ONLINE GDSS WITH THE AHP METHOD TO FACILITATE DECISION MAKING

ZDZISŁAW PÓLKOWSKI

Summary

The paper contains a brief description of activities concerning the question of

using the Online Group Decision Support Systems with the AHP method to facilitate

the decision-making process. Significant aspects of DSS with the AHP method and

Cloud Computing have been discussed. It is assumed that DSS in CC may prove useful

at universities to teach students during classes in such subjects as IT within manage-

ment and operational research. The research described is based on a review to identify

relevant studies published recently. Examples of existing solutions are characterized,

tested and analyzed. The most important part of the article is a description of the tests

and research of DSS with AHP systems available among the digital resources. In ad-

dition, the work contains assumptions concerning the further development of models

of online GDDS with an emphasis on academic and business fields.

Keywords: GDSS, AHP, MCDM, Cloud Computing

Introduction

This article presents aspects of the use of virtual group decision support systems. It also refers

to research on the functioning of virtual services; it presents issues concerning the use of these ser-

vices by means of an appropriate technical infrastructure as well. The paper presents the analysis of

selected and existing virtual group decision support systems functioning in CC1 (ang. Cloud Com-

puting).

The purpose of this research is to investigate and test the existing GDSS systems with the AHP2

method to facilitate the decision-making process. More information is needed on how these systems

can be used to teach students during classes at universities or in which subjects it will be appropriate

to use online GDSS. The information provided will be useful in helping students to better understand

the functioning of GDSS.

Group-Decision Support Systems (GDSS3) are tools that are increasingly common in use. The

most advanced applications of GDSS enable joint testing, evaluating, negotiating and working to-

gether despite differences in time and place of performance of particular team members. GDSS can

operate virtually through an adequate IT infrastructure – Computational Clouds.

The ability to work in the Computational Cloud makes the system accessible from any location

in the world. Cloud Computing is primarily a data model for external servers of the service provider,

which means lower maintenance costs of the final product, lower power consumption and ease of

1 CC (ang. Cloud Computing). 2 AHP (ang. Analytic Hierarchy Proces).

3 GDSS (ang. Group Decision Support System).

Zdzisław Pólkowski

Online GDSS with the AHP method to facilitate decision making

51

use of services. Cloud Computing is also a form of adaptation to the requirements of the users. Thus,

first of all, the expectations and requirements of end users have to be dealt with. [24]

Implementing the GDSS methods of AHP and then embedding the system in Cloud Computing

results in obtaining an effective tool for group decision support in a virtual environment. The AHP

method creates proper conditions for an accurate assessment based on qualitative and quantitative

multi-criteria. It was developed in the early seventies by T.L. Saaty.

1. Research methodology

Currently, in the context of GDSS systems and the present economic situation, managers or any

other authorities must take into consideration the past – they need reports on the previous and current

situation to improve the future operational efficiency. The general goal is to make informed forecasts

about the future GDSS systems in order to optimize resource allocation and consumption and also

to avoid possible problems that could have a negative impact on the development of GDSS systems.

Managers and IT specialists also use forecasting to extrapolate how trends will change, or as

a benchmark for a long-term perspective of IT online systems. [6, 193]

IT providers, attempting to meet such requirements, have launched various systems and tools

to support managers in making better decisions, such as business intelligence platforms, forecasting

software and online GDSS systems.

In this paper, the capabilities of forecasting GDSS systems will be discussed and the advantages

of using such tools to improve decision-making will be highlighted.

WWW services provide a lot of information on how GDSS computer systems are implemented,

what data the services include and on the capacity of the equipment as well as the software, human

resources and the knowledge in this field. For this reason, in the future, in innovative companies,

integration is likely to occur of GDSS and ERP II systems for working both in private and public

cloud computing systems – figure 1. [9,316]

The sources of information analyzed in this paper are: several specialist representative IT por-

tals, non-profit institutions and several Information and Communications Technologies (ICTs), as

well as economic papers up-to-date on the current situation in GDDS.

The research starts with identifying the theoretical framework of using GDSS to characterize

DSS4, GDSS, and Cloud Computing systems. Subsequently, it reflects on the development of online

GDSS systems with the AHP method. The data for conducting the study has been collected from

primary sources: company reports, official websites of companies and universities, as well as from

secondary sources such as: books, articles and journals. Some data were also collected by means of

telephone conversations with representatives of IT solutions providers, companies offering CC or

DSS solutions. Moreover, the author’s personal experience in running a small IT company consti-

tutes a much relevant source of valuable, reliable and actual information on the functioning of CC

and DSS. The technical aspects are examined by installing and testing examples of available DSS

with the AHP method implemented.

4 DSS (ang. Decision Support System).

52

Innovative Company

ERP II

CRM E-Learning SCMData

Warehouse

Business

Intelligence

Virtual

Reality

Web 2.0

Mobile

Technologies

Mobile

Technologies

GDDS

Cloud

Computing

MCDM

Methods

SEM PLM

Fig. 1. Innovative Company with ERP5 II

Source: own based on [3, 416], [7], [17] 6 7 8 9.

This paper addresses the following questions:

1. How do GDSS with AHP help managers to make decisions?

2. Which GDSS models may be the most suitable for managers’ use?

3. Are there GDSS solutions available that can be applied really quickly and efficiently?

4. Can GDSS be easily used with AHP solutions to conduct classes at a university?

To answer these questions, tests of possible DSS and GDSS with AHP solutions were con-

ducted.

A literary query conducted led to the identification of several systems with the AHP algorithm

implemented. They are: AHPproject, TransparentChoice, ExpertChoice, MakeItRational and Esti-

mation & Choice. For detailed research and analysis, the MakeItRational system was selected, hav-

ing numerous features, which make it possible to classify into groups the GDSS systems working in

Cloud Computing. The research and analysis were followed by classes with students in such subjects

as operational research, e-economy, IT in management.

5 ERP (ang. Enterprise Resource Planning).

6 CRM (ang. Customer Relationship Management).

7 SCM (ang. Supply Chain Management). 8 SEM (ang. Strategic Enterprise Management).

9 PLM (ang. Product Lifecycle Management).

Studies & Proceedings of Polish Association for Knowledge ManagementNo. 72, 2014

Zdzisław Pólkowski

Online GDSS with the AHP method to facilitate decision making

53

2. Group-Decision Support Systems

Group-Decision Support Systems were created around 1980 with the purpose of helping senior

management and professional groups in reaching a consensus. The effectiveness of a Group-Deci-

sion Support System has been regularly studied over the past few years. Group-Decision Support

Systems allow for gathering knowledge, collecting experiences, drawing conclusions, inspiring

spontaneous activities, separation of information and making decisions on particular processes. Most

GDSS are focused on internal group processes and, to a lesser extent, on cooperation between two

or more groups. [13, 175].

HardwareInput/output device

Comunication line

Common screen

Processor

GDSS

SoftwareApplication Prog.

User interface

Database

Model base

ProceduresMethods used in

meetings

PeopleGroup members

Group facilitator

Fig. 2. GDSS components

Source: [16].

Group-Decision Support Systems – are computer systems intended to solve the problems of

poor structure, also with a view to enhance the positive and minimize the negative aspects of the

decision-making method. [4, 195-197]

In the structure of a group decision-making process, three levels may be distinguished:

The level of support for the processes of cooperation between participants (parallel processing

of data and information for the needs of individual decision-makers, accounting concepts and ideas,

a vote count, etc.);

The level of support for decision making: transfer of information between the participants, fa-

cilitating connections between decision-makers with data sources, such as databases, displaying on

the central screen partial and final summaries of ideas and opinions while maintaining their ano-

nymity, allowing the use of various formal models of data and information processing, etc.) [1]

There is a level of order rules (to determine the order of speakers, the time limit for individual

speeches, and voting rules, etc.).

54

Numerous advantages of GDSS, include making it possible to achieve, by means of them, the

following goals:

1. To make better decisions. Through the GDSS, we can take better decisions because in

GDSS the decisions are taken by a group of DSS.

2. To solve the problem. GDSS provides solutions to unstructured problems. GDSS collects

various types of information from various sources.

3. To minimize the risk. GDSS allows managers to assess the risks associated with various

alternatives. This helps managers to be proactive rather than reactive.

4. To collect large amounts of information. GDSS collects information necessary for making

the decision from various sources. The information is collected to minimize risks.

5. To provide interactive communication

6. To improve the decision-making process. GDSS improves the decision-making process be-

cause GDSS is goal-oriented.

7. To enable coordination in various activities. In GDSS, decisions are taken by a group of

DSS. The work is divided into different parts, and then each DSS performs its own work.

[20]

8. To save time during the decision-making process. Research shows that meeting time can

be reduced by up to fifty percent when using an online GDSS.

9. To make decisions in a variety of ways. GDSS can be applied at the same time and the

same place, the same time and at different places and at different times and different places

(online). [25]

Table 1. The time and place of use GDDS

Same Time Different Time

Same Place GDSS in a decision room

Web-based GDSS

GDSS in a decision room

Web-based GDSS

Different Place Web-based GDSS Web-based GDSS

Source: own.

3. Cloud Computing

Murawski J. presents the concept of Cloud Computing as follows: "We can share Cloud solu-

tions according to two keys. First, depending on where they are located – centrally in the company

or outside, in an external data center. The second key division refers to the type of solution: infra-

structure (infrastructure as a service), platform (platform as a service) and applications (application

as a service)."[23] Currently, the most common model of offering application (software) as services,

in which, for example, the service may be used in a virtual way, is SaaS. [12, 31] This model of Cloud

Computing has been included during the tests of GDSS with the multi-criteria method AHP imple-

mented.

Studies & Proceedings of Polish Association for Knowledge ManagementNo. 72, 2014

Zdzisław Pólkowski

Online GDSS with the AHP method to facilitate decision making

55

Application (SaaS)

Platform (PaaS)

Infrastructure (IaaS)

Role and User

Management

Customization and

Feature Control

Custom Branding

User Interface

Multi- Tenant

Solution

Development Tools- API’s

Security & Authentication

Integration

Multi- Tenancy

Administration

Business Rules- Workflow

Computing

Network

Storage

Application Development

Fig. 3. Cloud Computing

Source: [5, 13].

4. Analytic Hierarchy Process

The multi-criteria AHP method makes it possible to make decisions by estimating the weights

of criteria and to create paired comparison judgments, sets or subsets of alternatives. AHP is a meth-

odology for structuring, evaluation and synthesis of pending problems, and thus it is widely used,

for instance, for the purpose of the selection of alternatives in multi-criteria environment, the allo-

cation of insufficient resources and forecasting. The mathematical aspect of AHP is based on a ma-

trix analysis used to determine the weight (priority) of all the components of the hierarchical struc-

ture of the problem to be solved. [11]

AHP can be used to analyze complex situations (clear, fuzzy, quantitative and qualitative),

within multi-criteria problems. It can also support groups of decision-makers with the geometric

mean of individual judgments used to aggregate groups’ preferences. [14] The AHP procedure may

be described as in the diagram provided below.

56

Select a new

store

Visibility Competitions Customers Rental

Location 1 Location 2 Location 3

DECISION HIERARCHY MODEL

Goal

Criteria

Alternative

Fig. 4. Model procedure of AHP

Source: own.

In current practice, there are two ways of solving problems: the deductive and the systemic one.

The deductive, very common approach, – focuses on segments (parts), and the systemic one– on the

whole operation. AHP combines these two approaches in an integrated logic complex. AHP has

additional advantages, which include:

• The versatility in being able to consider a large number of factors of different nature: eco-

nomic, political, social, technical, organizational ones, and many others,

• A direct and effective way of the integration of data and expert opinions,

• The speed and simplicity in which the structure of the problem can be described and the

analysis carried out,

• The flexibility in verifying its usefulness, its assumptions for the discussion on identifying

the areas of compliance or litigation matters when conflict occurs,

• The ease in which the method can be implemented without incurring large expenditures

and, more importantly, within a short time, using already developed materials and other

sources,

• The procedure of the method makes it possible to generate creative solutions, and the re-

sults of its analysis may be presented in a short, but logically correct document. [2]

Studies & Proceedings of Polish Association for Knowledge ManagementNo. 72, 2014

Zdzisław Pólkowski

Online GDSS with the AHP method to facilitate decision making

57

5. Virtual Multi-Criteria Decision-Making System

For several years, activities have been undertaken on the global scale by software companies as

well as research centers, to implement the AHP method in computer systems.

Resources available online include several professionally developed software solutions.

Demonstration versions and tests of those systems are available. They include:

AHPproject AHPproject was used by thousands of users worldwide. It was available free of charge and was

seen as one of the best programs for decision-making. According to many users, its popularity, com-

bined with the lack of fees for the use, led to its "collapse" – because of the lack of funds for its

improvement.

AHPDecision AHPDecision makes it possible to manage a set of hierarchical matrices with the ability to au-

tomatically calculate the values of all matrices and sub-matrices. The system allows contextual

changes of cells values, which is possible through the context menu. In this system navigating and

obtaining the results of the analysis is perceived as straightforward and intuitive. The AHPDecision

requires the Mac OS X 10.6.6 system or a newer version.

TransparentChoice TransparentChoice is one of the latest and most advanced systems, using the method of the AHP

algorithm. Testing this software is possible by installing the free, 30-day version of the program.[18]

SuperDecisions SuperDecisions is software for making decisions, developed by using the method of AHP and

ANP10. The software was written by the ANP Team, working for the Creative Decisions Foundation. [26]

ExpertChoice Expert Choice program supports decision-making, enabling the decision-maker to reduce un-

certainty and guesswork. The Analytic Hierarchy Process (AHP) technique used in the Ex-

pertChoice, provides a logical link between the analysis and the intuition of the decision-maker for

analyzing and reviewing all the options involved. With the help of ExpertChoice, measurable fac-

tors, such as "project cost" can also be compared with immeasurable factors such as "the credibility

of the project." This approach allows for the existence of uncertainty and allows individuals and

groups to perform multilateral options analysis, taking into account the existing constraints and sub-

jective preferences of the decision maker.[15]

Estimation & Choice The online Decision Support System (DSS) Estimation & Choice is a powerful and flexible

decision making tool to help people set priorities and make the best decision, when both qualitative

and quantitative aspects of a decision need to be considered. Estimation & Choice can be efficiently

used in such processes as Project Prioritization, Portfolio Management, Vendor selection, Human

resource Management, Strategic Planning, Risk Assessment and many others. Estimation & Choice

helps its users prioritize any number of competing objectives (alternatives) and reach the best deci-

sion. The DSS also provides a clear rationale that the decision is the best – by showing not only the

final ratings of the alternatives, but also their ratings on separate qualities. It is especially useful for

10 ANP (ang. Analytic Network Process).

58

the universities and colleges that provide courses in Decision Science. A single registration can be

used to allow an unlimited number of students to share the same login and work on their own pro-

jects. Several students may work on the same project as experts: the DSS coordinates opinions of

up to 10 experts in the project. In the Estimation & Choice parameters may be of three different

types: Numeric, Logical (Yes/No), Qualitative (Classifier). The registration is free of charge. A reg-

istered user can create up to four projects with unlimited number of alternatives and parameters. The

Group Model Estimation & Choice sports group decision-making and provides a tool to coordinate

opinions of up to 10 experts working on the same project. Experts can participate in finding coordi-

nated weights for the General Parameters, weights of the parameters influencing the General Param-

eter, finding values of the Utility Function for the Qualitative Parameters. Experts may also compare

alternatives at the final stage of the Benefit-Cost Analysis. The system shows its users average

weights for the group of experts and a Coefficient of Concordance. What can also be seen is disper-

sion and deviation for every attribute and an "Extravagancy index" for experts. Thus, it is a powerful

tool to improve coordination in a group of experts to enable obtaining reliable results. [19]

MakeItRational The MakeItRational system allows supporting complex decision-making. MakeItRational helps

teams of decision-makers evaluate alternatives in the context of all the criteria – both quantitative

and qualitative ones. It also facilitates making reasonable decisions that can be easily justified and

documented.

Possible applications of the system exist wherever the decision-making process should take into

account a number of criteria for evaluation and should, as a result, indicate the best variant (e.g.

location) or create a ranking of the alternatives (e.g. projects in the portfolio).

The system makes it possible to evaluate numerous different objects: projects, employees, prod-

ucts, candidates, software, buildings, vendors, locations, processes, technologies, investments, cars,

subcontractors, outsourcing companies, players, strategies, markets, customers, requirements or

ERP systems.

The system can be used as:

• A tool to support multi-criteria decision problems,

• A tool, to systematize the decision making process,

• An ”overlay” to the data sources to enable the use of different types of information while

making decisions,

• A tool to create reports documenting and justifying the decision taken,

• A tool for group decision making,

• A way to identify information gaps, thanks to which the decision maker does not forget

about the delivery of important information and which allows an efficient and conscious

search for the missing information,

• A tool enabling the examination of various scenarios – that is, the analysis of "What if the

data were a little different ... Will it affect to the outcome? Do we have to be so precise?"[22]

The following stages of working with the system may be distinguished:

Studies & Proceedings of Polish Association for Knowledge ManagementNo. 72, 2014

Zdzisław Pólkowski

Online GDSS with the AHP method to facilitate decision making

59

1. Building the model – the preparation of the project and gathering data input. This process

is associated with the creation of a list of alternatives and identifying the criteria that will

be used for evaluation.

2. Collecting assessments – an assessment survey on the relative importance of the criteria

and various aspects of the alternatives.

3. Generation of the final results, establishing consensus – determining the final value of

each decision that will be taken into account in the calculation and a presentation of the

results. At this stage, differences within the group of sentences must be handled. The user

can, for instance, discuss and reach an agreement or arrange a vote.

4. Analyzing and reporting results – the system generates graphs and final reports, which

makes a detailed analysis of the results possible.

6. The results of the research and practical aspects

The author examined 7 existing DSS and GDSS systems that apply the AHP method. Most of

the systems did not work online. This model seems to be the most suitable for managers. Thus, the

best choice to use during classes turned out to be the Estimation & Choice and MakeItRational

software. Students did not have problems while operating the systems. The advantages of Estimation

& Choice and MakeItRational are: the ease and quick pace of use, the possibility of being used

without installing on computers and, finally, a good user interface. Even complex decisions can be

made easily when the user knows how to measure strengths, weaknesses and the overall utility of

each option. These systems help evaluate alternatives in the context of multiple criteria. Subse-

quently, informed decisions are made, easily justified and documented.

Almost everything can be evaluated: projects, employees, products, candidates, software pack-

ages, buildings, suppliers, locations, processes, technologies, investments, cars, subcontractors, out-

sourcing companies, players, strategies, markets, customers, requirements, ERP systems... and many

others. [21] During classes with MakeItRational, students were so eager to use the system that, two

months after the first use, it turned out that the Polish version of the system was introduced. It proves

that the producer of the software noticed a lot of interest in the system on the part of Polish users.

7. Conclusions

This study provides information on a number of analyzed systems that have the multi-criteria

AHP implemented. Among the available systems for detailed studies, MakeItRational has been se-

lected, as it has some features of GDSS, at the same time allowing effective group decision support,

using a virtual environment.

The presented GDSS using the method of multi-criteria AHP is a good example of the use of

ICT tools in virtual collaboration. The ability to work online creates an opportunity for the system

to be used by many decision makers. The virtual work environment of MakeItRational makes it

possible to classify the approach as a public Cloud Computing (service as software) solution.

In addition to the already mentioned advantages of the system in terms of decision support, it

can be effectively used in teaching. The MakeItRational system was used during a course in opera-

tions research. The students used those tools for multi-criteria evaluation of employees. The evalu-

ation was carried out in a virtual environment. [8] The disadvantage is that it is not possible to carry

out too advanced research or analysis with the free version.

60

As far as the use of the system for educational purposes is concerned, it can be successfully

used during classes in other subjects, such as computer networks, algorithms and data structures,

and artificial intelligence. Such versatility stems from the hybrid construction of the system. Obvi-

ously, individual subjects may focus on other issues. The literary query conducted, as well as an

analysis of the selected DSS and GDSS shows that hybrid solutions will become more common,

combining the latest scientific achievements in the areas of virtualization, MCDM11 methods, Cloud

Computing, DSS and GDSS.

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ONLINE GDSS Z METOD� AHP DLA UŁATWIENIA PODEJMOWANIA DECYZJI

Streszczenie

Artykuł zawiera opis bada� dotycz�cych Grupowych Systemów Wspomagania

Decyzji funkcjonuj�cych w sieci Internet. Zostały omówione istotne aspekty dotycz�ce

systemów DSS i GDSS z zaimplementowan� metod� AHP. Zakłada si�, �e DSS i GDSS

funkcjonuj�ce w chmurze obliczeniowej mog� okaza� si� bardzo przydatnym narz�-

dziem dydaktycznym podczas zaj�� ze studentami z takich przedmiotów jak: informa-

tyka w zarz�dzaniu oraz badania operacyjne. Praca zawiera przykłady istniej�cych

rozwi�za�, które scharakteryzowano i przetestowano. Najwa�niejsz� cz��ci� artykułu

jest opis przeprowadzonych testów oraz bada� DSS i GDSS z zaimplementowan� me-

tod� AHP pozyskanych z zasobów cyfrowych. Ponadto praca zawiera zało�enia doty-

cz�ce dalszego rozwoju internetowych systemów GDSS w biznesie i dydaktyce.

Słowa kluczowe: GDSS, AHP, MCDM, chmura obliczeniowa

Zdzisław Pólkowski

Wydział Nauk Technicznych

Dolno�l�ska Wysza Szkoła Przedsi�biorczo�ci i Techniki w Polkowicach

ul. Skalników 6b, 59-100 Polkowice

e-mail: z.polkowski@dwspit.pl