A large insurance company wants to buy a new claims processing system or upgrade one of its two existing system. Each year the claims department is given a $3.5 million budget to spend. Time is of the essence since there are tome regulatory charges that will be coming the following year that will require several features that currently neither one of the two claims System currently support.
There are eight stakeholders involved in this initiative. There are local to where the claim system are managed, while five are located across the country. The business analyst (BA) struggled to get all stakeholders to agree on the desired features but ultimately got agreement on ten identified key features for the new claims system. The BA was able to build a current state and future state process model which included all ten key features.
System a process 75% of the company's claims. It is 5 years old and the claim processors love it because it is easy to use. However, it must go offline for two hours each day. The code is very module so it does have flexibility to be modified. To upgrade system A to have all ten features it would cost $5 million. System A would be at capacity if it were to process all of the company's claims.
System B process 25% of the company's claims. It is an older mainframe system, but rarely goes offline. It could easily handle double the number of claims that system A processes. However, it has a lot of legacy code and would cost $6 million to upgrade.
Both systems have some of the desired key features. But neither system has all ten. The cost to buy a new system would be $7 million.
Below is the estimated cost for each feature in priority order.
If System A is unanimously selected to be the system for upgrade but the technical lead says that System A will have to be taken offline for 3 months, what kind of strategy should the project team develop while system A is offline?
Answer : C
A change strategy is a plan that outlines how the project team will manage the transition from the current state to the future state of the system, and how they will address the impacts and risks of the change on the organization and the stakeholders. A change strategy is needed when system A is offline for 3 months, as this will affect the claims processing operations and the user experience. A change strategy should include the following elements:
Change vision and objectives: This defines the purpose and scope of the change, and the expected outcomes and benefits of the system upgrade.
Change readiness assessment: This evaluates the current level of awareness, willingness, and ability of the organization and the stakeholders to adopt the change, and identifies any gaps or barriers that need to be addressed.
Change impact analysis: This identifies and analyzes the potential effects of the change on the business processes, roles and responsibilities, policies and procedures, systems and tools, and culture and behavior of the organization and the stakeholders.
Change communication plan: This specifies the key messages, channels, methods, and frequency of communication with the organization and the stakeholders, and how to solicit and incorporate feedback and input.
Change training plan: This defines the learning objectives, content, delivery modes, and evaluation methods of the training programs that will help the organization and the stakeholders acquire the necessary knowledge and skills to use the upgraded system.
Change management roles and responsibilities: This clarifies the roles and expectations of the project team, the sponsors, the champions, the change agents, and the end users in the change process, and how they will collaborate and coordinate with each other.
Change monitoring and evaluation plan: This establishes the metrics, indicators, and tools that will measure the progress and performance of the change process, and how to report and act on the results.
IIBA BABOK Guide, Section 5.6, Define Change Strategy
Change Management Strategy: A Guide with Best Practices, Smartsheet
A large insurance company wants to buy a new claims processing system or upgrade one of its two existing system. Each year the claims department is given a $3.5 million budget to spend. Time is of the essence since there are tome regulatory charges that will be coming the following year that will require several features that currently neither one of the two claims System currently support.
There are eight stakeholders involved in this initiative. There are local to where the claim system is managed, while five are located across the country. The business analyst (BA) struggled to get all stakeholders to agree on the desired features but ultimately got agreement on ten identified key features for the new claims system. The BA was able to build a current state and future state process model which included all ten key features.
System a process 75% of the company's claims. It is 5 years old and the claim processors love it because it is easy to use. However, it must go offline for two hours each day. The code is very module so it does have flexibility to be modified. To upgrade system A to have all ten features it would cost $5 million. System A would be at capacity if it were to process all of the company's claims.
System B process 25% of the company's claims. It is an older mainframe system, but rarely goes offline. It could easily handle double the number of claims that system A processes. However, it has a lot of legacy code and would cost $6 million to upgrade.
Both systems have some of the desired key features. But neither system has all ten. The cost to buy a new system would be $7 million.
Below is the estimated cost for each feature in priority order.
If the budget for the initiative was firm, what is a feasible solution to make sure the project stays within budget?
Answer : B
Based on the table in the image, the total cost of upgrading system A with the first 8 features is $3.5 million, which is equal to the budget for the initiative. This option would also allow the company to retain the system that is preferred by the claim processors and has more flexibility to be modified. The other options would either exceed the budget or compromise the functionality and usability of the system. Therefore, upgrading system A with the first 8 features is a feasible solution to make sure the project stays within budget.Reference:
IIBA BABOK Guide, Section 10.23, Decision Analysis
Cost Benefit Analysis: An Expert Guide, Smartsheet
How to Choose the Right Software Vendor, CIO
Refer to the exhibit.
What kind of analysis must the BA do to determine if one of the systems is better suited to be modified and upgraded?
Answer : D
Several commercial-off-the-shelf (COTS) software packages exist that would enable the business analyst (BA) to meet the needs of the business. For the potential deign options, the Ba included one of the COTS packages as a solution approach What kind of solution approach is this?
Answer : D
A purchase solution approach is one that involves acquiring a COTS software package from an external vendor or provider, rather than developing a custom solution in-house. A purchase solution approach can offer several benefits, such as faster delivery, lower cost, higher quality, and reduced risk. However, a purchase solution approach also has some drawbacks, such as limited customization, dependency on the vendor, compatibility issues, and licensing fees. A BA should evaluate the pros and cons of a purchase solution approach against the business needs and requirements, and compare it with other possible solution approaches, such as outsource, exploit, or create.Reference:
Evaluating Candidate COTS Packages, ArgonDigital
Seven Insights: Agile and Custom Off The Shelf (COTS) packaged software, Kenny & Company
COTS Software Procurement Methodology, IGI Global
Before the start of a large, cross functional change effort, the team of Business analysts (BAs) assigned decided they need something to help them ensure requirements collectively support one another and do not conflict. What option would provide the consistency they are looking for?
After determining mat the enterprise culture was the driving force behind recent solution change decisions a business analyst (BA) has decided to conduct an enterprise-wide cultural assessment. What information can the 8A expect to learn from the results?
Answer : A
A cultural assessment is a process of evaluating the current state of the enterprise culture and how well it aligns with the goals and values of the organization. It can help the BA understand the expectations, experiences, philosophies, and behaviors that guide the stakeholders in the organization. By conducting a cultural assessment, the BA can identify the potential impacts of the solution change on the organizational culture and vice versa. The BA can also use the assessment results to plan for effective change management and stakeholder engagement strategies.Reference:
IIBA BABOK Guide, Section 3.5.2, Enterprise Culture Assessment
Cultural Assessments: What They Are and How To Conduct One, Indeed.com
Culture Assessment: Definition, Framework, Types of Culture and Questions, QuestionPro.com
A utility company found mat its current billing system charges customers 'or tie r usage, but does so incorrectly when the system estimates reads on meters rather than performs actual reads. Company stakeholders would i*e to improve this aspect of the system but are hesitant to make changes because they are otherwise pleased with the system A business analyst (BA) has completed a current state diagram and would like to start discussions on what the future state may look like. What information can the BA determine by having a current slate diagram?