Artificial Intelligence as an Enabler for Developing Business Systems

Artificial Intelligence as an Enabler for Developing Business Systems

N. Raghavendra Rao (FINAIT Consultancy Services, India)
DOI: 10.4018/978-1-7998-3473-1.ch032
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Abstract

The information and communication technology provides access to a vast amount of useful information. Enterprises need to integrate that information and those technology capabilities to the relevant context. The relevancy and context would help to transform an enterprise's business. The concept of Artificial Intelligence enables business executives to look forward to their potential and target market in the broader sense. This chapter mainly talks about the various components needed for the creation of a business model in the artificial intelligence environment.
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Introduction

Decision making in any business is considered to be a primary activity. All managerial activities revolve around decision making. Business executives in enterprises are the decision makers. Enterprises have executives at the various levels in their organizations. Some of them are assigned the task of taking decisions in their functional areas. Executives at the senior management level will take the responsibility of taking decisions for the various business activities. Their decisions are considered to be policy making decisions. Their policy decisions will be in the areas such as Capital investment purchases, setting targets for production and marketing of their products. Their other policy decisions will be related to other important activities and functional areas related to their business. Effective information systems in an enterprise will facilitate the executives in taking decision. Over a period many new concepts have emerged in the discipline of information and communication technology. These concepts have provided a scope for designing and developing a business model to suit the business needs of an enterprise. One of the concepts that recently emerged is artificial intelligence. It is gaining importance in the present business scenario for multiple reasons. One of the reasons is the severe competition in the global market. This chapter mainly talks about the importance of the concept of artificial intelligence in designing and developing decision support systems for the enterprises.

Background

In earlier years the process of decision making was considered to be an art and a special talent. This talent was acquired by executives over a period through their experience. It was an art because a variety of individual styles could be used in approach and solving the same types of issues or problems related to a business. Their styles have been based on creativity, judgement, intuition, and experience. Their approach is not the basis of systematic quantitative methods (Efraim Turban, Jay E Aronson, and Ting-Peng Lang, 2006). In the present business scenario, business and its environment are becoming more complex day by day. Business executives need to equip themselves and keep changing in their approach for taking decisions in the present changing scenario.

Changes in Decision Making Process

The process of making a decision has become more complicated and difficult. This is because of several reasons. First reason, there are several alternatives available much more than earlier days. The advancements in the discipline of information and communication technology have also created many alternatives for decision making process. The second reason is the cost of making errors can be large because of the complexity and magnitude of business operations. Continuous rapid changes in business environments are forcing the business executives to change the method of decision-making process. This can be considered as a third reason. Finally responding quickly to the changes in the market is forcing the business executives to change their decision- making process (Efraim Turban, Jay E Aronson, and Ting-Peng Liang, 2006).

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