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.

Raw Material Supplier Selection Information System Using Promethee Method on Batik Tulis Lasem

“…The application of the promethee method begins with determining the criteria and then evaluating the alternatives that will be chosen (Peterková & Franek, 2018). In evaluating alternatives to this criterion, numerical data is needed by determining the relative importance and the function of decisionmaking preferences (Feng et al, 2020).…”

“…This method is very practical and is supported by a simple concept (Mehr et al, 2017).PROMETHEE can simultaneously handle qualitative and quantitative criteria, by ranking several alternatives (Ishak et al, 2019). A decision support system using the PROMETHEE method can be used as a framework for management in dealing with complex decision-making problems whose concepts can be applied to innovation management including ERP systems, information systems, technology, business models (Peterková & Franek, 2018).…”

The Use of Quantitative Methods in Business Practice: Study of Czech Republic

“…As Peterková and Franek (2018) state, many companies understand the necessity and importance of innovation for business but often do not know how to manage, implement and evaluate it. In particular, quantitative methods as a source of innovation are difficult for a company to grasp.…”

Sistem Pendukung Keputusan Rekrutmen Tenaga Kependidikan Menggunakan Metode Promethee

“…Beberapa penelitian sistem pendukung keputusan dengan menggnakan metode PROMETHEE sebelumnya di berbagai bidang ilmu pengetahuan dan teknologi dapat ditemukan dalam literatur green supplier selection (Abdullah, Chan and Afshari, 2019). Evaluasi Penilaian (Kabassi and Martinis, 2021), bahkan proses pengambilan keputusan implementasi dan kelayakan terkait dengan mengenai evaluasi helikopter serang (Moreira et al, 2021), dukungan pengambilan keputusan untuk manajer dalam manajemen inovasi (Peterková and Franek, 2018) dan beberapa ulasan jurnal yang diterbitkan pada topik terkait PROMETHEE (Ishak, Asfriyati and Akmaliah, 2019).…”