An Integrated Fuzzy Multi-Criteria Decision-Making Approach for Evaluating Business Process Information Systems

Abstract

The prevalence of business-to-business (B2B) has made the relationship among firms more closer than ever. Whether in simple arm-length transactions or business cooperation, many firms, in order to reduce costs and achieve efficiency, have shifted their day-to-day operations from the tradition of relying on manpower to the use of information technology in handling tasks such as inventory, procurement, production planning, distribution, etc. As a result, the need of a business process information system is imminent for firms to coordinate with partners in the supply chain and to be sustainable in the competitive market. This study thus proposes a hybrid multi-criteria decision-making approach for evaluating business process information systems. First, the factors that should be taken into account in selecting an appropriate system are explored. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) is adopted next to understand the interrelationships among the criteria. Based on the results from the DEMATEL, the Fuzzy Analytic Network Process (FANP) is applied to calculate the importance of the factors. Fuzzy Techniques for Order of Preference by Similarity to Ideal Solution (FTOPSIS) is used to rank the business process information systems. The interrelationship among the factors should be considered in the decision-making; thus, the FANP can be a recommended methodology. However, the FANP questionnaire is usually very lengthy and cumbersome. The use of DEMATEL in advance can shorten the questionnaire substantially. FTOPSIS is used to rank the alternatives so that the pairwise comparisons of the alternatives required in the FANP can be avoided. Fuzzy set theory is incorporated in the study so that the uncertainty and ambiguity present in decision-making can be considered. The proposed approach can provide references for decision makers for making relevant decisions and can be revised and adopted in similar problems.

Keywords

• b2b
• supply chain
• business process
• information system
• fmcdm
• topsis