INTELLIGENT KNOWLEDGE-BASED SYSTEMS BUSINESSAND TECHNOLOGYIN THENEWMILLENNIUM VOLUME 1 KNOWLEDGE-BASEDSYSTEMS INTELLIGENT KNOWLEDGE-BASED SYSTEMS BUSINESSAND TECHNOLOGY IN THE NEWMILLENNIUM VOLUME 1 KNOWLEDGE-BASED SYSTEMS Edited by CORNELIUS T. LEONDES UniversityofCalifornia,LosAngeles,USA .... " KLUWERACADEMICPUBLISHERS BOSTONIDORDRECHTILONDON Distributorsfor North, Centraland South America: KJuwerAcademic Publishers 101PhilipDrive AssinippiPark Norwell,Massachusetts02061 USA Telephone(781)871-6600 Fax(781)871-6528 E-Mail<[email protected]> Distributorsfor allothercountries: KJuwerAcademicPublishers Group PostOfficeBox322 3300AH Dordrecht,THENETHERLANDS Telephone 31786576000 Fax31786576474 E-Mail<[email protected]> lIl... " Electronic Services<http://www.wkap.nl> Library ofCongress Cataloging-in-PublicationData Intelligentknowledge-basedsystems: businessandtechnologyinthe new millennium. / edited byCorneliusT.Leondes. Includesbibliographical referencesandindex. Contents:v.1.Knowledge-basedsystems-v.2.Informationtechnology- v.3.Expertandagentsystems-v.4.Intelligentsystems- v.5.Neural networks, fuzzytheoryandgenetic algorithms. ISBN 1-40207-746-7(set)-ISBN1-40207-824-2(v.1)-ISBN 1-40207-825-0(v.2)- ISBN 1-40207-826-9(v.3)-ISBN 1-40207-827-7(vA)-ISBN 1-40207-828-5(v.5) ISBN 1-40207-829-3(electronic book set) (LOC informationtofollow.) Copyright©2005byKJuwerAcademic Publishers Allrightsreserved. No partofthiswork maybereproduced,storedinaretrieval systemsortransmittedinanyform orbyanymeans,electronic, mechanical, photo-copying,microfilming, recording, orotherwise, withoutthe priorwritten permission ofthe publisher,witli tlieexceptionofanymaterialsuppliedspecifically forthepurposeofbeingenteredandexecuted onacomputersystem,forexclusiveuse bythepurchaser ofthework. Permissionsforbookspublished intheUSA:[email protected] Permissionsforbookspublished inEurope: [email protected] Printedonacid-jreepaper. Printedinthe UnitedStatesofAmerica. CONTENTS Foreword VII Preface IX Listofcontributors Xlll Volume 1. Knowledge-Based Systems 1.Platform-BasedProductDesign andDevelopment: KnowledgeSupportStrategy and Implementation 3 XUAN F.ZHA AND RAMD. SRIRAM 2.KnowledgeManagementSystemsin ContinuousProductInnovation 36 MARIANO CORSO, ANTONELLA MARTINI, LUISA PELLEGRINI, AND EMILIO PAOLUCCI 3.Knowledge-BasedMeasurementofEnterprise Agility 67 NIKOS c.TSOURVELOUDIS 4.Knowledge-BasedSystemsTechnologyin the Make orBuy Decisionin Manufacturing Strategy 83 P.HUMPHREYS AND R. MCIVOR 5.IntelligentInternetInformation Systemsin Knowledge Acquisition: Techniques andApplications 110 SHIAN-HUALIN 6.Aggregator: AKnowledgeBasedComparison ChartBuilderfor eShopping 140 F.KOKKORAS, N. BASSILIADES, AND I. VLAHAVAS v vi Contents 7.Impact ofthe IntelligentAgent Paradigm on Knowledge Management 164 JANIS GRUNDSPENKIS AND MARITE KIRIKOVA 8.MethodsofBuildingKnowledge-BasedSystemsApplied inSoftwareProject Management 207 CEZARYORLOWSKI 9.SecurityTechnologies to GuaranteeSafeBusinessProcessesin Smart Organizations 246 ISTVAN MEZGAR 10.BusinessProcessModellingand ItsApplications in the BusinessEnvironment 288 BRANEKALPIC, PETER BERNUS, AND RALFMUHLBERGER 11.KnowledgeBasedSystemsTechnologyand Applications in Image Retrieval 346 EUGENE DI SCIASCIO, FRANCESCO M. DONINI, AND MARINA MONGIELLO FOREWORD Almost unknown to the academic world, and to the general public, the application ofintelligent knowledge-based systems israpidly and effectively changing the future ofthe human species. Today, human well-being is, asit has been for all ofhistory, fundamentally limited by the size of the world economic product. Thus, if human economicwell-being(whichIpersonallydefineasthebottomcentileannualpercapita income)iseversoon to reach an acceptable level (e.g., the equivalent of$20,000 per capita per annum in 2004), then intelligent knowledge-based systems must be em- ployed in vast quantities. This is primarily because ofthe reality that few humans live in efficient societies (such asthe United States, Canada,Japan, the UK, France, and Germany, for example) and that inefficient societies, many of which are already large, and growing larger, may require many decades to become efficient. In the meantime, billionsofpeople will continue to suffereconomic impoverishment-an impoverishmentthatinefficient humanlabor cannotremedy.To create the extraeco- nomic output so urgently needed, we have only one choice: to employ intelligent knowledge-based systems in great numbers, which will produce economic output prodigiously,but willconsume hardly at all. This multi-volume major reference work, architected by its editor, Cornelius T. Leondes,providesawealthof'casestudies' illustratingthe stateofthe art inintelligent knowledge-based systems. In contrast to ordinary academic pedagogy, where 'ivory tower'abstraction andelegancearetheguidingprinciples,practicalapplicationsrequire detailed relevant examplesthat can be used by practitionersto successfully innovate new operationalcapabilities. The economicprogressofthe speciesdepends upon the vii viii Foreword flow ofthese innovations, which requiresmulti-volume major reference workswith carefullyselected,well-written,andwell-edited'casestudies.'ProfessorLeondesknows these realitieswell, and the fivevolumesin thiswork resoundinglyreflect hissuccess in achieving their requirements. Volume 1addressesKnowledge-Based Systems.Theseeleven chaptersconsiderthe basicquestionofhow accumulateddataandstaffexpertise frombusinessoperations can be abstracted into valuableknowledge,andhow such knowledge canthen be applied toongoingoperations.Wideandrepresentativesituationsareconsidered,rangingfrom product innovation anddesign,to intelligent databaseexploitation,to businessmodel analysis. Volume2,InformationTechnology,addressesintenchapterstheimportantquestion ofhow data should be stored and used to maximize its overall value. Case studies consider a wide variety ofapplication arenas: product development, manufacturing, product management, and evenproduct pricing. Volume 3 addressesExpert and Agent Systemsin ten chapters. Application arenas considered include image databases,businessprocess monitoring, e-commerce, and production planning and scheduling. Again, the coverage is designed to provide a wide range of perspectives and business-function concentrations to help stimulate innovation bythe reader. Volume 4, Intelligent Systems, provides nine chapters considering such topics as mission-criticalfunctions,businessforecasting,medicalpatientcare,andproductdesign anddevelopment. Volume5addressesNeuralNetworks,FuzzyTheory,andGenetic AlgorithmTech- niques. Itsten chapters coverexamplesinareasincludingbioinformatics,productIife- cyclecostestimating,productdevelopment,computer-aideddesign,productassembly, and facilitylocation. The examples assembled by Professor Leondes in this work provide a wealth of practical ideasdesigned to trigger the development ofinnovation. The contributors to thisgrandprojectareto be congratulatedforthe major effortstheyhaveexpended in creatingtheirchapters.Humanseverywherewillsoon benefitfrom the casestudies provided herein. Intelligent Knowledge-Based Systems: Businessand Technology in the New Millennium,isareferencework thatbelongsonthe deskofeveryinnovative technologist. It has taken many decades ofexperience and unflagging hard work for Professor Leondes to accumulate the wisdom andjudgment reflected in his editorial steward- ship ofthis reference work. Wisdom and judgment are rare-but indispensable- commodities that cannot be obtained in any other way. The world of innovative technology,and the world atlarge,stand in hisdebt. Robert Hecht-Nielsen Computational Neurobiology Institute for NeuralComputation Department ofElectricalandComputerEngineering UniversityofCalifornia, SanDiego PREFACE At the start ofthe 20th century, national economieson the internationalscene were, toalargeextent,agriculturallybased. Thiswas,perhaps,the dominant reason for the protraction, on the international scene, ofthe Great Depression, which began with the Wall Street stock market crash of October, 1929. After World War II the trend away from agriculturally based economies and toward industrially based economies continued and strengthened. Indeed, today, in the United States,approximatelyonly 1% ofthe population isinvolved in the agriculture requirements ofthe US and, in addition,providessignificantagriculture exports.This,ofcourse,ismadepossibleby thegreatlyimproved techniquesand technologiesutilized in theagricultureindustry. Thetrend toward industriallybasedeconomiesafterWorld WarIIwas,inturn, fol- lowedbyatrendtoward service-basedeconomies.In theUnitedStatestoday,roughly over 70%ofthe employment isinvolvedwith serviceindustries-and thispercentage continuesto increase.Separately,theelectronic computer industrybeganto takehold in the early 1960s, and thereafter alwaysseemed to exceed expectations. For exam- ple,the firstlarge-scalesalesofan electronic computer were ofthe rEM 650.At that time, projections were that the totalsalesfor the United Stateswould be twenty-five rEM 650computers.Beforethefirstone came offtheprojectionline,rEM hadinitial orders for over 30,000. That was thought to be huge by the standards of that day, and today it isavery miniscule number, tosaynothingofthe fact that itscomputing power wasalso very miniscule by today'sstandards. Computer mainframes contin- ued togrow inpowerandcomplexity.Atthesametime,GordonMoore,of"Moore's Law"fame,andhiscolleaguesfoundedINTEL.Thenaround1980M[CROSOFTwas ix x Preface founded,but itwasnot untilthe early1990s,not thatlongago,thatWINDOWSwere created- incidentally,aftertheAPPLEcomputerfamilystarted.Thefirstbrowserwas the NETSCAPE browser,which appearedin 1995,alsonot thatlongago. Ofcourse, computer networking equipment, most notably CISCO's, also appeared about that time. Toward the end ofthe last century the "DOT COM bubble" occurred and "burst" around 2000. Coming to the new millennium,tormostofourhistorythe wealth ofanation was limited bythe sizeandstaminaofthe work force.Today,nationalwealthismeasuredin intellectual capital. Nationspossessingskillfulpeople in such diverseareasasscience, medicine, business, and engineering produce innovations that drive the nation to a higherqualityoflife.Tobetterutilizethesevaluableresources,intelligent,knowledge- based systemstechnology hasevolved at arapid and significantlyexpanding rate,and can be utilized by nations to improve their medical care, advance their engineering technology,andincreasetheir manufacturingproductivity,aswellasplayasignificant rolein averywide varietyofotherareasofactivityofsubstantivesignificance. The breadth ofthe majorapplication areasofintelligent,knowledge-basedsystems technologyisvery impressive.Theseinclude the following,amongotherareas. Agriculture Electronics Business Engineering Chemistry Environment Communications Geology ComputerSystems Image Processing Education Information Management Military Law Mining Manufacturing Power Systems Mathematics Science Medicine SpaceTechnology Meteorology Transportation It is difficult now to imagine an area that will not be touched by intelligent, knowledge-basedsystems technology. Thegreatbreadthandexpandingsignificance ofsuch abroad fieldon theinterna- tionalscene requires amulti-volume,major reference work to provide an adequately substantive treatment ofthe subject,"Intelligent Knowledge-BasedSystems:Business and Technology ofThe New Millennium." Thiswork consistsofthe following dis- tinctlytitled andwellintegrated volumes. Volume I. Knowledge-BasedSystems Volume II. Information Technology Volume III. Expertand Agent Systems Volume IV IntelligentSystems Volume V NeuralNetworks This five-volume set on intelligent knowledge-based systemsclearly manifests the greatsignificance ofthesekeytechnologiesfor the neweconomiesofthe new millen- nium. The authors are allto be highly commended for their splendid contributions, whichtogetherwillprovide asignificantand uniquelycomprehensivereference source forresearchworkers, practitioners, computerscientists,students, and others on the in- ternational scene foryearsto come. Cornelius T. Leondes University ofCalifornia, LosAngeles January 5, 2004