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DAR (Decision Analysis & Resolution)

Introduction

Decision Analysis and Resolution (DAR) is a technique used to analyze possible decisions through a formal evaluation process. Various alternatives are evaluated against specific criteria to determine the best course of action.

When to Use DAR

Business Decision-Making Process

  • Budget Prioritization

  • Evaluating risks on acquisitions, investments, and intellectual property (IP)

  • Outsourcing decisions

  • High-value expenditures or investments

  • Risk Management (evaluation of risk mitigation strategies)

  • Supplier Agreement Management (supplier selection)

Technical Decision-Making Process

  • Product and feature selection (cost-benefit, build vs. buy)

  • Design and platform decisions

  • Process tailoring (including life cycle selection)

  • Testing approaches

  • Requirements Management (evaluation of the impact of requirement changes)

  • Technical Solution (evaluation of architecture alternatives)

  • Verification, Validation, and Product Integration (choosing the right strategies like integration sequence)

  • Project Monitoring and Control (choosing the right corrective actions)

  • Development tool selection

  • Project Planning (estimation, resource planning, etc.)

How to Conduct DAR

DAR Process

  1. Establish criteria

  2. Identify alternative solutions

  3. Select methods for evaluating alternatives

  4. Evaluate the alternative solutions

  5. Select the recommended solution

Steps in DAR

  1. Define when action is required and establish guidelines

  2. Set objectives and define evaluation criteria

  3. Classify objectives (not all objectives are mandatory)

  4. Assign weight to different objectives

  5. Identify alternatives

  6. Test alternatives

  7. Score alternatives

  8. Apply weight and calculate the weighted total score for all alternatives

  9. Identify risks associated with each alternative

  10. Select the best alternative (make the decision)

The most critical steps in this process—evaluating and making a decision—require skill, knowledge, and experience. Many decision-makers struggle with evaluation when it involves complex practical testing, such as configuring and using different eCommerce software to determine the best choice.

Example: Selecting an eCommerce Solution

Define Objective

A large transport organization requires an eCommerce solution. The decision must be made within three weeks, with a budget limit of $100,000. The solution must be operational within nine months and should ensure high availability (99.9%), robustness, and excellent performance (response time under nine seconds, peak load handling, and defect density confirming to Six Sigma). The current solution suffers from severe performance issues. The system has over three million active users at peak times and must support multilingual features, mobile integration, and 24x7 support. Compatibility with existing hardware is desirable.

Classification of Criteria

Required:

  • Performance

  • Availability & Robustness

  • Budget (within $100,000)

Desired:

  • Multilingual support

  • Mobile integration

  • 24x7 support

  • Compatibility with existing hardware

Weighting Desired Criteria

Weights assigned on a scale of 1 to 10 (10 being the highest):

  • Multilingual Support: 8

  • Mobile Integration: 6

  • 24x7 Support: 7

  • Compatibility with Existing Hardware: 5

Identify Options

  • Vendor 1

  • Vendor 2

  • Vendor 3

  • Vendor 4

Evaluate Options Against Required Criteria

Each vendor's solution is assessed for compliance with performance, availability, robustness, and budget constraints.

Vendor


 Performance

 Availability

 Robustness

 Cost <=100 USD

 Delivery within 9 months

 Vendor1

 Y

 Y

 N

 Y

 N

 Vendor2

 Y

 Y

 Y

 Y

 Y

 Vendor3

 N

 Y

 Y

 Y

 Y

 Vendor4

 Y

 Y

 Y

 Y

 Y

Rate Options Against Desired Criteria

Each vendor’s solution is rated based on multilingual support, mobile integration, 24x7 support, and hardware compatibility.

-

-

Vendor 2

 

Vendor 4

 

 Criteria

 Weight

 Rating

 Score

 Rating

 Score

 Multilingual

 8

 9

 72

 10

 80

 Mobile int

 6

 7

 42

 8

 48

 24x7 support

 7

 7

 49

8

 56

 Compatible with existing h/w

 5

 8

 40

 5

 25

 Total

 

 

209

 

 209

Identify Risks

  • Vendor 2: Uses an outdated programming language and platform with an impending obsolescence risk. Finding skilled resources in the future may be difficult. The technology also has vendor lock-in concerns.

  • Vendor 4: Utilizes open systems and the latest technology, minimizing risk.

Make a Decision

Scores for Vendor 2 and Vendor 4 are the highest, but due to the high risk associated with Vendor 2, Vendor 4 is the best option.

Conclusion

Decision Analysis and Resolution (DAR) provides a structured approach to making informed decisions in both business and technical domains. By systematically evaluating alternatives against predefined criteria and considering associated risks, organizations can make well-informed, data-driven choices that align with their strategic goals.

 

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