Share with your friends










Submit

Analytics Magazine

FICO: Four analytic breakthroughs that drive smarter decisions

Denis Ismagilov http://www.123rf.com/profile_ismagilov

Photo Courtesy of 123rf.com | © Denis Ismagilov

Four analytic technologies recently patented by analytic software firm FICO are being incorporated into solutions for cyber security, the Internet of Things (IoT), model governance and optimization.

“Patents are the currency of innovation, in software or any other technology sector,” says Scott Zoldi, chief analytics officer at FICO, posted on the FICO Blog. “These technologies have made the jump from FICO’s research labs to our solutions, where they will help our customers solve some of the most challenging and strategic problems.”

The patents include:

Collaborative profiling. FICO’s patent for collaborative profiling provides an efficient way to recognize when a person’s behavior is changing and to rank-order the significance of those behavioral changes across many individuals.

FICO’s method distills a history of events/transactions down to a limited number of behavioral “archetypes.” Individuals become described in continually adjusting archetype distributions that can distinguish normal anticipated behaviors from risky/abnormal changes in behavior. This technology can be used to monitor for cyber security threats and fraudulent payment activity. The deep insights of the archetypes also allow marketers to focus campaigns on the most relevant consumers.

Structuring IoT messages. The IoT is composed of billions of devices that emit vast amounts of data, often in free-form text messages. Organizations are trying to better leverage this massive, yet largely unstructured, set of data producers in more automated and effective ways. To do this, the log messages must be parsed efficiently so advanced analytics can be used to recognize anomalies and predict future events.

FICO earned a patent by inventing a way to statistically parse unstructured data and determine typical temporal sequences. The key to this method for IoT is fast-streaming self-learning analytics that run efficiently at a very large scale. This technology is intended to improve the management and security of IoT devices, which can be anything from cars to factory equipment to household appliances to cable TV boxes.

Neural networks in model governance. Model governance is a challenge for organizations that use predictive analytics for mission-critical tasks, such as making lending decisions. Models tend to lose their effectiveness over time. FICO’s patented autoencoder self-diagnostic technology provides ongoing model validation to help ensure models in production environments are properly suited to future changes in data and behaviors.

Autoencoding is a class of neural network. Autoencoders learn to mimic input data through a representation of complex interactions between different latent factors. This can be used to understand data that moves away from what a model was originally trained on, or to identify segments of data that are underrepresented in a model.

New optimization technology. As firms in every industry pursue decision optimization, FICO patented a new method of automating complex analytic tasks required to optimize marketing offers. FICO’s technology creates a dynamic system capable of self-learning the optimal strategy after a few iterations of a test-and-learn cycle. This will allow companies to respond more quickly to the challenge of changing market conditions and customer demands.

“While these four patents have specific use cases today, they can also be applied to many additional business problems,” Zoldi says. “FICO is working aggressively to build these patented technologies into new products as well as work on the next generation of machine learning technologies.”

Save

Save

Save

Related Posts

  • 72
    Gurobi Optimization recently introduced Gurobi Optimizer v7.0, with higher performance and powerful new modeling capabilities.
    Tags: optimization, model, software, analytics
  • 72
    The CUNY School of Professional Studies is offering a new online master of science degree in data analytics. The program prepares its graduates for high-demand and fast-growing careers as data analysts, data specialists, business intelligence analysts, information analysts and data engineers in such fields as business, operations, marketing, social media,…
    Tags: data, analytics
  • 66
    Benjamin Franklin offered this sage advice in the 18th century, but he left one key question unanswered: How? How do you successfully drive a business? More specifically, how do you develop the business strategy drivers that incite a business to grow and thrive? The 21st-century solution has proven to be…
    Tags: data, analytics
  • 63
    Silicon Valley analytics software firm FICO was named a leader in the March 2017 report, The Forrester Wave: Predictive Analytics and Machine Learning Solutions, Q1 2017. The report explains, “FICO’s Decision Management Suite encompasses the end-to-end capabilities needed to create, deploy and monitor models for use in complex, consequential enterprise…
    Tags: fico, analytics, solutions, software
  • 60
    May/June 2017 New paradigm: Service as a Software Journey from CSP to DSP Lessons learned: Decade of B2B eCommerce Leveraging big data for better business decisions Corporate profile: Praxair Storytelling: The write stuff March/April 2017 ABM and predictive lead scorin Software Survey: Joys, perils of statistics Disarming 'Weapons Of Math…
    Tags: analytics, data

Analytics Blog

Electoral College put to the math test


With the campaign two months behind us and the inauguration of Donald Trump two days away, isn’t it time to put the 2016 U.S. presidential election to bed and focus on issues that have yet to be decided? Of course not.


Save

Headlines

Gartner: AI technologies to be pervasive in new software products

Market hype and growing interest in artificial intelligence (AI) are pushing established software vendors to introduce AI into their product strategy, creating considerable confusion in the process, according to Gartner, Inc. Analysts predict that by 2020, AI technologies will be virtually pervasive in almost every new software product and service. Read more →

Drone delivery: Professor develops solution to minimize delays in operations

When delivery companies like FedEx, Amazon and UPS launch drones to deliver packages in the near future, one Kennesaw State University computer science professor may be at the crux of solving one of its most complicated problems. Donghyun (David) Kim, assistant professor of computer science and an expert in computer algorithm optimization, is designing a fast-running algorithm to tackle simultaneous coordination problems among multiple delivery trucks and the drones launched from them. Read more →

Tech spending growth limited to about 5 percent through 2018

Forrester predicts U.S. business and government tech spending will continue to grow by 4.8 percent through 2017 and increase to 5.2 percent in 2018. While these forecasts are higher than Forrester’s projections following the 2016 presidential election, they are lower than the expected numbers from a year ago. Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

Essential Practice Skills for High-Impact Analytics Projects
Sept. 26-27, Executive Conference Center, Arlington, Va.

Foundations of Modern Predictive Analytics
Oct. 2-3, VT Executive Briefing Center, Arlington, Va.

2017 INFORMS Annual Meeting
October 22-25, 2017, Houston

2017 Winter Simulation Conference (WSC 2017)
Dec. 3-6, 2017, Las Vegas

CAP® EXAM SCHEDULE

CAP® Exam computer-based testing sites are available in 700 locations worldwide. Take the exam close to home and on your schedule:


 
For more information, go to 
https://www.certifiedanalytics.org.