ILOG Optimization
IBM Software
Buyer’s Checklist
How to Find a Solution that Delivers Fast ROI
2 IBM ILOG Optimization
Why should my company use optimization
from IBM ILOG?
To thrive in today’s complex and rapidly evolving business
environments, companies need to go beyond business
intelligence. They need a map that gives them a clear
understanding of the impacts, trade-offs and likely outcomes of
their choices and decisions. Through the use of advanced
analytics techniques from the Operations Research (OR)
community, IBM has been providing companies with
frameworks and models for testing business strategies for
decades. With exponential improvements in computational
power, OR technologies from the IBM ILOG® Optimization
portfolio, alongside thousands of advanced analytics and
optimization experts in IBM Global Business Services, are now
poised to break into the mainstream, to give business leaders
the tools they need to address real-world strategic and
operational decisions on the fly, as they’re needed.
As companies move to transform their intelligence into
action, mathematical optimization is becoming a
fundamental tool – an absolute must-have – in all strategic
and operational planning and scheduling processes.
IBM ILOG Optimization is at the forefront of this revolution
– helping to bring OR technology into the mainstream for
everyday business use.
Building a mathematical optimization-based planning or
scheduling application can provide real, significant impact on
your company’s bottom line and can pay for itself within a few
months or even weeks. But optimization is a sophisticated
analytic technology that requires real expertise to implement
effectively.
IBM ILOG Optimization enables organizations to make better
decisions faster by automatically generating and evaluating
numerous potential solutions, many more than a human could
examine, and finding the best one that satisfies complex
requirements and policies. An effective optimization
application can automate many routine decision processes,
allowing managers and planners to focus their attention on
exceptional situations.
When you’re evaluating optimization solutions, ask yourself
these five questions:
✓ 1. Can the optimization system be trusted to solve real-
world problems reliably and quickly?
✓ 2. Can the decision makers in my company interact with
the optimization solution in ways that make sense to
them?
✓ 3. Can the optimization application integrate with my
corporate IT systems, databases and business processes?
✓ 4. Can my technical experts and IT architects develop,
deploy and maintain effective optimization solutions
quickly and reliably?
✓ 5. Can we easily translate our business problem into a
trusted analytics solution to support mission critical
business decisions?
IBM Software 3
1. Can the optimization system be trusted
to solve real-world problem instances
reliably and quickly?
Solving real-world optimization problems requires a lot of
number crunching. As the solution proceeds, the solver will get
closer and closer to the best (optimal) solution.
You need to know that the solution it finds is truly optimal.
Before it gets there, you need to know how close you are and
when you’re close enough to stop the search. You also want to
know that you can get close enough within a reasonable
amount of time, because if the solution takes too long, you may
miss the window for implementing it. For instance, if you’re
scheduling tomorrow’s deliveries to your stores, you’d better
have a solution tonight so you can load your trucks and move
them out in time to reach the stores and unload before they
open.
The core technologies of the IBM ILOG® CPLEX®
Optimization Studio are unmatched in the number of trusted
and proven commercial deployments around the world,
providing in thousands of instances:
• Solutions for optimization problems with millions of decisions
and hundreds of thousands of constraints
• Solutions in real-time to support operational process
requirements
• Multiple solver algorithms so that you can choose (or allow
the software to choose) the best one for your particular
instance
• Robust solutions and consistently fast solution times across
numerous problem instances
• A track record of continuous performance improvements
going back 20 years
• Provably optimal solutions and tight bounds on how close the
best solution found so far is from optimality
• Powerful tools to adapt solutions in the real-world, where data
and business conditions change almost instantaneously
2. Can the business decision makers in my
company interact with the optimization
solution in ways that make sense to them?
Optimization is a sophisticated technology that takes years of
training to implement effectively. Does that mean you need to
be an expert to use it? The answer is no!
Leaders in manufacturing, transportation, energy and finance
rely on optimization to solve their toughest problems in
mission-critical situations. Decision makers develop confidence
in optimization solutions:
• When they can see the solution displayed in tables and charts
they recognize.
• When the solution easily translates into specific actions they
can implement.
• When they can predict how well the solution meets their
company’s key performance indicators.
• When they can test to see how the solution performs under
different scenarios.
• When the solver doesn’t just give up when it can’t find a
solution that satisfies all requirements.
4 IBM ILOG Optimization
IBM ILOG Optimization Decision Manager (ODM)
Enterprise provides an enterprise-class platform to deploy
applications to operational teams, allowing decision-makers to
collaborate and implement optimization solutions:
• The Optimization Programming Language (OPL), the
foundation mathematical modeling language of the integrated
development environment of CPLEX Optimization Studio,
enables OR practitioners and experts to effectively, rapidly
transform business requirements into models that can be
tested and tuned for the real world
• Customizable interfaces that show tables and charts displaying
input data and solution results
• Optimization against multiple criteria ranked by users
• User-created scenarios varied by input parameters, with
solutions compared by scenario
• Controlled relaxation of constraints and rules by user-
specified priorities. If the solver can’t find a solution, it tells
you why and what needs to be done to get one
3. Can the optimization application
integrate with my corporate IT systems,
databases, and business processes?
Optimization is a data-driven technology, so it usually sits at
the top of the technology stack, relying on other systems to
provide input data and implement the solution. Smooth
interaction between the optimization application and these
systems is a must for effective implementation. And decision-
making supported by optimization is at the heart of managing
many business processes. Effective business process
management requires that verified optimization solutions be
made available at the right time to the right people
CPLEX Optimization Studio and ODM Enterprise provide:
• The ability to read data and write data to a variety of data
management systems, from simple spreadsheets to complex
relational databases
• Separation of data from the optimization model, so that the
solution scales to larger problem instances without the need to
rewrite the model – you can plan production for 3 to 300 car
models with the same optimization application
• Enablement of the number crunching solver on a separate
server to balance IT network load
• Creation of separate workspaces for individual planners to test
what-if scenarios and enable publishing of only their best
solutions to production
4. Can my technical experts and IT
architects develop, deploy and maintain
effective optimization solutions quickly
and reliably?
Like any major software project, developing, deploying and
maintaining an optimization application requires the efforts of
many. Optimization experts and IT architects can make the
most of their time with good tools. They need to be able to
move from concept to prototype to production quickly but
avoid making mistakes that undermine application reliability.
CPLEX Optimization Studio and ODM Enterprise provide:
• APIs in C++, Java™ and the .NET™ family
• An Optimization Programming Language that enables your
optimization experts to define the problem in a natural,
transparent mathematical language
• Powerful data structures that ensure efficient problem
specifications and solutions
IBM Software 5
• An integrated development environment that supports a full
range of software engineering functions including testing and
debugging
• Data connectors to multiple sources, from simple spreadsheets
to complex relational databases
• Configurable user interfaces to create tables and charts
without coding
• Extensions of the user interface with IBM ILOG Visualization
products
5. Can we easily translate our business
problem into a trusted advanced analytics
solution to support mission critical
business decisions?
Mathematical optimization is a precise methodology that can
produce real, significant bottom-line impact. To use
optimization, you specify a business problem it can solve. That
challenge often requires dual expertise in your business domain
as well as technical analytics. IBM has thousands of experts in
Business Analytics and Optimization with years of experience
in creating effective optimization solutions for real-world
business problems. They can help you build an optimization
application by asking questions such as:
• What decisions are you making and how can they be specified
numerically? Are you deciding on amounts to produce or
whether or not to take a specific action, such as to open a
distribution center at a location? What is the time frame for
the decisions?
• How do you want to measure decision effectiveness? What are
your key performance indicators? How do your decisions
affect them?
• What are the limits on decisions that could make some
unfeasible? Are there resource or physical constraints such as a
road network where traffic must flow? Do the decisions you
consider force trade-offs to satisfy these limits?
• What data are available that enable you to measure key
performance indicators and limits? What kinds of data
analytics are needed for forecasting and risk assessment?
IBM ILOG Optimization and IBM Global Business Solutions
provide:
• Professional services of business domain, analytics and
optimization experts and IT architects to assist in building,
integrating and maintaining your application.
• Training on developing, deploying and maintaining your
optimization applications.
• 24-7 technical support to keep your mission critical
applications running.
WS3-14004-USEN-00
© Copyright IBM Corporation 2010
IIBM Software Group
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Produced in the United States of America
March 2010
All Rights Reserved
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Next Steps
Request a custom demo
Our interactive demonstrations are performed either online or
on site and are scheduled at your convenience (depending on
the availability of our product experts). We will be happy to
travel to your site for groups of five or more.
Request a Discovery Workshop
Two day, complimentary workshop designed to help teams
work through their project questions together, ensuring that
IBM ILOG Optimization is the right solution to your
problems before making an investment.
Talk to a live person
These specialists are available to assist you in your IBM ILOG
Optimization solution identification and research. You can
email or phone them directly.
Contact us
We will respond within 48 hours. For general questions:
• 1-800-FOR-ILOG
• ilogcc@us.ibm.com
Contact Us
Contact your IBM ILOG Sales Representative to discuss the
many services we offer to support your effective use of
optimization technology and other advanced business analytics.
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