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EQUITY: Multi-Criteria Business Modelling

The key to this module is the decision support methodology linked to decision support software EQUITY. The aim is to balance factual data, engineering and management judgement with quantitative data from other models (e.g. eaNSF and eaFIRM). The output can then be combined with the diverse management views implicit within most businesses to provide robust investment options and other initiatives linked into a coherent company vision.

Once the model has been established in EQUITY, it can be used to carry out sensitivity studies, plot risk-return graphs and provides visual representation of the decision making process. The tool can be used in real time to produce the order of buy (investment priorities) for a complex portfolio of potential opportunities.

Click to view the larger diagram
Click to view the larger diagram

The left hand graph below shows typical differences between the proposed portfolio (P - the status quo), the minimum cost portfolio that has a lower cost but maintains the benefits (C) and the optimised benefit portfolio that improves the benefits but does not increase the cost (B). This graph is based on the weighted costs and benefits of all the available options.

 

 

 

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