Business Intelligence (Bi) : Dr. P. Ravindra S de Silva Ravi@sjp - Ac.lk University of Sri Jayawardenapura

BUSINESS INTELLIGENCE (BI)
Dr. P. Ravindra S De Silva

ravi@sjp.ac.lk
University of Sri Jayawardenapura
Unit aims
• to be aware of the rationale of the artificial intelligence
and soft computing paradigms with their advantages over
traditional computing
• to gain an understanding of the theoretical foundations

of various types of intelligent systems technologies to a
level adequate for achieving objectives as stated below
• to develop the ability to evaluate intelligent systems, and

in particular, their suitability for specific applications
• to be able to manage the application of various

tools available for developing intelligent systems
2
Topic 1: Introduction to Intelligent Systems
• What is an intelligent system?
• Significance of intelligent systems in business
• Characteristics of intelligent systems
• The field of Artificial Intelligence (AI)
• The Soft Computing paradigm
• An Overview of Intelligent System
Methodologies
• Expert Systems
• Fuzzy Systems
• Artificial Neural Networks
• Genetic Algorithms (GA)
• Data Mining
• Case-based reasoning (CBR)
• Intelligent Software Agents
• Language Technology
3
What is an intelligent
• What issystem?
intelligence?
– Hard to define unless you list characteristics eg,
• Reasoning
• Learning
• Adaptively
• A truly intelligent system adapts itself to deal with

changes in problems (automatic learning)
• Few machines can do that at present
• Machine intelligence has a computer follow problem

solving
processes something like that in humans
• reasoning,
4 often learning,
Intelligent systems display not necessarilyintelligence,
machine-level self-
Intelligent systems in
• business
Intelligent systems in business utilise one or more
intelligence tools, usually to aid decision making
• Provides business intelligence to
– Increase productivity
– Gain competitive advantage
• Examples of business intelligence – information on
– Customer behaviour patterns
– Market trend
– Efficiency bottlenecks
• Examples of successful intelligent systems applications
in business:
– Customer service (Customer Relations Modelling)
– Scheduling (eg Mine Operations)
– Data mining
– Financial market prediction
5
– Quality
Characteristics of intelligent
• Possess
systemsone or more of these:
–Capability to extract and store knowledge
– Human like reasoning process
– Learning from experience (or training)
– Dealing with imprecise expressions of facts
– Finding solutions through processes similar to
natural evolution
• Recent trend
– More sophisticated Interaction with the user
through
• natural language understanding
• speech recognition and synthesis
• image analysis
• Most current intelligent systems are based on
– rule based expert systems
6
– computing
one or more of the methodologies belonging to soft
The Soft Computing (SC)
paradigm
• Also known as Computational Intelligence
• Unlike conventional computing, SC techniques
1. can be tolerant of imprecise, incomplete or corrupt

input data
2. solve problems without explicit solution steps
3. learn the solution through repeated observation

and adaptation
4. can handle information expressed in vague

linguistic
terms
7
5. arrive at an acceptable solution through evolution
The Soft CoŵputiŶg ;SCͿ paradigŵ ;coŶt’dͿ
• The first four characteristics are common in

problem
solving by individual humans
• The fifth characteristic (evolution) is common in
nature
• The predominant SC methodologies found in
current intelligent systems are:
– Artificial Neural Networks (ANN)
– Fuzzy Systems
– Genetic Algorithms (GA)
8
Intelligent
System
Methodologies
1. Expert Systems (ES)
9
Expert Systems
(ES)
• Designed to solve problems in a specific domain,
– Eg, An ES to assist foreign currency traders
• Built by
– Cross-examining domain experts
– Storing acquired knowledge in a form suitable for
solving problems, using simple reasoning
• Used by
– Querying the user for problem-specific information
– Using the information to draw inferences from
the knowledge base
– Supplies answers or suggested ways to collect
10 inputs
further
Overview of Expert System
( c o n t ’d )
• Usual form of the expert system knowledge base is
a collection of IF … THEN … rules
• Note: not IF statements in procedural code
• Some areas of ES application:
– banking and finance (credit assessment, project
viability)
– maintenance (diagnosis of machine faults)
– retail (suggest optimal purchasing pattern)
– emergency services (equipment configuration)
– law (application of law in complex scenarios)
11
Components of Expert Systems
12
Components of Expert Systems…
Knowledge Base…?
• The knowledge base is a collection of rules or
other information structures derived from the
human expert.
• Rules are typically structured as If/Then
statements
IF form
of the <antecedent> THEN <consequent>
• When rules are satisfied by the program,

they are added to a queue called the agenda
13
Components of Expert Systems…
• Inference Engine..?
– The main processing element of the expert system.
It chooses rules from the agenda to fire.
• User Interface..?
• A user interface is the method by which the
expert system interacts with a user.
• Cache/ Working Memory..?
– Working memory contains the data that is received
from the user during the expert system session. Values
in working memory are used to evaluate antecedents
(prior) in the knowledge base
14
Phases in Designing ES
Three stages in designing ES:
1. Knowledge acquisition : the process of getting the

knowledge from experts (by interviewing and/or
observing human experts, reading specific books,
etc).
2. Knowledge representation : selecting the most
appropriate structures to represent the
knowledge.
3. Knowledge validation : testing that the knowledge
of ES
is correct and complete.
15
Refer…..(Important)
• Features of the expert system..?
• Characteristic of the expert
system..?
• Rule—based Expert system..?
16
Review Question
1. Describe at least 3 advantages that expert systems
offer to an organisations.
2. Describe the main phases of designing and
implementing an expert system? What term is
used to call the whole process?
3. Why a production system model was used to
implement the first rule–based expert
systems?
4. What is the main difference between
17
conventional computer programs and production

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BUSINESS INTELLIGENCE (BI)

Dr. P. Ravindra S De Silva

• to gain an understanding of the theoretical foundations

• to develop the ability to evaluate intelligent systems, and

• to be able to manage the application of various

• A truly intelligent system adapts itself to deal with

• Few machines can do that at present

• Machine intelligence has a computer follow problem

1. can be tolerant of imprecise, incomplete or corrupt

2. solve problems without explicit solution steps

3. learn the solution through repeated observation

4. can handle information expressed in vague

• The first four characteristics are common in

• When rules are satisfied by the program,

1. Knowledge acquisition : the process of getting the

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