The Analytic Hierarchy Process for New Product Screening Decisions

A Knowledge Management Perspective


  • Marcin Relich University of Zielona Gora



knowledge acquisition, evaluation criteria, multi-criteria decision-making, new product development, project selection problem


The selection of the most promising new product development projects is one of the most important decisions in a company. This decision affects the cost of failed projects, company’s profitability, and its survival. The selection of new product development projects with the greatest potential requires the evaluation criteria that reflect the adjustment of a new product to customer requirements, company’s strategy, manufacturing, and knowledge management issues. There are specified sub-criteria to identify the impact of a new product on a single area of the company’s activity, for example, on the knowledge management area. The criteria and sub-criteria are evaluated by managers, engineers (including knowledge engineers), and IT specialists, who work in departments such as research and development, sales and marketing, manufacturing, IT, and top management. Company professionals have the most updated information of the ongoing processes related to new product development. This paper is concerned with using the analytic hierarchy process (AHP) methodology to a new product screening problem, paying attention to the knowledge management perspective. So far, this perspective is neglected in the context of the decision problem of new product screening. This research develops the field of knowledge acquisition from experts towards selecting and evaluating criteria related to the potential of a new product. Knowledge acquisition refers to issues related to a new product, customer requirements, and uncertainties of project performance. Using criteria related to various areas of the company’s activity, the decision maker can identify factors significantly impacting performance of new product projects, and compare these projects with each other. Moreover, the AHP approach prioritizes criteria and sub-criteria, and as a result, it can identify areas of the company’s activity that could be improved.