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Expert System In Business – Importance, Meaning, Types, Need

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Expert System In Business – Importance, Meaning, Types, Need. What’s The Importance Of Expert System In Business. Components of Expert System, Future of Expert System. Today organizations depend heavily on information System to manage their business. Today most of the Business functions are dependent on the use of information system. We can rightly say that we are in INFORMATION AGE where information is of prime importance. Information simply means meaningful data.  QUALITY INFORMATION GIVES QUALITY OUTPUT. In order to manage, retrieve, collect, process information , we require some system that is called as Information System. Now check more details regarding “Expert System In Business – Importance, Meaning, Types, Need from below….

Expert System In Business – Importance, Meaning, Types, Need

Expert System in Business

There are various types of Systems such as

  • TPS: Transaction processing system
  • MIS: management Information System
  • ERP: Enterprise resource planning system
  • DSS: Decision Support System
  • EIS: Executive Support System
  • Expert systems

What is an Expert System?

“An Intelligent computer program that uses knowledge to solve problems and such knowledge is only possessed by experts”

Expert system is a branch of artificial intelligence that makes use of specialized knowledge to solve problems at the level of human expert. Expert system takes the role of a human expert and solves the problem like a specialist. It allows the user to work interactively with the computer in order to develop a variety of decisions. Expert system can provide consistent answers. Expert System holds quality information.

Components of Expert System:

Knowledge Base: It consists of relationships rule, data rule which are generally used by experts to solve different types of problems. It consists of professional knowledge possessed either by an expert or a group of experts.

Inference Engine: It contains logic and resolving mechanisms.

User Interface: This program allows user to communicate with the expert system.

Explanation facility: It provides the user with the logic used by the expert system to solve the query.

Knowledge Acquisition facility:  A good knowledge base requires efforts of both human expert and a knowledge engineer.

What is the need for expert systems?

Major reasons for the need of expert systems are as follows:

  • We cannot afford expert labor since it is expensive and scarce.
  • Shortage of experts is also a major issue.
  • Experts can handle only a few factors at a time.

What are the benefits of expert systems?

  • The cost of expertise per user is reduced.
  • Experts are available 24*7. Thus there is an increased availability of experts.
  • Expert system assist new user to think in a way as experienced experts do.
  • Experts System is not emotional like human beings.
  • Expert system may serve as a strategic tool in several areas.
  • The expertise is permanent unlike human experts who may retire, quit or die.

What are the business applications of expert system?

  • Marketing: It helps an organization to determine discounts, quantity and various factors relating to sale.
  • Manufacturing: It determines whether a process is correct or incorrect and if it is incorrect, then resolving it and correcting it within time.
  • Accounting: It helps in making financial decisions and credit authorization decisions.
  • Business: It helps to run the business smoothly and educate trainees and evaluate performance.

What are the limitations of expert systems?

  • Lacks common sense needed in some decision making.
  • Cannot make corrective decision in unusual cases.
  • Expert system may not be able to explain logic and reasoning behind their decisions.
  • It may not be able to perform in changing environment.
  • Wrong information stored in the knowledge base may lead to wrong decisions.

What is the future of expert system?

The future of expert system is extremely bright. Expert systems are almost used in all aspects of our life. Whenever there is a need to solve structured problem, the name of expert systems will come first. The experts systems will surely solve all the problems faced by us. Expert system will help us to achieve strategic advantage in life.

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About CA Ridhi Dhoot

The writer is a Chartered Accountant & a Licentiate Company Secretary. You can reach out to her at [email protected]

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