Chapter 4 Blog

AI systems are relatively new approaches to solving business problems. What are the difficulties with new IT approaches in general? For each of the systems we discussed, identify some advantages and disadvantages of AI systems over traditional business processes. Say you were selling specialty teas and had brick and click stores. Would you use the same type of AI systems for each part of your business? In what way would you use them or why would you not? Is there a place for decision support and artificial intelligence techniques in small specialty businesses? In what way would decision support add value? Can you think of how a DSS or an AI system would be value reducing (in terms of Porter’s value chain theory)? What do you see as the major differences between running a mammoth concern and a small specialty business?

The general difficulties with new IT approaches in general would be the new approach needs to be understood and accepted, as well as, people have to be trained to use the new system. Artificial Intelligence is the science of making machines imitate human thinking and behavior. The artificial intelligence systems that businesses use most can be classified into the following major categories: expert systems, neural networks, genetic algorithms, and agent-based technologies. Some advantages of artificial intelligence systems are that they can be independent, stand-alone decision making systems, or they can be embedded into a larger analytics system, carrying out and executing specific functions. A disadvantage would be a robot lack common sense. If I were to sell specialty teas, I would use the same type of AI system in each part of my business because I’m selling similar items. I don’t think decision support or artificial intelligence techniques would benefit a small business because it would be expensive and small businesses have fewer resources. Decision support systems have three components consisting of: a simple and easy-to-use graphical user interface, access to large amounts of information, and models and tools that you can use to massage the information. I think the main difference between running a mammoth concern and a small specialty business would be the amount of information is collected.