Modelshop can be applied to any business problem where data is used to make decisions. Modelshop shines in industries where making the right decision is the business. Its unique calculation engine can handle the data relationships, business logic and analytics of the most demanding applications in industries such as financial services, operations and retail. The team has experience with the following industries and can provide starter model templates to reduce deployment time.
Real-Time Credit & Lending Decisions
Making informed credit decisions is one of the original use cases for analytics, going back decades to early credit models. It is impossible to be competitive and effectively manage the risk of losses in the credit industry today without the extensive use of analytics to model the probability of borrower default in order to correctly approve and price offerings.
Even with this long history, the credit industry continues to struggle with the agility and precision of credit scoring, pricing and origination. The challenge is that historic data is typically analyzed offline using analytic tools in order to create predictive scoring models. These models are then deployed into a production credit origination platform, along with rules and pricing tables (also analytically designed) to render credit decisions. This whole cycle is very manual and often requires a time intensive recoding of the logic into the origination platform, making the policies out of date before they're even deployed. Further, the static, offline nature of the modeling process makes it hard to leverage dynamic indicators such as online applicant fingerprints for fraud detection or an evolving portfolio risk spectrum to guide new origination decisions.
How Modelshop can help
Modelshop's technology is inspired by extensive experience working in the credit industry and it is uniquely suited to handle the complex and analytically robust requirements of real-time credit decisioning. Its powerful data modeling capabilities allows Modelshop to analyze full credit report details and quickly create new variables, use them to build models and strategies and to seamlessly deploy those variables and strategies into production origination platforms. Modelshop breaks down the barriers between analytics and real-time credit decisioning so that new models and strategies can be developed, tested (analytically) and deployed as quickly as the business demands. This agility can enable credit organizations be more agile, more competitive and more profitable.
Investment Portfolio Optimization
It's clear that an analytic platform can help manage investment risk and performance. Analyzing past performance of instruments or positions is the most effective way to predict future outcomes for similar investments. What is not obvious is that in some sectors, much of this analysis is still done using ad-hoc tools and even spreadsheets. There are certainly impressive real-time analytics being deployed in the highest volume portfolio management and trading platforms, but many investment areas such as hedge fund management, specialty investment portfolios and bond management are often handled using informal and ad-hoc tools.
The challenges with using ad-hoc tools and spreadsheets for managing investment portfolios is similar to other industries. There is a lack of transparency, consistency and sharing with spreadsheets that seems very risky when managing hundreds of millions or even billions in investments. Further, these tools don't begin to provide the logic and analytic sophistication needed to be competitive in today's markets.
How Modelshop can help
Modelshop is inherently a portfolio simulation and decisioning tool and can manage large volumes of data, cash flows and the advanced calculations needed to understand portfolio performance. Compared to spreadsheets, managing investment portfolios in Modelshop provides a more controlled and shareable solution, including the ability to do what-if analysis on investment decisions, provide full traceability of portfolio and logic changes and an online environment where multiple users can work with a common view of the portfolio. Further, Modelshop can be integrated with real-time systems to make automated investment decisions including buy-sell orders, position pricing and real-time trending alerts.
Risk Management and Fraud Prevention
Managing risk, whether from internal errors, industry dynamics or malicious parties, is a complicated and dynamic process. Unlike typical business processes that you can control, risk management is all about dealing with the unexpected. As a result, creating risk management applications requires an unprecendended level of agility.
Today's risk management platforms often fall short when it comes to flexibility. How can a vendor understand the risks or improper behaviors facing your company? How can an off-the-shelf solution be adjusted to respond to emerging threats in real-time so that the impact can be minimized. A project plan to implement changes to your risk management software really won't cut it - you need to be able to implement counter-measures in real-time, and these changes need to be designed, tested and deployed into your production operations without waiting for recoding of business applications.
How Modelshop can help
Risk models created in Modelshop bridge the gap between analytic monitoring, event detection and real-time response to risks or threats. Whether you are monitoring a portfolio for vulnerabilities to interest rate changes, ensuring liquidity limits, enforcing internal operational controls or monitoring business transactions for improper or fraudulent events, the basic pattern of transactional analytics, event detection and mitigation is very similar. Further, the data structures, event patterns and potential treatment scenarios are specific to your business. Unlike off-the-shelf risk management tools, Modelshop starts with a blank slate and can model your business to create a tailored and effective risk mitigation tool.
Customer Relationship Optimization
Customer Relationship Management (CRM) is a mature process. Solutions that manage your customers, products, sales and company performance in the cloud are available in abundance. More recently, there are emerging analytic tools that allow you to better understand customer behavior. Who is buying what, where is sales effective, how are my customer demographics evolving over time.
That's a great start, but what's missing is the ability to optimize your customer relationship. Optimizing means changing that relationship by taking action on the insight you've gained. It's one thing to look at a performance chart and see your challenges and opportunities, it is a whole different endeavor to implement changes to your product mix, pricing, marketing campaigns or sales strategies to capitalize on that information. That second step, the ability to implement changes to your business, simulate the expected outcome, and deploy those changes into your real-time operational systems is still largely left as an exercise for your staff. - and it usually begins with a spreadsheet.
How Modelshop can help
Modelshop can close the loop on optimizing your customer relationships. By creating models that capture the cause and effect relationships between your customers, your products, your sales and your company’s financial results, business analysts can leverage Modelshop to simulate the performance impact of policy changes such as pricing adjustments or marketing campaigns.
Once the right mix of strategy and policy has been determined, Modelshop allows you to deploy that model into a production decision environment without coding. You can create multiple models for different parts of the business and integrate them with your existing technology infrastructure. Pricing models, best ad selection models, customer profitability and treatment models and sales forecasting models can all work in unison off the same data to help optimize your business.
Healthcare & Medical Data Analytics
The medical industry has undergone a significant evolution around the standardization and electronic availability of medical data. This information, while closely guarded for personal privacy, is beginning to enable new business models for companies focused on helping improve the lives of patients and healthcare providers. One issue facing these organizations is the sheer complexity of medical records data. In addition to the structure of healthcare data being complex, a vast part of the value in the information relates to large volumes of associated datasets, including procedure codes, drug codes, provider directories and disease databases.
Today's analytic and decision technologies are not well suited for managing sophisticated cross linked data in a real-time environment. These tools are inherently designed to work with flat lists rather than the intricate relationships inherent in medical data. Data relationship and calculation chain depths can reach 10s or 100s of levels deep and the complexity very quickly overwhelms spreadsheets as well as more advanced analytic tools and often the only option is custom coding.
How Modelshop can help
Modelshop is a multi-dimensional calculation engine that is comfortable with the most complex data models and calculation chains inherent in medical record data. By first modeling the overall structure of the information, which can often be done automatically using standard schemas, models created in Modelshop can seamlessly traverse data relationships and dramatically simplify the logic needed to make sense of medical information.
Leveraging Modelshop, healthcare providers and software vendors serving that industry can quickly create real-time analytic applications that can handle the complexity, volume and analytic sophistication of the medical industry.
Manufacturing and Operations Research
Manufacturing and operations teams have been using data to improve their performance longer than any industry. Many of the disciplines around analytics were created from factory statistical process control efforts beginning in the 1920's. The industry has come a long way, and continuous improvement, lean manufacturing and quality control are inherent in the manufacturing process today.
Historically, there has been a focus on measuring operational processes to detect and react to quality issues. Competitive companies are moving towards the use of more advanced analytics to anticipate issues before they occur and to implement proactive measures to avoid them before they happen. What was Just In Time manufacturing techniques are extending beyond the factory walls and connecting to supply and demand, shipment planning and revenue optimization. Manufacturing and operational organizations are driving to close the loop to better drive their operations with a goal of improving the bottom line.
When all of your manufacturing data originated from you factory or from your suppliers, the ability to build projection models was simpler. Today, as financial performance, pricing elasticity and expectations around company performance are included in the equation, there is a need for more flexible tools to bring all of that information together into a single, and actionable analytic decision application.
How Modelshop can help
Modelshop provides a flexible analysis, simulation and decision tool that can simplify the process of connecting manufacturing and business data into a single decision model. By combining your Modelshop model with existing financial and shop floor automation solutions, you have the opportunity to deploy decision policies that can reduce waste, improve quality and positively impact your bottom line. While your most critical operations are likely already automated, decisions like workforce optimization, vendor relationship management and quality process auditing might be manual processes ready for automation. The flexibility and ease of creating decision models in Modelshop makes it an attractive alternative to time consuming and expensive ERP solutions.
Commercial Application Development
Modelshop's flexible data model, powerful logic engine and open APIs make it a great platform for companies building industry specific analytic product offerings. Modelshop takes care of the details of creating a scalable, reliable and flexible decisioning infrastructure and allows vendors to focus on what they know best, their industry solution. By powering your commercial analytic application with a 'logic engine' created as a Modelshop model, you can provide unprecedented flexibility in applying new data, services and policies as industry needs change.
By building your product's logic in Modelshop, you can also immediately deliver a portfolio analytic offering for your customers as well. Not only can Modelshop process real-time decisions in milliseconds, it can collect the data, decisions and results for your application in a portfolio model that can be used to provide additional insight that allow your customers to optimize their business.
How Modelshop can help
Modelshop's architecture is completely open and can integrate seamlessly with your proprietary business application. The decision models can be based entirely on your existing data model and REST APIs are automatically exposed based on the model you define. Customers leveraging Modelshop's API have found that entities can be transparently marshalled between their application and Modelshop with no transformation or additional meta-data layer.
Contact us about opportunities to leverage a white-labeled version of Modelshop to power your commercial analytic application while delivering an unprecedented time-to-market and analytic agility.