Digital transformation project risks assessment using hybrid picture fuzzy distance measure-based additive ratio assessment method

Abstract Digital transformation (DT) has become vital for companies trying to remain competitive in the recent ever-changing technological environment. DT is the integration of digital technologies into all disciplines of business from regular activities to strategic decision making. Risk management planning requires projects to assess possible risks that may negatively or positively affect a DT project. The purpose of the study is to introduce a hybridized decision support system (DSS) by combining the distance measure, ranking comparison (RANCOM) model and additive ratio assessment (ARAS) approach in the context of a picture fuzzy set (PFS). In this framework, the decision experts’ significance values are computed using a picture fuzzy score function-based formula. With the combination of objective weight using distance measure and subjective weight through the RANCOM model, a combined weight-determining approach is developed to determine the significance values of considered DT risks under picture fuzzy environment, while a hybrid ARAS model is developed to evaluate and rank DT projects from the risks perspective. To exhibit the feasibility of the introduced framework, a case study of a DT projects assessment problem is discussed in the context of picture fuzzy sets. A sensitivity study is also discussed over different values of the strategy coefficient, which confirms the strength of the proposed model. Further, a comparison with the existing picture fuzzy information-based methods is presented to prove the robustness of the developed decision-making framework.