Data envelopment analysis (DEA) is widely considered to be one of the most advantageous tools for evaluating companies in particular industries. Significantly, DEA can handle multiple inputs and outputs simultaneously with non-parametric assessment. The applied use is for important ones such as banking & finance, healthcare, education, power and energy consumption, etc. In this paper, I propose this method to apply to the information technology (IT) industry, principally in the software domain. With hardware success, Taiwan forgot that software development is equally competitive.
The method kernel principal component analysis (KPCA) supports to produce wiser measured information through simplifying data . At once, we initiate slack-based data envelopment analysis (SB-DEA) to better the ranking results. 74 companies (DMUs) gathered from Taiwan economic journal (TEJ) in two years 2019 and 2020 are trained and tested with the output orientation of marketability. By joint utilization of KPCA and SB-DEA, we can uncover some weaknesses from the best practice operation and gain more deeper insights for decision makers to formulate their business operation strategies in the future as well as reach the goal of sustainable development.
