IIBA CBAP - Certified Business Analysis Professional

As part of identifying enterprise limitations, the BA should perform a stakeholder impact and operational analysis. This technique involves assessing how the proposed change will affect the stakeholders and the current operations of the enterprise. It can help to identify the potential benefits, costs, risks, and issues of the change, as well as the readiness and resistance of the stakeholders. The BA should consider the impact of the change on the following aspects of the enterprise:

Strategy and goals

Processes and policies

Structure and roles

Culture and values

Systems and technology

Performance and quality

In this case, the BA should analyze how the merger proposal will impact the stakeholders and operations of Manufacturer O, especially in the scenario of Manufacturer K moving headquarters and closing the current Manufacturer O site. The BA should also consider the impact of the regulatory environment and the potential changes in the future. References:

CBAP / CCBA Certified Business Analysis Study Guide, 2nd Edition, Chapter 5: Strategy Analysis, Section 5.1: Analyze Current State, p. 207-208

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 5: Strategy Analysis, Section 5.1: Analyze Current State, p. 107-108

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 10: Solution Evaluation, Section 10.5: Assess Organizational Readiness, p. 281-282

Return on investment (ROI) is a financial calculation that measures the profitability of a solution proposal by comparing its benefits and costs. ROI is expressed as a percentage or a ratio of the net benefits (benefits minus costs) to the total costs. ROI can help to determine which solution is worth investing in based on its breakeven point, which is the point where the net benefits equal zero, or the benefits equal the costs. The solution with the highest ROI has the lowest breakeven point, meaning that it recovers its costs faster and generates more net benefits over time. Discount rate is a financial calculation that measures the present value of future cash flows by applying a discount factor that reflects the time value of money and the risk of the investment. Discount rate can help to compare the present values of different solution proposals, but it does not indicate the breakeven point. Net present value (NPV) is a financial calculation that measures the difference between the present value of the benefits and the present value of the costs of a solution proposal. NPV can help to determine which solution has the highest value in today’s terms, but it does not indicate the breakeven point. Internal rate of return (IRR) is a financial calculation that measures the annualized effective compounded return rate of a solution proposal by finding the discount rate that makes the NPV equal zero. IRR can help to determine which solution has the highest return rate, but it does not indicate the breakeven point. References: BABOK Guide v3, Chapter 10: Techniques, Section 10.23: Financial Analysis, p. 529-531; Free CBAP IIBA Actual Exam Questions & Answers, Question 464.

 The BA can use organizational modeling to highlight the required changes to the structure. Organizational modeling is a technique that involves creating a graphical representation of the roles, responsibilities, relationships, and reporting lines within an organization. It can help to illustrate the current and future states of the organization, identify the gaps and impacts of the change, and communicate the proposed solution to the stakeholders. In this case, the BA can use organizational modeling to show how the process for the first contact resolution for customer issues will be streamlined by having a single point of contact instead of two separate divisions. References:

CBAP / CCBA Certified Business Analysis Study Guide, 2nd Edition, Chapter 5: Strategy Analysis, Section 5.1: Analyze Current State, p. 207-208

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 5: Strategy Analysis, Section 5.1: Analyze Current State, p. 107-108

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 10: Solution Evaluation, Section 10.5: Assess Organizational Readiness, p. 281-282

 The organizational culture and type of information being approved are two factors that the BA should consider when defining the approval process. The organizational culture reflects the values, beliefs, and behaviors that guide the decision-making and actions of the stakeholders in the organization. The type of information being approved refers to the nature, scope, and impact of the information that requires approval from the relevant authorities. Both factors can influence the level of authority, responsibility, and accountability that are involved in the approval process, as well as the criteria, methods, and tools that are used to facilitate the approval process. The BA should align the approval process with the organizational culture and the type of information being approved to ensure that the process is effective, efficient, and consistent. References:

Approval Process: Key Governance Procedure, Business Group on Health

Developing an effective governance operating model, Deloitte

What is a Governance Process?, WalkMe

Based on the table in the image, the total cost for each company over the three years can be calculated by adding the Year 0 license costs, Years 1 and 2 total license costs, and implementation costs. For Company A, the total cost is $323,458 (Year 0) + $270,092 (Years 1 and 2) + $28,500 (Phase Ia) + $55,000 (Phase Ib) + $121,500 (Phase 2) = $798,550. For Company B, it’s $373,555 (Year 0) + $202,056 (Years 1 and 2) + ($1.500 150 days of implementation)= $578611 which is less than the insurance company’s maximum budget of $310000. For Company C it’s = ($400244+$214096+($31.50159))= $695439 which exceeds the budget. References: The answer is derived from a direct calculation based on the provided information in the image and does not reference specific CBAP learning documents or resources.

 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. References:

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

The BA should provide process models as artifacts that can be used organization wide for the long-term. Process models are graphical representations of the activities, inputs, outputs, and interactions of a business process. They can help to document, analyze, improve, and communicate the current and future states of a process. They can also serve as a basis for developing other artifacts, such as requirements, test cases, user manuals, and training materials. Process models can be useful for various stakeholders, such as business users, managers, developers, testers, and trainers, to understand and optimize the business process. References:

CBAP / CCBA Certified Business Analysis Study Guide, 2nd Edition, Chapter 6: Requirements Analysis and Design Definition, Section 6.4: Model and Validate Requirements, p. 263-264

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 6: Requirements Analysis and Design Definition, Section 6.4: Model Requirements, p. 159-160

A Guide to the Business Analysis Body of Knowledge® (BABOK® Guide), Version 3, Chapter 9: Solution Evaluation, Section 9.5: Assess Organizational Readiness, p. 261-262

 A use case diagram is a technique that helps to depict the interactions between a system and its actors using graphical symbols and relationships. A use case diagram shows the actors that are involved in the system, the use cases that represent the functions or services that the system provides, and the associations that indicate how the actors and use cases are related. A use case diagram can be used with a state diagram to verify that all functions are defined to work with entity “User” for the different roles, as it can help to identify the use cases that correspond to the states and transitions of the entity, and to ensure that the use cases are complete, consistent, and accurate. A sequence diagram is a technique that helps to represent the sequence and timing of the messages that are exchanged between the objects or components of a system. A sequence diagram shows the objects or components that participate in the interaction, the messages that are sent and received by the objects or components, and the time order of the messages. A sequence diagram can help to illustrate the dynamic behavior and logic of the system, but it does not show the interactions between the system and its actors. A functional diagram is a technique that helps to represent the functions or processes that are performed by a system or a solution using graphical symbols and relationships. A functional diagram shows the functions or processes that are relevant to the domain, the inputs and outputs of each function or process, and the decomposition and hierarchy of the functions or processes. A functional diagram can help to define and analyze the functional requirements, but it does not show the interactions between the system and its actors. A data flow diagram is a technique that helps to create a high-level overview of a business process by showing the movement and transformation of data between entities and processes. A data flow diagram uses graphical symbols and arrows to represent the sources and destinations of data, the processes that manipulate data, the data stores that store data, and the data flows that transfer data. A data flow diagram can help to understand and document the data logic and structure of the business process, but it does not show the interactions between the system and its actors. References: BABOK Guide v3, Chapter 10: Techniques, Section 10.50: Use Case Diagram, p. 564-566; Section 10.49: Sequence Diagram, p. 562-563; Section 10.22: Functional Decomposition, p. 528-529; Section 10.18: Data Flow Diagrams, p. 522-524.

A BA should identify any potential constraints that may affect the requirements or the solution and communicate them to the relevant stakeholders for resolution. In this case, the policies are a constraint that may prevent the implementation of the requirement or require a change to the policies. The BA should review the constraint with management and seek their guidance on how to proceed. The BA should not modify the policies or the requirements without proper approval or justification. References:

CBAP / CCBA Certified Business Analysis Study Guide, 2nd Edition, Chapter 5: Requirements Analysis and Design Definition, page 214

Business Analysis Body of Knowledge (BABOK ®) Guide, Version 3, Section 5.2: Analyze Current State, page 112

Certified Business Analysis Professional™ (CBAP®) | Coursera, Course 3: Requirements Analysis and Design Definition, Week 2: Analyze Current State, video: “Identify Constraints”

 In order to gain consensus between the CFO and other management, the BA could estimate the potential value delivered by each option and present the results to the stakeholders. This would involve assessing the benefits, costs, and risks of each option, as well as the alignment with the strategic objectives and customer needs. By estimating the value, the BA could help the stakeholders understand the trade-offs and implications of each option, and facilitate a rational and informed decision-making process. References:

IIBA BABOK Guide, Section 9.4, Evaluate Solution Options

How to Estimate the Value of a Business Analysis Solution, Bridging the Gap

Business Analysis Techniques: Estimating Value, Business Analyst Learnings