Abstract
Business decisions need to be made based on constantly changing data from a variety of sources. The data for business enterprises consists of both internal and external sources. Some managerial decisions are qualitative. Thus, it is necessary to incorporate this knowledge in developing decision support systems. Advancements in the information and communication technology discipline provide the various concepts for designing and developing business models. The concept of machine learning is one of the important concepts provided by the above discipline. Machine learning has become one of the most important elements for adopting innovative ways in understanding the thought process of humans and duplicating this process through computing systems. Machine learning is a form of artificial intelligence that enables a system to learn from data rather than explicit programming. This article gives an overview of the machine learning process and collaborative concepts. A case illustration related to a textile mill in India is discussed in the context of machine learning.
TopBackground
The advent of computer systems and the integration of information and communication technology provided scope for designing and developing business tools and business models. Some of them are management information systems, executive information systems, and business analytics, business intelligence, case tools, expert systems, and customer resource management. The above list is not exhaustive. In the present business scenario, the concepts such as cloud computing, artificial intelligence, and machine learning are facilitating in developing business models for the qualitative decision process or improving the existing decision process. Ultimately the decision-making process of choosing among the alternative course of action to attain a goal or achieve a set objective.
Focus in the Chapter
Designing a business model in the machine learning environment needs special efforts. The reason being computer system is required to be trained to think like an intelligent human being. Collective intelligence of domain experts, functional specialists besides making the computer system familiar with the business processes and procedures of a particular business operation. On the basis of the requirements of a particular business application algorithms need to be developed. Collaborative concepts in the discipline of information and communication technology are required to be identified for designing an effective business model under the machine learning environment. This chapter mainly explains how the approach mentioned above will facilitate in designing a business model with the concept of machine learning.
Key Terms in this Chapter
Business Intelligence: This is related to using analytical methods either manually or automatically for deriving relationships from the data.
Artificial Intelligence: This is the subfield of computer science concerned with symbolic reasoning and problem solving.
Inductive Learning: This is a machine learning approach in which rules are inferred from facts or data.
Machine Learning: The process by which a computer system learns from experience. Algorithms are developed to make the computer system learn from the historical cases.
Intellectual Assets: This is referred to a specific part of know-how of an organization. This is also referred as intellectual capital. Intellectual capital often includes the knowledge that employees possess.
Cloud Computing: This is a computing model that makes information technology resources such as servers, middleware, and application available over the internet as services to business organizations in self-service manner.
Data Warehouse: This is a large data store containing the organization’s historical data which is used primarily for data analysis and data miming.
Heuristics: This is an informal and judgemental knowledge of an application area that constitutes the “Rules of Good Judgment” in the field. Heuristics also encompasses the knowledge of solving problems efficiently and effectively. It also facilitates to improve performance a particular activity in an organization.