Applications of Neural Networks

Where Neural Networks can be applied?

Since neural networks are best at identifying patterns or trends in data, they are well suited for prediction or forecasting needs including:

1.  Sales Forecasting
2.  Industrial Process Control
3.  Customer Research
4.  Data Validation
5.  Risk Management
6.  Target Marketing

Artificial Neural Networks (ANNs) are also used in the following specific paradigms: 

1. Recognition of Speakers in Communications
2. Diagnosis of Hepatitis
3. Recovery of Telecommunications from Faulty Software
4. Interpretation of Multi-meaning Chinese Words
5. Undersea Mine Detection
6. Texture Analysis
7. 3D Object Recognition
8. Hand-written Word Recognition
9. Facial Recognition.

Neural Network in Business

There is a marketing application which has been integrated with a neural network system. The Airline Marketing Tactician (a trademark abbreviated as AMT) is a computer system made of various intelligent technologies including expert systems. A feedforward neural network is integrated with the AMT and was trained using back-propagation to assist the marketing control of airline seat allocations. The adaptive neural approach was amenable to rule expression. Additionaly, the application's environment changed rapidly and constantly, which required a continuously adaptive solution. The system is used to monitor and recommend booking advice for each departure. Such information has a direct impact on the profitability of an airline and can provide a technological advantage for users of the system.

While it is significant that neural networks have been applied to this problem, it is also important to see that this intelligent technology can be integrated with expert systems and other approaches to make a functional system. Neural networks were used to discover the influence of undefined interactions by the various variables. While these interactions were not defined, they were used by the neural system to develop useful conclusions. It is also noteworthy to see that neural networks can influence the bottom line.

Related Reading: What is Neural Network?
Related Reading: What is Artificial Intelligence?

What is Neural Networks?

What is Neural Networks?

An Artificial Neural Network (ANN) is an information processing paradigm that is inspired by the way biological nervous systems, such as the brain, process information. The key element of this paradigm is the novel structure of the information processing system. It is composed of a large number of highly interconnected processing elements (neurons) working in unison to solve specific problems. An ANN is configured for a specific application, such as pattern recognition or data classification, through a learning process. Learning in biological systems involves adjustments to the synaptic connections that exist between the neurones. This is true of ANNs as well.

Neural network simulations appear to be a recent development. However, this field was established before the advent of computers, and has survived at least one major setback and several eras.

Why use Neural Networks?

Neural networks, with their remarkable ability to derive meaning from complicated or imprecise data, can be used to extract patterns and detect trends that are too complex to be noticed by either humans or other computer techniques. A trained neural network can be thought of as an "expert" in the category of information it has been given to analyse. This expert can then be used to provide projections given new situations of interest and answer "what if" questions.

Other advantages include:

1. Adaptive learning: An ability to learn how to do tasks based on the data given for training or initial experience.
2. Self-Organisation: An ANN can create its own organisation or representation of the information it receives during learning time.
3. Real Time Operation: ANN computations may be carried out in parallel, and special hardware devices are being designed and manufactured which take advantage of this capability.
4. Fault Tolerance via Redundant Information Coding: Partial destruction of a network leads to the corresponding degradation of performance. However, some network capabilities may be retained even with major network damage.

Neural Networks versus Conventional Computers

Neural networks take a different approach to problem solving than that of conventional computers. Conventional computers use an algorithmic approach i.e. the computer follows a set of instructions in order to solve a problem. Unless the specific steps that the computer needs to follow are known the computer cannot solve the problem. That restricts the problem solving capability of conventional computers to problems that we already understand and know how to solve. But computers would be so much more useful if they could do things that we don't exactly know how to do.

Neural networks process information in a similar way the human brain does. The network is composed of a large number of highly interconnected processing elements(neurons) working in parallel to solve a specific problem. Neural networks learn by example. They cannot be programmed to perform a specific task. The examples must be selected carefully otherwise useful time is wasted or even worse the network might be functioning incorrectly. The disadvantage is that because the network finds out how to solve the problem by itself, its operation can be unpredictable.

On the other hand, conventional computers use a cognitive approach to problem solving; the way the problem is to be solved must be known and stated in small unambiguous instructions. These instructions are then converted to a high level language program and then into machine code that the computer can understand. These machines are totally predictable; if anything goes wrong is due to a software or hardware fault.

Neural networks and conventional algorithmic computers are not in competition but complement each other. There are tasks that are more suited to an algorithmic approach like arithmetic operations and tasks that are more suited to neural networks. Even more, a large number of tasks, require systems that use a combination of the two approaches (normally a conventional computer is used to supervise the neural network) in order to perform at maximum efficiency.

Related Reading: Applications of Neural Networks.

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