Analytic Network

Process (ANP)

Klaus D. Goepel Feb. 2011

 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
ANP is a decision finding
method
Goal

Criterion 1 Criterion 2 Criterion 3

Alternative 1
or Alternative 2
 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
2 ANP is a generalization of the Analytic Hierarchy Process AHP ANP is a decision finding
method and generalization
of the analytic hierarchy pro-
cess AHP.
 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
2 ANP is a generalization of the Analytic Hierarchy Process AHP ANP is a decision finding
method and generalization
of the analytic hierarchy pro-
AHP ANP cess AHP.

Goal Control Criterion

Criteria
Cluster 1 Cluster 2
Sub-criteria

Alternatives Alternatives
 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
2 ANP is a generalization of the Analytic Hierarchy Process AHP ANP is a decision finding
method and generalization
3 ANP can model complex decision problems of the analytic hierarchy pro-
cess AHP.
ANP can model complex
decision problems, where a
hierarchical model – as used
in AHP – is not sufficient.
 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
2 ANP is a generalization of the Analytic Hierarchy Process AHP ANP is a decision finding
method and generalization
3 ANP can model complex decision problems of the analytic hierarchy pro-
cess AHP.
4 It allows for feedback connections and loops ANP can model complex
1% decision problems, where a
02 Value Add
hierarchical model – as used
Goal Growth Strategies
Network Model ANP in AHP – is not sufficient.
simplified 39%
4% 03 New

01 New Solutions
Customers
ANP allows for feedback
connections and loops.
Cluster A 32% 7%
06 New Appl./
Market Segments 04 Replace
Competition

17%
05 Alternative
Cluster B Sales Channels
 Analytic Network
Analytic Network Process (ANP) Process (ANP)
Developed by Prof. Thomas L. Saaty

1 The Analytic Network Process ANP is a decision making method

Overview
The analytic network process
2 ANP is a generalization of the Analytic Hierarchy Process AHP ANP is a decision finding
method and generalization
3 ANP can model complex decision problems of the analytic hierarchy pro-
cess AHP.
4 It allows for feedback connections and loops ANP can model complex
decision problems, where a
hierarchical model – as used
in AHP – is not sufficient.
ANP allows for feedback
connections and loops.
 Analytic Network
Process (ANP)

Overview
Example
Hire
Decision for the selection of a
candidate in recruitment of a
sales engineer

Technical Sales Experience

Candidate 1 Candidate 2
 Analytic Network
Hierarchical Model (AHP)
Process (ANP)

Overview
In AHP you do a pair-wise
Hire comparison of criteria and
sub-criteria, resulting in local
priorities or weighting factors.

Technical Sales Experience

Candidate 1 Candidate 2
 Analytic Network
Hierarchical Model (AHP)
Process (ANP)

Overview
In AHP you do a pair-wise
Goal Hire comparison of criteria and
sub-criteria, resulting in local
priorities or weighting factors.
16% 25% 59%
By applying the global priori-
Criteria ties to alternatives, you finally
Technical Sales Experience
Sub-criteria get a ranking of alternatives
with respect to these criteria
and sub-criteria.

It’s a top-down structure from

Alternatives Candidate 1 Candidate 2 the overall objective to
criteria, from criteria to sub-
52% 48% criteria down to alternatives.
 Analytic Network
Network Model (ANP)
Process (ANP)

Overview
In ANP criteria, sub-criteria
Hire and alternatives are treated
equally as nodes in a
network.

Each of these nodes might

be compared to any other
Technical Sales Experience node, as long as there is a
relation between them.

Candidate 1 Candidate 2
 Analytic Network
Network Model (ANP)
Process (ANP)
Given Alternatives can influence the weighting of criteria

Overview
In ANP criteria, sub-criteria
Control Criteria Hire and alternatives are treated
equally as nodes in a
network.

Each of these nodes might

Criteria be compared to any other
Technical Sales Experience node, as long as there is a
relation between them.

For example, the ranking of

alternatives might not only
depend on the weighting of
Alternatives Candidate 1 Candidate 2 criteria, but also given
alternatives can influence
the ranking of criteria.
 Analytic Network
Network Model
Process (ANP)
Clusters and Nodes

Overview
In contrast to AHP, where
Control Criterion Performance higher level elements
connect to lower levels –
i.e. criteria to sub-criteria –
60% 40% 16% 25% 59%
in ANP nodes might be
grouped in clusters.
Hard Skills Soft Skills
Technical Sales Experience Beside local priorities in the
comparison of one node to
a set of other nodes, you
might also introduce cluster
priorities with respect to the
goals.
Alternatives Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience

Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical x
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales x The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience x The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire x
Technical
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire x
Technical
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire x
Technical
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales x The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical x
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience x The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical x
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience x The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales x The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience The network of ANP is
Hire represented as a matrix.
Candid 1
Altern.

Candid 2
The matrix is composed by
listing all nodes horizontally
Super Matrix and vertically,

Technical Sales Experience Each non-zero element of the

matrix represents the con-
nection & weight from one
node (columns-header)
to another node (row-header)
of the network.
Candidate 1 Candidate 2 The matrix is called Super-
Matrix
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical
Criteria

Sales The Super Matrix

Experience The comparison of nodes –
Hire connected to others – follows
Candid 1
Altern.

the same principal and

Candid 2 method as in AHP.

Super Matrix

Technical Sales Experience

Candidate 1 Candidate 2
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
PriorityVector
Priority Vector resulting
resulting
Hire
from pair-wise
from pair-wise comparisons
comparisons

Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1
Altern.

the same principal and

Candid 2 method as in AHP.
16% 25% 59% Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Criteria wrt Hire: The so found priorities are
then arranged as column
Sales Skills are equally to moderately vectors in the super-matrix.
more important than Technical Skills (2x)
Comparison Matrix wrt Hiring
Experience is moderately
more important than Technical Skills (3x) Technical 1/2 1/3
Candidate 1 Candidate 2
Sales 2 1/3
Experience is moderately
more important than Sales Skills (3x) Experience 3 3
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1 50
Altern.

the same principal and

Candid 2 50 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Candidates wrt The so found priorities are
Technical Skills then arranged as column
vectors in the super-matrix.
Candidate 1 has equally 50% 50%
technical Skills as Candidate 2 (1) Comp. Matrix wrt Technical

Candidate 1 Candidate 2
Candidate 1 1
Candidate 2 1
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20
Altern.

the same principal and

Candid 2 50 80 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Candidates wrt The so found priorities are
Sales Skills then arranged as column
vectors in the super-matrix.
Candidate 2 has moderately to 20% 80%
strongly better Sales Skills than Comp. Matrix wrt Sales
Candidate 1 (4x)
Candidate 1 Candidate 2
Candidate 1 1/4

Candidate 2 4
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20 67
Altern.

the same principal and

Candid 2 50 80 33 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Candidates wrt The so found priorities are
Experience then arranged as column
vectors in the super-matrix.
Candidate 1 has equally to 67% 33%
Moderately better Experience than Comp. Matrix wrt Experience
Candidate 2 (2x)
Candidate 1 Candidate 2
Candidate 1 2

Candidate 2 1/2
 Criteria Altern. Analytic Network
Hierarchy Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20 67
Altern.

the same principal and

Candid 2 50 80 33 method as in AHP.
Local priorities result from
Unweighted Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
The so found priorities are
then arranged as column
Result: Priorities
Result: Priorities of
of vectors in the super-matrix.
Alternatives
Alternatives

Candidate 1 Candidate 2
52
Altern.

Candid 1
52% 48%
Candid 2 48
 Criteria Altern. Analytic Network
Network Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Impact of Alternatives
on the priorities
Hire
of criteria
Technical 16
Criteria

Sales 25 The Super Matrix

Experience 59 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20 67
Altern.

the same principal and

Candid 2 50 80 33 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
The so found priorities are
then arranged as column
vectors in the super-matrix.

Candidate 1 Candidate 2
 Criteria Altern. Analytic Network
Network Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Impact of Alternatives
on the priorities
Hire
of criteria
Technical 16 75
Criteria

Sales 25 13 The Super Matrix

Experience 59 13 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20 67
Altern.

the same principal and

Candid 2 50 80 33 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Criteria wrt The so found priorities are
Candidate 1 then arranged as column
vectors in the super-matrix.
Technical Skills are strongly to very 75% 13% 13%
Comp. Matrix wrt Candidate 1
strongly more prevalent than Sales Skills (6x)
Technical 6 6
Technical Skills are strongly to very
Candidate 1 Candidate 2
strongly more prevalent than Experience (6x) Sales 1/6 1

Sales Skills are equally to Experience (1) Experience 1/6 1

 Criteria Altern. Analytic Network
Network Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Impact of Alternatives
on the priorities
Hire
of criteria
Technical 16 75 13
Criteria

Sales 25 13 75 The Super Matrix

Experience 59 13 13 The comparison of nodes –
Hire connected to others – follows
Candid 1 50 20 67
Altern.

the same principal and

Candid 2 50 80 33 method as in AHP.
Local priorities result from
Super Matrix the Eigenvector of the com-
parison matrix.
Technical Sales Experience
Comparison of Criteria wrt The so found priorities are
Candidate 2 then arranged as column
vectors in the super-matrix.
Sales Skills are strongly to very 13% 75% 13%
Comp. Matrix wrt Candidate 2
strongly more prevalent than Technical Skills (6)
Technical 1/6 1
Sales Skills are strongly to very
Candidate 1 Candidate 2
strongly more prevalent than Experience (6) Sales 6 6

Technical Skills are equally to Experience (1) Experience 1 1/6

 Criteria Altern. Analytic Network
Network Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 The Super Matrix

Experience 59 13 13 After all comparisons are
Hire done, we get the
Candid 1 50 20 67
Altern.

“Unweighted Super Matrix”

Candid 2 50 80 33
This matrix is then normalized
i.e. the sum of all columns is
100 100 100 100 100 100
scaled to 1
Weighted Super Matrix Technical Sales Experience

Candidate 1 Candidate 2
 Criteria Altern. Analytic Network
Network Model

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
(k+1)
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 The Super Matrix

Experience 59 13 13 After all comparisons are
Hire done, we get the
Candid 1 50 20 67
Altern.

“Unweighted Super Matrix”

Candid 2 50 80 33
This matrix is then normalized
Weighted Super Matrix i.e. the sum of all columns is
scaled to 1
Technical Sales Experience
The whole model is synthe-
18 18 18 sized by calculating the
Result:
Result:
26 26 Priorities of
26 Priorities of “Limit Matrix”. The Limit
Alternatives
Alternatives Matrix is the weighted
6 6 6
Super matrix, taken to the
36 18 18 power of k+1, where k is an
Altern.

Candid 1
Candidate 1 Candidate 2
arbitrary number.
Candid 2 64 32 32
36% 64%
Limit Matrix
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 Why changes the ranking of
Hire Candidate 2 from two in the
Candid 1 50 20 67
Altern.

hierarchy model to one in the

Candid 2 50 80 33 Network model?

Weighted Super Matrix

Technical Sales Experience

Why changes the ranking of Candidate 2

from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 Both candidates have the
Hire required experience
Candid 1 50 20 67
Altern.

Candid 2 50 80 33
Weighted Super Matrix

Technical Sales Experience

67% 33%
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 Both candidates have the
Hire required experience
Candid 1 50 20 67
Altern.

- candidate 1 slightly more

Candid 2 50 80 33 than candidate 2.
Weighted Super Matrix

Technical Sales Experience

67% 33%
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 Both candidates have the
Hire required experience
Candid 1 50 20 67
Altern.

- candidate 1 slightly more

Candid 2 50 80 33 than candidate 2.
59%
Weighted Super Matrix Experience is given a relative
high weight
Technical Sales Experience

67%
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 Both candidates have the
Hire required experience
Candid 1 50 20 67
Altern.

- candidate 1 slightly more

Candid 2 50 80 33 than candidate 2.
59%
Weighted Super Matrix Experience is given a relative
high weight
Technical Sales Experience Resulting in the slightly higher
ranking for candidate 1 in the
hierarchical model.
67%
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 In the network model we also
Hire look at each candidate’s skills
Candid 1 50 20 67
Altern.

independent from the other

Candid 2 50 80 33 candidate

Weighted Super Matrix

Technical Sales Experience

13% 75% 13%

Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 In the network model we also
Hire look at each candidate’s skills
Candid 1 50 20 67
Altern.

independent from the other

Candid 2 50 80 33 candidate
Now we see the outstanding
Weighted Super Matrix sales skills of candidates 2
Technical Sales Experience

13% 75% 13%

Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 In the network model we also
Hire look at each candidate’s skills
Candid 1 50 20 67
Altern.

independent from the other

Candid 2 50 80 33 candidate
25%
Now we see the outstanding
Weighted Super Matrix sales skills of candidates 2
Technical Sales Experience Finally in the network model,
sales skills get more weight
in the decision than the
75% excellent technical skills
of candidate 1
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Criteria Altern. Analytic Network

Experience
Technical

Candid 1
Process (ANP)

Candid 2
Hire

Sales
Hire

Technical 16 75 13
Criteria

Sales 25 13 75 Overview
Experience 59 13 13 In the network model we also
Hire look at each candidate’s skills
Candid 1 50 20 67
Altern.

independent from the other

Candid 2 50 80 33 candidate
25%
Now we see the outstanding
Weighted Super Matrix sales skills of candidates 2
Technical Sales Experience Finally in the network model,
sales skills get more weight
in the decision than the
75% excellent technical skills
of candidate 1
Why changes the ranking of Candidate 2
from two in the Hierarchy model
to one in the Network model Candidate 1 Candidate 2
?
 Overall Analytic Network
Two Layer Benefit/Cost Model
Objective Process (ANP)

80% 20%
Layer 1
Benefits Costs
Control Hierarchies
A decision network can be
arranged under a control hier-
archy of benefits and costs
Hire Salary In our example here, we al-
Layer 2
ready evaluated the benefits
of hiring – with respect to the
hard – and soft-skills of the
two candidates.
Technical Sales Experience We can now evaluate the
requested salary of both
candidates under control
criterion costs.
Depending on our overall
objective, either benefits or
costs could be assigned a
Candidate 1 Candidate 2 Candidate 1 Candidate 2
higher weighting.
 Overall Analytic Network
Two Layer Benefit/Cost Model
Objective Process (ANP)

80% 20%

Benefits Costs
Control Hierarchies
We have now a two layer
model with a control hierarchy
– benefits and costs – and a
Hire Salary sub-network under benefits
and a hierarchy under costs.
Ranking of alternatives in a
two layer model can be
evaluated using a ratio
Technical Sales Experience formula Benefit/Cost or an
additive formula (B-C)

Evaluation Formulas

Benefits/Costs (B/C)

Candidate 1 Candidate 2 Candidate 1 Candidate 2 Benefits - Costs (B-C)

 Overall Analytic Network
Two Layer BOCR Model
Objective Process (ANP)

Benefits Opportunities Costs Risks

Control Hierarchies
The control hierarchy could
be extended with additional
Sub-network Sub-network control parameter, e.g. op-
Hire Salary Risks portunities and risks, to build
Opportunities
a two layer BOCR model.

Candidate 1 Candidate 2 Candidate 1 Candidate 2

Technical Sales Experience

Evaluation Formulas

(B*O) / (C*R)

Candidate 1 Candidate 2 Candidate 1 Candidate 2 (B+O)- (C-R)

Analytic Network
Process (ANP)

Klaus D. Goepel Feb. 2011