Strategy Trees is a business intelligence software capability for strategy development, and is at the core of StrategyBUILDER — a standard module in KnowledgeSTUDIO and KnowledgeSEEKER.
A strategy in this context is defined as a combination of a predictive model represented by a generalized decision tree, a set of Key Performance Indicators (KPIs) calculated at every node and treatments. Treatments represent user-defined actions to be applied to specific segments (such as tree nodes).
Using the Strategy Tree framework, strategies can be developed both iteratively and interactively based on a range of “what-if” scenarios and forecasts created by the strategy author. The intelligent algorithm of the Angoss decision tree is used to assist in segmentation to optimize the splits.
Strategy Trees employ a framework with a range of features:
| Strategy Trees | Feature Highlights |
| Key Performance Indicators | Represents the metrics for each node that affect your decisions about the treatments to apply. Calculations can be specified in SQL syntax manually or using wizards for most common expression types. Calculations are updated dynamically as you change the segmentation. |
| Interactive Assignment | Interactively assigns treatments to the nodes identified in the segmentation process. |
| Multiple target variables | Provide richer segmentation, more feedback and control. Different dependent variables can be set at different tree nodes for developing complex strategies that address different objectives at different levels. |
| Node Report | Represents the segmentation as a spreadsheet and sorts segments by KPIs, making it easy to manage complex strategies with many segments or performance metrics. |
| Treatment Report | Monitors the scope and impact of the assigned treatments. |
| Strategy Validation and monitoring | Compares data sets in the context of the performance metrics and segments defined by the strategy tree in order to identify segments that positively or negatively affect performance and monitor the change of indicators over time. |
| Strategy Optimization | Uses mixed-integer linear programming engine to automatically assign optimal treatment values—for example, proposed credit limit increase—under a set of linear constraints. |
| Strategy Deployment | Directly generates treatment lists or automatic conversion of a strategy tree to SQL, SAS or PMML program code. |