Business Evaluation Model using the Modified Analytic Hierarchy Process and Grey Evaluation Method

Abstract

The challenges that utility companies have to face is the traditional business model in the reform of domestic power system. Therefore, innovative business models are required to promote the development of the utility companies. The most important issue is that the utility companies should establish evaluation models fitting to their new requirements. The combination of modified analytic hierarchy process and grey evaluation method is proposed to evaluate the new business model. A new structure of the index system is presented for the new business model evaluation, and the traditional analytic hierarchy process is modified to compute the index weights. Moreover, scores of each business model is provided by experts in accordance with the index system. The grey whitening weight function method is used for each business model to compute the grey evaluation coefficient and grey evaluation weight. Finally, the comprehensive benefit value of the business model is obtained by multiplying the index weight vector and the grey evaluation weight vector. Simulation studies on three business models shows the proposed method can be used to help the utility companies to evaluate business models.