge,
explains its reasoning process when asked, and gives expert advice to the
user in the subject area being explored.
- Expert systems are being used for many
different types of applications and is used to accomplish one or more
generic uses.
- Ex. ADCAD (Advertising Communication Approach
Design) is an Expert systems to assist and agencies.
Major Application
Categories of E.S.
- Decision Management – Systems that appraise
situations or Consider alternatives and make recommendations based on
criteria supplied during the discovery process:
- Loan
portfolio analysis
- Employee
performance evaluation
- Insurance
Underwriting
- Demographic
forecasts
- Diagnostic/troubleshooting – System that infer
underlying causes from reported symptoms & history:
- Equipment
Calibration
- Help
desk operations
- Software
debugging
- Medical
diagnosis
- Maintenance/Scheduling – Systems that
prioritise and schedule limited or time-critical resources
- Maintenance
scheduling
- Production
scheduling
- Education
scheduling
- Project
Management
- Design/Configuration – Systems that help
configure equipment components, given existing constraints
- Computer
option installation
- Manufacturability
studies
- Communication
networks
- Optimum
Assembly plan
- Selection/Classification – Systems that help
users choose products or processes, often from among large or complex sets
of alternatives.
- Material
selection
- Delinquent
account identification
- Information
classification
- Suspect
identification
- Process Monitoring/Control – Systems that
monitor and control procedures or processes
- Machine
control (including robotics)
- Inventory
Control
- Production
Monitoring
- Chemical
testing
Developing
Expert Systems:
- The easiest way to develop an expert system is
to use an expert system shell as a development tool
- An expert system shell is a software package
consisting of an expert system without its kernel, that is knowledge base.
- This leaves a shell of software (the interface
engine and user interface programs) with generic inferencing and user
interface capabilities
- Other development tools (such as rule editors
and user interface generators) are added in making the shell a powerful
expert system development tool
- Expert system shells are now available as
relatively low-cost software packages that help users develop their own
expert systems on microcomputers. They allow trained users to develop the
knowledge base for a specific expert systems application.
- For ex. One shell uses a spreadsheet format to
help end users develop IF-THEN rules, automatically generating rules based
on examples furnishing by a user.
- Once a knowledge base is constructed, it is
used with the shell is inference engine & user interface modules as a
complete expert system on a specific subject area.
- Other software tools may require an IT
specialist to develop expert systems.
Knowledge
Engineering:
- A Knowledge Engineer is a professional who
works with exports to capture the knowledge (facts and rules of thumb)
possess.
- The Knowledge engineer then builds the
Knowledge base (and the rest of the expert systems if necessary), using an
iterative, prototyping process until the expert system is acceptable.
- Thus, Knowledge engineers perform a role
similar to that of systems analysts in conventional informational system
development.
- Once the decision is made to develop an expert
system, a team of one or domain experts and a Knowledge engineer may be
found.
- Or experts skilled in the use of expert system
shells could develop their own expert systems.
- If a shell is used, facts and rules of thumb
about a specific domain can be defined and entered into a knowledge base
with the help of a rule editor or other knowledge acquisition to.
- A limited working prototype of the knowledge
base is then constructed, tested and evaluated using the inference engine
and user interface programs of the shell.
- The knowledge engineer and domain experts can
modify the knowledge base, then retest the system and evaluate the
results.
- This process is repeated until the knowledge
base and the shell result in an acceptable expert system.
The
value of Expert Systems:
Obviously,
- Expert Systems are not the answer to every
problem facing an organisation
- People using other types of information systems
do quite well in many problem situations.
- So, what types of problems are most suitable
for expert systems solutions?
- The answer is to look into the current
applications of expert systems & criteria for application of expert
systems.
Suitability
Criteria for Expert Systems:
- Domain: The domain or Subject area, of the
problem is relatively small and limited to a well-defined problem area.
- Expertise: Solutions to the problem require the
efforts of an expert. That is, a body of knowledge, techniques, and
intuition is neded that only a few people posses.
- Complexity: Solution to the problem is a
complex task that requires logical inference processing, which would not
be handled as well bly conventional information processing.
- Structure: The solution process must be able to
cope with ill-structured, uncertain, missing and conflicting data, and a
problem situation that changes with the passage of times.
- Availability: An expert exists who is
articulate & Cooperative, and who has the support of the management
and end users involved in the development of the proposed system.
Benefits:
- An expert system captures the expertise of an
expert of 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, and has the knowledge of several experts, and does not
get tired or distracted by overwork or stress.
- Expert systems also help preserve and reproduce
the knowledge of exports.
- They allow a company to preserve the expertise
of an expert before she leaves the organisation.
- This expertise can then be shared by
reproducing the software and knowledge base of the expert system
- This allows novices to be trained &
supported by copies of an expert systems distributed throughout an
organisation.
- Finally, expert systems can have the same
competitive advantages as other type of I.T.
- That is, the effective use of E.S can allow a
firm to significantly improve the efficiency of its business processes, or
produce new knowledge based products and services.
Limitations:
- Limited focus
- Inability to learn
- Maintenance problems
- Developmental cost
- Excel only in solving specific types of
problems in a limited domain of knowledge
- They fail miserably in solving problems
requiring a broad knowledge base and subjective problem solving.
- They do well with specific types of operational
or analytical tasks, but falter at subjective managerial decision-making.
- For ex. An expert system might help a financial
consultant develop alternative investment recommendations for a client.
But it could not adequately evaluate the ance of current political,
economic & societal developments or the personal dynamics of a session
with a client. Such important factors would still have to be handled by
the human consultant before a final investment decision could be reached.
- E.S. may also be difficult and costly to
develop and maintain properly.
- The cost of knowledge Engineers, lost expert
time, and h/w & s/w resources may be too high to offset the benefits
expected from some applications.
- Also E.S. can’t maintain themselves (i.e.) they
can’t learn from experience but must be taught of any development arises
in their subject areas.
- However, some of these limitations can be
overcome by combining E.S. with A.I. technologies. Such as fuzzy logic and
neural networks or by the use of E.S. developmental tools that make the
job of development & maintenance easier.
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