This particular business model follows the principles of AHP (analytical hierarchy process) which is a process for determining the % weight (or importance) to be applied to a set of prioritised attributes.
Fundamentally the AHP Process is based on Pairwise comparison between competing alternatives. Pairwise comparison reduces the number of factors that you have to consider at any one time to be able to assign a relative importance weight or decision.
AHP allows for both ‘objective’ and ‘subjective’ factors to be analysed together.
Consistency in the judgement of the scoring can be derived and the quality of the scoring process evaluated for any inconsistencies. This provides assurance that good quality decisions are made.
You may ask the stakeholder / user / customer to prioritise a given set of attributes (…and have them place the attributes in order), the model will accept a maximum of 10 attributes and must placed in priority order by the stakeholder. You would then ask the stakeholder to score each paired question and score the relationship accordingly. On completion, we check the calculated ‘consistency’ – in other words if the rationale check is greater than 10% inconsistent the results can not be used. If less than 10% a percentage will automatically be assigned, providing a mathematical / statistical weight for each attribute.
This model takes all the hard work out of this exercise and provides a quick and easy way of checking stakeholder consistency and it automatically calculates associated % priorities.
Original method by : Prof. Thomas L. Saaty