A Survey of the Application of Machine Learning in Decision Support Systems

Machine learning is a useful technology for decision support systems and assumes greater importance in research and practice. Whilst much of the work focuses technical implementations and the adaption of machine learning algorithms to application domains, the factors of machine learning design affecting the usefulness of decision support are still understudied. To enhance the understanding of machine learning and its use in decision support systems, we report the results of our content analysis of design-oriented research published between 1994 and 2013 in major Information Systems outlets. The findings suggest that the usefulness of machine learning for supporting decision-makers is dependent on the task, the phase of decision-making, and the applied technologies. We also report about the advantages and limitations of prior research, the applied evaluation methods and implications for future decision support research. Our findings suggest that future decision support research should shed more light on organizational and people-related evaluation criteria

The use of information technology in aquaculture management

The recent advances in information technology (IT) have had profound impacts on all walks of life and aquaculture is no exception. The growing importance of aquaculture as an alternative source of protein has further emphasized the need to adapt and develop advanced IT for the better management of aquaculture facilities as well as the regional planning for aquaculture development. It is the objective of this paper to review the use and potential prospects of IT in aquaculture management. The information technologies considered are instrumentation and process control, data management, computerized models, decision support systems, artificial intelligence and expert systems, image processing and pattern recognition, geographical information systems, and information centres and networks. The review includes a brief introduction of each of the aforementioned technologies, followed by a survey of their current application as well as their potential use in aquaculture management. Abstract The recent advances in information technology (IT) have had profound impacts on all walks of life and aquaculture is no exception. The growing importance of aquaculture as an alternative source of protein has further emphasized the need to adapt and develop advanced IT for the better management of aquaculture facilities as well as the regional planning for aquaculture development. It is the objective of this paper to review the use and potential prospects of IT in aquaculture management. The information technologies considered are instrumentation and process control, data management, computerized models, decision support systems, artificial intelligence and expert systems, image processing and pattern recognition, geographical information systems, and information centres and networks. The review includes a brief introduction of each of the aforementioned technologies, followed by a survey of their current application as well as their potential use in aquaculture management

Designing personalized intelligent decision support systems: the impact of risk attitude on using secury selection models

The variety of investment methods and the complexity of investment decisions have increased steadily in the last two decades. This growth has created a need for comprehensive and expandable financial decision support systems that embody major approaches toward investment decisions. The question is whether such systems should take into account the investor's unique requirements and personal characteristics. This paper reports on the first phase of our research. Here, we design such a system, create a prototype, and use it for an exploratory investigation of the impact of investors' individual characteristics on their use of models in making decisions. More specifically, we report on how investors' attitudes towards risk, gender, and age relatetheir choice of investment models.info:eu-repo/semantics/publishedVersio

Decision-Making Amplification Under Uncertainty: An Exploratory Study of Behavioral Similarity and Intelligent Decision Support Systems

Intelligent decision systems have the potential to support and greatly amplify human decision-making across a number of industries and domains. However, despite the rapid improvement in the underlying capabilities of these “intelligent” systems, increasing their acceptance as decision aids in industry has remained a formidable challenge. If intelligent systems are to be successful, and their full impact on decision-making performance realized, a greater understanding of the factors that influence recommendation acceptance from intelligent machines is needed. Through an empirical experiment in the financial services industry, this study investigated the effects of perceived behavioral similarity (similarity state) on the dependent variables of recommendation acceptance, decision performance and decision efficiency under varying conditions of uncertainty (volatility state). It is hypothesized in this study that behavioral similarity as a design element will positively influence the acceptance rate of machine recommendations by human users. The level of uncertainty in the decision context is expected to moderate this relationship. In addition, an increase in recommendation acceptance should positively influence both decision performance and decision efficiency. The quantitative exploration of behavioral similarity as a design element revealed a number of key findings. Most importantly, behavioral similarity was found to positively influence the acceptance rate of machine recommendations. However, uncertainty did not moderate the level of recommendation acceptance as expected. The experiment also revealed that behavioral similarity positively influenced decision performance during periods of elevated uncertainty. This relationship was moderated based on the level of uncertainty in the decision context. The investigation of decision efficiency also revealed a statistically significant result. However, the results for decision efficiency were in the opposite direction of the hypothesized relationship. Interestingly, decisions made with the behaviorally similar decision aid were less efficient, based on length of time to make a decision, compared to decisions made with the low-similarity decision aid. The results of decision efficiency were stable across both levels of uncertainty in the decision context

Essays on Financial Applications of Nonlinear Models

In this thesis, we examine the relationship between news and the stock market. Further, we explore methods and build new nonlinear models for forecasting stock price movement and portfolio optimization based on past stock prices and on one type of big data, news items, which are obtained through the RavenPack News Analytics Global Equities editions. The thesis consists of three essays. In Essay 1, we investigate the relationship between news items and stock prices using the artificial neural network (ANN) model. First, we use Granger causality to ascertain how news items affect stock prices. The results show that news volume is not the Granger cause of stock price change; rather, news sentiment is. Second, we test the semi–strong form efficient market hypothesis, whereas most existing research testing efficient market hypothesis focuses on the weak–form version. Our ANN strategies consistently outperform the passive buy–and–hold strategy and this finding is apparently at odds with the notion of the efficient market hypothesis. Finally, using news sentiment analytics from RavenPack Dow Jones News Analytics, we show positive profitability with out–of–sample prediction using the proposed ANN strategies for Google Inc. (NASDAQ: GOOG). In Essay 2, we expand the utility of the information from news volume and news sentiments to encompass portfolio diversification. For the Dow Jones Industrial Average (DJIA) components, we assign different weights to build portfolios according to their weekly news volumes or news sentiments. Our results show that news volume contributes to portfolio variance both in–sample and out–of–sample: positive news sentiment contributes to the portfolio return in–sample, while negative contributes to the portfolio return out–of–sample, which is a consequence of investors overreacting to the news sentiment. Further, we propose a novel approach to portfolio diversification using the k–Nearest Neighbors (kNN) algorithm based on the idea that news sentiment correlates with stock returns. Out–of–sample results indicate that such strategy dominates the benchmark DJIA index portfolio. In Essay 3, we propose a new model called the Combined Markov and Hidden Markov Model (CMHMM), in which observation is affected by a Markov model and an HMM (Hidden Markov Model) model. The three fundamental questions of the CMHMM are discussed. Further, the application of the CMHMM, in which the news sentiment is one observation and the stock return is the other, is discussed. The empirical results of the trading strategy based on the CMHMM show the potential applications of the proposed model in finance. This thesis contributes to the literature in a number of ways. First, it extends the literature on financial applications of nonlinear models. We explore the applications of the ANNs and kNN in the financial market. Besides, the proposed new CMHMM model adheres to the nature of the stock market and has better potential prediction ability. Second, the empirical results from this dissertation contribute to the understanding of the relationship between news and the stock market. For instance, our research found that news volume contributes to the portfolio return and that investors overreact to news sentiment—a phenomenon that has been discussed by other scholars from different angles

Rethinking ‘Responsibility’ in Precision Agriculture Innovation: Lessons from an Interdisciplinary Research Team

We examine the interactions, decisions, and evaluations of an interdisciplinary team of researchers tasked with developing an artificial intelligence-based agricultural decision support system that can provide farmers site-specific information about managing nutrients on their land. We answer the following research questions: (1) How does a relational perspective help an interdisciplinary team conceptualize ‘responsibility\u27 in a project that develops precision agriculture (PA)? and (2) What are some lessons for a research team embarking on a similar interdisciplinary technology development project? We show that how RI is materialized in practice within an interdisciplinary research team can produce different understandings of responsibility, notions of measurement of ‘matter,’ and metrics of success. Future interdisciplinary projects should (1) create mechanisms for project members to see how power and privilege are exercised in the design of new technology and (2) harness social sciences as a bridge between natural sciences and engineering for organic and equitable collaborations

How Fair Is IS Research?

While both information systems and machine learning are not neutral, the identification of discrimination is more difficult if a system learns from data and discrimination can be introduced at several stages. Therefore, this article investigates if IS Research has taken up with this topic. A literature analysis is conducted and its discussion shows that technology, organization, and human aspects have to be considered, making it a topic not only for data scientist or computer scientist, but for information systems researchers as well

Image-based Decision Support Systems: Technical Concepts, Design Knowledge, and Applications for Sustainability

Unstructured data accounts for 80-90% of all data generated, with image data contributing its largest portion. In recent years, the field of computer vision, fueled by deep learning techniques, has made significant advances in exploiting this data to generate value. However, often computer vision models are not sufficient for value creation. In these cases, image-based decision support systems (IB-DSSs), i.e., decision support systems that rely on images and computer vision, can be used to create value by combining human and artificial intelligence. Despite its potential, there is only little work on IB-DSSs so far. In this thesis, we develop technical foundations and design knowledge for IBDSSs and demonstrate the possible positive effect of IB-DSSs on environmental sustainability. The theoretical contributions of this work are based on and evaluated in a series of artifacts in practical use cases: First, we use technical experiments to demonstrate the feasibility of innovative approaches to exploit images for IBDSSs. We show the feasibility of deep-learning-based computer vision and identify future research opportunities based on one of our practical use cases. Building on this, we develop and evaluate a novel approach for combining human and artificial intelligence for value creation from image data. Second, we develop design knowledge that can serve as a blueprint for future IB-DSSs. We perform two design science research studies to formulate generalizable principles for purposeful design — one for IB-DSSs and one for the subclass of image-mining-based decision support systems (IM-DSSs). While IB-DSSs can provide decision support based on single images, IM-DSSs are suitable when large amounts of image data are available and required for decision-making. Third, we demonstrate the viability of applying IBDSSs to enhance environmental sustainability by performing life cycle assessments for two practical use cases — one in which the IB-DSS enables a prolonged product lifetime and one in which the IB-DSS facilitates an improvement of manufacturing processes. We hope this thesis will contribute to expand the use and effectiveness of imagebased decision support systems in practice and will provide directions for future research