Where is Optimization Technology Headed in 2009?
By Dr. Alan Kosansky, President of Profit Point
There is certainly a lot of change in the business optimization world today. From the significant changes at optimization software companies, to the growing areas of business optimization implementation, the world of optimization is a fast changing and exciting place.
In 2008, two of the leading software providers of mathematical optimization engines – both Profit Point partners – were acquired by much larger companies: ILOG, and their CPLEX optimization software, was acquired by IBM. Dash Optimization, and their XPRESS optimization software, was acquired by Fair Isaac. In addition, 2008 saw the launch of a new significant player into the market: Gurobi Optimization, with a management team that was involved with the initial launch of CPLEX.
Each of these players has the potential to lead the market over the long term, yet each presents their own uncertainty looking forward. How optimization technology fits into the long term strategies of acquiring companies IBM and Fair Isaac is the topic of much speculation. How quickly Gurobi is able to release competitive products and how well they are able to compete for customers is the topic of much anticipation. We will be keeping a close eye on these situations as they unfold, and will be back to share with you our insights in the future.
From the business and application perspective, business optimization and the software applications that act as enablers for better business decision making continues to explode in the marketplace. Leveraging the fact that more and more data is available to businesses and the key decision makers in their organization, those companies that are incorporating advanced decision technologies are realizing significant competitive advantages.
We have had recent success with a number of these industry leaders. They include a retailer using optimization to determine how best to manage their backlog of orders and fulfill customer needs, a production equipment leasing company managing the a delivery of capital intensive assets to maximize utilization and throughput, and a transportation delivery company minimizing customer wait times and maximizing the satisfaction of their customers’ experience.
Each of these success stories were driven by data, elevated by optimization, and guided by thoughtful and forward thinking management. Are you the next success waiting to happen?
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