Economics of the Automotive Industry

Richardson, B.C., Albers, W.A., Kostyniuk, L.P., Barnes, M., Rodriguez, D.A., Ward, O.W. 1997. Application of Decision Analysis to Intelligent Transportation Systems Societal Issues. Final Report.
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Societal and institutional issues are pivotal concerns in the implementation of Intelligent Transportation Systems (ITS). If not considered to the satisfaction of affected parties, they can inhibit the implementation process. If considered carefully, the technology can enhance the personal lives and business opportunities of a community. A major factor inhibiting the careful consideration of societal and institutional issues in ITS implementations has been the lack of application of methods to address these issues in a structured way. Because societal and institutional issues are so important, it was decided to demonstrate the use of a decision analysis method to bring them into the process of deciding on an ITS implementation. The technology chosen was ITS-based paratransit service at the community level. The specific decision was whether an individual community should upgrade the paratransit services already provided by a regional transit authority to include ITS technology such as vehicle location and route scheduling. The hypothetical community in which this decision was to be made was based on a typical community in Southeast Michigan. A decision support method called Decision Risk Analysis is widely used in the private sector. This method was modified to include representatives of several organizations from the public and private sectors. The new method is called Multi- Organization Decision Analysis (MODA). A schematic of MODA is shown in the figure. Its objective is to facilitate consensus among the disparate public and private sector stakeholders in a decision process. The stakeholders are represented on a decision-making team, and they are supported by a team of analysts. MODA meetings are aided by facilitators. The process includes the development of a shared vision statement, framing the problem, developing alternative solutions, analyzing the alternatives, and reaching a decision. Progression to the next step of the process does not occur until consensus is reached on the present step. Decision Making Team Analysis Team Framing the Problem Alternative Decision Solutions Analysis of Alternatives Mission /Vision Statements Shared Vision Facilitators Because a hypothetical community was used in the demonstration of MODA, it was not possible to get actual stakeholders to participate in the process. However, people who actually represented a community government, a regional transit authority, the handicapped community, the elderly community, and a road commission participated in the 1