In this section, we introduce the basic components of multi-criteria decision-making theory, formulate the selection of IoT system as a MCDM problem, present new theoretical framework for reliable ranking of alternatives and propose a new MABAC modification for multi-criteria decision making.
3.1. Main Components of MCDM Theory
The goal of MCDM (multi-criteria analysis) is to determine the relative significances or priorities of a set of N alternatives according to a given set of M criteria (attributes). Some of the criteria can be maximizing (beneficial), while others can be minimizing (cost). The solution of the problem of multi-criteria analysis consists of two stages: (1) describing the alternatives and evaluation criteria and developing the criteria weights; (2) aggregating performance and ranking of alternatives.
After selecting sets of alternatives and determining the most important criteria, the initial decision matrix
X is developed:
where
) is the value of
i-th alternative on
j-th criterion. Expert evaluations, results obtained from laboratory experiments, industrial measurements or computer simulations can be used to fill in matrix
X.
The weighting coefficients of the criteria are described by vector , where () is the relative weight of the j-th criterion and .
During the first stage, the weights of criteria are calculated according to their importance for decision makers. Methods such as AHP, DEMATEL, Stepwise Weight Assessment Ratio Analysis (SWARA), entropy method, BWM or Full Consistency Method (FUCOM) can be employed. While the calculations in AHP and DEMATEL are based on matrix of pairwise comparisons, other methods require less input data. For example, for FUCOM, it is sufficient to set ranking of weights and ratios between adjacent coefficients.
During the second stage, the ranking of compared alternatives is performed by multi-attribute decision-making algorithms such as SAW, VIKOR, Complex Proportional Assessment (COPRAS), Additive Ratio Assessment (ARAS), TOPSIS, Weighted Aggregated Sum Product Assessment (WASPAS), Evaluation based on Distance from Average Solution (EDAS), Multi-Attributive Border approximation Area Comparison (MABAC), Combinative Distance-based Assessment (CODAS), Multi-Objective Optimization on the basis of Ratio Analysis (MOORA), TODIM, MARCOS or Range of Values (ROV).
The above-mentioned multi-criteria methods belong to two main groups, with additive weighted functions (SAW, WASPAS, MOORA, ROV) and according to the distance to the best and worst or average alternatives (TOPSIS, VIKOR, COPRAS, ARAS, EDAS, MABAC, CODAS, TODIM, MARCOS). The variety of multi-criteria methods allow for the different points of view of decision-makers to be taken into account when evaluating alternatives.
The ranking of alternatives is obtained after applying the preferred multi-criteria method. The alternative with the highest performance is the best choice among the alternatives set.
3.2. Conceptual Framework for IoT System Selection
An IoT system connects a multitude of devices in an ecosystem using different network and data protocols. A typical IoT system includes several main components:
IoT devices—a set of connected sensors, appliances, vehicles, industrial robots;
gateways—to link local devices network to Internet;
network servers—to accept and transfer IoT data usually in cloud data centers;
cloud applications—for IoT data processing;
user interface—to visualize IoT data, track KPIs and send commands back to IoT devices.
The variety of IoT platforms and the many possible combinations of their features complicate the procedure of selecting the best alternative and underscore the necessity of a rigorous theoretical framework for the IoT platform selection problem [
51].
Let be a given set of systems and be a set of criteria. The features set can include technical, economic and environmental characteristics; for example, scalability, edge intelligence and support; key performance indicators and price model; energy consumption and the ability to generate renewable energy. Each alternative corresponds to a subset of .
The problem is to rank the given systems according to their evaluations in a decision matrix, denoted as for the defined set of criteria.
Given that each IoT system could be characterized by using vague assessments for each criterion, the core of our new framework should be the fuzzy MCDM approach. The proposed conceptual framework consists of seven steps, as depicted in
Figure 2.
Step 1. Exploring user’s IoT system needs
In the first stage of this step, in order to collect data about a company’s business model, we propose to apply the survey method. There are many questions that could be listed in the survey form; for example, needs (yes/no) for high availability, streaming data availability, extensive data support, offline functionality, real time analytics and visualization tools.
Next, in the second stage, a suitability index τ is calculated as a measure of company’s readiness for IoT deployment. If the index value obtained for a particular organization is larger than a predefined threshold, the company could be considered as suitable for IoT technology adoption, and the selection process can continue to Step 2. Otherwise, it should go to the end of the IoT platform selection process.
Step 2. Development of user requirements specification for IoT system
In order to collect data about consumer requirements, the survey method is used once again. The questionnaire consists of several question groups, corresponding to the various aspects of an autonomous company’s equipment (things, gateway, cloud, data analytics and user interface). At the end of this step, the minimal values of features of a preferred IoT platform are defined. Additionally, a matrix for the comparison of criteria importance is filled.
Remark: A team of experts takes part in Step 1 and Step 2 of the theoretical framework. These experts may be employees of the company or external specialists in the field of IoT.
Step 3. Search for a list of available IoT systems
In this step, a list of available IoT products (general purpose and/or industry-specific; open-source and/or proprietary) on the market that satisfy user’s requirements from Step 2 is obtained. To fill this list, an online data search and literature review could be employed.
Step 4. Design of multi-criteria system for IoT systems’ evaluation
In this step, a multi-criteria hierarchical evaluation index for IoT systems comparison is proposed. It encompasses different groups of indicators with specific relative weights depending on their importance for a company’s business processes. This composite index is flexible and allows for other groups and indicators to be considered for incorporation in it, depending on users’ preferences.
Step 5. Determination of decision matrix and preprocessing with calculation of weighting coefficients
First, based on data about the company’s industry and user requirements specification (Step 2), available datasets for IoT systems’ comparison (Step 3) and personalized multi-criteria evaluation system (Step 4), the corresponding assessments are filled in the decision matrix. In the case of Likert scale assessments, they could be transformed in intuitionistic fuzzy numbers (IFNs) using the 3-touple (Agree, Disagree, Neutral). The conversion is also possible for other advanced fuzzy sets such as Pythagorean (2013), picture (2013), Fermatean (2020) and other fuzzy sets. If there are categorical variables, they are converted in advance into linguistic variables. In the case that alternatives are evaluated by a group of experts, the decision matrix is filled after the arithmetic means aggregation of their assessments. In this way, the evaluations of each IoT system’s feature are calculated.
Second, the values of weighting coefficients are determined. The input data for calculations is the matrix of comparison of importance of IoT features by pairs (Step 2). In the case of a hierarchy of dimensions, the comparison should be provided for each hierarchical level from the top to the bottom. The weighting coefficients are calculated by using weight determination methods in crisp or fuzzy values.
Remark: In order to avoid a possible incongruity between some criteria, two different approaches can be applied. One of them includes some weight determination methods, such as AHP or the Analytic Network Process (ANP). These methods check the consistency of pairwise comparisons made by participants. The other approach is Inter-criteria Decision Analysis, which allows for removing any redundant criteria or objects from the original input data. Both approaches minimize discrepancies in participants’ opinions.
Step 6. Execution of multi-criteria decision-making methods
This step calculates the ranking of IoT systems using one or several MCDM methods with crisp or fuzzy values.
Step 7. Analysis of obtained results
Only the top-ranked alternatives from Step 6 are taken into consideration. Finally, decision-makers select the product that is the most appropriate for the company’s purposes.
At the end of the procedure, the IoT system with the greatest potential to enhance competitiveness will be deployed.
The advantages of the new framework are: (1) it implements a variety of (group) methods for weight determination and multi-criteria analysis and their combinations; (2) alternatives assessments could be expressed not only by real numbers, but also by a variety of fuzzy numbers or by fuzzy relations; (3) assessments can be made by a group of experts; (4) it is flexible and can be further extended to include new multi-criteria methods and types of assessments (such as advanced fuzzy sets).
3.3. New MABAC Modification for Intuitionistic Fuzzy Environment
The Multi-Attribute Border Approximation Area Comparison (MABAC) method is part of the MCDM group, and it determines similarity between each alternative and the best and worst value for each attribute using distance metrics. MABAC ranks the given opportunities according to their distance to the benchmarking values [
52].
The classical MABAC method consists of six steps, described as follows:
Step 1. Input of the decision matrix and weighting coefficients.
Let refers to the decision value related to the assessment of the i-th alternative against the j-th criteria in decision matrix and are weighting coefficients of criteria.
Step 2. Normalization.
The normalized matrix
is calculated as:
where
,
,
denotes the set of maximizing criteria and
is the group of minimizing criteria.
Step 3. Weighted matrix.
Let
be the weighted normalized decision matrix, where
refers to the weighted normalized decision value:
Step 4. Matrix of border approximation area.
The border approximation area
G of each criterion is defined as follows:
Step 5. Matrix of distance to the border approximation area.
The matrix of distance to the border approximation area is calculated as follows:
where
is the distance to the border approximation area.
The belonging of alternative
to the approximation area (
,
or
) is determined on the basis of the following equation:
Step 6. Alternatives’ rank. The total distance of each alternative to the border approximation area is given by the next formula:
The rank the alternatives is based on
values, sorted in descending order [
52].
We propose an intuitionistic version of the MABAC algorithm. Intuitionistic fuzzy sets (1986) are an extension of Zadeh’s fuzzy sets (1965) and more than thirty-five years of research reveals their potential to model the vagueness and ambiguity in real-world problems. With their three semantic components (degree of membership, degree of non-membership and hesitancy degree), intuitionistic fuzzy numbers are more expressive than classic fuzzy numbers. Besides that, the arithmetic operations with IFNs are relatively simple, compared to those of their advanced successors.
In case of intuitionistic fuzzy assessments of alternatives, the above-mentioned calculations are made according to the rules of intuitionistic fuzzy arithmetic.
An intuitionistic fuzzy number (IFN) is characterized by
, where
is degree of membership (truth),
is degree of non-membership (falsity),
is hesitancy degree and it holds
and
. Then,
is said to be score function of an IFN
[
53].
Let
and
be two intuitionistic fuzzy numbers. The arithmetic operations with these intuitionistic fuzzy numbers are defined as follows:
The
times of
is given by the next rule [
54]:
In the new MABAC version, in order to calculate the distance to the border approximation area (Step 5) in intuitionistic fuzzy environment, we employ a new similarity measure
between
and
alternatives, assessed by intuitionistic fuzzy sets according to the following formula [
55]:
where
,
,
,
,
,
and
.
This distance formula employs intuitionistic fuzzy numbers, which means that the choice is based on more accurate estimation. The assessments’ representation in IFNs comprises a pair of semantically opposite values—membership (truth) and non-membership (falsity) degree. The advantage of utilized formula is that the similarity between intuitionistic fuzzy sets is calculated in three-dimensional space, using additionally the third membership degree–hesitancy. The novelty of this formula is that here the similarity depends on the difference between the maximum and the minimum of the cross-evaluation factor.
In order to assess the performance of IoT platforms objectively, we propose a new modification of MABAC for intuitionistic fuzzy environment. Intuitionistic uncertainty and hesitancy degrees account for differences in decision makers’ estimates more accurately than classical fuzzy numbers. In addition, the existing intuitionistic aggregating operators and distance metrics successfully combine individual estimates into a complex measure of the quality of compared alternatives. The main disadvantage of the proposed method lies in the higher time complexity of its similarity formula compared to the classical MABAC. However, the increase in computing time is compensated by more accurate measurement of the distance between the given IoT systems.