LG CNS Develops 'Mathematical Optimization Cloud Web Service'

[Asia Economy Reporter Buaeri] LG CNS announced on the 29th that it has signed a strategic partnership with Grobi Korea to jointly develop a 'Mathematical Optimization Cloud Web Service.'

Through this partnership, the two companies will develop a 'Mathematical Optimization Cloud Web Service' applicable to all industrial sectors including manufacturing, finance, marketing, services, and public sectors, and will start consulting services for customers.

Mathematical optimization refers to the process of determining the best solution among many options through precise mathematical analysis in decision-making situations. It is used to find optimal solutions such as production processes, logistics facility operations, and determining appropriate inventory levels of products.

Mathematical optimization is a technology that is gaining more attention in the era of the 4th Industrial Revolution, where artificial intelligence (AI) and big data are emphasized. In situations with high uncertainty, methods based on AI learning from big data are advantageous, but in situations with high certainty where maximum efficiency must be achieved with current resources, mathematical optimization demonstrates stronger capabilities.

For example, in manufacturing process analysis optimization, it recommends optimal settings for equipment and facilities to maximize product yield and quality specifications. In financial sector cash management optimization, it analyzes past cash flow patterns of bank branches to determine the appropriate cash amount for securing cash liquidity and minimizing maintenance costs. In digital marketing portal search advertisement optimization, it analyzes keywords related to client companies exposed on portals, evaluates the contribution to advertising effectiveness, and recommends keywords that maximize advertising impact.

The optimization service is provided in a cloud form. Customers can use the desired optimization services in SaaS (Software as a Service) form simply by connecting to the internet without the need for separate system construction. SaaS means a method where users subscribe and pay a fee to use only the services they want by accessing the cloud, rather than purchasing software products.

Lee Geun-hyung, head of Entru Consulting at LG CNS, said, "Optimization techniques are not limited by industry or business area and can be used even when training data is insufficient, differentiating them from AI or big data technologies," adding, "We will expand the application areas and services of optimization consulting for companies feeling the limits of productivity improvement or cost reduction without additional facility investment."

This content was produced with the assistance of AI translation services.