Influence Diagram Optimization for Constrained Strategy Design

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Solution Overview

Problem

Existing decision analysis methods, such as influence diagrams, struggle to effectively handle constrained optimization and uncertainty in decision situations, particularly when dealing with complex decision models and high-dimensional populations, as they often optimize independently without considering real-world constraints and lack the ability to map decision models to dataset files.

Innovation Solution

The proposed architecture extends influence diagrams by enabling constrained optimization, dataset-based optimization, and the translation of decision models into nonlinear optimization problems, allowing for the induction of decision rules applicable to target populations, using techniques like integer programming and induction algorithms to derive actionable strategies from historical data.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If influence diagrams are used for decision optimization, then decision analysis capability is provided, but the ability to handle constrained optimization and real-world constraints is insufficient

Engineering Contradiction:
Improveability to handle constrained optimizationVSAvoidconsideration of real-world constraints
Core Design Contradiction:
Adaptability or versatilityVSReliability

Solution Approach 1:

The system segments the decision model into distinct components: influence diagrams for representing decision structures, constraint models for specifying real-world limitations, and optimization engines for solving different types of problems. This segmentation allows each component to specialize in handling specific aspects of constrained optimization independently while working together as an integrated system.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediary layer that translates influence diagrams into constraint satisfaction problems and optimization models. This intermediary acts as a bridge between the qualitative decision representation (influence diagrams) and the quantitative optimization processes, enabling the system to handle constrained optimization by converting decision structures into forms that can be processed by optimization algorithms while preserving real-world constraints.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Adaptability or versatility

If traditional decision models are used, then decision analysis is possible, but mapping decision models to dataset files is not supported

Engineering Contradiction:
Improvemapping capability to dataset filesVSAvoidmodel integration complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system implements a universal interface layer that enables influence diagrams to interact with multiple data sources and file formats. This universal mapping capability allows the same decision model to be applied to different dataset files without requiring separate modeling efforts, achieving multi-functionality where a single influence diagram can serve various analytical purposes across different data contexts.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent employs parameter change techniques to transform influence diagram parameters into dataset-compatible formats. By dynamically adjusting and translating parameters between the influence diagram representation and dataset file structures, the system enables seamless mapping while managing complexity through automated parameter transformation rather than manual model restructuring.

Inventive Principle:
Principle #35Parameter changes

3Productivity

If independent optimization is performed, then computational simplicity is maintained, but strategic insights from population-level patterns are lost

Engineering Contradiction:
Improvecomputational efficiencyVSAvoidpopulation-level strategic insights
Core Design Contradiction:
ProductivityVSLoss of information

Solution Approach 1:

The system adds a population-level dimension to traditional individual-case optimization. By organizing optimization at multiple levels (individual cases and aggregate populations) simultaneously, the system recovers population-level strategic insights that would be lost in independent optimization while maintaining computational efficiency through hierarchical processing that leverages patterns across the population to inform individual decisions.

Inventive Principle:
Principle #17Another dimension (Dimensionality change)

Data Source

PatentUS7930196B2Model-based and data-driven analytic support for strategy development
Publication Date: 2011.04.19 FAIR ISAAC & CO INC
  • US7930196B2 patent drawing
  • US7930196B2 patent drawing
  • US7930196B2 patent drawing

AI summary

The invention provides an overall architecture for optimal strategy design using both historical data and human expertise. The presently preferred architecture supports the tasks of strategy design and strategy analysis, and provides extensions to influence diagrams, translation of an influence diagram as a nonlinear optimization problem, and use of induction after optimization to derive decision rules.