Latin America. Today's business environment demands speed and accuracy in strategic processes. In this context, digital twins are consolidated as a tool that transforms decision-making.
"Digital twins are not just a technological innovation, but a crucial competitive advantage. These virtual replicas of the most important systems and processes allow the impact of strategic decisions to be simulated in a safe and controlled environment, eliminating uncertainty and risk," said Marcelo Fernandes, FICO Optimization and Simulation Solutions Executive for Latin America.
According to Fernandes, the ability to replicate real-world complexity in a virtual environment allows leaders to "evaluate scenarios, measure risks, and anticipate the trade-offs of multiple strategies before implementing them."
Key Benefits
According to FICO, two of the most relevant benefits of this methodology are: Reducing the time it takes to evaluate different strategies. "Instead of relying on lengthy trial-and-error processes in actual operations, decision-makers can employ simulation tools to test multiple strategies in parallel using historical data and predictive models," Fernandes explained.
Increase the results generated by the decision-making strategy. In the words of the executive, this process "expands the possibilities to be considered generated by the decision-making strategy, since it allows business teams to evaluate and compare multiple scenarios based on a comprehensive set of operational indicators."
Fernandes stressed that this practice makes it easier to "identify the strategy that promises to exert the greatest overall impact on the business" and replaces intuition with a data-driven approach, which ensures decisions more aligned with the company's objectives.
Frankenmuth Insurance Case
An example of an application is found in the American company Frankenmuth Insurance, which turned to FICO to centralize its decision-making process. With the FICO Platform, which integrates FICO Decision Modeler and FICO Business Outcome Simulator, the insurer "improved underwriting accuracy, reduced agent intervention in the manual pricing and approval process, and used data-driven simulations to create fair and consistent pricing models."
The result, according to FICO, was more efficient operations and data-backed decisions, with a positive impact on customer and agent satisfaction.
Simulation as an efficiency driver
Fernandes stressed that digital twins and simulation "are crucial tools both to safely identify the best strategies before implementing them in production and to confirm the consistency of the results of the strategies already applied."
According to the specialist, before implementation, simulation allows "testing different scenarios and calculating multiple operational and financial indicators, which guarantees that only the most effective strategies are adopted." After its execution, he added, practice remains key to "evaluating whether the results obtained align with initial projections, correcting inefficiencies and adjusting strategies to optimize performance over time."
