Case Study: Multi-Criteria Decision Making

Chapter 1 - Introduction

1.1 Introduction

Multi-Criteria Decision Making (MCDM) is concerned with the structuring and solving decision and planning problems involving multiple criteria. The intention is to support decision-makers dealings with such problems. Typically, there does not exist a unique optimal solution to such problems and it is necessary to use decision-maker’s preferences to differentiate between solutions. The appropriate structuring of complex problems and well consideration of multiple criteria explicitly leads to more informed and better decisions.

In complex decision making processes, especially when it affects the finance and working style of the company, a detailed evaluation of the situation is often needed. This decision

The company is one of the premiers in VAT processing, tax free shopping payment processing, credit card payment processing and currency exchange etc. Though the company is in its fast growing phase the analytical staff resources are very low at the moment in the company. The company don’t have any historical data about its operating locations. A recent merge with yet another multi-national company gives a higher market values to this company. Due to merge the organisation needs to standardise their service products in short span of time with new technology. The company is in search of an efficient decision-making approach, to decide the “optimal” test implementation location for the new software rollout. The usual process followed in the company for such a as decision is handled by stakeholder group in consultation with the senior level managers in the company. Though the company make use of traditional statistical/ project management techniques that overemphasise quantitative and economic analysis, finally the main decision-maker in lead or the stakeholders often tend to choose their final alternative based on qualitative and non-economic “business”, “strategic” and “market”

It starts with the literature review of the methodology used, the MCDM and DISC method. An attempt is made to review the existing literature in the field of software implementation planning and the decision making process in the software roll out field. The data and methodology chapter, follows the literature review. Here the author describes, how the method is being used for this selection process. The chapter explains, how the criteria and alternatives were selected and refined, how the problem is structured using the MCDM DISC approach. The chapter also details the approach used for weighting and scoring the