Experian 2013 Annual Report Download - page 16
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Decision Analytics unlocks the value of our vast
databases of credit and marketing information, as well
as our clients’ data, applying expert consulting, analytical
tools, software and systems to help clients solve complex
problems and make valuable business decisions.
Business lines:
Decision Analytics
Description
We enable organisations to make accurate
and relevant decisions at every stage of the
customer journey, helping them: to identify
potentially profitable new customers,
to segment their existing customers
according to risk and opportunity, to
manage and grow their existing portfolios,
to undertake effective collections actions,
and to help detect and prevent fraud.
Our integrated approach involves taking
our data, our clients’ data, third party
data, and applying analytical models
and scores to transform that data into
meaningful information and insights. Our
comprehensive consultative-led approach
helps clients identify issues, develop
insights and focus on solutions that add
value to their business, whilst providing
execution support. We employ over 400
analysts and statisticians globally to
create bespoke and industry solutions.
Products that can be applied industry-
wide can frequently spring from bespoke
models, as we find common elements of a
problem across more than one customer.
We have developed solutions to help
our customers improve their business
operations and decision making in
areas such as application processing,
customer management, fraud and
identity, and collections:
•Application processing systems enable
organisations to balance the requirement
for speed and competitiveness with the
need for careful risk assessment when
considering an applicant for credit.
•Customer management systems are
used to automate huge volumes of day-
to-day decisions, helping clients make
the right decision for each customer, in a
consistent and cost-efficient manner.
•Fraud and identity solutions are used to
authenticate that people are who they
say they are and that the information
being provided is correct.
•Collections analytics and software
play an important part in helping
organisations establish an accurate
picture of a customer’s propensity
to pay and, therefore, the amount likely
to be recovered.
Clients
Clients vary in size, from small to
medium, to multinational. We serve
thousands of clients globally, from a
range of industries, including financial
services, telecommunications, utilities,
retail, insurance, automotive and the
public sector. Multinational clients often
standardise their operations globally
on our tools and software, helping to
improve strategic control and operating
effectiveness as well as helping to
satisfy regulatory obligations.
Financial characteristics
Credit scores and fraud checks are
sold on a transactional volume-
tiered basis, whilst revenue from
software and systems consists partly
of implementation fees and partly of
contractually recurring licence fees.
Competitive environment
Our competitive advantage lies in our
integrated approach to solving our
clients’ problems, particularly in our
ability to integrate multiple data sets.
We are a market-leading provider of
Decision Analytics in all our major
geographies. Global competitors include
Fair Isaac and SAS, and competition in
individual markets consists typically of
smaller, local players.
Market influences for Credit Services
and Decision Analytics
The explosion of data globally means
organisations need to capture that data
and derive useful insights from it to make
better and faster decisions about their
business and customers. Organisations,
particularly financial institutions, are
dealing with increased regulatory
scrutiny; new rules and regulations
are focusing on risk management and
fair treatment of customers. Clients in
our newer customer segments, such
as telecommunications and utilities,
are becoming increasingly aware of
the benefits of managing customer
relationships, optimising collections
and combating fraud. The growth in
e-commerce and mobile commerce, and
the increase in cross-border transactions
mean that organisations need to
authenticate customers and understand
with whom they are doing business.
Economic growth in emerging markets
stimulates demand for our core products
and simpler hosted solutions support
expansion with mid-tier clients.
Contribution to
Group revenue
11%
CREDIT SERVICES
DECISION ANALYTICS
MARKETING SERVICES
CONSUMER SERVICES
14 Experian Annual Report 2013 Business overview