Artificial Intelligence

The following is a link to an article that defines and illustrates the use of Artificial Intelligence:

http://library.thinkquest.org/2705/

Artificial Intelligence is defined as the area of computer science focusing on creating machines that can engage on behaviors that humans consider intelligent. The ability to create intelligent machines has intrigued humans since ancient times, and today with the advent of the computer and there has been 50 years of research into AI programming techniques. The military is already using AI which may impact our lives in the near future.

Decision Support Systems

The following is a link to an article on decision support systems (DSS) and how it helps business achieve objectives:

http://www.informationbuilders.com/decision-support-systems-dss.html

Decision Support Systems are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge and/or business models to identify and solve problems and make decisions.

The following are examples of useful information that a decision support application might gather and present:

• Accessing all current information assets, including legacy and relational data sources, data warehouses and data marts
• Comparative sales figures between one week and the next
• Projected revenue figures based on new product sales assumptions
• The consequences of different decision alternatives

Buisness Strategies for Competitive Advantage

The following link is to an article that is relevant for firm's business strategies to achieve competitive advantage:

http://www.csustan.edu/manage/harris/MBA4.html

The article points out the following sources for competitive advantage:

1. Highest Quality Product
2. Superior Customer Service
3. Achieving Lower Costs than Rivals
4. More Convenient Geographic Location
5. Better Performing Product
6. Better Value Product (Quality, Service, Price

One way that companies can achieve a competitive advantage is through the business strategy of Cost Leadership. In order to achieve a cost leadership strategy, firms must do the following:

1. Sustained capital investment and access to capital
2. Process engineering skills
3. Have intense supervision of labor
4. Products designed for ease of manufacture
5. Low-cost distribution system
6. Tight cost control
7. Frequent, detailed cost reports
8. Avoid marginal customers
9. Tight control on cost

Another generic business strategy that firms can use to achieve a competitive advantage is Differentiation. In order to achieve differentiation, firms must do the following:

1. Structured organizational responsibilities
2. Strong marketing abilities
3. Product engineering
4. Creative flair
5. Strong capability in basic research
6. Corporate reputation for quality or technology

Five Levels of Decision Making

The following is a link to an article by J.T Taylor, Five Levels of Decision Making, that is relevant to decision making in business:

http://www.teambuildingusa.com/article-making-effective-decisions.asp

The author presents five levels of involvement that leaders use when deciding who should be part of the decision making process

Level 1: Leader makes the decision alone
Most often used in emergency situations where immediate action is critical. Input from others is not helpful when immediate action is necessary.

Level 2: Leader makes the decision with input from stakeholders
The leaders seek input at this level to enhance their depth of understanding around the issue. Stakeholders hold valuable information and their input is wise to use at this point.

Level 3: Consensus Building-Leader gets final say
The leader solicits input from a variety of sources, builds consensus around a specific direction allowing the group to make a recommendation which the leader approves.

Level 4: Delegate the decision to someone else
In this level, the authority and responsibility are clearly shifted away from the leader (to a direct report). The leader and the direct report must live with consequences-whether they be good or bad. The leader will review the decision , but it doesn't change and uses it as an opportunity for development.

Level 5: True consensus
The leader fully delegates the decision to a group (usually a committee). The leader may be a part of the committee, but is treated just the same as anyone else. The group then processes all of the decision involved and then compromises positions until everyone agrees.