Evaluation of new service concepts using rough set theory and group analytic hierarchy process

Abstract

One of the most crucial stages in the new service development (NSD) process is concept selection, which is characterized by newly generated alternatives and vaguely defined concept evaluation criteria. Although a number of factors have been found to be influential, a lacuna remains as to how to make a strategic decision based on influential factors. This study proposes a systematic approach to evaluation of new service concepts (NSCs) by integrating the merit of group analytic hierarchy process (AHP) in modeling multi-criteria decision making (MCDM) problems and the strength of rough set theory (RST) in handling subjectivity in concept evaluation. The suggested approach is designed to be executed in four discrete stages. First of all, a hierarchical AHP model for the evaluation of NSCs is constructed in terms of strategy, finance, market, technology, and implementation. Second, pairwise comparisons are made among criteria and sub-criteria, and preferences to NSCs with respect to the sub-criteria are obtained by domain experts. Third, the individual judgments obtained at the preceding stage are aggregated into group judgments. Finally, the NSCs are prioritized based on risk propensity of decision makers. A case study of the video game service is presented to illustrate the suggested approach. We believe that our method can promote consensus building on the promising NSCs. (C) 2011 Elsevier Ltd. All rights reserved.