ISM Module 4
ISM Module 4
ISM Module 4
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• Decision Support Systems - OLAP,
Geographic Information and Data
Visualization
• Systems, visualization techniques, dash
boards, DSS software packages MIS
and DSS – Decision making - types of
decisions –
• Analytics and Business Intelligence.
• AI technologies in Business, business
applications of AI-Expert systems:
components, benefits #
Supply chain management
(SCM) systems
• are inter-organizational systems that
enable companies to efficiently handle
the flow of good from suppliers to
customers. A supply chain is a network
of organizations and facilities that
transforms raw materials into products
delivered to customers.
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• It represents a conscious effort by the
supply chain firms to develop and run
supply chains in the most effective &
efficient ways possible.
• Supply chain activities cover everything
from product development, sourcing,
production, and logistics, as well as the
information systems needed to
coordinate these activities.
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An example scenario: The purchasing department
places orders as requirements become known.
The marketing department, responding to
customer demand, communicates with several
distributors and retailers as it attempts to
determine ways to satisfy this demand.
Information shared between supply chain
partners can only be fully leveraged through
process integration.
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• The organizations that make up the supply
chain are “linked” together through
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• Physical flows involve the
transformation, movement, and storage
of goods and materials.
• Information flows allow the various
supply chain partners to coordinate their
long-term plans, and to control the day-
to-day flow of goods and material up
and down the supply chain
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Customer Relationship
Management
• Refers to all strategies, techniques,
tools, and technologies used by
enterprises for developing, retaining and
acquiring customers.
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• A CRM system essentially provides a
central place where businesses can
store customer and prospect data, track
customer interactions, and share this
information with colleagues.
• It allows businesses to manage
relationships with customers, helping
the business to grow.
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Customer Relationship Management
System Features
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Sales Acceleration and
Enablement
• Creation of quotes
• Order processing
• Updating contact information
• Sending emails
• Sales forecasting
• Evaluating employee performance
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Marketing Automation
• Email marketing
• Lead management
• Lead scoring and qualification
• Landing page creation
• Web forms
• Marketing analytics
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Customer Service & Support
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Enterprise Systems
• Internally Focused Applications
– Value chain – the set of business activities
– Functional areas can be broken down into
primary and support activities.
– Primary activities are functional areas within
an organization that process inputs and
produce outputs.
– Support activities are those activities that
enable primary activities to take place.
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Enterprise Systems
• Internally Focused Applications
– Primary activities include:
• Inbound logistics
• Operations and manufacturing
• Outbound logistics
• Marketing and sales
• Customer service
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Enterprise Systems
• Internally Focused Applications
– Support activities include:
• Infrastructure (hardware & software)
• Human resources (hiring, interview scheduling, payroll,
benefits)
• Technology development (software selection, Internet,
intranet, extranet)
• Procurement (purchasing of goods and services required
as inputs primary services)
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Enterprise Systems
• Externally Focused Applications
– Integrate internal applications with those outside:
suppliers, partners, customers
– Upstream information
• Information received from another organization
– Downstream information
• Information sent to another organization
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Enterprise Resource Planning (ERP)
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• The ERP system provides filtered
analytical data to make faster decisions
for improving customer experience.
Most businesses find that implementing
ERP system improves their internal and
external communication.
• ERP provides centralized data from
multiple departments onto a single
platform which connects the entire
organization.
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• ERP provides an integrated and
continuously updated view of core
business processes using
common databases maintained by
a database management system.
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#
• In fact, Artificial Intelligence is
transforming Enterprise Resource
Planning (ERP) software systems in
unimaginable ways. Due to the powerful
capabilities, AI technologies are already
optimizing system-operating models as
well as transforming business
processes for enterprises and
organizations globally #
Advantage of implementing ERP
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Reduced Operational Costs
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ERP Strengthen Business Collaboration:
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Challenges businesses face -implementing ERP
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• It’s a misconception among SMEs that
only large businesses can use an ERP
software.
• Due to a large cost of possession,
complicated implementation and other
maintenance costs like training,
upgrade and regular updates keep them
off from implementing an ERP within
their businesses. #
Employee Resistance
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• Information systems offshore
outsourcing is motivated by such factors
as globalization, technological
development and the possibility to
explore new markets.
• However, both the geographical and the
cultural distance create more risks than
in onshore outsourcing
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Outsourcing
• Outsourcing refers to the contracting out
of an entire business function, a project,
or certain activities to an external
provider.
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• Towards the end of the twentieth
century, with improvements in shipping
technology and telecommunications
infrastructure, it became increasingly
efficient to get work done in other
geographical locations, especially in
developing countries where wages are
lower. This practice came to be known
as offshoring.
#
• Outsourcing refers to an organization
contracting work out to a 3rd party,
while offshoring refers to getting work
done in a different country, usually to
leverage cost advantages.
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Off shoring Outsourcing
Definition Off shoring means getting Outsourcing refers to contracting
work done in a different work out to an external
country. organization.
Risks and Offshoring is often criticized Risks of outsourcing include
criticism for transferring jobs to other misaligned interests of clients and
countries. Other risks vendors, increased reliance on
include geopolitical risk, third parties, lack of in-house
language differences and knowledge of critical (though not
poor communication etc. necessarily core) business
operations etc.
Benefits Benefits of offshoring are Usually companies outsource to
usually lower costs, better take advantage of specialized
availability of skilled people, skills, cost efficiencies and labor
and getting work done flexibility.
faster through a global
talent pool.
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Outsourcing Benefits
• Cost advantage:
• Focus on core competency
• Quality and capability
• Labor flexibility
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Focus on core competency
• A "core" activity is one which offers the
company competitive advantage over its
competitors. It is an activity that the
company does better than the
competition, which is the main reason
its customers do business with the
company. Having to handle non-core
functions is a distraction, so many
companies outsource them.
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Benefits of offshoring
• Cost savings.
• Skills.
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Online Analytical
Processing
• OLAP is a powerful technology for data
discovery, including capabilities for
limitless report viewing, complex
analytical calculations, and predictive
“what if” scenario (budget, forecast)
planning.
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How is OLAP Technology Used
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• It is the foundation for many kinds of business
applications for Business Performance
Management, Planning, Budgeting,
Forecasting, Financial Reporting, Analysis,
Simulation Models, Knowledge Discovery,
and Data Warehouse Reporting.
• OLAP enables end-users to perform ad hoc
analysis of data in multiple dimensions,
thereby providing the insight and
understanding they need for better decision
making.
#
• Every business has to plan, analyze
and report on sales and operational
activities in order to maximize efficiency,
reduce expenditures and gain market
share
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OLAP operations
• Drill down
• Roll Up
• Dice
• Slice
• Pivot
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In drill-down operation, the less
detailed data is converted into highly
detailed data. It can be done by:
• Moving down in the concept hierarchy
• Adding a new dimension
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Drill down
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Roll up
It is just opposite of the drill-down
operation. It performs aggregation on
the OLAP cube. It can be done by:
• Climbing up in the concept hierarchy
• Reducing the dimensions
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Roll up
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Dice
It selects a sub-cube from the OLAP
cube by selecting two or more
dimensions. In the cube given in the
overview section, a sub-cube is
selected by selecting following
dimensions with criteria:
• Location = “Delhi” or “Kolkata”
• Time = “Q1” or “Q2”
• Item = “Car” or “Bus”
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Dice
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Slice:
• It selects a single
dimension from the
OLAP cube which
results in a new sub-
cube creation. In the
cube given in the
overview section,
Slice is performed on
the dimension Time
= “Q1”. #
Pivot
• It is also known
as rotation operation as
it rotates the current
view to get a new view
of the representation.
• In the sub-cube obtained
after the slice operation,
performing pivot
operation gives a new
view of it
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#
• DSS, Decision Support System, as the
name suggests, helps in taking
decisions for top executive
professionals. OLAP is capable of
providing highest level of functionality
and support for decision which is linked
for analyzing large collections of
historical data.
• OLAP is mainly used for datamining
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Data Visualization and GIS
• Geographic Information Systems (GIS)
is a computer-based method for
collecting, managing, analyzing,
modeling, and presenting geographic or
spatial data.
• Can overlay maps and datasets and
query them in terms of their spatial
relationships to each other.
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• Data visualization refers to
the techniques used to communicate data or
information by encoding it as visual objects
(e.g., points, lines or bars) contained in
graphics.
• The goal is to communicate information
clearly and efficiently to users. It is one of the
steps in data analysis or data science.
#
Data visualization -- also named as information visualization
or information design -- refers to the methodologies, tools, and
modes of representation (i.e., products) involved in the process
of visually communicating data to others.
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Raw numbers are difficult to understand. Raw numbers are time-
consuming. Raw numbers are boring.
Data visualization software is the process of turning raw numbers
into graphs, maps and other types of visualization that reveal
trends, provide analysis and predict outcomes for all kinds of
projects.
#
• A dashboard is an information management
tool that visually tracks, analyzes and
displays KPI, metrics and key data points to
monitor the health of a business, department
or specific process.
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• Dashboards are a data visualization tool that
allow all users to understand the analytics
that matter to their business, department or
project.
• Even for non-technical users, dashboards
allow them to participate and understand the
analytics process by compiling data and
visualizing trends and occurrences.
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DSS
• A Decision support system possesses an
interactive interface that makes it easier to
use and provides real-time response to user
queries.
• The use of various DSS tools helps in each
stage of the decision making process that
includes viewing a complex problem,
designing the model to analyze the problem,
developing alternatives to get a solution, and
choosing a solution from the available
alternatives.
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Types of Decision Support Systems
• Model-Based DSS
• Data-Based DSS
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Model-Based DSS
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• Decision support system software tools
help the decision-makers in organizing
their ideas, gathering required
information and setting and ranking
priorities.
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• A DSS sifts through and analyzes
massive amounts of data, compiling
comprehensive information that can be
used to solve problems and in
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• Decision support systems (DSS) are
interactive software-based systems
intended to help managers in decision-
making by accessing large volumes of
information generated from various
related information systems involved in
organizational business processes, such
as office automation system, transaction
processing system, etc. #
Programmed and Non-programmed Decisions
#
Database Management System
(DBMS) −
• To solve a problem the necessary data
may come from internal or external
database.
• In an organization, internal data are
generated by a system such as TPS
and MIS.
• External data come from a variety of
sources such as newspapers, online
data services, databases (financial,
marketing, human resources). #
Model Management System
• It stores and accesses models that
managers use to make decisions. Such
models are used for designing
manufacturing facility, analyzing the
financial health of an organization,
forecasting demand of a product or
service, etc
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• Groupware and web-based tools for
electronic meetings and
videoconferencing also support some of
the group decision making process, but
their main function is to make
communication possible between the
decision-makers.
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Common Day-to-Day Decision Support
System
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DSS Software That Helps Predict
Future Trends
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Establishing Real-Time Facility
• Business which can perform even better with
real-time statistics in hand each time a data
is analyzed.
• Customers, when offered with real-time
technology and data, are kept updated and
this eventually builds a trust and invites
transparency in the business.
• Having the charm of updated reports and
data leads to better decisions that have the
potential to turn the operations upside down
for good. #
Customer Service and Less
Workload
• Descriptions of products under customer
reviews obtained by mining the data are
deeming extremely helpful in enhancing the
product and understanding consumer
behavior.
• Unlike earlier when thousands of excel
sheets were needed to be reviewed, real-
time tracking has reduced the time devoted
here. #
Employee Performance
• A real-time report that mentions the time
devoted to solving a bug, by who was it
solved and with what precision based on the
manager’s review can make the load a lot
less.
• Tracking of real-time operations, hence, is
profitable not only to monitor the employees
but cuts the magnitude of time wasted by
making it invested in required and proper
places. #
Sales and Revenue
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Strategic Business Intelligence
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Strategic business intelligence converges
on four important parameters:
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Operational Business Intelligence
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Operational Business Intelligence
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“BI is needed to run the
business while Business
Analytics are needed to
change the business.” –
Pat Roche, Vice
President of Engineering
at Magnitude Software
• “BI is looking in the rearview mirror and
using historical data. Business Analytics
is looking in front of you to see what is
going to happen.” – Mark van
Rijmenam, CEO / Founder at BigData-
Startups
#
• Analytics – Deals with the why’s of
what happened in the past. It breaks
down contributing factors and causality.
It also uses these why’s to make
predictions of what will happen in the
future.
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• Business intelligence – Deals
with what happened in the past
and how it happened leading up to the
present moment. It identifies big trends
and patterns without digging too much
into the why’s or predicting the future.
#
• Business analytics (BA) refers to the
practice of using your company’s data
to anticipate trends and outcomes.
• BA includes data mining, statistical
analysis, and predictive modeling that
help make more informed decisions.
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Business intelligence vs. business analytics
• Business • Business
intelligence analytics
focuses on focuses on
descriptive predictive
analytics analytics
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Business intelligence vs. business analytics
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Business intelligence vs. business analytics
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In the business world, artificial intelligence is enabling businesses
to work smarter and faster, doing more with significantly less. As
technology and society continue to advance, more organisations
are looking for powerful, sophisticated solutions that will improve
and streamline operations
#
Current industries applying artificial intelligence
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Banking and Finance – fraud detection
Many banks use the various applications of artificial intelligence to
detect fraudulent activity.
The AI software is given a very large sample of data that includes
fraudulent and non-fraudulent purchases and is trained to determine
whether a transaction is valid based on data.
Over time, the software becomes incredibly adept at spotting
fraudulent transactions based on what it has learned previously.
#
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#
• Expert System is a computer program
that imitates the judgment and behavior
of a human or an organization that has
expert knowledge and experience in a
particular field.
#
• Expert systems were introduced for
solving complex problem in specific
domain, because they are very
interactive and trustable computer
decision maker system that are used for
both facts and heuristics for resolving
complex decision issues
#
• Expert system is very eminent research
domain of Artificial Intelligence, and it
is developed by researchers of Stanford
University in Information Technology
Department.
#
• Artificial intelligence (AI) refers to the
simulation of human intelligence in
machines that are programmed to think
like humans and mimic their actions.
• The term may also be applied to any
machine that exhibits traits associated
with a human mind such as learning
and problem-solving.
#
• Artificial intelligence is based on the
principle that human intelligence can be
defined in a way that a machine can
easily mimic it and execute tasks, from
the most simple to those that are even
more complex.
• The goals of artificial intelligence
include learning, reasoning, and
perception.
#
Examples for AI
• Other examples of machines with
artificial intelligence include computers
that play chess and self-driving cars.
Each of these machines must weigh the
consequences of any action they take,
as each action will impact the end
result. In chess, the end result is
winning the game.
#
• The purpose of an expert system is to solve
the most complex issues in a specific
domain.
• Artificial Intelligence and Expert Systems are
capable of expressing and reasoning about
some domain of knowledge. Expert systems
were the predecessor of the current day
artificial intelligence, deep learning and
machine learning systems.
#
Expert System
• Generally, there is a knowledge base in
this type of system in which there is an
accumulated experience and there is a
set of rules to base the basis of
knowledge in each particular situation
described for the program.
• Sophisticated specialist systems can be
enhanced with a knowledge base or
addition of rules set. #
Benefits of expert system
• Reduces the cost of consulting an expert for
solving the problem.
• Provide a quick and efficient solution to a
problem.
• Offers high reliability.
• It can tackle a very complex problem that is
difficult for a human expert to solve.
• Gathers scare expertise and use it efficiently
#
• The expert system is available 24/7 and is
never on holiday or off sick when needed.
• The computer uses all the information it has,
unlike a human expert who may forget and
make mistakes.
• Reduce/eliminate error and inconsistency.
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Disadvantages of Expert System
• More expensive
• Taken more time
• Higher Consumption
• Not flexible
• No having common sense
• Having more bugs in its programs
• Not able to adapt to altering
environments
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Disadvantages of Expert System
• Difficult to maintain
• Having legal and ethical areas
• More expensive in development area
• Having narrow focus
• Required ground verification
• No capable to process for complex
automation
• Require update manually
• Development for specific domain #
Thank You……