Analytic Network Process
The Analytic Network Process differs from the AHP in that it generalizes the pair-wise comparison process so that decision models can be built as complex networks with the following interconnecting components:
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Over time, Dr. Thomas Saaty, the creator of the Analytic Hierarchy Process (AHP), developed a more advanced framework for setting priorities known as the Analytic Network Process (ANP) method of decision making.
The key concept of the ANP is that influence does not necessarily have to flow only downwards, as is the case with the hierarchy in the AHP. Influence can flow between any factors in the network, causing non-linear networks of priorities and alternative choices.
The ANP is extremely useful for predictive modeling, and broad environmental influences can be factored into decisions.
The best applications of the ANP are in decisions where risks and threats are major factors in the decision process and when organizational success is highly dependent on a thorough understanding of the entire environment, rather than just that of business goals and objectives.
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