Using analytic network process and goal programming for interdependent information system project selection

Abstract Information system (IS) project selection problems are multi-criteria decision-making (MCDM) problem. Existing methods for IS project selection does not reflect interdependencies among criteria and candidate projects. Considering these interdependencies among criteria provides valuable cost savings and greater benefits to organizations. When we evaluate project problems, we need to collect a group opinion because to know the interdependence relationship among criteria and criteria in considered project problems is very important. In order to collect group opinion for interdependent project problem, we use expert interview. In this paper, we suggest an improved IS project selection methodology which reflect interdependencies among evaluation criteria and candidate projects using analytic network process (ANP) within a zero–one goal programming (ZOGP) model. Scope and purpose When information system (IS) projects are selected from a suggested competing projects they are evaluated according to different criteria. Prior research neglected an important aspect of information technology, namely the interdependencies that exist among IS projects. When we select IS project in organization, to select IS project through recognizing and modeling these project interdependencies provides valuable cost savings to organizations. Among the proposed methodologies of multi-criteria decision making (MCDM), goal programming (GP) is widely used for IS project selection. Although GP incorporates multiple objectives and arrives at an optimal solution, its major drawback is dependent on the judgment of decision maker(s). In order to provide a systematic approach to set priorities among multi-criteria and trade-off among objectives, analytic network process (ANP) is suggested to be applied prior to GP formulation. In this paper, we present a methodology using analytic network process and zero–one goal programming (ZOGP) for IS projects selection problems that have multiple criteria and interdependence property.

[1]  Marc J. Schniederjans,et al.  A goal programming model to optimize departmental preference in course assignments , 1987, Comput. Oper. Res..

[2]  Edward J. Joyce,et al.  Reusable software: passage to productivity? , 1990 .

[3]  Jr. Henry C. Lucas,et al.  A Multiple-Criterion Scoring Approach To Information System Project Selection , 1976 .

[4]  Radhika Santhanam,et al.  A DECISION MODEL FOR INTERDEPENDENT INFORMATION SYSTEM PROJECT SELECTION , 1996 .

[5]  T. Saaty,et al.  Dependence and independence: From linear hierarchies to nonlinear networks , 1986 .

[6]  G. Anandalingam,et al.  A multi-stage multi-attribute decision model for project selection , 1989 .

[7]  Jeffrey L. Ringuest,et al.  The linear multi-objective R&D project selection problem , 1989 .

[8]  H. Weingartner Capital Budgeting of Interrelated Projects: Survey and Synthesis , 1966 .

[9]  S. Reiter,et al.  Discrete Optimizing Solution Procedures for Linear and Nonlinear Integer Programming Problems , 1966 .

[10]  A. F. Czajkowski,et al.  Selecting interrelated R & D projects in space technology planning , 1986, IEEE Transactions on Engineering Management.

[11]  Stanley Reiter,et al.  Choosing an Investment Program among Interdependent Projects , 1963 .

[12]  Peretz Shoval,et al.  Models for computer system evaluation and selection , 1987, Inf. Manag..

[13]  F. W. McFarlan,et al.  Portfolio approach to information systems , 1989 .

[14]  Mel Horwitch,et al.  The Effect of Business Interdependencies on Product R&D-Intensive Business Performance , 1987 .

[15]  M. Buss How to rank computer projects. , 1983, Harvard business review.

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

[17]  Robert J. Kauffman,et al.  Reuse and Productivity in Integrated Computer-Aided Software Engineering: An Empirical Study , 1991, MIS Q..

[18]  D. A. Aaker,et al.  A model for the selection of interdependent R&D projects , 1978, IEEE Transactions on Engineering Management.

[19]  G. Nemhauser,et al.  Discrete Dynamic Programming and Capital Allocation , 1969 .

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

[21]  J. A. Sharp,et al.  The Analytic Hierarchy Process and its Application to an Information Technology Decision , 1990 .

[22]  Chetan S. Sankar,et al.  Reusability-Based Strategy for Development of Information Systems , 1990, MIS Q..

[23]  Peter Fahrni,et al.  An application-oriented guide to R&D project selection and evaluation methods , 1990 .

[24]  Neil R. Baker,et al.  R&D Project Selection Models: An Assessment , 1974, R&D Management.

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

[26]  Marc J. Schniederjans,et al.  A model formulation system for information system project selection , 1993, Comput. Oper. Res..

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

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

[29]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[30]  B. Santos Information systems: Similarities and differences across organizations , 1989 .

[31]  Radhika Santhanam,et al.  Using the analytic hierarchy process for information system project selection , 1990, Inf. Manag..

[32]  Marc J. Schniederjans,et al.  Strategic Acquisition Management: A Multi-Objective Synergistic Approach , 1989 .

[33]  Marc J. Schniederjans,et al.  Using the analytic hierarchy process and goal programming for information system project selection , 1991, Inf. Manag..

[34]  John Leslie King,et al.  Cost-Benefit Analysis in Information Systems Development and Operation , 1978, CSUR.