big data analytics for every organization

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Big Data Analytics for Every OrganizationCloud-based services give you the analytic power to reach greater heights


In every industry, a handful of competitors are rising above the rest

These companies have invested heavily in Big Data analytics and real-time decision management to better understand consumer behavior and its context—not just what is happening but why. They’re using these deeper insights to act with ever-greater speed, relevance and value to deliver superior service to their customers.

Who can possibly compete with them?


YOU can.Cloud-based Big Data analytics put deeper analytic insight—and the means to immediately drive operational decisions from it—within reach of every organization.

No full-timedata scientists

No massive racksof servers

No deep-pocketinvestments

Startups tomultinationals

Government agencies and non-profits

Companiesof all sizes


The analytic power to reach greater heights

Cloud-based analytics reduce the time and money necessary to develop and deploy applications with advanced data-driven decisioning by

80%What do you want to accomplish?

Now there’s far less expense and risk in trying new ways to solve business problems and deliver superior services to your customers/constituents.


Here’s how cloud-based analytics expand possibilities and

dissolve boundaries…


Top performershave implemented the Big Data infrastructure and technologies to analyze huge volumes and wide varieties of data at high velocities

Cloud-based analytics

make these resources available to you as on-demand services

Deploy complete Big Data analytic infrastructure as a service (Iaas)

Download technology components from the cloud to install in your own infrastructure

See FICO’s approach tocloud-based services

on the next page.


FICO’s approach to cloud-based services

Application Development Productivity Tools

Big Data Analytics Components

Business Rules

Analytic Services Data Connectors Visualization

Analytics Optimization Templates & Frameworks

Compute Storage Big Data Infrastructure Networking

Consortium Data Third-Party Data Internal Data

Businesses

Developers Researchers Governments

Academics Systems Integrators/Consultants

ISVs

Entrepreneurs

BankingSolutions

RetailSolutions

Health CareSolutions

InsuranceSolutions

OtherSolutions

INFRASTRUCTURE

ANALYTIC MARKETPLACE

DECISION MANAGEMENT PLATFORM

COMMUNITY


Top performersare constantly seeking fresh insights to better understand customers and improve results


make it easier for you to tap new data sources and apply new types of analytics

Analyze text, speech and other unstructured data

Extract more value from data you already have with advanced analytics like time-to-event models

Learn more about analyzingspeech and time-to-event models

on the next 2 pages.


Analyzing speech and text using techniques such as Semantic Scorecards can help you improve predictive accuracy

The chart shows a Semantic Scorecard outperforming a bank’s traditional risk scorecard. At any percentage of “goods” (current and fully paid accounts), the Semantic Scorecard predicts a higher percentage of “bads” (charged-off and defaulted accounts).

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

PERC

ENTA

GE

“BA

DS”

PERCENTAGE “GOODS”

TraditionalScorecard

SemanticScorecard


Time-to-event models pinpoint the best time to actThey help you predict rapidly changing purchase probabilities and offer sensitivity. You can also use them to anticipate when a customer is most vulnerable to attrition.

Best offer timingis six weeks from now

PRO

PEN

SITY

TIME

Offers

A C DB

Simple probabilitymodel generates constant

estimate over an extendedtime horizon

Today


Top performersclose the gap between insight and action—often by embedding analytics into operational apps


provide you with intelligent apps and/or the technologies to make your own apps smarter

Access domain-specific apps with embedded analytic decisioning as services

Tap decision engines to execute any mix of analytic models of business rules

Use cloud-based analytic decisioning as callable services to extend the lives and capabilities of legacy systems

See a diagram of a decisionmanagement architecture

on the next page.


Diagram of a decision management architecturefor analytics-driven, customer-centric operations

DATA

DATA

DATADATA

DATA

EXISTING HOST SYSTEMS

DAT

A L

AYER

S

PROFILING ENGINEINTERACTION

MANAGER CHANNELSOUTPU

TS

ODS

WORKFLOW MANAGEMENT/

TOOLS

MODELMANAGEMENT

REPORTINGENGINE

ANALYTICDATABASE

DECISION ENGINE

ANALYTICENGINE

LINK/MATCHINGANALYSIS

OUTCOMES

OUTCOMES

Profiles Models

Rules Models


Top performersuse intelligent, automated communications to enable and improve their business processes


let you easily add intelligent, automated communications to your processes

Access communications engines that make intelligent decisions about how and when to best contact each customer

Offer mobile automated self-service, for higher customer response and lower costs

See an example of an automatedself-service message

on the next page.


Automatically select the best channel and time to contact each individual customer for a particular purpose


Top performersare innovative because they can try out more ideas, going from good idea to deployed app in just weeks or days


provide analytics-oriented RAD tools, enabling you to try more ideas faster and with much less expense

Data-driven app frameworks

Customizable components

Libraries of predictive characteristics

Business process and user interface templates

Learn more aboutrapid application development

on the next page.


A shared app for a global workforce in just 7 weeks

A global express delivery/courier company needed to improve knowledge sharing across customer accounts and improve management visibility and control over its various transport solutions. It solved the problem in just 7 weeks by using cloud-based RAD tools to develop and deploy an enterprise workflow and supply chain management system. The application, accessible to the organization’s entire global workforce, incorporates a knowledge base of customer-centric best practices and structured problem solving for customer requests.


Top performersmathematically balance all the factors in complex decisions to pinpoint the best action they can take


provide you with access to these advanced analytic technologies as well as the expertise on how to use them

Get a head start with decision model and optimization templates

Use simulation tools to explore trade-offs between your objective(s) and contraint(s)

Access optimization engines on-demand

See more about decision modeling and

optimization on the next two pages.


A collections decision model (simplified view) incorporates all the key factors in a complex decision

Profit

Behavior Score

INPUT DATA DECISIONS PREDIC TIONS ME TRICS CONSTR AINTS OBJEC TIVE

Collectability Score

Bureau Score

Current Balance

Charge-off

Collections Action

Charge-off Amount

Attrition

Late Fee

Promise to Pay

ExpectedCollection Amount

Roll RateRevenue

Loss

# Collectors Collection Costs


Optimization finds the “efficient frontier” of potential decision strategies that meet your requirements. Using simulation, you can explore points on the frontier, project their impact on key performance indicators and select the best one for your business.

CH

ARG

EO

FF L

OSS

PE

R BU

CKE

T 1

DEL

INQ

UEN

T A

CCO

UN

TCOLLECTION RESOURCE CAPACITY INDEX

$190

$185

$180

$175

$170

$165

$160

$155

50 60 70 80 90 100 110 120 130 140 150 160 170

Scenario1

Scenario2

Scenario3

Baseline—Current Strategy

Optimized Strategies


Top performersare really good and really fast at learning from the results of their operational decisions


provide an experiment-friendly environment to speed up learning and reduce its cost

Put champion-challenger testing into hyperdrive with automated tools for designing experiments that yield more plentiful, usable insights

Quickly set up learning loops that capture operational results in analytic data marts

Use visualization tools to create dashboards for rapid comprehension of test results

Jump to the next page to learn about simulation tools.


Simulation plays a key role in analytic learningUsing cloud-based simulation tools, you can project the impact of a decision strategy on key performance indicators for each population segment. After deployment, learning loops capture operational outcomes and make the data immediately available for analysis. Comparing actual results to simulated results, you can evaluate success without having to wait for all the data to come in.

TRA

NSA

CTI

ON

S

DAYSDAYSRE

SPO

NSE

T+30Profile 3 is performing differently than expected; change strategy sooner rather than later

T+15Profile 3 is performing as expected; continuing on-track performance can be extrapolated

SimulatedActual


Top performersare adept at bringing together resources to accomplish their objectives, often by solving problems in new ways


eliminate barriers to problem solving by helping you increase collaboration between internal and external parties

Improve intra-organizational collaboration with infrastructure services that make it easier to share data, technologies and ideas

Build on cloud apps and components to address emerging opportunities

Innovate by combining your organization’s expertise and assets with those of other cloud participants

See how internal and external collaboration can

work on the next two pages.


Top performers have invested heavily in building out

infrastructures that facilitate internal collaboration

BUTWith cloud-based analytics,

you can facilitate collaboration without that investment

Real-time connection

Real-time connection

GLOBAL HUB

Connected apps

Shared components

Enterprise architecture

Originations

Interfaces—behavior scoring—datamart

High availability—disaster recovery—24/7/365

Customer management Collections

Country spoke

Decision apps

Tools

Product lines

Users

Hosts

Country spoke

Decision apps

Tools

Product lines

Users

Hosts

Country spoke

Decision apps

Tools

Product lines

Users

Hosts

Analytic servicesConnected decision apps

Shared components, frameworks, templatesHigh-availability infrastructure as a service

Country spokeCountry spoke

Country spoke


Collaborate with other members of the analytic cloud community; build on the work of others


They support vigorous, diverse, innovative business environments

Cloud-based analytics enable organizations to thrive and grow

Raise your sightsWith cloud-based Big Data analytics, your organization can reach higher

Learn more:Download the white paper on this topic:

Insights #74: Cloud Democratizes Access to Big Data Analytics

Find out about the FICO Analytic Cloud: www.ficoanalyticcloud.com

Check out our blogs: Banking Analytics BlogFICO Labs Blog

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