Category Archives: Analytics & Optimization

Analytics & Optimization Is Your Analytics Supply Chain Broken?

Simplified view of an analytics supply chain
Feb202017

This is a guest post from Thomas H. Davenport and FICO’s Zahir Balaporia. A version of this post was also published on Data Informed. Businesses across many industries spend millions of dollars employing advanced analytics to manage and improve their supply chains. Businesses look to analytics to help with sourcing raw materials more efficiently, improving manufacturing productivity, optimizing inventory, minimizing distribution cost, and other related objectives. But the results can be less than satisfactory. It often takes too long to source the data, build the models and deliver the analytics based solutions to the multitude of decision makers in an organization. Sometimes key steps in the process are omitted completely. In other words, the solution for improving the supply chain –  advanced analytics – suffers from the same problems that it aims to solve. Therefore, reducing inefficiencies in the analytics supply chain should be a critical component of any analytics initiative... [Read More]

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Analytics & Optimization AI Meets AML: How the Analytics Work

Brain with AML highlihgted in neural pathways
Feb152017

The focus on financial crime, and the money laundering that funds terrorist attacks and other criminal activities, has forced the industry to look for smarter approaches. In the previous posts in this mini-series, TJ Horan noted that AI is the newest hope for compliance, and Frank Holzenthal explored the benefits that AI can bring to compliance officers. Now it’s my turn, and I’m going to explore the AI and machine learning technologies my team has integrated into the FICO TONBELLER Anti-Financial Crime Solutions. We have built on top of the FICO TONBELLER solutions using FICO’s battle-proven and patented artificial intelligence and machine-learning algorithms, which are used in FICO Falcon Fraud Manager to protect about two-thirds of the world’s payment card transactions. Industry experts have begun to realize the significance of analytics in combatting anti-money laundering. For instance, Aite Group LLC in its 2015 report Global AML Vendor Evaluation noted that... [Read More]

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Analytics & Optimization AI Meets AML: How Smart Analytics Fight Money Laundering

Brain with AML highlihgted in neural pathways
Feb132017

In the last six months alone, I think I’ve read at least 1,000 Wall Street Journal articles on artificial intelligence (AI) and its technologic cousins: robots, drones and self-driving cars. Between those three things, I’m pretty sure most of the jobs humans have today will change. Some will even disappear. There is so much noise about AI and its ilk that, in my opinion, it’s important for us in the worlds of fraud and compliance to take a step back and focus on how we can implement this incredibly advanced technology in the context of our current technology and regulatory environment. For example, while it’s pretty cool how AI is now being leveraged to play poker and beat professionals in real games, it’s a distraction from the discussion of ways that AI can help right now, today, for real business challenges. One of the places where AI can make a... [Read More]

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Analytics & Optimization My Keynote World Tour Wrap-Up: “Analytics Will Rock You”

Dr. Scott Zoldi
Jan302017

In my role as FICO’s Chief Analytics Officer, one of the most exciting parts of my job is being asked to speak at industry and customer events all over the world. It’s truly an honor, and a fascinating opportunity to see, hear and appreciate the analytics topics at the top of audience members’ minds. One thing is for sure: analytics are rocking every corner of the world we live in, and audiences across industries are eager to learn more. Analytics rock our assumptions  Predictive Analytics World/New York: I was thrilled to keynote at this event, which focuses on analytics across the broad swath of financial services. I talked about using the FICO fraud data consortium to determine when data shifts can invalidate the models and, more menacing, when these shifts reveal subtle new fraud patterns that can indicate the work of fraudsters and cyber criminals, who know how to go... [Read More]

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Analytics & Optimization Top 10 of 2016: Our Blog Posts You Liked Best

Jan032017

With 2016 recently coming to a close, we took a look back to uncover which topics you – our blog readers – gravitated toward last year. Chief among your interests were analytic innovation, credit risk, regulatory compliance, customer experience and mobile payments. Here’s a recap of our top 10 most popular posts published in 2016: US Credit Quality Rising … The Beat Goes On – Ethan Dornhelm shares FICO research showing how US consumer credit quality continues to climb. Why Is Customer Experience So Hard to Explain? – For an organization to improve customer experience, here’s why everyone needs to start on the same page. 4 Analytic Predictions for 2017 – From Killer Devices to AI Hype – FICO Chief Analytics Officer Scott Zoldi shares his predictions for analytics trends and burning issues in 2017. Your Customer Experience Management Is SO Immature! – Roughly 80% of companies are customer experience... [Read More]

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Analytics & Optimization Video: Analytics Spur the Entrepreneurial Spirit at Georgetown

analytics-at-georgetown
Dec282016

Ever wonder how students use analytics to become entrepreneurs? At Georgetown University in Washington, D.C., Students of Georgetown, Inc. – commonly known as “The Corp” – is the largest entirely student-run non-profit corporation in the world, with seven subsidiary companies generating annual revenues in excess of $5 million. As participants in the FICO Academic Engagement Program, Georgetown students were given the opportunity to analyze Big Data from their seven storefronts using some of the industry’s most widely used analytics tools. Watch the video to find out how The Corp leveraged their findings from FICO analytics to monitor customer behavior and improve sales.

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Analytics & Optimization Analytics in Action: Yarra Valley Water and Application Processing

Yarra Valley Water logo
Dec222016

As 2016 draws to a close, I am grateful for the many, many ingenious ways customers use FICO® products to solve business problems. Clearly, FICO World 2016 was a bonanza of an opportunity for me to learn exactly how. Customers traveled to our event, held last April in Washington, DC, from all over the world. The folks from Yarra Valley Water, in Melbourne, Australia, made one of the longest journeys, and I enjoyed hearing the retail water utility’s story at FICO World’s closing panel discussion. Yarra Valley Water uses FICO® Blaze Advisor® decision rules management system and FICO® Decision Management Suite to reduce the time required to the water application process from months to minutes, without adding staff. That’s pretty amazing––watch the video below. An early adopter of automation Yarra Valley Water provides water and sewage service to 1.8 million residents and over 50,000 businesses. In 1995, it worked with... [Read More]

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Analytics & Optimization Clean Energy Firm Solves an “Impossible” Problem with FICO Tech

Windfarm Designs logo
Dec132016

Harnessing the potential of wind energy is a challenging problem, from capture through conversion into electrical power. A key facet of wind farm design is how the turbines are placed. A “typical” wind farm project may encompass 200×300 grid points on the wind map to cover 20 turbines; if you consider the number of ways to position these turbines, the placement problem becomes incredibly cumbersome. But it’s not just maximizing energy yield that vexes the human brain. For years, the industry studied the problem of how to factor load constraints into the power optimization mix. Turbine loads (described through IEC standards or load models) have been considered too difficult to include in the optimization problem. Instead, consultants and manufacturers manually review and adjust layouts, which not only takes time – it also generates less than ideal results. Markedslabben AS, a Norwegian wind farm design tool and optimization start-up, cracked the... [Read More]

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Analytics & Optimization 4 Analytic Predictions for 2017 – From Killer Devices to AI Hype

Hand holding analytics
Nov302016

In many ways I think 2016 was the year that analytics hit the mainstream. At cocktail parties and in coffee shops, 2016 has been the year that we data scientists suddenly felt a bit like – dare I say it? – rock stars. A quick Google search provides a fascinating data point: “analytics 2015” returned 28.6 million hits “analytics 2016” returned 52.3 million hits Suffice it to say that in 2017, I believe that analytics, and the many domains it influences, will be a non-stop hit machine in terms of generating news headlines and ideas that fascinate us. Here are my predictions: 1. Security/IoT: Is your video cam no longer your friend?  In light of the recent Dyn attack, will 2017 be the year that your IoT device will turn on you? (Think Westworld, Humans, Terminator.) I think the answer is “yes.” In my recent blog, “Real talk: The imminent and... [Read More]

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