This document discusses business analytics and optimization technology. It notes that leading companies use analytics like optimization to gain competitive advantages. The document then discusses AIMMS, an optimization technology company, and its product. AIMMS provides an integrated modeling platform that supports the full optimization process from modeling to deployment. It has numerous customers across industries who use AIMMS-based applications for strategic planning, production scheduling, and other optimization problems.
1. AIMMS
Optimization Technology
Gertjan de Lange
VP Product Strategy, Marketing & Sales
Paragon Decision Technology B.V.
g.de.lange@aimms.com
November, 2011
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2. BUSINESS ANALYTICS
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3. There is a wave: Business Analytics
Competing on Analytics (2007): Analytics at Work (2010):
The New Science of Winning Smarter Decisions, Better Results
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4. Summary of the message …
Leading companies build their competitive strategies around data-driven
insights by using analytics:
• Sophisticated quantitative and statistical analysis, predictive modeling
and optimization
Leading companies compete on analytics
Need for business analytics expertise & tools will increase enormously!
“What’s left as a basis for competition is to execute your business with
maximum efficiency and effectiveness, and to make the smartest business
decisions possible.” because:
• Companies often offer similar products, use similar technology.
• Many previous bases for competition (geographical advantage /
protective regulation) have been eroded by globalization.
• Proprietary technologies are rapidly copied.
• Breakthrough innovation in products /services seems increasingly
difficult to achieve.
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6. Getting the optimization edge
Why do some companies become industry
leaders, while others never rise to the top?
… these companies posses an ability to make
complex decisions faster, more accurately, and
more consistently than their competition
… because they are big users of Optimization!
(2011)
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7. HOW DOES THIS RELATE TO US
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8. Our Mission
Bring the benefits of
optimization technology to society
To enable people to apply optimization
technology successfully into their
organisations
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9. About Optimization Technology
Example: Linear programming (‘simple’)
Optimization Technology: Reference:
• Operations Research (OR) “AIMMS – Optimization Modeling”
http://www.aimms.com/downloads/manuals
• Mathematical Modeling
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10. Our Role
• Be a catalyst for organizations
– to make them aware of the benefits that OR can bring
– to determine where OR can have the largest impact
• Provide organizations with AIMMS and people to reap the
benefits of OR
• Help organizations to create an ecosystem in which OR can be
applied in an optimal way, by providing:
– partner network
– AIMMS specialists
– user community (industry peers)
– contacts in academia
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AIMMS - Optimization Technology for Decision Making
11. AIMMS: A FEW HIGHLIGHTS
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12. About AIMMS
AIMMS provides an optimization technology to cut through
your complexity in an optimal way.
• for strategic, tactical, and operational decision making
• to make optimal decisions, using advanced analytics
• straight forward and beyond business intelligence
Its immense flexibility and ability to model problems or adjust
models in days, or even in hours, gives a powerful decision
support instrument to outperform increase performance and
outperform the competitors.
AIMMS makes smartest business decisions possible
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AIMMS - Optimization Technology for Decision Making
13. AIMMS Product Vision
Model/Application Adjustments and Maintenance
Fast validation Versatility of
algorithmic
capabilities
Fast analysis &
understanding Intuitive
Integrated &
familiar
Ease of use Growth path environment
Analysis &
Complex Model Application
initial
development development
Deployment
situation development
POC Optimization engine Application
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14. AIMMS Structure
• AIMMS, integrated & interactive modeling platform
– modeling language, integrated GUI,
direct access to solvers, advanced
deployment options, and extensive
development support features
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AIMMS - Optimization Technology for Decision Making
15. AIMMS Usage
• AIMMS, integrated & interactive modeling platform
– modeling language, integrated GUI,
direct access to solvers, advanced
deployment options, and extensive
development support features
• AIMMS supports the complete optimization chain
– from prototyping to large-scale deployment
– from development to operational use
– from single use to multi use
– from desktop to published (web) application
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16. AIMMS Features
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17. Some of our customers
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18. AIMMS-based Applications
Shell - Cat Cracking
SHARC is currently used in more
than 35 refineries and has been
instrumental in improving the
performance of their FCCUs. In
an average unit this can equate to
an annual margin increase of $2–
3 million.
Weijian Mo
Shell Global Solutions (US) Inc.
Senior Staff Technologist
http://www.aimms.com/references/
case-studies/shell-global-solutions-
sharc
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19. AIMMS-based Applications
GDF Suez – Terminal Management
Production planning & flexibility allocation at multi-user LNG terminal
“Using AIMMS, and specifically its integrated
GUI, helped us in our comprehension and
analysis of the optimization model developed
by the GDF Suez. During the model design
phase, we have been able to explain easily
what was fine in the model and what has to be
modified. The discussion with the developers
was facilitated by the flexibility of AIMMS.”
Benoît Labaune, manager at Society of the
Fos-Cavaou Gas Terminal
Benefits: LNG terminal plans lead to higher production levels and
higher flexibility without incurring contractual penalties for unfairness,
which could not have been achieved without the tool. In addition, the
flaring of excess gas is reduced and the operation of the terminal is
smoother, so the lifetime of the equipment is prolonged.
http://www.aimms.com/references/case-studies/gdf-suez-opti-atm
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20. AIMMS-based Applications
Arcelor Mittal – Strategic Planning Optimizer
Based on a MIP model and integrated to SAP APO (SNP
Module of SAP), an AIMMS component was developed for
ArcelorMittal´s Supply Chain Network Planning.
This Optimizer supports the strategic decision process of
obtaining the production mix optimization considering
customer profitability as well the production and logistics
capacities for ArcelorMittal and its subsidiary Vega do
Sul.
“The AIMMS based Optimizer developed by UniSoma
is the 'heart' of the System and the most important
component of the project. It optimizes demand with
basis on customer profitability - a request which we
did not find in any 'package' - indicating the most
lucrative flat steel customers for CST and Vega do Sul”.
Marcia Schwarz de Assis
Project Manager Information Technology Department
of ArcelorMittal
http://www.aimms.com/unisoma
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21. AIMMS-based Applications
INEOS – Simulation & Steam Optimization
The AIMMS modeling system has been used
to redevelop the production planning and
simulation tool DISPO that is essential in
maintaining Ineos Cologne plant reliability
and utilization at over 90% (actually 97%).
Clemens Schwark
Ineos Cologne Production Planning
and Coordination
http://www.aimms.com/references/case-studies/ineos-koln-dispo
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22. AIMMS-based Applications
LyondellBasell – Olefins Furnace Feed Scheduling
“AIMMS provided us an
excellent platform to achieve
fast prototyping, a 100% data –
model separation for
scalability, flexibility in solver
usage, a common model for all
six sites – in spite of all, and
more the site specific
exceptions, and more.”
Sheila Schmitt, Paul Leggett
LyondellBasell
Source: INFORMS Practice
Meeting
Baltimore, April’08
www.aimms.com/applied-optimization
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23. Franz Edelman award 2011
The Franz Edelman Award recognizes
outstanding examples of innovative
operations research that improves
organizations, and often change people's
lives.
http://www.aimms.com/edelman
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24. Closing Questions
• Optimization technology supports decision
making across industries and applications
• Simulation technology supports decision making
across industries and applications
• When to use optimization?
• When to use simulation?
• Can we make even better decisions by
integrating/connecting the optimization and
simulation technology (1+1=3)?
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