AHP is a decision making method that simplifies complex decisions with multiple options and criteria. It breaks the problem down into a series of smaller decisions by prioritizing criteria and assessing how each option meets the criteria. This allows for an ordered ranking of options. The document provides an example of how an organization used AHP to evaluate and rank five vendors for a new digital banking platform based on business drivers and how each vendor's solution impacted those drivers. Workshops were held to determine the priority of business drivers and the impact of each vendor. Calculations were done to produce a ranked list with scores. While AHP provided a ranking, additional factors still needed consideration before final selection.

2. AHP is a method to simplify decision making. If you have many options and many
needs, selecting the correct option can be very difficult. If you break it down into a
series of small decisions, it is often much simpler.
AHP is generally considered to be statistically accurate. Its primary value is, however,
to create an ordered list of options based on a complex set of criteria.
So if you have 20 projects to complete and you want to know which ones to do first,
you can use AHP. If you have a dozen vendors and you want to know which ones to
interview, you can use AHP. For anything with complex criteria and many options,
use AHP.

3. You need a spreadsheet or a software tool to do the calculations for you. This is not
hard, there are several available or we can supply one for you.
You need a series of workshops to determine the priority of the criteria, usually
called Business Drivers, and the impact of the choices you have against the criteria.
This is not easy, as bringing people to consensus is complicated even if you have a
simple model to work through.
Finally, you need a ratifying authority to listen to your reasoning and approve the
final selection.

4. This story is from a real project, and uses actual project notes. The client’s goal was
to implement a new Digital Banking platform that would meet the needs of all the
internal and external stakeholders.
The problem was the number of choices and the complexity of the business drivers
they had to deal with.
The solution was to model the problem using AHP to determine a ranked list of
vendors, based on both business goals and technology fit.

5. The client’s Product Executives and Program Managers met to determine their
Business Drivers. These are the non-negotiable, specific, measurable outcomes that
the solution has to deliver. The outcome of this session follows.

6. Product Fit: Payments
The solution must provide extended
payments functionality that can be
leveraged in a digital channel.
Product Fit: Mobile
The solution must provide mobile
apps and web from one code base,
plus access to camera and NFC
capabilities from the mobile device.
Product Fit: Analytics
The solution must accept input from,
and provide information to, the
corporate data warehouse solution.
Product Fit: Social
The solution must provide social
media capabilities that can be
leveraged.

7. Vendor Experience
The vendor must understand our
core market, and be able to prove
they have experience.
Vendor
Implementation
Capability
The vendor must be able to deliver
to our timescales, with the
products versions they
demonstrate.
Vendor Thought
Leadership
The vendor must be a good partner
by adding to what we have already
considered.

8. Technology Platform
The technology meet appropriate
Information Technology standards and
acceptance criteria.
Cost of Ownership
The project has to show that the
investment is worthwhile in the
medium and long terms.
Time to Market
The solution must allow us to re-home
or develop new apps fast enough to
meet our product roadmap goals.

9. Change management -
pre-implementation
The solution must make it easy for a
customer to move off their current
apps and onto this system.
Change management -
post-implementation
The solution must make it easy to
migrate all the new apps to a single,
standards-based model over time.

10. Working with the leadership team, in our case in a group, we determined relative
priority by comparing each Business Driver against each other. We asked the
question: “Is Driver A more or less important than Driver B?”
A 5 point scale is meaningful and easy to understand, but you can use whatever scale
you need.

11. Payments Mobile Analytics Social Experience
Implemen-
tation
Thought Technology Cost Time
Migration -
Pre
Migration -
Post
Payments 1
Less
Important
Less
Important
Much Less
Important
Less
Important
Equal
Much Less
Important
Equal
Less
Important
Less
Important
Less
Important
Less
Important
Mobile
More
Important
1
Less
Important
Less
Important
Equal
Less
Important
Much Less
Important
Equal
Less
Important
Equal Equal Equal
Analytics
More
Important
More
Important
1
Less
Important
Equal Equal
Less
Important
Equal
Less
Important
More
Important
Equal Equal
Social
Much More
Important
More
Important
More
Important
1
More
Important
Equal Equal
More
Important
More
Important
More
Important
More
Important
More
Important
Experience
More
Important
Equal Equal
Less
Important
1
More
Important
Less
Important
More
Important
More
Important
More
Important
Equal
Less
Important
Implementation Equal
More
Important
Equal Equal
Less
Important
1
Much Less
Important
Equal
Less
Important
Equal
Less
Important
Much Less
Important
Thought
Much More
Important
Much More
Important
More
Important
Equal
More
Important
Much More
Important
1
Much More
Important
More
Important
Much More
Important
More
Important
More
Important
Technology Equal Equal Equal
Less
Important
Less
Important
Equal
Much Less
Important
1 Equal Equal
More
Important
More
Important
Cost
More
Important
More
Important
More
Important
Less
Important
Less
Important
More
Important
Less
Important
Equal 1
More
Important
Less
Important
Less
Important
Time
More
Important
Equal
Less
Important
Less
Important
Less
Important
Equal
Much Less
Important
Equal
Less
Important
1 Equal
Less
Important
Migration - Pre
More
Important
Equal Equal
Less
Important
Equal
More
Important
Less
Important
Less
Important
More
Important
Equal 1
Much Less
Important
Migration - Post
More
Important
Equal Equal
Less
Important
More
Important
Much More
Important
Less
Important
Less
Important
More
Important
More
Important
Much More
Important
1
Eventually we had a complete map. Completing this map as a group exercise can be
time consuming, so it’s often useful to complete the map with a smaller group or
even individual interviews and present it for discussion to everyone. Team dynamics
will decide that for you.

12. This time working specifically with the program management team, as they had
knowledge of each option in detail, we determined the impact each had solution
had against each Business Driver. We asked the question: “Does Option A impact
Business Driver B in a meaningful way?”
Again, a 5 point scale is meaningful and easy to understand, but you can use
whatever scale you need.

13. Payments Mobile Analytics Social ExperienceImplemen-tation Thought Technology Cost Time
Migration -
Pre
Migration -
Post
Vendor 1 Minor Impact High Impact Minor Impact High Impact Minor Impact
Moderate
Impact
Minor Impact
Moderate
Impact
Virtually No
Impact
High Impact High Impact
Moderate
Impact
Vendor 2 High Impact High Impact High Impact Minor Impact Minor Impact
Moderate
Impact
Minor Impact
Moderate
Impact
Virtually No
Impact
Moderate
Impact
High Impact
Moderate
Impact
Vendor 3 High Impact Minor Impact
Moderate
Impact
Minor Impact High Impact Minor Impact
Virtually No
Impact
Virtually No
Impact
Minor Impact
Moderate
Impact
Virtually No
Impact
Virtually No
Impact
Vendor 4
Moderate
Impact
High Impact Minor Impact Minor Impact Minor Impact
Very
Significant
Impact
High Impact
Very
Significant
Impact
High Impact High Impact High Impact
Very
Significant
Impact
Vendor 5
Virtually No
Impact
High Impact
Virtually No
Impact
Virtually No
Impact
Very
Significant
Impact
High Impact
Moderate
Impact
High Impact
Moderate
Impact
Very
Significant
Impact
Moderate
Impact
High Impact
Eventually we had an Impact Assessment map for all vendors mapped against each
criteria.
The most important concept to remember is the AHP process is forcing these
conversations to happen around 2 simple to understand and agree concepts:
1) Which are the most important Business Drivers?
and
2) Which projects have the most impact?

14. Score Rank Gap
Vendor 1 17.26 4 35%
Vendor 2 21.08 2 21%
Vendor 3 14.78 5 45%
Vendor 4 26.67 1 0%
Vendor 5 20.21 3 24%
The magic of the spreadsheet or software tool works and you have your answer.
In our case, Vendor 4 clearly won the competition. But is it as simple as that?

15. Do you have
enough people
with the right skills
to complete the
implementation
project now?
Which option
returns the most
value for the
expended outlay?
What value do you
expect to be
returned?
Which option carries
the greatest risk, and
can you mitigate that
risk now or in the
future?
Are there regulatory
or compliance
reasons why you
should pick one
option over another?
You will need to review your ordered list based on old-fashioned project and
program management principles.

16. Are you selecting projects for your annual portfolio?
Are you trying to choose from a large field of potential vendors?
Do you have a range of implementation options for a project and don’t know which
one to select?
We can help you see the path ahead, cycle quicker and achieve earlier.
Call us on (503) 297 5128 or email us at contact@mindfulinsights.com