A case-based reasoning system is a type of "expert system." It attempts to match the facts on hand to a database of prior "cases." When a case-based reasoning system finds one or more cases in its data- base that closely matches the facts at hand, it then evaluates and reports the most common outcomes. Given enough cases, such a system can prove very useful. Even better, if a case-based system automatically captures cases as they occur, then it will become a powerful tool that continually fine-tunes its results as it gains experience. Amazon.com relies on just such a system to refer books to its customers. Like many e-commerce sites, Amazon allows visitors to search for, buy, and review books. Amazon.com takes its database interactivity a step further. Given a particular book title, its case-based reasoning engine examines all past sales of that book to see if the customers who bought that book shared other book purchases in common. It then produces a short list and presents that list to the user. The overall effect approaches that of a sales clerk who says "Oh! If you like this book, then you'll really like reading these as well." However, Amazon's system has the experience of hundreds of millions more transactions than the most wizened and well-read sales clerk. Equipped with this information, a customer may consider purchasing additional books; better information increases the customer's confidence in the purchase and encourages sales.
a. What is the source of expertise behind Amazon's online book recommendations?
b. How do you feel about online merchants tracking your purchases and using this information to recommend additional purchases?
c. What measures protect consumers from their government obtaining their personal shopping histories maintained by Amazon?
d. Although Amazon doesn't share personal in- formation, it still capitalizes on the shopping data of its customers. Is this ethical? Should Amazon offer its customers the right to opt out of this information gathering?
e. What obligations do organizations have to secure your private data from unauthorized access?
1. Most businesses should engage in e-commerce on the Internet. Do you agree or disagree with this statement? Explain your position.
2. What are the critical success factors for retail e-Business startups?
3. If you were starting an e-commerce Web store, which of the business requirements summarized in Figure 9.13 would you primarily do yourself, and which would you outsource to a Web development or hosting company? Why?
4. Are the form and use of information and decision support systems for managers and has the growth of self-directed teams to manage work in organizations changed the need for strategic, tactical, and operational decision making in business?
5. In what ways does using an electronic spreadsheet package provide you with the capabilities of a decision support system?