Currency Equivalency System for BAM Monitoring
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Solution Overview
Problem
Global businesses face challenges in presenting and monitoring business activities across international processes due to cultural, linguistic, economic, and religious differences, exacerbated by the sheer volume and variety of currencies involved, making it difficult to effectively track and understand transaction values in a unified manner.
Innovation Solution
A currency equivalency system that allows users to input preferences for displaying transactions in a specific currency, calculates equivalent currency values based on real-time or historical exchange rates, and provides confidence scores for estimated values, enabling users to view transactions in a familiar and understandable format across multiple currencies.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If currency conversion is performed for all transactions in BAM applications, then users can view transactions in their local currency improving ease of operation, but the system complexity increases due to multiple currency handling
Solution Approach 1:
The patent introduces a currency equivalency application as an intermediary layer between the BAM application and users. This mediator handles all currency conversion logic, allowing users to view transactions in their local currency without requiring the BAM application itself to be complex. The currency equivalency application receives transaction data, performs conversions based on user preferences and exchange rates, and returns formatted data, thus isolating the complexity from the core BAM system.
Solution Approach 2:
The system is divided into separate functional components: the BAM application that collects transaction data, the currency equivalency application that handles conversion logic, and the presentation layer that displays results. This segmentation allows each component to focus on its specific function, reducing overall system complexity while enabling comprehensive currency conversion capabilities.
2Measurement precision
If real-time currency exchange rates are used for conversion, then measurement precision of transaction values is improved, but the need for continuous data updates increases system complexity
Solution Approach 1:
The system dynamically adjusts its behavior based on user preferences and transaction requirements. Users can select whether they want real-time exchange rates or historical rates, and the system adapts its data retrieval strategy accordingly. This dynamic approach allows the system to maintain high precision when needed while avoiding unnecessary complexity when real-time data is not required.
Solution Approach 2:
The patent allows users to change parameters such as preferred currency, date ranges, and exchange rate sources. By making these parameters configurable, the system can optimize between precision and complexity based on specific use cases. For example, users can choose historical exchange rates for retrospective analysis, reducing the need for real-time data infrastructure.
3Adaptability or versatility
If currency conversion preferences are customized for each user, then adaptability to individual needs is improved, but the configuration complexity and data storage requirements increase
Solution Approach 1:
The system performs preliminary actions by establishing user preferences and currency configurations in advance. During initial setup, users define their preferred currencies, date preferences, and other parameters. These pre-configured settings are then reused for subsequent transactions, eliminating the need for repeated configuration and reducing overall system complexity while maintaining high adaptability.
Solution Approach 2:
The currency equivalency application serves multiple functions: it handles currency conversion, manages user preferences, retrieves exchange rates, and formats output data. By consolidating these diverse functions into a single multi-functional application, the system achieves high adaptability without proportionally increasing complexity, as the same core infrastructure supports all these operations.
Data Source
AI summary
Embodiments of the present invention provide apparatuses and methods for a currency equivalency application for a business activity monitoring (BAM) applications. The currency equivalency application monitors business activities across international processes and systems that deal with multiple types of currencies. The user enters into the currency equivalency application user defined preferences, such as, but not limited to, the BAM application to which to apply the preferences, the type of currencies, value amounts, dates for the actual currency exchange rate, dates for future currency exchange rates, confidence scores, etc. The currency equivalency application identifies the proper exchange rates and in some cases estimates future exchanges rates, and converts the output for currency values in BAM applications into the user defined currency values, which allows the users across the world to quantify and view the currency value outputs in a form that the user understands.