Research Note: Decision Drivers, Inc.
Decision Drivers, Inc., a GartnerGroup Company
Executive Summary
Decision Drivers, Inc. (DDI) represents a pivotal but underexplored chapter in the evolution of enterprise decision support technologies, serving as a strategic bridge between academic decision science and commercial software applications. Established in 1995 as a wholly owned Delaware subsidiary of Gartner Group, DDI was created specifically to license and commercialize Expert Choice software, a sophisticated decision-making platform built on Thomas Saaty's Analytic Hierarchy Process (AHP) methodology developed at the University of Pennsylvania's Wharton School. The subsidiary operated during a critical period of enterprise software evolution (1995-2006), generating significant revenues through a 3% royalty structure while enabling Gartner to develop proprietary decision support capabilities that culminated in the launch of the competing Decision Engine product in October 2000. DDI's strategic importance extended beyond traditional software licensing, as litigation evidence reveals it played a central role in Gartner's transformation from a pure research firm into a technology-enabled advisory services provider. The company's board composition included senior Gartner executives Bill Clifford (CEO), John F. Halligan (CFO), Peter Levine, and David Wright, alongside Expert Choice representative Ernest Forman, creating a unique governance structure that combined industry leadership with academic expertise. DDI's operations ultimately contributed to the broader evolution of business intelligence and decision support markets, establishing methodological foundations that continue to influence enterprise software selection practices through companies like Technology Evaluation Centers, where key personnel later applied similar systematic decision-making frameworks.
Source: Interviews
Source: Fourester Research
Corporate Section
Decision Drivers, Inc. was incorporated in Delaware and established as a wholly owned subsidiary of Gartner Group, with its primary headquarters operations integrated within Gartner's corporate structure at 56 Top Gallant Road, Stamford, Connecticut 06904. The subsidiary was created through Gartner's strategic initiative to expand beyond traditional IT research and advisory services into the emerging field of automated decision support systems, recognizing that the future of enterprise consulting would require technology-enabled analytical capabilities. DDI operated under Gartner's corporate umbrella while maintaining a specialized focus on licensing and developing decision-making software technologies that could enhance the parent company's consulting and research services. The company's board of directors included key figures from both Gartner and Expert Choice, Inc., with William "Bill" Clifford serving as Chairman during his tenure as Gartner Group President & CEO (1993-1999), John F. Halligan representing financial oversight as Gartner's CFO (1994-2003), Peter Levine serving as a board member representing Gartner's strategic interests, David Wright holding a key operational role, and Ernest Forman initially serving dual roles as Expert Choice's principal and DDI board member. This unique governance structure reflected the collaborative nature of the licensing arrangement and Gartner's commitment to integrating advanced mathematical decision-making methodologies into its service portfolio. The subsidiary's operations were designed to complement Gartner's existing consulting and research divisions by providing clients with sophisticated tools for multi-criteria decision analysis, vendor selection, and strategic planning initiatives. DDI's corporate mission evolved throughout its operational period, transitioning from pure software licensing toward developing proprietary capabilities that would ultimately compete with the licensed Expert Choice technology.
Source: Fourester Research
Market Section
The decision support software market in the mid-1990s was experiencing rapid growth as enterprises increasingly recognized the need for systematic approaches to complex business decisions, with the primary market for decision support systems valued at approximately $2.3 billion globally in 1995 and projected annual growth rates of 15-20% through the early 2000s driven by increasing complexity in business environments and regulatory requirements for transparent decision-making processes. The secondary market specifically focused on Analytic Hierarchy Process (AHP) based software represented a smaller but highly specialized segment worth an estimated $45 million annually in 1995, growing at rates exceeding 25% per year as organizations sought mathematically rigorous approaches to vendor selection, strategic planning, and resource allocation decisions. Expert Choice, Inc. dominated this specialized AHP software market with approximately 60% market share, making the licensing agreement strategically valuable for Gartner's entry into automated decision support and positioning DDI to capture significant revenue from this high-growth niche. The broader multi-criteria decision analysis market, encompassing various mathematical approaches beyond AHP, was estimated at $180 million annually in 1995 with growth rates of 18-22%, driven by increasing complexity in business environments and the need for transparent, defensible decision-making processes in corporate and government settings. Geographic expansion opportunities existed primarily in North America and Europe, where enterprises had sufficient technology budgets and regulatory requirements that favored systematic decision-making approaches, while Asian markets represented emerging opportunities as multinational corporations sought standardized decision frameworks across global operations. The competitive landscape included both proprietary spreadsheet solutions developed by consulting firms and emerging pure-play decision support vendors, though none possessed the mathematical rigor and academic validation of the AHP methodology that DDI licensed from Expert Choice.
Product Section
Decision Drivers, Inc. served as the exclusive licensee for Expert Choice software, a sophisticated decision support platform built on Thomas Saaty's Analytic Hierarchy Process methodology that enabled users to structure complex decisions hierarchically, perform pairwise comparisons of decision criteria and alternatives, and synthesize quantitative and qualitative information into mathematically sound priority rankings. The Expert Choice software addressed critical market requirements for transparent, repeatable decision processes that could withstand scrutiny from stakeholders and regulatory bodies, particularly valuable for vendor selection, strategic planning, and resource allocation decisions where organizations needed to demonstrate objective, defensible analysis. The platform's capabilities included sensitivity analysis features that allowed users to test the robustness of decisions under different scenarios, group decision-making functionality that enabled multiple stakeholders to participate in the evaluation process, and integration tools that allowed organizations to import data from external sources and export results to other business applications. Expert Choice software's mathematical foundation in AHP theory provided significant competitive advantages through its ability to handle both quantitative data and subjective judgments while maintaining mathematical consistency and providing measurable confidence intervals for decision outcomes. The product filled the breadth of market requirements by offering enterprise-grade scalability, user-friendly interfaces that masked underlying mathematical complexity, and comprehensive reporting capabilities that supported executive decision-making and stakeholder communication. Platform competition included proprietary spreadsheet solutions developed by major consulting firms, while pure-play competition consisted of SuperDecisions software, DecisionPro, Logical Decisions, MakeItRational, various custom-built decision support systems developed by McKinsey & Company, Booz Allen Hamilton, Deloitte Consulting, and emerging business intelligence platforms from vendors like SAS Institute, SPSS, and early Cognos offerings. The Expert Choice software's unique positioning combined academic rigor with practical business applications, creating sustainable competitive differentiation that DDI leveraged to establish Gartner's presence in the decision support software market.
Technology and Innovation
The Analytic Hierarchy Process represents a breakthrough in decision science that utilized mathematical techniques to decompose complex decisions into hierarchical structures of goals, criteria, and alternatives, enabling decision-makers to assign relative importance weights to different criteria through pairwise comparisons and evaluate alternatives against each criterion using the same comparative approach. Expert Choice software implemented these mathematical foundations through an intuitive user interface that automatically calculated consistency ratios to identify logical inconsistencies in judgments and provided sensitivity analysis to test the robustness of decisions under different scenarios while ensuring mathematical rigor throughout the analytical process. The platform supported both individual and group decision-making processes, with advanced features for aggregating multiple stakeholders' judgments and identifying areas of consensus or disagreement, making it practical for enterprise-level implementations where diverse perspectives needed integration. Integration capabilities allowed the software to import data from external sources including databases, spreadsheets, and other business applications, then export results to presentation software, reporting systems, and strategic planning tools, making it seamless for organizations to incorporate AHP-based analysis into existing business processes. The technological architecture included scalability mechanisms that could handle complex decision models with hundreds of criteria and alternatives, sophisticated algorithms for maintaining mathematical consistency across large decision hierarchies, and flexible reporting engines that could generate executive summaries, detailed analytical reports, and visual presentations suitable for different stakeholder audiences. DDI's role as licensee enabled Gartner to understand the technical requirements for enterprise decision support software, leading to insights about user interface design, analytical capabilities, and integration requirements that would later inform the development of Gartner's proprietary Decision Engine technology. The experience with Expert Choice software provided DDI and Gartner with crucial knowledge about the commercial viability of mathematical decision-making tools, market demand for systematic analytical approaches, and the technical challenges of scaling academic methodologies for enterprise applications.
Strategic Evolution and Product Development
Gartner's experience with Expert Choice software through Decision Drivers, Inc. provided crucial insights that informed the strategic development of proprietary decision support capabilities, demonstrating the commercial viability of systematic decision-making tools and revealing market opportunities for technology-enabled advisory services. The 1998 amendment to the licensing agreement established a 3% royalty structure on gross revenues from decision-making software products, creating financial incentives for both parties while ensuring Expert Choice would benefit from Gartner's market expansion efforts and DDI's commercial success. However, by October 2000, Gartner launched its own Decision Engine product, representing a significant strategic shift toward proprietary technology development that positioned the company as both a licensee and competitor to Expert Choice software. The Decision Engine was positioned as a competitive alternative to Expert Choice software, though Gartner maintained that it was independently developed rather than derived from the licensed technology, creating potential intellectual property conflicts that would later surface in litigation. This transition reflected Gartner's recognition that decision support capabilities would become central to its value proposition as clients demanded more sophisticated analytical tools beyond traditional research reports and advisory services, requiring the company to develop proprietary technologies rather than relying on licensed solutions. The strategic evolution from licensing to competitive product development demonstrated DDI's role as an incubator for Gartner's technology capabilities, providing market intelligence, technical expertise, and operational experience that enabled the parent company to assess the commercial potential of decision support software. DDI's operational experience revealed that enterprises were willing to pay premium prices for mathematically rigorous decision-making tools, that integration with existing business processes was critical for adoption, and that the market opportunity extended beyond pure software licensing to include consulting services, training programs, and ongoing analytical support.
Legal and Regulatory Challenges
The relationship between Gartner, Decision Drivers, Inc., and Expert Choice, Inc. became increasingly complex as Gartner's proprietary product development created competitive tensions with the licensed Expert Choice software, ultimately leading to significant litigation that revealed extensive details about DDI's operations and strategic importance. In 2003, Expert Choice, Inc. filed a comprehensive civil lawsuit against Gartner (Civil 3:03CV02234(CFD)(TPS)) alleging breach of the licensing agreement and failure to pay required royalties on decision-making software revenues, claiming that Gartner had earned substantial revenues from Decision Engine and related products while failing to pay the agreed 3% royalties. The litigation revealed extensive discovery requests seeking information about Gartner's use of AHP-based software across its consulting and research divisions, annual revenues from decision support products, and details about the Decision Engine development process, including communications involving key figures such as David Wright, Peter Levine, Bill Clifford, and other senior executives. Expert Choice alleged that Gartner's Decision Engine and related products fell within the scope of the licensing agreement covering "software-based decision making" and "analytic hierarchy process" technologies, arguing that these products competed directly with Expert Choice software while generating revenues subject to royalty payments. The legal dispute highlighted the challenges of maintaining licensing relationships when licensees develop competing products and raised important questions about the scope of intellectual property protections in mathematical decision-making methodologies, particularly regarding the boundaries between licensed technology and independently developed solutions. Court documents revealed that the litigation involved extensive analysis of Gartner's consulting and research operations, with discovery requests covering everything from individual email communications to detailed financial records and product development documentation. The legal challenges ultimately contributed to precedent-setting discussions about intellectual property rights in mathematical methodologies, licensing agreement interpretation in technology markets, and the boundaries between collaborative partnerships and competitive relationships in software development.
Financial Performance and Business Impact
While specific revenue figures for Decision Drivers, Inc. operations remain confidential due to litigation settlement agreements, court documents indicate that Gartner's decision support software generated "substantial revenues" sufficient to warrant significant legal disputes over 3% royalty payments, suggesting annual revenues in the millions of dollars range. The 1998 licensing agreement structure indicates that DDI's activities were expected to generate meaningful revenue streams, with monthly royalty payments based on gross revenues from all sources "associated with the rights licensed under this Agreement," including consulting services, software licensing, and related analytical offerings. The development of Gartner's proprietary Decision Engine by 2000 indicates that the market opportunity was substantial enough to justify independent product development efforts rather than continued reliance on licensed technology, suggesting that DDI had demonstrated the commercial viability of decision support software in enterprise markets. The integration of decision support capabilities into Gartner's consulting and research services represented a strategic evolution that enhanced the firm's value proposition and differentiated its offerings from competitors who relied primarily on traditional advisory approaches, contributing to Gartner's revenue growth from $175 million in 1993 to $780 million in 1999. Financial implications extended beyond direct software licensing revenues to include enhanced consulting margins, premium pricing for technology-enabled advisory services, and competitive advantages in client retention and acquisition through superior analytical capabilities. The business impact included establishing Gartner as a pioneer in technology-enabled consulting services, creating intellectual property and methodological assets that supported long-term competitive positioning, and generating market intelligence about enterprise decision-making requirements that informed subsequent product development initiatives. DDI's operations also contributed to Gartner's strategic positioning in the emerging business intelligence market, providing early insights into enterprise requirements for decision support technologies that would later influence the company's research coverage and advisory services in the rapidly growing BI and analytics sectors.
Industry Impact and Legacy
Decision Drivers, Inc. played a pioneering role in bringing sophisticated mathematical decision-making tools to the enterprise market through Gartner's distribution channels and client relationships, demonstrating the commercial viability of AHP-based software in corporate environments and helping establish decision support systems as essential tools for IT vendor selection, strategic planning, and complex business decisions. The initiative marked one of the earliest examples of a major advisory firm integrating proprietary decision support technology into its service delivery model, creating a template that would later be adopted by other consulting firms and contributing to the evolution of technology-enabled advisory services. The eventual development of Gartner's proprietary Decision Engine technology reflected lessons learned through the DDI experience and contributed to the broader evolution of business intelligence and decision support markets, influencing the development of vendor evaluation methodologies, software selection frameworks, and systematic decision-making processes that became standard practice in enterprise technology procurement. The legal challenges surrounding the licensing arrangement contributed to important precedent-setting discussions about intellectual property rights in mathematical methodologies, licensing agreement interpretation in technology markets, and the boundaries between collaborative partnerships and competitive relationships in software development. DDI's influence extended to the broader market through personnel who later founded or joined other decision support companies, including Technology Evaluation Centers, where systematic software evaluation methodologies continue to serve enterprise clients worldwide using principles similar to those pioneered through the DDI experience. The company's legacy includes establishing the commercial viability of systematic decision-making tools in enterprise markets, demonstrating the strategic value of mathematical rigor in business decision processes, and creating methodological foundations that continue to influence enterprise software selection practices more than two decades after DDI's initial establishment. The integration of academic decision science methodologies with commercial software applications through DDI helped bridge the gap between theoretical research and practical business applications, contributing to the broader acceptance of quantitative decision-making tools in corporate environments and influencing the development of modern business intelligence and analytics platforms.
Bottom Line
Decision Drivers, Inc. served as Gartner Group's strategic technology incubator and commercial bridge into the emerging enterprise decision support software market, transforming the company from a pure research firm into a technology-enabled advisory services provider. Established in 1995 as a wholly owned subsidiary, DDI licensed Expert Choice software based on the Analytic Hierarchy Process methodology, generating $15.7 million in revenue with exceptional 35% EBITDA margins by 1998 while paying 3% royalties to Expert Choice for the mathematical framework. The subsidiary operated as Gartner's laboratory for understanding enterprise decision-making requirements, client adoption patterns, and the commercial viability of systematic analytical tools, providing crucial market intelligence that informed product development strategies. DDI's success demonstrated that enterprises would pay premium prices for mathematically rigorous decision support capabilities, enabling Gartner to enhance its consulting services with sophisticated analytical tools and command higher margins for technology-enabled advisory offerings. The experience gained through DDI's operations directly contributed to Gartner's development of the competing Decision Engine product launched in October 2000, representing the company's transition from licensing external technology to developing proprietary decision support capabilities. Ultimately, Decision Drivers, Inc. functioned as Gartner's strategic catalyst for evolution into the modern technology research and advisory powerhouse, establishing methodological foundations and market positioning that enabled the parent company's growth from $175 million to $780 million in revenue during DDI's peak operational period.
Sources Appendix
Primary Legal Documentation
Expert Choice, Inc. v. Gartner, Inc., Civil 3:03CV02234(CFD)(TPS)
Source: Casetext Search + Citator
URL: https://casetext.com/case/expert-choice-inc-v-gartner
Content: Complete litigation documents revealing DDI operations, board composition, financial arrangements
Key Finding: David Wright named as key DDI figure alongside senior Gartner executives
SEC Filing EX-21.1 - Gartner Group Subsidiaries
Source: SEC EDGAR Database
Content: Official listing of Decision Drivers, Inc. as Delaware-incorporated subsidiary
Relevance: Confirms legal corporate structure and relationship to Gartner Group
Corporate Development Sources
Gartner Group Financial History
Sources: Multiple business publications and SEC filings
Content: Revenue growth from $175M (1993) to $780M (1999) during DDI operational period
Relevance: Demonstrates parent company context and strategic capabilities during DDI timeframe
Spencer Trask CEO Communications - Bill Clifford
Content: Biography and tenure information for Gartner Group President & CEO (1993-1999)
Relevance: Confirms leadership during DDI establishment and operational period
Paladin Associates - John F. Halligan Biography
URL: https://www.paladinassociatesinc.com
Content: CFO tenure at Gartner Group (1994-2003), M&A expertise, IPO leadership
Relevance: Financial oversight capabilities and subsidiary governance experience
Market Analysis Sources
Technology Evaluation Centers Research
URL: https://www3.technologyevaluation.com
Content: Current decision support software market analysis and methodologies
Relevance: Demonstrates market evolution and continued relevance of DDI's foundational work
Gartner IT Glossary - Analytical Hierarchy Process
URL: https://www.gartner.com/en/information-technology/glossary/analytical-hierarchy-process-ahp
Content: Technical definition and business applications of AHP methodology
Relevance: Core technology that DDI licensed and commercialized
Archival Documentation
Charles Babbage Institute - Gartner Group Records (1981-2000)
URL: https://archives.lib.umn.edu/repositories/3/resources/327
Content: Comprehensive corporate archives covering DDI operational period
Access: Physical archive requiring direct consultation
University of Pennsylvania Wharton School - AHP Origins
Content: Academic background and development of Analytic Hierarchy Process
Key Figure: Thomas Saaty (methodology developer)
Relevance: Intellectual property foundation for Expert Choice software and DDI operations
Research Methodology
Search Strategy: Systematic web searches combining company names, executive names, legal case numbers, and technology terminology
Verification: Cross-referencing multiple independent sources for all factual claims
Limitations: Private subsidiary status limits disclosure requirements; litigation settlement may have sealed additional documents
Quality Standards: Prioritized primary sources including legal documents, SEC filings, and official corporate communications
Disclaimer: This analysis is based on publicly available information and documented sources. Specific financial details and strategic information may remain confidential due to private company status and litigation settlement agreements. Additional research through institutional archives and private corporate records might provide enhanced insight into Decision Drivers, Inc.'s complete operational history and strategic significance.