INFSY540 Information Resources in Management

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INFSY540Information Resources in Management

• Lesson 11
• ECommerce

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Finalizing Artificial Intelligence
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Some AI Technologies

• Expert Systems Diagnose, respond act like a
  human expert
• Neural Networks Use data to predict outputs or
  interpret inputs
• Genetic Algorithms Use data to find optimal
  solutions
• Fuzzy Logic Facilitate solutions to human
  vagueness problems
• Robotics Mimic physical human processes
• Natural-Language Processing Mimic human
  communication
• Intelligent Tutorials Facilitate human learning
• Computer Vision Mimic human sensory(visual)
  process
• Virtual Reality Mimic human reality inside a
  computer
• Game Playing Beat humans in games, e.g. chess

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Cognitive vs Biological AI

• Cognitive-based Artificial Intelligence
• Top Down approach
• Attempts to model psychological processes
• Concentrates on what the brain gets done
• Biological-based Artificial Intelligence
• Bottom Up approach
• Attempts to model biological processes
• Concentrates on how the brain works

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Cognitive vs Biological AI

• Cognitive AI Tools
• Expert Systems
• Natural Language
• Fuzzy Logic
• Intelligent Agents
• Intelligent Tutorials
• Planning Systems
• Virtual Reality

• Biological AI Tools
• Neural Networks
• Speech Recognition
• Computer Vision
• Genetic Algorithms
• Evolutionary Programming
• Machine Learning
• Robotics

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Neural Networks vs Expert Systems

• Neural Nets is to Expert Systems....
• As Recognition is to Thought Process
• Some problems can use either one
• How do the experts solve it?
• Logical step-by-step fashion? Expert System
• Recognizing the big picture? Neural Network
• Is enough historical data present?
• Yes. Neural Network
• No. Expert System

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Neural Networks vs. Expert Systems

• Can we use both together? YES!
• Output of neural net used as a fact in expert
  system
• Vehicle suspension system diagnostics.
• Neural net classifies the behavior pattern of the
  shock absorber (shock is worn, ok, etc.)
• Expert system uses result to perform diagnosis of
  the whole system.
• Expert System output as input to neural network
• Different expert systems can perform
  interpretation of individual events (ex.
  terrorist activities)
• Interpretation can serve as input to neural
  network
• Network identifies likelihood of perpetrator or
  commonalities among events

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Genetic Algorithms vs Neural Nets

• Neural Networks
• Build models of the real world
• Use models to make predictions
• Genetic Algorithms
• Typically uses an existing model (Fitness
  Function)
• Searches for a good (or optimal) solution to the
  model.

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Difference between Prediction and Optimization

• Prediction What is the nutrition content of a
  McDonalds Happy Meal?
• Optimization What is the most nutritious meal at
  McDonalds?
• Solving optimization problems typically requires
  solving many iterations of smaller prediction
  problems.

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Genetic Algorithms withExpert Systems Neural
Nets

• GA can use ES to test feasibility of a
  chromosome.
• Constraints often easy to express in
  rules......
• GA can use trained NN as the Fitness Function.

GA
ES
Is it feasible?
NN
How good is it?
Fitness Value
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Genetic Algorithms withExpert Systems Neural
Nets
If infeasible, return an extremely bad Fitness
GA
ES
NN
If it is a feasible solution, send to Neural
Network
Fitness Value
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Questions about Artificial Intelligence?
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ECommerceLearning Objectives

• Identify advantages of e-commerce
• Outline how e-commerce works
• Identify challenges companies must overcome to
  succeed in e-commerce
• Identify the major issues that threaten the
  continued growth of e-commerce

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Learning Objectives

• List the key technology components that must be
  in place for successful e-commerce
• Discuss key features of electronic payments
  systems needed for e-commerce
• Identify some e-commerce applications
• Outline key components of a successful e-commerce
  strategy

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An Introduction to Electronic Commerce
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Fig 8.1
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E-Commerce Challenges

• Define strategy
• Change distribution systems work processes
• Integrate web-based order processing with
  traditional systems

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Can you find examples of community, content
commerce on www.drugstore.com?
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Fig 8.3
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Fig 8.4
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Forms of E-Commerce

• Business to Business (B2B)
• Business to Consumer (B2C)

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E-Commerce Applications
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Retail and Wholesale

• E-tailing electronic retailing
• Cybermalls
• Wholesale e-commerce B2B

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• Fig 8.5

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Marketing

• DoubleClick

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Table 8.1
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Table 8.2
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Priceline
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Technology Infrastructure
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Fig 8.6
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Web Server Hardware

• Server platform
• Hardware
• Operating system
• Website hosting
• Capital investment
• Technical staff
• Must run 24-7-365 to avoid disrupting business
  losing customers

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Web Server Software

• Security identification
• Encryption
• Retrieving sending web pages
• Web site tracking

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E-Commerce Software

• Catalog management
• Product configuration
• Shopping cart
• Transaction processing
• Traffic data analysis

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Network Selection

• Cost
• Availability
• Reliability
• Security
• Redundancy

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Electronic Payment Systems
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Payment Security

• Authentication
• Digital certificate
• Certificate authority (CA)
• Encryption
• Secure Sockets Layer (SSL)

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Payment Mechanisms

• Electronic cash
• Identified electronic cash
• Anonymous electronic cash (digital cash)
• Electronic wallets
• Smart, credit,charge debit cards

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Threats to E-Commerce
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Threats to E-Commerce

• Security

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Threats to E-Commerce

• Intellectual property
• Fraud
• On-line auctions
• Spam
• Pyramid schemes
• Investment fraud
• Stock scams

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Threats to E-Commerce

• Privacy
• Online profiling
• Clickstream data

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Fig 8.8
TRUSTe Seal
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Fig 8.9

• BBB Online Privacy Seal

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Table 8.3
How to Protect Your Privacy While On-Line
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Strategies for Successful E-Commerce
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Developing an Effective Web Presence

• Obtain information
• Learn about products or services
• Buy products or services
• Check order status
• Provide feedback or complaints

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Putting Up a Web Site

• In-house development
• Web site hosting companies
• Storefront brokers

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Driving Traffic to Your Web Site

• Domain names
• Meta tags
• Traffic logs

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Questions?