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A Cost Performance Model for Assessing WWW Service Investments



Combining cost and performance assessments for decision support

Multi-attribute Utility (MAU) Models

This model should be used when there are relatively few performance measures. Although, in principle, complex situations can be analyzed using a MAU model, for best results a complex MAU analysis should be done in consultation with an expert. A sample MAU model is described below (for an example with numbers, please refer to Figure 16, page 35 and Figure 17, page 35).

Figure 7. Sample Multi-attribute Utility Model

 
Alternatives
Rank
 
Weight
 
Criteria
 
No Investment
 
Modest
 
Moderate
 
Elaborate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Utility:
 
 
 
 
 
 
 
 
 

Typically, each performance criterion is evaluated separately. The "utility" associated with each of the multiple criterion is scored on a simple, 100-point rating scale. The same 100 point scale is used to assess the alternatives on every performance measure.

Multi-attribute utility models differ from benefit-cost analysis and resource allocation methods in that project cost is treated as just one more performance measure. In particular, a ratio of benefit to cost is not formed. Web-based services that cost the agency more of its resources (moderate and elaborate versions) are rated as having less "utility." Here, the elaborate version of Web- based services anchors the lower end of the scale (i.e., 0: most cost), while the "no investment-- no Web service" alternative anchors the upper end (i.e., 100: least cost).

Typically, some of these performance criterion is more important to the agency than others and are given more weight. Each performance criterion is given a weight. A final overall rating for each of the (now four) options is obtained by computing a weighted sum of the ratings on each individual utility. Utility associated with less cost is merely added to utility associated with more benefit on other performance measures.