Decision Making Support for Managers In Innovation Management: a PROMETHEE approach

Abstract

The purpose of this paper is to present a decision making model as a support for selection of innovation management concept using multiple criteria decision-making methods. Defined innovation management concepts are evaluated using set of criteria, which priorities are expertly evaluated using analytic hierarchy process (AHP) and then the PROMETHEE method is used for evaluating and selecting variants. Based on the specific nature of innovation management concepts a novel decision making model was conceived. The model was imported to the Visual PROMETHEE software tool. The model was applied on a medium sized manufacturing company. The innovation concepts were evaluated and ranked. For this company the concept of value analysis was selected as the best. This study is limited for decision-making processes in medium and large sized companies. The results of AHP are based on expert but subjective assessment and therefore relevant for this particular company at that particular time. In addition, it is shown that this approach can help managers to solve similar decision-making problems using combination of AHP and software Visual PROMETHEE. The logic and process of the decision making model elaboration as much as the decision model itself can be used as a framework for managers facing decision making problems with similar nature as innovation management concepts i.e.: ERP systems, information systems, technologies, business models.