Expert Systems in Management

Abstract

This note introduces the features of expert systems and briefly discusses their applicability in the field of management. Expert systems aim to computerize the knowledge of one or more experts in a problem domain. Unlike in a decision support system, the overall direction for problem solving in an expert system is not the responsibility of the user, but it built within the system itself. The note gives two examples for expert systems in management: (1) a hypothetical expert system for credit appraisal and (2) use of knowledge base in computer integrated production planning. The note also discusses the following major components of expert systems: 1) knowledge base, 2) Inference engine, 3) knowledge acquisition subsystem, 4) explanation subsystem, and 5) user interface. The practical difficulties associated with the development of expert systems for managers are also listed.