FICO® Xpress Optimization Suite Advances to modelling and deploying optimization applications with Xpress Zsolt Csizmadia Andy Harrison Susanne Heipcke Principal Engineer Principal Consultant Principal Engineer Xpress Optimization Optimization Solutions Xpress Optimization FICO FICO FICO © 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Agenda ► Introduction ► Solver performance improvements and new functionality ► New features of Xpress-Mosel ► Optimization Modeler demo ► Q&A 2 © 2014 Fair Isaac Corporation. Confidential. FICO Snapshot The leader in analytic solutions for customer engagement Founded: 1956 Profile NYSE: FICO Revenues: $743 million (fiscal 2013) Scores and related analytic models Products Analytic applications for customer acquisition, service and security and Services Tools for decision management Clients and 5,000+ clients in 90+ countries Markets Industry focus: Banking, insurance, retail, health care #1 in services operations analytics (IDC)* Recent #6 in worldwide analytics analytics software (IDC)* Rankings #7 in Business Intelligence, CPM and Analytic Applications (Gartner)** #26 in the FinTech 100 (American Banker) 20+ offices worldwide, HQ in San Jose, California Offices 2,200 employees Regional Hubs: San Rafael and San Diego (CA), New York, London, Birmingham (UK), Johannesburg, Milan, Moscow, Munich, Madrid, Istanbul, Sao Paulo, Bangalore, Beijing, Singapore *IDC, Worldwide Business Analytics Software 2013-2017 Forecast and Vendor Shares, June 2013. **Gartner, Market Share Analysis: Business intelligence, Analytics and Performance Management, 2012,Dan Sommer & Bhavish Sood, May 7, 2013. 3 © 2014 Fair Isaac Corporation. 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FICO Has Pioneered Game-Changing Analytics for 50+ Years ► First credit line optimization ► FICO holds 130+ patents in analytic solutions ► First predictive and decision management technology, ► First cloud- with an additional 90+ patents pending systems for based decision insurance fraud management ► First cross- ► First analytic platform ► We are pioneers at transforming bureau credit systems for ► Worlds fastest Big Data into insights that drive scores retailers to optimization optimize offers ► First small solver profitable growth ► First insurance business ► First adaptive underwriting ► First self- scoring scoring systems analytics for calibrating fraud systems ► First neural analytics for network-based ► First credit fraud ► First ► First adaptive fraud solutions capacity scores ► First automated control ► First commercially origination systems for ► First cardholder ► First score for economically available credit systems with managing card profiling for prescription calibrated credit scoring systems analytics accounts fraud adherence scores 1960s 1970s 1980s 1990s 2000s 2010s 4 © 2014 Fair Isaac Corporation. 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FICO Portfolio FICO® Analytic Cloud FRAUD MANAGEMENT CUSTOMER ORIGINATIONS MARKETING & CUSTOMER ENGAGEMENT DEBT MANAGEMENT FICO® Falcon® Fraud Manager FICO® Origination Manager FICO® TRIAD® Customer Manager FICO® Debt Manager™ solution FICO® Fraud Resolution Manager FICO® Application Fraud Manager FICO® Customer Dialogue Manager FICO® Risk Intervention Manager FICO® Application Fraud Manager FICO® LiquidCredit® Service FICO® Analytic Offer Manager FICO® PlacementsPlus® service FICO® Identity Resolution Engine FICO® Customer Communication FICO® Network FICO FICO® Insurance Fraud Manager Services – Originations FICO® Retail Fraud Manager Applications FICO® Merchant Monitoring Fair Isaac Advisors Services Fair Isaac Consulting Advisors FICO® Claims Fraud Solution Consortium Fraud Models Consumer and Small Business Behavior Scorecards Collections Scores FICO Professional Professional Services FICO Custom Fraud Models Risk Models Transaction Analytics Collections Optimization Application Fraud Models Application Fraud Models Targeting Models FICO Economic Impact Models Analytics Claims Fraud Models Time-to-Event Analytics OMNI-CHANNEL COMMUNICATIONS FICO® Customer Communication Services FICO® Engagement Analyzer APPLICATION DEVELOPMENT, TEMPLATES & FRAMEWORKS FICO® Application Studio TOOLS MODEL MONITORING & MANAGEMENT FICO® Analytic Modeler FICO® Decision Modeler FICO® Optimization Modeler FICO® Identity FICO® Model Central™ Solution FICO FICO® Model Builder FICO® Blaze Advisor® FICO® Xpress Optimization Suite Resolution Engine Solution Stack Solution DECISION MANAGEMENT ENGINE FICO® Decision Management Platform DATA MANAGEMENT & INTEGRATION VISUALIZATION & REPORTING FICO® Data Orchestrator FICO® Visual Insights Studio BUSINESS CONSUMER FICO® Score FICO® Expansion Score FICO® Credit Capacity Index myFICO® Service FICO FICO® Score Open Access FICO® Economic Impact Index FICO® Insurance Risk Scores 5 Scores © 2014 Fair Isaac Corporation. Confidential. Three Main Optimization User Groups Optimization Modeler Business User/ » User-friendly interface » Rapid “what if” scenario analysis Manager » Rich visualisation and reporting with user-definable dashboards » Data management » Multiuser collaboration » User Access Authentication Business Analyst » Distributed computing » Web Services » Customisable screens Operations Xpress Optimization » Modelling – Mosel Research » Solvers – Optimizer Professional » Utilities – Tuner, APIs,… 6 © 2014 Fair Isaac Corporation. Confidential. FICO® Xpress Optimization Suite ► Flexible, modular, easy-to-learn and use ►Development IDE Modeling ►Distributed modeling and cloud enablement Mosel ►Data connections (file, excel, databases, web services) ►Precompiled for efficiency and IP protection BCL FEATURES ►Robust and Nonlinear modeling Optimization ►High-performance, scalable and robust LP (Simplex|Barrier), MIP, QP, MIQP, QCQP, Optimizer MIQCQP, SOCP, MISOCP, NLP, MINLP, and CP engines NonLinear ►Great out-of-the-box performance ― advanced users have full control over solution process ►Utilizes multi-core/CPU machines, automatic tuning Kalis FEATURES ►N-best solutions capabilities and advanced infeasibility handling ►Adapt data and parameters to create and compare scenarios Applications ►Understand trade-offs and sensitivities Services ►Visualize data and results for analysis ►Collaborate in a multi-user environment Optimization ► BENEFITS Works in a rich client and a web browser — on premise and in the cloud Modeler ►Fully featured APIs including web 7 © 2014 Fair Isaac Corporation. Confidential. FICO Solutions on FICO Decision Management Suite FICO Analytic Marketplace Buy FICO Application Studio Analytic Decision Optimization Modeler Modeler Modeler Suite FICO Decision Management Platform Build Management Management FICO Decision Decision FICO FICO Visual Insights Studio Manage 8 © 2014 Fair Isaac Corporation. Confidential. Optimization in the Cloud - Concepts ► Optimization as a Service ► Service accepts an optimization model and data, executes, and returns results ► Service accepts data, executes, and returns results ► NOT a “desktop” instance on a remote machine/cloud node ► Optimization Solutions as a Service ► Turns optimization models into collaborative and scalable web applications ► Optimization as part of a Decisioning Platform ► Combine optimization with other analytics technologies seamlessly ► Orchestrate complex solutions ► Flexible deployment options 9 © 2014 Fair Isaac Corporation. Confidential. FICO® Optimization Modeler powered by Xpress Optimization Modeler helps you develop and deploy optimization applications and services on DMP/FAC and standalone Optimization Modeler Optimization Executor ► Optimization Application Framework which ► Bundles Xpress execution allows you to capabilities (DMP/FAC only) ► analyze trade-offs and sensitivities ► provides web services APIs ► adapt data and parameters to create and ► integrates with FICO Application compare scenarios Studio ► visualize data and results for analysis ► collaborate in a multi-user environment ► web client (and rich analyst client for stand alone) Optimization Modeler is based on the leading optimization and modeling technology Xpress Optimization Suite. 10 © 2014 Fair Isaac Corporation. Confidential. FICO® Optimization Modeler powered by Xpress ► FICO® Optimization Modeler trial and demos: www.ficoanalyticcloud.com (select ‘Sign up’ to create a new account) ► FICO® Xpress: www.fico.com/xpress 11 © 2014 Fair Isaac Corporation. Confidential. Academic Partner Program ► FICO Xpress Optimization Suite ► Special program for degree awarding academic institutions ► Academics and their students may use Xpress for educational purposes ► Two levels of membership: ► Standard: Free 1-year membership ► Premium: Additional benefits for a small charge of £400/$800/€600 per 2-year membership period. http://subscribe.fico.com/Academic-Partner-Program 12 © 2014 Fair Isaac Corporation. Confidential. FICO presentations ► MB-34 Monday, 10:30-12:00 - John Anderson JA5.07, Level 5 A new measure of optimality based on the Karush-Kuhn-Tucker conditions for sequential linear programming methods ► MB-18 Monday, 10:30-12:00 - TIC Conference Room B, Level 9 Xpress-Mosel: Modelling for Distributed and Cloud Computing ► TC-02 Tuesday, 12:30-14:00 - Barony Bicentenary Hall From Structures to Heuristics to Global Solvers ► TA-51 Tuesday, 8:30-10:00 - Graham Hills GH542, Level 5 Making an Impact workshop: Modelling Nonlinear Programming Problems ► WD-51 Wednesday, 14:30-16:00 - Graham Hills GH542, Level 5 Making an Impact Workshop: Optimising