A multi-attribute group decision support system for information technology project selection

The increasing intensity of global competition and the rapid advances in information technology (IT) have led organisations to search for more efficient and effective ways to manage their business. With the rapid growth of IT and global complexity, selecting information system projects that further business objectives has become a complex task. This complexity is due to a larger number of alternatives, multiple and often conflicting attributes, and an increasingly turbulent business environment. Traditional assessment techniques overemphasise quantitative and economic analysis and often neglect to consider qualitative and non-economic factors in the formal selection process. Furthermore, prior research for IT project selection does not consider interdependencies among candidate projects. In this paper, a comprehensive multi-attribute decision-making (MADM) approach for IT project selection is proposed. This decision model is illustrated by a case study of enterprise information system project selection at a textile manufacturer in Philadelphia. The proposed approach considers both quantitative and qualitative attributes as well as the interdependencies among candidate projects in a hybrid model that integrates the technique for order preference by similarity to ideal solution (TOPSIS) with multi-objective decision-making (MODM). MADM is used for the sorting or the ranking of the IT projects according to multiple attributes, and MODM is used for driving a vector optimisation-based solution.

[1]  Gwo-Hshiung Tzeng,et al.  Fuzzy MCDM approach for planning and design tenders selection in public office buildings , 2004 .

[2]  Juite Wang,et al.  A fuzzy set approach for R&D portfolio selection using a real options valuation model , 2007 .

[3]  Rex V. Brown,et al.  Justifying Public Decisions in Arctic Oil and Gas Development: American and Russian Approaches , 1998 .

[4]  Edmundas Kazimieras Zavadskas,et al.  Multicriteria selection of project managers by applying grey criteria , 2008 .

[5]  Freerk A. Lootsma,et al.  Multi-criteria analysis and budget reallocation in long-term research planning , 1990 .

[6]  Ahti Salo,et al.  Preference programming for robust portfolio modeling and project selection , 2007, Eur. J. Oper. Res..

[7]  Richard G. Mathieu,et al.  A methodology for large-scale R&D planning based on cluster analysis , 1993 .

[8]  S French,et al.  Multicriteria Methodology for Decision Aiding , 1996 .

[9]  E. Suh,et al.  Analytic hierarchy process: it can work for group decision support systems , 1994 .

[10]  Michel Truchon Borda and the maximum likelihood approach to vote aggregation , 2008, Math. Soc. Sci..

[11]  Shuo-Yan Chou,et al.  A fuzzy simple additive weighting system under group decision-making for facility location selection with objective/subjective attributes , 2008, Eur. J. Oper. Res..

[12]  P. Dhanapal Durai Dominic,et al.  Multiattribute analysis of the offshore outsourcing location decision using a decision support system framework , 2008, Int. J. Bus. Inf. Syst..

[13]  Cengiz Kahraman,et al.  Multi-attribute information technology project selection using fuzzy axiomatic design , 2005, J. Enterp. Inf. Manag..

[14]  João Paulo Costa,et al.  The AGAP system: A GDSS for project analysis and evaluation , 2003, Eur. J. Oper. Res..

[15]  Hans-Jürgen Zimmermann,et al.  Planning models for research and development , 1990 .

[16]  John R. Moore,et al.  An analytical approach to scoring model design — Application to research and development project selection , 1969 .

[17]  S. Farid Mousavi,et al.  TQM consultant selection in SMEs with TOPSIS under fuzzy environment , 2009, Expert Syst. Appl..

[18]  Desheng Dash Wu,et al.  Performance evaluation: An integrated method using data envelopment analysis and fuzzy preference relations , 2009, Eur. J. Oper. Res..

[19]  Yoshitaka Osawa,et al.  Development and Application of a New Methodology of Evaluating Industrial R&D Projects , 2002 .

[20]  Athanasios Ballis,et al.  Development of an expert system for the evaluation of conventional and innovative technologies in the intermodal transport area , 2004, Eur. J. Oper. Res..

[21]  Ashantha Goonetilleke,et al.  A New Fuzzy Multicriteria Evaluation Method for Group Site Selection in GIS , 2003 .

[22]  Hsu-Shih Shih,et al.  Incremental analysis for MCDM with an application to group TOPSIS , 2008, Eur. J. Oper. Res..

[23]  Marc J. Schniederjans,et al.  A zero-one goal programming approach for information system project selection , 1989 .

[24]  Edmundas Kazimieras Zavadskas,et al.  Selection of low-e windows in retrofit of public buildings by applying multiple criteria method COPRAS: A Lithuanian case , 2006 .

[25]  Jeffrey L. Ringuest,et al.  Evaluating Competing R&D Investments , 1991 .

[26]  Thomas L. Saaty,et al.  How to Make a Decision: The Analytic Hierarchy Process , 1990 .

[27]  Hans-Jürgen Zimmermann,et al.  An application-oriented view of modeling uncertainty , 2000, Eur. J. Oper. Res..

[28]  E. Stanley Lee,et al.  An extension of TOPSIS for group decision making , 2007, Math. Comput. Model..

[29]  O. Larichev Cognitive validity in design of decision‐aiding techniques , 1992 .

[30]  Steven J. Brams,et al.  Rational politics: Decisions, games, and strategy , 1988 .

[31]  Edmundas Kazimieras Zavadskas,et al.  Sensitivity analysis of a simple additive weight method , 2007 .

[32]  Ari P. J. Vepsalainen,et al.  Analysis of R&D portfolio strategies for contract competition , 1988 .

[33]  D. Diakoulaki,et al.  Cardinal ranking of alternative actions: extension of the promethee method , 1991 .

[34]  David L. Olson,et al.  A simulation study of IT outsourcing in the credit card business , 2006, Eur. J. Oper. Res..

[35]  Madjid Tavana,et al.  A priority assessment multi-criteria decision model for human spaceflight mission planning at NASA , 2006, J. Oper. Res. Soc..

[36]  João C. N. Clímaco,et al.  A note on a decision support system for multiobjective integer and mixed-integer programming problems , 2004, Eur. J. Oper. Res..

[37]  Yoshitaka Osawa,et al.  How Well Did the New Sumitomo Electric Project Ranking Method Predict Performance , 2003 .

[38]  G. A. Hazelrigg,et al.  Radsim — A methodology for large-scale R&D program assessment , 1985, IEEE Transactions on Engineering Management.

[39]  R. Cooper,et al.  New Product Portfolio Management : Practices and Performance , 1999 .

[40]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.

[41]  Abraham Mehrez,et al.  Selecting R&D projects: a case study of the expected utility approach , 1988 .

[42]  Allan D. Shocker,et al.  Linear programming techniques for multidimensional analysis of preferences , 1973 .

[43]  R. Cooper The newprod system: The industry experience , 1992 .

[44]  Cengiz Kahraman,et al.  A new multi-attribute decision making method: Hierarchical fuzzy axiomatic design , 2009, Expert Syst. Appl..

[45]  Aleksandra Mojsilovic,et al.  A logistic regression framework for information technology outsourcing lifecycle management , 2007, Comput. Oper. Res..

[46]  William E. Souder,et al.  An Interactive Decomposable Heuristic for Project Selection , 1985 .

[47]  Deng-Feng Li,et al.  Fuzzy LINMAP method for multiattribute decision making under fuzzy environments , 2006, J. Comput. Syst. Sci..

[48]  Radhika Santhanam,et al.  A multiple criteria decision model for information system project selection , 1995, Comput. Oper. Res..

[49]  Jean Pierre Brans,et al.  HOW TO SELECT AND HOW TO RANK PROJECTS: THE PROMETHEE METHOD , 1986 .

[50]  Karl T. Ulrich,et al.  Valuing R&D Projects in a Portfolio: Evidence from the Pharmaceutical Industry , 2007, Manag. Sci..

[51]  Bernard W. Taylor,et al.  Multiple criteria R&D project selection and scheduling using fuzzy logic , 1996, Comput. Oper. Res..

[52]  Marc J. Schniederjans,et al.  A multi-objective constrained resource information system project selection method , 1993 .

[53]  Oleg I. Larichev,et al.  Verbal Decision Analysis for Unstructured Problems , 1997 .

[54]  Oleg I. Larichev,et al.  COMPLEXITY AND UNCERTAINTY IN ARCTIC RESOURCE DECISIONS: THE EXAMPLE OF THE YAMAL PIPELINE , 1995 .