Decision making software
Encyclopedia
Decision-making software (DMS) is a term integrating decision analysis
tools to facilitate a person's decision-making process, which results in a choice of a course of action or a variant among several alternatives
. DMS belongs to the class of decision support systems used to structure information, identify and solve problems and make decisions.
(MCDA) and its varieties such as Analytic Hierarchy Process
(AHP), analytic network process
(ANP — extension of AHP), PROMETHEE
, multi-attribute value theory (MAVT), multi-attribute utility theory (MAUT), multi-attribute global inference of quality
(MAGIQ), potentially all pairwise rankings of all possible alternatives
(PAPRIKA).
A decision problem is first decomposed into a hierarchy
of more easily comprehended sub-problems, each of which can be analyzed independently. The elements of the hierarchy
can relate to any aspect of the decision problem — tangible or intangible, carefully measured or roughly estimated, well- or poorly-understood.
Once a decision tree
is built, the decision makers evaluate its various elements using concrete data for the elements or their own judgments about the elements' relative meanings and importance.
In the final step of the process, numerical priorities are calculated for each of the decision alternatives
.
Decision analysis
Decision analysis is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner...
tools to facilitate a person's decision-making process, which results in a choice of a course of action or a variant among several alternatives
Alternatives
Founded in 1994, Alternatives, Action and Communication Network for International Development, is a non-governmental, international solidarity organization based in Montreal, Quebec, Canada....
. DMS belongs to the class of decision support systems used to structure information, identify and solve problems and make decisions.
Basic principles
DMS is based on multi-criteria decision analysisMulti-Criteria Decision Analysis
Multiple-criteria decision-making or multiple-criteria decision analysis is a sub-discipline of operations research that explicitly considers multiple criteria in decision-making environments. Whether in our daily lives or in professional settings, there are typically multiple conflicting criteria...
(MCDA) and its varieties such as Analytic Hierarchy Process
Analytic Hierarchy Process
The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L...
(AHP), analytic network process
Analytic Network Process
The analytic network process is a more general form of the analytic hierarchy process used in multi-criteria decision analysis.AHP structures a decision problem into a hierarchy with a goal, decision criteria, and alternatives, while the ANP structures it as a network...
(ANP — extension of AHP), PROMETHEE
Prométhée
Prométhée is an opera in three acts by the French composer Gabriel Fauré. The libretto, by Jean Lorrain and Ferdinand Hérold, is based on the Greek myth of Prometheus. Although designated a tragédie lyrique, the opera resists easy categorisation. It was intended as a large-scale work with spoken...
, multi-attribute value theory (MAVT), multi-attribute utility theory (MAUT), multi-attribute global inference of quality
Multi-Attribute Global Inference of Quality
Multi-attribute global inference of quality is a multi-criteria decision analysis technique. MAGIQ is based on a hierarchical decomposition of comparison attributes and rating assignment using rank order centroids...
(MAGIQ), potentially all pairwise rankings of all possible alternatives
Potentially all pairwise rankings of all possible alternatives
Potentially all pairwise rankings of all possible alternatives is a method for multi-criteria decision making or conjoint analysis based on decision-makers’ preferences as expressed using pairwise rankings of alternatives....
(PAPRIKA).
A decision problem is first decomposed into a hierarchy
Hierarchy
A hierarchy is an arrangement of items in which the items are represented as being "above," "below," or "at the same level as" one another...
of more easily comprehended sub-problems, each of which can be analyzed independently. The elements of the hierarchy
Hierarchy
A hierarchy is an arrangement of items in which the items are represented as being "above," "below," or "at the same level as" one another...
can relate to any aspect of the decision problem — tangible or intangible, carefully measured or roughly estimated, well- or poorly-understood.
Once a decision tree
Decision tree
A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. It is one way to display an algorithm. Decision trees are commonly used in operations research, specifically...
is built, the decision makers evaluate its various elements using concrete data for the elements or their own judgments about the elements' relative meanings and importance.
In the final step of the process, numerical priorities are calculated for each of the decision alternatives
Alternatives
Founded in 1994, Alternatives, Action and Communication Network for International Development, is a non-governmental, international solidarity organization based in Montreal, Quebec, Canada....
.
Additional features
Besides evaluation of alternatives and finding the best solutions DM-software often features additional tools for effective decision analysis:- Pairwise comparisonPairwise comparisonPairwise comparison generally refers to any process of comparing entities in pairs to judge which of each entity is preferred, or has a greater amount of some quantitative property. The method of pairwise comparison is used in the scientific study of preferences, attitudes, voting systems, social...
- Time analysis and time optimization
- Sensitivity analysisSensitivity analysisSensitivity analysis is the study of how the variation in the output of a statistical model can be attributed to different variations in the inputs of the model. Put another way, it is a technique for systematically changing variables in a model to determine the effects of such changes.In any...
and fuzzy logicFuzzy logicFuzzy logic is a form of many-valued logic; it deals with reasoning that is approximate rather than fixed and exact. In contrast with traditional logic theory, where binary sets have two-valued logic: true or false, fuzzy logic variables may have a truth value that ranges in degree between 0 and 1...
calculations - Risk aversionRisk aversionRisk aversion is a concept in psychology, economics, and finance, based on the behavior of humans while exposed to uncertainty....
measurement - Group evaluation (teamwork)
- Graphic or visual presentation tools
- Web-based version
DMS comparison table
| Software | Supported MCDA method(s) | Pairwise comparison Pairwise comparison Pairwise comparison generally refers to any process of comparing entities in pairs to judge which of each entity is preferred, or has a greater amount of some quantitative property. The method of pairwise comparison is used in the scientific study of preferences, attitudes, voting systems, social... |
Time analysis | Sensitivity analysis Sensitivity analysis Sensitivity analysis is the study of how the variation in the output of a statistical model can be attributed to different variations in the inputs of the model. Put another way, it is a technique for systematically changing variables in a model to determine the effects of such changes.In any... |
Group evaluation | Risk management | Web-based version |
|---|---|---|---|---|---|---|---|
| 1000Minds | PAPRIKA Potentially all pairwise rankings of all possible alternatives Potentially all pairwise rankings of all possible alternatives is a method for multi-criteria decision making or conjoint analysis based on decision-makers’ preferences as expressed using pairwise rankings of alternatives.... |
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| Analytica | |||||||
| Criterium DecisionPlus | AHP Analytic Hierarchy Process The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L... |
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| DecideIT | MAUT | ||||||
| Decision Lab | |||||||
| Decision Lens | AHP Analytic Hierarchy Process The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L... ANP |
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| Expert Choice | AHP Analytic Hierarchy Process The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L... |
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| Hiview3 | |||||||
| Logical Decisions | |||||||
| MakeItRational | AHP Analytic Hierarchy Process The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L... |
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| MindDecider | AHP Analytic Hierarchy Process The Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L... |
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| TreeAge Pro | |||||||
See also
- PROMETHEEProméthéeProméthée is an opera in three acts by the French composer Gabriel Fauré. The libretto, by Jean Lorrain and Ferdinand Hérold, is based on the Greek myth of Prometheus. Although designated a tragédie lyrique, the opera resists easy categorisation. It was intended as a large-scale work with spoken...
: decision making method based on pairwise comparisons - Decision-making
- Decision support systemDecision support systemA decision support system is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in...
- Decision engineeringDecision engineeringDecision Engineering is a framework that unifies a number of best practices for organizational decision making. It is based on the recognition that, in many organizations, decision making could be improved if a more structured approach were used...
- Multi-criteria decision analysisMulti-Criteria Decision AnalysisMultiple-criteria decision-making or multiple-criteria decision analysis is a sub-discipline of operations research that explicitly considers multiple criteria in decision-making environments. Whether in our daily lives or in professional settings, there are typically multiple conflicting criteria...
- Analytic hierarchy processAnalytic Hierarchy ProcessThe Analytic Hierarchy Process is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology, it was developed by Thomas L...
- Project management softwareProject management softwareProject management software is a term covering many types of software, including estimation and planning, scheduling, cost control and budget management, resource allocation, collaboration software, communication, quality management and documentation or administration systems, which are used to...
- List of mind-mapping software
- Potentially all pairwise rankings of all possible alternativesPotentially all pairwise rankings of all possible alternativesPotentially all pairwise rankings of all possible alternatives is a method for multi-criteria decision making or conjoint analysis based on decision-makers’ preferences as expressed using pairwise rankings of alternatives....
(PAPRIKA) method - Strategic planning softwareStrategic planning softwareStrategic planning software is a computer application that aids in the strategic planning process. The user is guided through the steps of the planning process, perhaps with the help of a wizard....