Loan restructure optimization uses mathematical optimization to identify which customers should receive a restructure offer, and which offer should be made. It balances the need to increase loan Net Present Value with take-up probability and re-default rates.[Read More]
It’s a harsh truth that while data and technology in the fraud business abound, true domain expertise is a scarce resource. We speak to Andy Procter, FICO’s own fraud specialist about how to fight identity fraud,[Read More]
How should consumers protect themselves and monitor any changes to their credit after a natural disaster? Read the article from Tom Quinn of myFICO.com.[Read More]
In his blog posting on BPM 2.0 Ismael Ghalimi gives a number of characteristics of a 2.0 BPMS. While there is much here with which I agree, he also said:Rule Engine IncludedUp until now, BPM solutions would fall into two camps: you either had a glorified rule engine presented as a generic BPM solution, or you had a generic BPM solution that failed to support the execution of complex business rules natively. As a result, most customers who deployed a BPM solution of the later kind had to look for a rule engine from a third-party vendor, even though they did not really need a full-fledged rule engine to being with. BPM 2.0 makes the rule engine a requirement, so that it can be leveraged by the BPM vendor itself in places where it makes sense, such as decision branching, message routing, late-stage service binding, or contextual user interfaces.Here I can't tell if I agree with Ismael or not. He could mean that it is no longer OK for the BPM vendors to have nothing in the way of a rules engine - they must either build something comparable or, more likely, OEM...
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Ephraim Schwartz has a great article in InfoWorld today - Bringing software development back in-house. In hit he quotes someone who was reversing a decision to outsource:Fields believes that software technology is a collaborative process among designers, architects, and programmers. Agreed. This is one of the reasons I really like business rules. By removing the impedance between business experts and programmers, you can more truly collaborate. Business users can read even the technical rules that programmers write while other rules can be managed directly by business users using a range of template-driven rules and metaphors like decision tables and decision trees.But even that wasn’t the major reason for Fields’ decision to “backshore.”“Companies our size should not take their core IP [intellectual property] and have it essentially owned by individuals of another company,” Fields explains. Now I think this is a key distinction. It seems to me that not all the code in a system is "core IP". But the code typically replaced by business rules...
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Interesting article in DM Review A Statistician on Every Desktop: Deploying Predictive Analytics Throughout the Organization by David Smith of Insightful Corporation. David makes some great points about the need to make predictive analytics more available in the enterprise.David and I have a slightly different perspective on where you should make predictive analytics available. David is talking about "every desktop":Companies that find ways to deliver predictive analytics and reporting solutions to the desktops of their key decision-makers will immediately see greater returns on their investments in both technology and personnel.Now me, I would like to think about how we deliver predictive analytics into every service you have in your enterprise, at least every decision service. This is not about visualization or reporting but about executable analytic models embedded in the key decision services that power your transactional systems. Examples: Integrating models that predict insurance risk into an automated underwriting process so that the call center...
Nice article on some of the challenges of software development by Brian Kilcourse in CIO Magazine - Taming the Wild Child of IT—Application Development. There are some great quotes in it.Software, and more specifically software development, is arguably the single most strategic component of IT. The conception, development and delivery of new applications, services and systems can be a powerful competitive edge. It creates market leaders, drives growth and expands the limits of what is possible for businesses and their customers. Definitely.Software development has become unmanageably complex as the scope of business applications has widened and enterprise environments have expanded to include the widely distributed mix of components and technologies it takes to power today’s businesses. Factor in constantly changing business requirements, competing priorities and limited communication with end-users, and the challenges that development organizations face are truly daunting.Could not agree more. One of the reasons for the rapid growth in the business rules...