The 80-20 rule to Fraud Management and Revenue Assurance

Overview

Applying the 80-20 rule to FMS and RA 30/09/2011

Dear Reader,

If you’ve heard of the famous Italian economist Vilfredo Pareto, you might know of his legacy “80-20 principle”.

This rule simply states that for many events, roughly 80% of the effects come from 20% of the causes. For example:

80% of the land is owned by 20% of the population;
80% of your sales come from 20% of your clients;
80% of road traffic accidents are caused by 20% of drivers.

Or that...

80% of activity requires 20% of resources;
80% of the problems happen in 20% of the problem domain;
20% of the features cause 80% of the usage, etc.

The point is that if you focus your effort on the 20% that makes a difference, instead of the 80% that doesn’t add much, you will have become Pareto optimal!

Applied to Fraud Management and Revenue Assurance - where 80% of of common fraud or revenue leakages are generated by 20% of causes - you can already appreciate that with just a 20% investment in a solution, you can tackle up to 80% of your problems.

For details, please visit

http://www.xintec.com

Sean Killeen

CEO

XINTEC S.A

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