FICO Platform Produced a Significant Return on Investment for Businesses According to New Total Economic Impact Study
April 15 2024 - 8:00AM
Business Wire
Independent study shows FICO® Platform can
scale to meet an organization’s needs quickly and efficiently,
improving customer retention, profits and savings
FICO World – FICO (NYSE: FICO)
Highlights:
- A commissioned study conducted by Forrester Consulting, on
behalf of FICO, found that FICO® Platform customers noted improved
customer retention, significant cost savings by upgrading legacy
infrastructure, and heightened employee efficiency.
- In organizations like the composite Forrester described in the
report, companies could see savings and profits of over $50 million
in three years.
- FICO is showcasing new innovations and use cases for FICO®
Platform all week at FICO® World.
Today at FICO® World, the industry's leading analytic and AI
event, FICO released the first ever independent study of FICO®
Platform return on investment (ROI) in the Total Economic Impact™
(TEI) study conducted by Forrester Consulting. The report examines
the ROI enterprises received by deploying the platform from
different stages in various industries over three years.
The commissioned study included the development of a TEI
framework, and a financial analysis based on client interviews
conducted by Forrester. The study found that FICO® Platform,
implemented in the developed composite company, could deliver
high-impact profit increase and operations efficiency savings. In
organizations like the composite Forrester described in the report,
companies could see savings and profits of over $50 million in
three years.
FICO® Platform is a powerful and proven foundation that breaks
down silos across an organization and empowers employees to achieve
customer-focused digital transformation, while giving enterprises
greater agility and collaboration. The next generation applied
intelligence platform enables enterprises to use data, artificial
intelligence/machine learning, and analytics to drive smarter
business decisions, at scale, across a myriad of business use
cases.
“Enterprises today need an enterprise platform that
operationalizes analytics, AI and machine learning models, and
brings together siloed data sources so they can address new use
cases – all while empowering business staff to make dynamic
adjustments to their decisioning strategies,” said Bill Waid,
chief product and technology officer at FICO. “With FICO
Platform they can achieve world-class business outcomes by driving
collaboration across the organization and delivering
hyper-personalized customer experiences.”
The Total Economic Impact of FICO® Platform on
Enterprises
Conducted by Forrester, the TEI Study is based on in-depth
interviews with global FICO customers across the banking, media,
manufacturing, insurance, financial services, and railroad
industries. The study provides a cost-benefit analysis to determine
the economic value and impact FICO® Platform can have in any
organization over three years.
This ROI model was inclusive across several different AI use
cases and business industries, however for purposes of simplicity
an average of results were represented as a composite $10 billion
organization. The study demonstrated an increase of 400 percent in
benefits for the composite organization from utilizing FICO®
Platform delivered in the cloud. The highly flexible FICO Platform
also sparked additional decision-making and optimization uses for
companies over and above the intended purpose of the
investment.
According to Forrester Consulting, the TEI Study found that
FICO® Platform enables enterprises to leverage data to make
real-time decisions scalable across the enterprise— resulting in
increased profitability, cost savings opportunities, and personnel
productivity improvements.
The study uncovered several benefits of implementing FICO®
Platform, including:
- Improved customer satisfaction, experience, and
retention. With FICO Platform, the ability to regularly iterate
on products and services and hyper-personalize the experience,
businesses see an improvement to their customer experience and
customer retention.
- Growth in new product offerings. Based on a better
understanding of customers’ product needs and journeys, companies
can improve their ability to target customers with new product
offerings, leading to faster product growth.
- Significant cost reduction by moving from legacy
infrastructure to FICO Platform in the cloud. Organizations can
avoid the infrastructure and licensing spend historically
associated with decisioning solutions and optimization
modeling.
- Increased profitability from improved production efficiency,
including fewer stockouts and product transition waste.
Organizations use optimization to decrease the likelihood of
stockouts through improved capacity planning, avoiding revenue
loss. FICO Platform also enables businesses to leverage
optimization for seamless product transitions in the supply chain,
be it changes to packaging, materials, ingredients, or other
changes that result in supply chain disruption, stoppages, or
excess waste.
For more information about FICO® Platform and solutions:
- Download and read the full Total Economic Impact Study from
Forrester, here.
- Interested in the potential ROI from implementing an AI
decisioning platform, contact us at
https://www.fico.com/en/contact-us.
FICO will be showcasing FICO® Platform’s newest features at
FICO® World, FICO’s premiere client event, on mainstage on April 17
in San Diego. For more information on FICO World, visit:
https://events.fico.com/event/173c764b-8486-4a5b-b47b-5232b9102385/summary.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 200 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 4 billion payment
cards from fraud, to improving financial inclusion, to increasing
supply chain resiliency. The FICO® Score, used by 90% of top US
lenders, is the standard measure of consumer credit risk in the US
and has been made available in over 40 other countries, improving
risk management, credit access and transparency.
Learn more at https://www.fico.com/en.
Join the conversation at https://twitter.com/fico &
https://www.fico.com/blogs/.
For FICO news and media resources, visit
https://www.fico.com/en/newsroom.
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240415458796/en/
Julie Huang press@fico.com
Fair Isaac (NYSE:FICO)
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