Big Data Analytics for Every Organization

(1)

Big Data Analytics for

Every Organization

Cloud-based services give you the

(2)

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.

(3)

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-time data scientists No massive racks

of servers

No deep-pocket investments

Startups to multinationals

Government agencies and non-profits

Companies of all sizes

(4)

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.

(5)

Here’s how

cloud-based analytics

expand

possibilities

and

(6)

Top performers

have 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 to

cloud-based services

on the next page.

(7)

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

Banking

Solutions SolutionsRetail Health CareSolutions InsuranceSolutions SolutionsOther

INFRASTRUCTURE ANALYTIC MARKETPLACE

DECISION MANAGEMENT PLATFORM COMMUNITY

(8)

Top performers

are constantly seeking fresh insights to better understand customers and improve results

Cloud-based analytics

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 analyzing

speech and time-to-event models

on the next 2 pages.

(9)

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%

PERCENT

A

GE “BADS

”

PERCENTAGE “GOODS”

Traditional Scorecard Semantic

(10)

Time-to-event models pinpoint the best time to act

They 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 timing

is six weeks from now

PROPENSIT

Y

TIME

Offers

A B C D

Simple probability model generates constant estimate over an extended time horizon

(11)

Top performers

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

Cloud-based analytics

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 decision

management architecture

on the next page.

(12)

Diagram of a decision management architecture

for analytics-driven, customer-centric operations

DATA DATA DATA DATA D AT A

EXISTING HOST SYSTEMS

D

AT

A LA

YERS

PROFILING ENGINE INTERACTION MANAGER CHANNELS

OUTPUT

S

ODS MANAGEMENT/WORKFLOW

TOOLS MODEL MANAGEMENT REPORTING ENGINE ANALYTIC DATABASE DECISION ENGINE ANALYTIC ENGINE LINK/MATCHING ANALYSIS OUTCOMES OUTCOMES Profiles Models Rules Models

(13)

Top performers

use intelligent, automated

communications to enable and improve their business processes

Cloud-based analytics

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 automated

self-service message

on the next page.

(14)

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

(15)

Top performers

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

Cloud-based analytics

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 about

rapid application development

on the next page.

(16)

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.

(17)

Top performers

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

Cloud-based analytics

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.

(18)

A collections decision model (simplified view)

incorporates all the key factors in a complex decision

Profit

Behavior Score

INPUT DATA DECISIONS PREDIC TIONS METRICS CONSTRAINTS OBJEC TIVE

Collectability Score Bureau Score Current Balance

Charge-off Collections Action

Charge-off Amount Attrition Late Fee Promise to Pay

Expected Collection Amount

Roll Rate

Revenue Loss

(19)

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.

CHARGEOFF L

OSS

PER BUCKE

T 1 DELINQUENT A

CC

OUNT

COLLECTION RESOURCE CAPACITY INDEX $190 $185 $180 $175 $170 $165 $160 $155

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

Scenario 1 Scenario 2 _Scenario 3 Baseline—Current Strategy Optimized Strategies

(20)

Top performers

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

Cloud-based analytics

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.

(21)

Simulation plays a key role in analytic learning

Using 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.

TR

ANSA

C

TIONS

DAYS DAYS

RESPONSE T+30_{Profile 3 is performing}

differently than expected; change strategy sooner rather than later

T+15

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

Simulated Actual

(22)

Top performers

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

Cloud-based analytics

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.

(23)

Top performers have invested heavily in building out

infrastructures that facilitate internal collaboration

BUT

With 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 services Connected decision apps

Shared components, frameworks, templates High-availability infrastructure as a service

Country spoke Country spoke

(24)

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

(25)

They support vigorous, diverse, innovative business environments

Cloud-based analytics

enable

organizations to

(26)

Raise your sights

With 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

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