Chapter 12: Make IT Your Business


Finance and Accounting


Many expert system, neural network, and hybrid AI applications as well as knowledge work systems have been developed for the finance and accounting function. Rule-based expert systems have been widely used tools for evaluating the credit risk of loan applicants and for investment portfolio selection. A number of financial services firms use neural networks for stock and bond trading strategies, commodity trading, and detecting credit card fraud. Financial professionals use investment workstations that integrate a wide range of financial data from internal and external sources as well as enterprise-wide knowledge management systems with structured and unstructured financial, accounting, and tax information.

Human Resources

The human resources function uses Web publishing tools and knowledge repositories to communicate company policies to employees and to provide online directories of human resources policies and training programs. Human resources specialists are also in charge of employee training programs to help employees use knowledge management systems and may also be responsible for operating the firm’s learning management systems. The data from learning management systems often are exported to human resources systems so that they become part of each employee’s permanent records. Human resources staff may be asked to help management develop policies and procedures to promote a “knowledge culture.” Knowledge networks can help human resources with staffing by locating and identifying employees with the expertise for new job openings. You can find examples of human resources applications on pages 428 and 432.

Manufacturing and Production

The manufacturing and production function is replete with knowledge system applications. Many companies are using knowledge work and group collaboration tools for creating and sharing product design and manufacturing specifications and for project management. Expert systems have been used to guide the configuration of orders when products with many different parts or features are being assembled. Both expert systems and case-based reasoning systems are used for assisting diagnostic and repair work on malfunctioning products and equipment. Fuzzy logic helps improve the performance of products such as camcorders, air conditioners, washing machines, and subway cars. Genetic algorithms have generated solutions for problems in optimizing scheduling or design. Intelligent agents are starting to be used in supply chain management. You can find examples of manufacturing and production applications on pages 415 and 453–455.

Sales and Marketing

Specialized corporate portals and repositories for structured and unstructured knowledge have been created for sales and marketing staff to help them access and share information about customers, sales leads, competitors, and changes in product pricing and specifications. Virtual reality and VRML simulations can help customers experience the “look and feel” of products and even tailor some of these products more precisely to their needs. Case-based reasoning systems have been widely used for customer service and support. Many online intelligent agent tools and services have been developed to search the Web for products and services specified by users and to assist them in comparing prices and features.