On the 9th chapter we learn about
STREAMING BUSINESS OPERATIONS
Decision making
Reasons for the growth of decision making information systems :
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People need to analyze large amounts of information
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People must make decisions quickly
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People must apply sophisticated analysis techniques ,such as modeling and forecasting, to make good decisions
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People must protect the corporate asset of organizational information.
Transaction processing systems
Transaction processing system : the basic business systems that serves the operational level in an organization.
Online transaction processing (OLTP) :The capturing of transaction and event information using technology to
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Process the information according to defined business rules
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Store the information
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Update existing information to reflect the new information
Online analytic processing (OLAP) : the manipulation of information to create business intelligence in support of strategic decision making
Decision support systems
Decision support system (DSS) : models information to support managers and business professionals during the decision making process.
Quantitative models used by DSSs include :
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Sensitivity analysis : the study of the impact that charges in one or more parts of the models have on other parts of the models
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What –if analysis : checks the impact of a change in an assumption on the proposed solution.
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Goal-seeking analysis : finds the inputs necessary to achieve a goal such as a desired level of output
Executive information systems
A specialized DSS that supports senior level executives within the organization
Most ISs offering the following capabilities :
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Consolidation – involves the aggregation of information and features simple rolls-ups to complex groupings of interrelated information.
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Drill-down – enables users to get details and details of details of information
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Slice-and-dice – looks at information from different perspectives.
Digital dashboard – integrates information from multiple components and presents it in a unified display.
Artificial intelligence (AI)
Intelligent system : various commercial application of artificial intelligence.
Artificial intelligence : stimulates human intelligence such as the ability to reason and learn. Its ultimate goal is the ability to build a system that can mimic human intelligence.
4 categories of artificial intelligence :
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Expert system – computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
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Neutral network – attempts to emulate the way the human brain works
Fuzzy logic : a mathematical method of handling imprecise or subjective information
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Genetic algorithm : a artificial intelligent system that mimics the evolutionary , survival of the fittest process to generate increasingly better solutions to a problem
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Intelligent agent : special purposed knowledge based information system that accomplishes specific tasks on behalf of its users
Data mining
Common form of data mining analysis capabilities include :
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Cluster analysis
technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible
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Association detection
Reveals the degree to which variables are related and the nature and frequency of these relationship in the information.
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Statistical analysis
Performs such function as information correlations, distributions, calculations and variance analysis.
