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
  • 64
    September/October 2018 Analytics revolutionizing healthcare Values that should guide AI revolution The future role of AI in fact checking Data science at Monsanto Strengthening global supply chains July/August 2018 Why optimization models fail AI: Path to an intelligent enterprise How to truly listen to customers Close the deal: marketing &…
    Tags: analytics, data
  • 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

Headlines

Using machine learning and optimization to improve refugee integration

Andrew C. Trapp, a professor at the Foisie Business School at Worcester Polytechnic Institute (WPI), received a $320,000 National Science Foundation (NSF) grant to develop a computational tool to help humanitarian aid organizations significantly improve refugees’ chances of successfully resettling and integrating into a new country. Built upon ongoing work with an international team of computer scientists and economists, the tool integrates machine learning and optimization algorithms, along with complex computation of data, to match refugees to communities where they will find appropriate resources, including employment opportunities. Read more →

Gartner releases Healthcare Supply Chain Top 25 rankings

Gartner, Inc. has released its 10th annual Healthcare Supply Chain Top 25 ranking. The rankings recognize organizations across the healthcare value chain that demonstrate leadership in improving human life at sustainable costs. “Healthcare supply chains today face a multitude of challenges: increasing cost pressures and patient expectations, as well as the need to keep up with rapid technology advancement, to name just a few,” says Stephen Meyer, senior director at Gartner. Read more →

Meet CIMON, the first AI-powered astronaut assistant

CIMON, the world’s first artificial intelligence-enabled astronaut assistant, made its debut aboard the International Space Station. The ISS’s newest crew member, developed and built in Germany, was called into action on Nov. 15 with the command, “Wake up, CIMON!,” by German ESA astronaut Alexander Gerst, who has been living and working on the ISS since June 8. Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

INFORMS Computing Society Conference
Jan. 6-8, 2019; Knoxville, Tenn.

INFORMS Conference on Business Analytics & Operations Research
April 14-16, 2019; Austin, Texas

INFORMS International Conference
June 9-12, 2019; Cancun, Mexico

INFORMS Marketing Science Conference
June 20-22; Rome, Italy

INFORMS Applied Probability Conference
July 2-4, 2019; Brisbane, Australia

INFORMS Healthcare Conference
July 27-29, 2019; Boston, Mass.

2019 INFORMS Annual Meeting
Oct. 20-23, 2019; Seattle, Wash.

Winter Simulation Conference
Dec. 8-11, 2019: National Harbor, Md.

OTHER EVENTS

Advancing the Analytics-Driven Organization
Jan. 28–31, 2019, 1 p.m.– 5 p.m. (live online)

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.