Explain Knowledge based system? Explain DSS and OLAP with example? - MBA Assignment Notes

Explain Knowledge based system? Explain DSS and OLAP with example?

Knowledge Based Systems are systems that uses artificial intelligence or expert system techniques in problem solving processes. It incorporates a store (database) of expert knowledge with couplings and linkages designed to facilitate its retrieval in response to specific queries, or to transfer expertise from one domain of knowledge to another.

 

There are two types of knowledge base:

a) Machine Readable Knowledge Bases
b) Human Readable Knowledge Bases 

a. Machine readable knowledge bases: 

The knowledge base helps the computer to process through. It makes the data in the computer readable code which makes the operator to perform easier. Such information sare used by semantic web. Semantic web is a web that will make a description of the system that a system can understand. 

b. Human readable knowledge bases: 

They are designed to help people to retrieve knowledge. The information need to be processed by the reader. The reader can access the information and synthesize their own. 

Decision Support Systems (DSS)

Decision Support Systems or DSS is an interactive computer based system designed to help the decision makers to use resources available and make use in decision making. In management many a time problems arise out of situations for which simple solution may not be possible. To solve such problems you may have to use complex theories. The models that would be required to solve such problems may have to be
identified. DSS requires a lot of managerial abilities and managers judgment.

You may gather and present the following information by using decision support application:

• Accessing all of your current information assets, including legacy and relational data sources, cubes, data warehouses, and data marts

• Comparative sales figures between one week and the next

• Projected revenue figures based on new product sales assumptions

• The consequences of different decision alternatives, given past experience in a context that is described.

A DSS has the capability to update its decision database. Whenever manager feels that a particular decision is unique and not available in the system, the manager can chose to update the database with such decisions. This will strengthen the DSS to take decisions in future.

 
There is no scope for errors in decision making when such systems are used as aid to decision making. DSS is a consistent decision making system. It can be used to generate reports of various lever management activities. It is capable of performing mathematical calculations and logical calculation depending upon the model adopted to solve the problem. 

The benefits of DSS are:

• Improves personal efficiency
• Expedites problem solving
• Facilitates interpersonal communication
• Promotes learning or training
• Increases organizational control
• Generates new evidence in support of a decision
• Creates a competitive advantage over competition
• Encourages exploration and discovery on the part of the decision maker
• Reveals new approaches to thinking about the problem space

Online Analytical Processing (OLAP)

·         OLAP refers to a system in which there are predefined multiple instances of various modules used in business applications. Any input to such a system results in verification of the facts with respect to the available instances. 

 

·         A nearest match is found analytically and the results displayed form the database. The output is sent only after thorough verification of the input facts fed to the system. The system goes through a series of multiple checks of the various parameters used in business decision making. OLAP is also referred to as a multi dimensional analytical model. Many big companies use OLAP to get good returns in business. 

 

·         The querying process of the OLAP is very strong. It helps the management take decisions like which month would be appropriate to launch a product in the market, what should be the production quantity to maximize the returns, what should be the stocking policy in order to minimize the wastage etc. 

 

·         A model of OLAP may be well represented in the form of a 3D box. There are six faces of the box. Each adjoining faces with common vertex may be considered to represent the various parameter of the business situation under consideration. E.g.: Region, Sales & demand, Product etc.