Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | vijay-sharma |
View: | 232 times |
Download: | 0 times |
of 14
7/29/2019 MB0047 ok.pdf
1/14
Master of Business adMinistration
SemeSter -II
ASSIGNMENT
Mb0047-ManageMent
InformatIon SyStemSet-1
SUBMITTED BY:
NAME : VIJ AY KUMAR SHARMA
ROL L NO : 520933061
COUR SE : mba
CEN TRE CODE : 3293
CE NTRE CITY : NEW DELHI
7/29/2019 MB0047 ok.pdf
2/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 2of14
Note: Note: Each question carries 10 Marks. Answer all the questions.
Q.1 a. What are the characteristics of MIS?
B. what is the impact of MIS on Managerial performance. Explain with a scenario.Answer.
A. MIS characteristics
It supports transaction handling and record keeping.
It is also called as integrated database Management System which
supports in major functional areas.
It provides operational, tactical, and strategic level managers with east
access to timely but, for the most, structured information. It supports decision making function which is a vital role of MIS.
It is flexible which is needed to adapt to the changing needs of the
organization.
It promotes security system by providing only access to authorized users.
MIS not only provides statistical and data analysis but also works on the
basis on MBO (management by objectives). MIS is successfully used for
measuring performance and making necessary change in the
organizational plans and procedures. It helps to build relevant and
measurable objectives, monitor results, and send alerts.
Coordination: MIS provides integrated information so that all the
departments are aware of the problem and requirements of the other
departments. This helps in equal interaction of the different centers andconnects decision centers of the organization.
Duplication of data is reduced since data is stored in the central part and
same data can be used by all the related departments.
MIS eliminates redundant data.
It helps in maintaining consistency of data. It is divided into subsystems.
Handlings with small systems are much easier than an entire system. This
helps in giving easy access of data, accuracy and better information
production.
MIS assembles, process, stores, Retrieves, evaluates and disseminates the
information.
B. Impact of MIS
Electronic communication increases the overall amount of communication within
the organization. You can find the following advantages obtained from MIS.
a) Quicker information availability
b) Anytime anywhere access to information
7/29/2019 MB0047 ok.pdf
3/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 3 of14
c) Promotes non redundancy
d) Quick decision-making
e) Fast actions undertaken
f) Effective productivity
g) Reduced transaction rate
Information can be stored, retrieved, and communicated far more easily and
effectively. There is an enormous role of information technology (IT) on operations. The
following can be the examples you can list for the areas in which MIS is used. When you
go to any vendor and ask for catalogues of the product then smart catalogues and
databases for simpler customer/ vendor will help you and the vendor in coordination.
When you are travelling or driving, the transponder-equipped vehicles can re-route you
in real time. Voice-recognition systems for greater warehouse inventory accuracy,
collaborative editing of graphics documents by geographically-remote individuals, and
even electronic storage/retrieval of documents to reduce volume. You will see the texts
and images in electronic forms are effective in communicating ideas from source to
destination. When you access money through your credit cards, ATM cards, smart cards
you can find that it is technology driven which revolves around wireless electronic
gadgets, internet and money cards. When you use it for your identity proof it is your
identity cards that detect you from the list of users.
A computerized management information system (MIS) in all registered clients,
counseling sessions, and all medical visits provided to the clients with respect to hospital
management system of any major hospitals. Non-computerized data from previous yearsonly documented the number and location of counseling sessions while the new MIS
provides much more specific and detailed data. The impact of computer-based
information systems on managers work reflects decisions made by managers
themselves about how the technology is used. The impact of MIS is not an individually
stable and predictable. As a manager at any organization you can use non linear on-
going process of change that evolves over time and situations. In an organization you
can develop a system, shape it and also react it to any different way.
You can see MIS in the field of education system also playing a very significant
role where we come across usage of LCDs, Smart boards, internet etc in class rooms. In
the traffic control system, an Intelligent Transportation System (ITS) disseminates real-
time traffic information to travelers. It helps travelers in making their route choicedecisions based on the traffic congestion information and make proper decision making
in predicting the traffic congestion and choosing the right choice. In the tourism MIS has
led to radical changes in booking system, tourist information system, hotel facilities,
accommodation facilities, transportation modes available, images of the facilities that
could be provided etc.
Impact of MIS in different areas
7/29/2019 MB0047 ok.pdf
4/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 4 of14
You cannot limit the impact of MIS to some specific areas. It has wide range of
applications and has a unique impact on each system. Now, MIS has become very
important fact of all the information systems that you cannot view any system without
MIS.
Q.2 Explain in detail the type of information system with an example each.
Answer:
TYPES OF INFORMATION SYSTEMS
An information system is a collection of hardware, software, data, people and
procedures that are designed to generate information that supports the day-to-day,
short-range, and long-range activities of users in an organization. Information systems
generally are classified into five categories: office information systems, transaction
processing systems, management information systems, decision support systems, and
expert systems. The following sections present each of these information systems.
1. Office Information Systems
An office information system, or OIS (pronounced oh-eye-ess), is an information system
that uses hardware, software and networks to enhance work flow and facilitate
communications among employees. Win an office information system, also described as
office automation; employees perform tasks electronically using computers and other
electronic devices, instead of manually. With an office information system, for example,
a registration department might post the class schedule on the Internet and e-mail
students when the schedule is updated. In a manual system, the registration
department would photocopy the schedule and mail it to each students house.
An office information system supports a range of business office activities such as
creating and distributing graphics and/or documents, sending messages, scheduling, and
accounting. All levels of users from executive management to no management
employees utilize and benefit from the features of an OIS.
The software an office information system uses to support these activities include word
processing, spreadsheets, databases, presentation graphics, e-mail, Web browsers, Web
page authoring, personal information management, and groupware. Office information
systems use communications technology such as voice mail, facsimile (fax),
videoconferencing, and electronic data interchange (EDI) for the electronic exchange of
text, graphics, audio, and video. An office information system also uses a variety of
hardware, including computers equipped with modems, video cameras, speakers, and
microphones; scanners; and fax machines.
2. Transaction Processing Systems
A transaction processing system (TPS) is an information system that captures and
processes data generated during an organizations day-to-day transactions. A
transaction is a business activity such as a deposit, payment, order or reservation.
Clerical staff typically performs the activities associated with transaction processing,
which include the following:
7/29/2019 MB0047 ok.pdf
5/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 5of14
a. Recording a business activity such as a students registration, a customers
order, an employees timecard or a clients payment.
b. Confirming an action or triggering a response, such as printing a students
schedule, sending a thank-you note to a customer, generating an
employees paycheck or issuing a receipt to a client.c. Maintaining data, which involves adding new data, changing existing data,
or removing unwanted data.
Transaction processing systems were among the first computerized systems developed
to process business data a function originally called data processing. Usually, the TPS
computerized an existing manual system to allow for faster processing, reduced clerical
costs and improved customer service.
The first transaction processing systems usually used batch processing. With batch
processing, transaction data is collected over a period of time and all transactions are
processed later, as a group. As computers became more powerful, system developers
built online transaction processing systems. With online transaction processing (OLTP)the computer processes transactions as they are entered. When you register for classes,
your school probably uses OLTP. The registration administrative assistant enters your
desired schedule and the computer immediately prints your statement of classes. The
invoices, however, often are printed using batch processing, meaning all student invoices
are printed and mailed at a later date.
Today, most transaction processing systems use online transaction processing. Some
routine processing tasks such as calculating paychecks or printing invoices, however, are
performed more effectively on a batch basis. For these activities, many organizations
still use batch processing techniques.
3. Management Information Systems
While computers were ideal for routine transaction processing, managers soon realized
that the computers capability of performing rapid calculations and data comparisons
could produce meaningful information for management. Management information
systems thus evolved out of transaction processing systems. A management
information system, or MIS (pronounced em-eye-ess), is an information system that
generates accurate, timely and organized information so managers and other users can
make decisions, solve problems, supervise activities, and track progress. Because it
generates reports on a regular basis, a management information system sometimes is
called a management reporting system (MRS).
Management information systems often are integrated with transaction processingsystems. To process a sales order, for example, the transaction processing system
records the sale, updates the customers account balance, and makes a deduction from
inventory. Using this information, the related management information system can
produce reports that recap daily sales activities; list customers with past due account
balances; graph slow or fast selling products; and highlight inventory items that need
reordering. A management information system focuses on generating information that
management and other users need to perform their jobs.
7/29/2019 MB0047 ok.pdf
6/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 6of14
An MIS generates three basic types of information: detailed, summary and exception.
Detailed information typically confirms transaction processing activities. A Detailed
Order Report is an example of a detail report. Summary information consolidates data
into a format that an individual can review quickly and easily. To help synopsize
information, a summary report typically contains totals, tables, or graphs. An InventorySummary Report is an example of a summary report.
Exception information filters data to report information that is outside of a normal
condition. These conditions, called the exception criteria, define the range of what is
considered normal activity or status. An example of an exception report is an Inventory
Exception Report is an Inventory Exception Report that notifies the purchasing
department of items it needs to reorder. Exception reports help managers save time
because they do not have to search through a detailed report for exceptions. Instead,
an exception report brings exceptions to the managers attention in an easily identifiable
form. Exception reports thus help them focus on situations that require immediate
decisions or actions.
4. Decision Support Systems
Transaction processing and management information systems provide information on a
regular basis. Frequently, however, users need information not provided in these
reports to help them make decisions. A sales manager, for example, might need to
determine how high to set yearly sales quotas based on increased sales and lowered
product costs. Decision support systems help provide information to support such
decisions.
A decision support system (DSS) is an information system designed to help users reach
a decision when a decision-making situation arises. A variety of DSSs exist to help with
a range of decisions.
A decision support system uses data from internal and/or external sources.
Internal sources of data might include sales, manufacturing, inventory, or financial data
from an organizations database. Data from external sources could include interest
rates, population trends, and costs of new housing construction or raw material pricing.
Users of a DSS, often managers, can manipulate the data used in the DSS to help with
decisions.
Some decision support systems include query language, statistical analysis capabilities,
spreadsheets, and graphics that help you extract data and evaluate the results. Some
decision support systems also include capabilities that allow you to create a model of thefactors affecting a decision. A simple model for determining the best product price, for
example, would include factors for the expected sales volume at each price level. With
the model, you can ask what-if questions by changing one or more of the factors and
viewing the projected results. Many people use application software packages to
perform DSS functions. Using spreadsheet software, for example, you can complete
simple modeling tasks or what-if scenarios.
7/29/2019 MB0047 ok.pdf
7/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 7of14
A special type of DSS, called an executive information system (EIS), is designed to
support the information needs of executive management. Information in an EIS is
presented in charts and tables that show trends, ratios, and other managerial statistics.
Because executives usually focus on strategic issues, EISs rely on external data sources
such as the Dow Jones News/Retrieval service or the Internet. These external datasources can provide current information on interest rates, commodity prices, and other
leading economic indicators.
To store all the necessary decision-making data, DSSs or EISs often use extremely large
databases, called data warehouses. A data warehouse stores and manages the data
required to analyze historical and current business circumstances.
5. Expert Systems
An expert system is an information system that captures and stores the knowledge of
human experts and then imitates human reasoning and decision-making processes for
those who have less expertise. Expert systems are composed of two main components:a knowledge base and inference rules. A knowledge base is the combined subject
knowledge and experiences of the human experts. The inference rules are a set of
logical judgments applied to the knowledge base each time a user describes a situation
to the expert system.
Although expert systems can help decision-making at any level in an organization, no
management employees are the primary users who utilize them to help with job-related
decisions. Expert systems also successfully have resolved such diverse problems as
diagnosing illnesses, searching for oil and making soup.
Expert systems are one part of an exciting branch of computer science called artificial
intelligence. Artificial intelligence (AI) is the application of human intelligence to
computers. AI technology can sense your actions and, based on logical assumptions and
prior experience, will take the appropriate action to complete the task. AI has a variety
of capabilities, including speech recognition, logical reasoning, and creative responses.
Experts predict that AI eventually will be incorporated into most computer systems and
many individual software applications. Many word processing programs already include
speech recognition.
6. Integrated Information Systems
With todays sophisticated hardware, software and communications technologies, it often
is difficult to classify a system as belonging uniquely to one of the five information
system types discussed. Much of todays application software supports transactionprocessing and generates management information. Other applications provide
transaction processing, management information, and decision support.
Q.3 a. Explain Scott Morton five levels of complexity.b. Explain objects and its behavior with an example.
7/29/2019 MB0047 ok.pdf
8/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 8of14
Answer:
Scott Morton five levels
Scott Morton proposes five levels of complexity at which reconfiguration can be applied.
The following five levels indicate how it is possible to reconfigure strategic informationsystem based on the influence of IT.
1. Localized exploitation This is part of the Evolutionary level and exists within
individual business functions. It addresses the local efficiency and effectiveness of a
information system.
2. Internal integration this is part of the evolutionary level and existsbetween
different systems and applications. It evolves out of rationalization using a common IT
platform. Efficiency and effectiveness are enhanced by coordination and cooperation
within the enterprise;
3. Business process redesign This is part of the revolutionary level. It involves
more thorough re-evaluation of the enterprise value-chain and the production process.
4. Business network redesign This is also part of the revolutionary level. It
involves reconfiguration of the scope and tasks of the business network. It also helps in
the creation and delivery of products and services. Coordination and cooperation extend,
selectively, beyond the enterprises boundaries; and
5. Business scope redefinition It is also part of the revolutionary level.
It involves migration of functions across the enterprises boundaries. It may change the
organizations conception of the business.
Objects and its behavior
Objects are key to understanding object-oriented technology. If we look around and we
can find many examples of real-world objects: dog, desk, television set, and bicycle.
Real-world objects share two characteristics: They all have state and behavior. Dogs
have state (name, color, and breed, hungry) and behavior (barking, fetching, wagging
tail). Bicycles also have state (current gear, current pedal cadence, and current speed)
and behavior (changing gear, changing pedal cadence, applying brakes). Identifying the
state and behavior for real-world objects is a great way to begin thinking in terms of
object-oriented programming.
Software objects are conceptually similar to real-world objects: they too consist of state
and related behavior. An object stores its state in fields (variables in some programminglanguages) and exposes its behavior through methods (functions in some programming
languages). Methods operate on an objects internal state and serve as the primary
mechanism for object-to-object communication. Hiding internal state and requiring all
interaction to be performed through an objects methods is known as data encapsulation
a fundamental principle of object-oriented programming.
Consider a bicycle, for example:
7/29/2019 MB0047 ok.pdf
9/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 9 of14
By attributing state (current speed, current pedal cadence, and current gear) and
providing methods for changing that state, the object remains in control of how the
outside world is allowed to use it. For example, if the bicycle only has 6 gears, a method
to change gears could reject any value that is less than 1 or greater than 6.
Bundling code into objects provides a number of benefits, including: Modularity: The source code for an object can be written and maintained
independently of the source code for other objects. Once created, an object can
be easily passed around inside the system.
Information-hiding: By interacting only with an objects methods, the details of its
internal implementation remain hidden from the outside world.
Code re-use: If an object already exists (perhaps written by another software
developer), you can use that object in your program. This allows specialists to
implement/test/debug complex, task-specific objects, which you can then trust to
run in your own code.
Plug ability and debugging ease: If a particular object turns out to be
problematic, you can simply remove it from your application and plug in a
different object as its replacement. This is analogous to fixing mechanical
problems in the real world. If a bolt breaks, you replace it, not the entiremachine.
Q. 4 What are dataflow diagrams? Construct a DFD using the different
conventions.
Answer:
A Data Flow Diagram (DFD) is a diagrammatic representation of the information
flows within a system, showing:
how information enters and leaves the system,
what changes the information,
Where information is stored.
In SSADM a DFD model includes supporting documentation describing the information
shown in the diagram. DFDs are used not only in structured system analysis and design,
but also as a general process modeling tool. There are a number of commercial tools in
the market today which are based on DFD modeling.
SSADM uses DFDs in three stages of the development process:
Current Physical DFDs. These record the results of conventional fact finding.
Current Logical DFDs. The logical information processing of the current system
Required Logical DFDs. The logical information processing requirements of the
proposed system.
The DFD conventions:-
DFDs show the passage of data through the system by using 5 basic constructs: Data
flows, Processes, Data Stores, External Entities, and Physical Resources.
1. Data Flows
A data flow shows the flow of data from a source to a destination. The flow is shown
as an arrowed line with the arrowhead showing the direction of flow. Each data flow
should be uniquely identified by a meaningful descriptive name (caption).
Flow may move from an external entity to a process, from a process to another
process, into and out of a store from a process, and from a process to an external
7/29/2019 MB0047 ok.pdf
10/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 10of14
entity. Flows are not permittedto move directly from an external entity to a store or
from a store directly to an external entity.
2. Processes
Processes are transformations, changing incoming data flows into outgoing dataflows. Processes are drawn as rectangular boxes with a descriptive name occupying
the middle of the box. The box has a top stripe that contains an identification number
in the left, and the location (or the role carrying out the work) on the right (this is
optional and used only in the current physical DFD).
The numbering generally follows a left to right convention. This does not indicate
priority or sequence. The identification number is purely an identifier. It also helps to
associate a high level process with its decomposed sub processes.
The name of the process should describe what happens to the data as it passes
through it. An active verb (verify, compute, extract, create, retrieve, store,
determine, etc.) followed by an object or object clause is a suggested notation.
3. Data Stores
A store is a repository of data; it may be a card index, a database file, a temporary
pile of sales orders awaiting processing, or a folder in a filing cabinet. The store may
contain permanent data or temporary accumulations (pending documents, daily
movements).
A store is represented by an open-ended box and is given a meaningful descriptive
name. Each store is also given a reference number prefixed by a letter. In logical and
required system DFD, data stores are regarded as computerized and hence only a D
will be used. Some transient stores may remain and retain the T.
To prevent a DFD becoming spiders web of crossing lines, the same data store may
be included more than once on a DFD. Such duplication is shown by an additional
vertical line within the store symbol.
4. External Entities (Source or Sink)
The external entity represents a person or a part of an organization which sends or
receives data from the system but considered to be outside the system boundary
(scope of the project). As with the data stores these may be duplicated on a DFD to
simplify presentation. External entities may be further referenced by the use of an
alpha character, and this is particularly recommended if at a lower level the entity is
being decomposed.
Sometimes external entities are referred to as sources and sinks. An External entity
either supplies data to the system, which makes it a source and /or receives data
from the system, which makes it a sink.
5. Physical Resources
A physical flow represents the flow of material (as opposed to data flows
representing the flow of information), the movement of some resources or goods
which are relevant to the information system, from source to destination. They are
included to aid communication. A physical flow is represented by a broad arrow. The
resource store is represented by a closed rectangle.
7/29/2019 MB0047 ok.pdf
11/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 11 of14
Q.5 Explain ERP in detail.
Answer:
Enterprise Resource Planning
Manufacturing management systems have evolved in stages over the few decades from
a simple means of calculating materials requirements to the automation of an entire
enterprise. Around 1980, over-frequent changes in sales forecasts, entailing continual
readjustments in production, as well as the unsuitability of the parameters fixed by the
system, led MRP (Material Requirement Planning) to evolve into a new concept :
Manufacturing Resource Planning (or MRP2) and finally the generic concept Enterprise
Resource Planning (ERP)
The initials ERP originated as an extension of MRP (material requirements planning then
manufacturing resource planning). ERP systems now attempt to cover all basic functions
of an enterprise, regardless of the organizations business or charter. Non-manufacturing
businesses, non-profit organizations and governments now all utilize ERP systems.To be considered an ERP system, a software package must provide the function of at
least two systems. For example, a software package that provides both payroll and
accounting functions could technically be considered an ERP software package.
Examples of modules in an ERP which formerly would have been stand-alone applications
include: Manufacturing, Supply Chain, Financials, Customer Relationship Management
(CRM), Human Resources, Warehouse Management and Decision Support System.
ERP Advantages and Disadvantages
Advantages In the absence of an ERP system, a large manufacturer may find itself with
many software applications that do not talk to each other and do not effectively
interface. Tasks that need to interface with one another may involve:
1. A totally integrated system2. The ability to streamline different processes and workflows
3. The ability to easily share data across various departments in an organization
4. Improved efficiency and productivity levels
5. Better tracking and forecasting
6. Lower costs
7. Improved customer service
Change how a product is made, in the engineering details, and that is how it will now be
made. Effective dates can be used to control when the switch over will occur from an old
version to the next one, both the date that some ingredients go into effect, and date that
some are discontinued. Part of the change can include labeling to identify version
numbers.Some security features are included within an ERP system to protect against both
outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A
data tampering scenario might involve a disgruntled employee intentionally modifying
prices to below the breakeven point in order to attempt to take down the company, or
other sabotage
Disadvantages Many problems organizations have with ERP systems are due to
inadequate investment in ongoing training for involved personnel, including those
7/29/2019 MB0047 ok.pdf
12/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 12of14
implementing and testing changes, as well as a lack of corporate policy protecting the
integrity of the data in the ERP systems and how it is used.
While advantages usually outweigh disadvantages for most organizations implementing
an ERP system, here are some of the most common obstacles experienced:
Usually many obstacles can be prevented if adequate investment is made and adequatetraining is involved, however, success does depend on skills and the experience of the
workforce to quickly adapt to the new system.
1. Customization in many situations is limited
2. The need to reengineer business processes
3. ERP systems can be cost prohibitive to install and run
4. Technical support can be shoddy
5. ERPs may be too rigid for specific organizations that are either new or want to
move in a new direction in the near future.
The Ideal ERP System
An ideal ERP system is when a single database is utilized and contains all data for
various software modules. These software modules can include:
a. Manufacturing: Some of the functions include; engineering, capacity, workflow
management, quality control, bills of material, manufacturing process, etc.
b. Financials: Accounts payable, accounts receivable, fixed assets, general ledger and
cash management, etc.
c. Human Resources: Benefits, training, payroll, time and attendance, etc
d. Supply Chain Management: Inventory, supply chain planning, supplier scheduling,
claim processing, order entry, purchasing, etc.
e. Projects: Costing, billing, activity management, time and expense, etc.
f. Customer Relationship Management: sales and marketing, service, commissions,
customer contact, calls center support, etc.
g. Data Warehouse: Usually this is a module that can be accessed by an organizations
customers, suppliers and employees.
Q.6 a. Bring out the relationship between AI and Neural Network.
b. what is the difference between DSS and ES?
Answer:
Artificial Intelligence and Neural Networks
Artificial intelligence 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, see, hear, walk,
7/29/2019 MB0047 ok.pdf
13/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 13 of14
talk and feel. In other words, simulation of computer functions normally associated with
human intelligence, such as reasoning, learning and problem solving.
Neural network software can learn by processing sample problems and their solutions.
As neural nets start to recognize patterns, they can begin to program themselves tosolve such problems on their own.
Neural networks are computing systems modeled after the human brains mesh like
network of interconnected processing elements, called neurons. The human brain is
estimated to have over 100 billion neuron brain cells. The neural networks are lot
simpler in architecture. Like the brain, the interconnected processors in a neural network
operate in parallel and interact dynamically with each other.
This enables the network to operate and learn from the data it processes, similar to the
human brain. That is, it learns to recognize patterns and relationships in the data. The
more data examples it receives as input, the better it can learn to duplicate the resultsof the examples it processes. Thus, the neural networks will change the strengths of the
interconnections between the processing elements in response to changing patterns in
the data it receives and results that occur.
For example, neural network can be trained to learn which credit characteristics result in
good or bad loans. The neural network would continue to be trained until it
demonstrated a high degree of accuracy in correctly duplicating the results of recent
cases. At that point it would be trained enough to begin making credit evaluations of its
own.
A neural network is designed to simulate a set of neurons, usually connected by
synapses. Each neuron makes a simple decision based on its other input synapses, and
places the decision on its output synapses. This model mimics the behavior of a brain,
and is considered vital to create a true learning system, though modern computers
(barring super-computers) do not have the computational resources to execute a neural
network with a sufficient number of nodes to be useful (you would need at least a few
million neurons firing in unison to be useful).
Artificial intelligence, of course, is software that is designed to pretend like its a living,
thinking creature. Older implementations were not learning systems, but rather would
take input and offer a conditioned response provided by the programmer ahead of time.
These systems seemed to be highly intelligent, so long as you did not leave its realm of
preplanned responses. Newer AI systems learn by interacting with the user (for
example, remembering their favorite color or music artist), and can sometimes evenfigure out correlated data based on this information.
However, current AI systems tend to still have limited spheres of knowledge, and
without external learning sources, cannot make any intelligent responses or decisions
outside this realm of information. The missing component, of course, is a system that is
capable of learning information and incorporating what it learns into its current
knowledge base. Neural networks hold the promise of bridging this gap in the learning
7/29/2019 MB0047 ok.pdf
14/14
Master of Business Administration Semester-I I MB0047 Management Information System
Assignment Set- I
Vijay Kumar Sharma Page 14 of14
curve that AI systems have by allowing the AI to actually learn topics that were not
covered during its original training or programming.
The relationship between these two technologies could be said to be symbiotic in nature;
both of these can be implemented without the other (i.e. a NN could be used inside a
coffee maker for some advanced coffee-making logic, and an AI can certainly use othersources of information to make valid responses), but the combination of the two would
allow for a more realistic AI that would be capable of learning data by making
correlations between seemingly unrelated data (which is how humans learn,
coincidentally).
Different between expert system and decision supportsystem
1. DSS aid in problem solving by allowing for manipulation of data & modelswhereas ES allow experts to teach computers about their field so that the
system may support more of the decision making process for less expert decision
makers.
2. DSS most often contain equations that the system uses to solve problems or
update reports immediately, and the users makes the final decisions on the basis
of the information whereas an expert system works from a much larger set of
modeling rules, uses concepts from AI to process and store the knowledge base &
scans base to suggest a final decision through inference.
3. DSS only supports the decision making process & a human user is required to
weigh all the factors in making a decision whereas ES must acquire knowledge
from an expert and apply a large but standard set of probability based rules tomake a decision in a specific problem setting.
-----------------end-----------------