FICO Platform Accelerates Innovation with ”Digital Twin” Simulation

With our commitment to deliver game-changing technology, today we announced our latest release of FICO® Platform. This milestone brings together nearly two dozen major enhancements to our industry’s leading platform for applied intelligence.

These new features span the digital innovation lifecycle from data to insights to actions to outcomes, all supported by a modern, API-first, decomposed architecture with core platform services to power your digital operations. These new improvements ensure you can more effectively generate data features in real time, rapidly develop deep and trustworthy insights with machine learning, seamlessly author decision strategies with business-friendly simulation, and deploy the resulting innovations to achieve better business outcomes.

I would encourage you to review the release details for a list of everything new. As simulation is the highlight of this release, I’d like to share more with you on why simulation is such a game changer.

The Power of Digital Twins​

While the idea of a digital twin for business has existed within the manufacturing and supply chain industry for some time, the concept has not yet reached its full potential in other industries like banking and retail. The concept is intuitive – organizations create a high-fidelity, digital representation of their business and this model allows them to see the impact of potential changes.

This digital twin is important because businesses today know the need to move fast – but the risk of getting it wrong in terms of customer experience, market share, reputation, and financial performance is great. This risk-averse (but very safe) mentality limits the creative power of digital teams to experiment with disruptive new ideas and strategies.

In the age of AI, data scientists build predictive models with increasing ease, yet the vast majority of models never make it to production. By Gartner’s estimate in 2023, only 10% of organizations can repeatably get predictive machine learning models into production. Part of this challenge is certainly technical, but an even bigger hurdle is trust, transparency, and business predictability.

The Value of Digital Twin Simulation

I recently had a conversation with a senior executive who had to update his pricing models for compliance reasons. These models would impact far more revenue than paying the fines for non-compliance and his team couldn’t give him a confident assessment of the complete downstream consequences of the change. To buy his team the time they needed to give him the confidence he needed, he decided to pay the fine, which was almost half a million dollars.

What this executive’s staff was missing was the ability to pull in the new pricing models to a fully representative “sandbox” of the bank’s operations over the last six months, evaluate the end-to-end impact and then factor in adjustments that reflect various future scenarios to ensure robustness under all circumstances. That’s where a digital twin of the business comes into play.

Today, FICO has helped this executive and his team establish the simulation capabilities they need to play with their business strategy and decision policies including all the analytic models that inform them, so they can accurately assess end-to-end business outcomes, more quickly create customer value, and do this with greater confidence while mitigating all manners of risk.

Robust simulation and digital twin capabilities bring the power of enterprise-wide scenario experimentation into the hands of business users and drive effective cross-functional collaboration with data and analytic teams. Now, business analysts can seamlessly transition between designing decision strategies and simulating real business outcomes. This immediate cause-and-effect response cycle enables teams to move more quickly and with great confidence.

FICO has even more in store for our simulation and digital twin capabilities in 2024. Stay tuned to learn how businesses can further refine their operating models and leverage real and synthetic data to evaluate performance, generate recommendations, and deliver winning strategies to augment business outcomes – an integrated value proposition that FICO believes is real-world “applied intelligence”.

As FICO continues to deliver world-class applied intelligence for the enterprise, I’m inspired by the pioneering work of our clients as they innovate and deliver troves of new value to their customers using FICO Platform. I’m delighted by their feedback that FICO is enabling them to move at an unprecedented pace. You are the community that drives what we do and how we do it, and you will always be the beating heart of how we develop solutions that enable you to address today’s and tomorrow’s problems. Read my 2024 trends post to learn more about my take on where digital transformation and enterprise decisions are heading in the new year.

Learn More at FICO World 2024

FICO World, the decisions conference, is almost here. Join us in San Diego from April 15-18 to explore our latest innovations, hear customer stories, and engage in mutual learning about how FICO Platform is transforming the banking and insurance industries.

We invite past, current, and prospective clients and partners to join us. This type of event can seem a little intimidating for anyone new to the platform story, but we promise you will leave with a fresh understanding and sincere enthusiasm about what the future holds. We look forward to engaging with you on how FICO can be the best partner and consultant for your organization.

Learn How FICO Platform Can Power Your Digital Transformation

• Read the press release FICO Supercharges Business Outcomes with Innovations in Simulation Technology on FICO Platform and FICO Platform release details
• Explore innovation with FICO Platform
• Watch the video “FICO® Platform: Applied Intelligence, when and where it matters”
• Read the whitepaper “FICO® Enterprise Intelligence Network: Redefining the next generation of applied intelligence”
• See customers discuss their use of FICO Platform
• Read the article from The Journal of Digital Banking, “How Financial Services Leaders Are Using Enterprise Intelligence to Optimize Efficiency Ratios”
• Watch FICO Platform in action with the story of your everyday consumer, Digital Jane