Question
A company has selected three criteria to evaluate project alternatives, i.e. financial benefits, contribution to strategy and contribution to IT infrastructure. The financial benefits criterion,
A company has selected three criteria to evaluate project alternatives, i.e. financial benefits, contribution to strategy and contribution to IT infrastructure. The financial benefits criterion, which centers on the tangible benefits of the project, is further subdivided into long-term ad short-term benefits. Contribution to strategy, an intangible factor, is subdivided into three subcriteria, i.e. increasing market share, retaining existing customers and improving cost management. The breakdown of criterion weights across the same three major criteria is shown in the figure 1. The values of 0.000, 0.050, 0.150, 0.300 and 0.500 are assigned to an evaluation scale with five dimensions: poor, fair, good, very good and excellent. The rating of the five project alternatives is shown in Table 1. Please use AHP method to evaluate these project alternatives
alternatives is shown in Table 1. Please use AHP method to evaluate these project alternatives. Objective (1.000) financial benefits contribution to contribution to IT infrastructure strategy (0.650) (0.230) market share (15%) (0.120) short-term (20%) oor (0.000) fair (0.050) long-term (80%) retention (25%) cost management good (0.150) (60%) very good (0.300) excellent (0.500) Figure 1 Table 1 fiance strategy alternatives short-term long-term market share retention cost management Allen excellent excellent excellent excellent excellent very good good Bella good excellent good excellent David very good excellent excellent very good Emily excellent very good good excellent poor excellent Florian very good good excellent poor
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To evaluate the project alternatives using the Analytic Hierarchy Process AHP method well follow these steps Step 1 Define the Hierarchy We have three main criteria Financial Benefits Subcriteria Shor...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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