IIBA CBAP - Certified Business Analysis Professional

 The management horizon is the time period over which the costs and benefits of a proposed solution are evaluated. It is also the point in time when the net present value of the solution becomes positive, meaning that the solution has recovered its initial investment and started to generate a profit. The management horizon helps to determine the feasibility and viability of a solution, as well as its alignment with the strategic goals of the organization. References:

CBAP® Handbook, page 15, section 4.1.2.3

BABOK® Guide, page 32, section 3.2.3

How to Write a Business Case (Template Included), under Step 3: Calculate the Financials

A requirements re-use repository is a collection of reusable requirements that can be applied to similar projects or products. It can help streamline the requirements gathering process by reducing the effort and time needed to elicit, analyze, and document requirements. It can also improve the quality and consistency of requirements by leveraging best practices and lessons learned from previous projects. A requirements re-use repository can also facilitate traceability, change management, and communication among stakeholders.

B. Implementing project templates is not the best answer because project templates are more related to project management than requirements gathering. Project templates can help standardize the project planning and execution processes, but they do not necessarily address the specific requirements of each project or product.

C. Implementing a requirements gathering form is not the best answer because a requirements gathering form is a tool for capturing and documenting requirements, not for streamlining the requirements gathering process. A requirements gathering form can help structure and organize the requirements, but it does not reduce the effort and time needed to elicit, analyze, and document requirements.

D. Implementing scope solution models is not the best answer because scope solution models are used to define and communicate the boundaries and features of a solution, not to streamline the requirements gathering process. Scope solution models can help clarify and validate the solution scope, but they do not reduce the effort and time needed to elicit, analyze, and document requirements. References:

Using Scope Models to Manage Solution Scope - Business Analyst Articles …

What is requirements gathering? Template and examples

Top 10 Requirements Gathering Templates with Samples and Examples

 Requirements prioritization is the process of ranking the requirements in the order of their importance or value to the stakeholders and the solution. Requirements prioritization helps to ensure that the most critical and beneficial requirements are implemented first, and that the project focuses on delivering the maximum value to the stakeholders within the available time and resources. Requirements prioritization also helps to manage the scope, schedule, budget, and quality of the project, as well as to handle changes and risks effectively123. References: 1: Five Requirements Prioritization Methods1 2: What is Requirements Prioritization?2 3: The 6 Most Important Requirements Practices3

 Customer-facing activities are those that directly involve or affect the customers, such as sales, service, support, or marketing. These activities should be consistent across the organization, as consistency is a key factor for customer satisfaction and loyalty12. Customers expect to have the same level of service and quality every time they interact with a business, regardless of the channel, location, or employee. If some employees perform customer-facing activities in a different format than the others, it can create confusion, frustration, or distrust among the customers, and potentially damage the business reputation and revenue34. Therefore, this is a problem that can be addressed as part of an improvement opportunity. Jane, as a business analyst, can use passive observation to identify the variations in the customer-facing activities, and then analyze the root causes, impacts, and possible solutions. She can also use other techniques, such as interviews, surveys, or focus groups, to gather feedback from the customers and the employees, and understand their needs and expectations. She can then propose recommendations to standardize the customer-facing activities, and ensure that they align with the business goals, values, and policies5. References:

The three Cs of customer satisfaction: Consistency, consistency, consistency | McKinsey

How to create consistency in customer service | Zapier

How To Improve Customer Focus Using 8 Key Strategies

Consistent Communication: A Must-Have For Your Customer Service Team - Forbes

Important Client-Facing Skills: Definition and Examples

According to the BABOK Guide, a change-driven approach to business analysis is characterized by frequent delivery of value to stakeholders, iterative planning and feedback, and adaptive responses to changing needs and priorities. In such an approach, communications are managed by focusing more on the frequency of communication and using face-to-face channels as much as possible. This helps to ensure that information is shared quickly and effectively, and that feedback loops are established and maintained. Formal communications are less emphasized in a change-driven approach, as they may slow down the delivery process and introduce unnecessary overhead. Ad hoc communications are not sufficient for managing change-driven projects, as they may lead to inconsistency, confusion, and missed information. References:

BABOK Guide, section 2.5.3, page 35

How to create a business analysis communication plan, paragraph 2

CBAP/CCBA/ECBA Certification Practice Test, question 8

 A constraint is a factor that limits the options or the performance of the project or the solution. Constraints are usually imposed by external factors, such as laws, regulations, standards, policies, resources, time, or budget. Constraints can affect the feasibility, desirability, and suitability of the solution, and may require trade-offs or compromises among the requirements. A constraint is different from a requirement, which is a condition or capability that the solution must have or meet to satisfy the stakeholder needs and expectations123.

In this question, the $300,000 represents a constraint, as it is a factor that limits the options or the performance of the solution. The customer demands that the solution should not cost more than $300,000 to implement and support for one year, which means that the solution must fit within this budget constraint. This constraint may affect the choice of technologies, processes, or features that the solution can include, and may require prioritizing or eliminating some requirements to meet the budget limit. References: 1: BABOK® Guide v3, section 3.4.2 Assess Capability Gaps, page 70 2: CBAP / CCBA Certified Business Analysis Study Guide, chapter 4, page 109 3: Business Analysis Techniques: Identifying Constraints, page 24

Opportunity cost is the value of the next best alternative that is forgone as a result of making a decision1. In this scenario, the opportunity cost of choosing Project B over Project A is the value of Project A, which is $235,987. This means that by pursuing Project B, the organization is giving up the potential benefit of earning $235,987 from Project A. The risk of Project B is not relevant for calculating the opportunity cost, as it only affects the expected return of Project B, not the value of Project A. The difference between the values of Project B and Project A ($331,013) is not the opportunity cost, as it does not reflect the value of the forgone alternative. The value of Project B ($567,000) is not the opportunity cost, as it is the value of the chosen alternative, not the forgone one. References: 1: Opportunity Cost: Definition, Calculation Formula, and Examples1

Change requests are more likely to occur in the early stages of a project, when the requirements are being elicited, analyzed, and validated. During this time, stakeholders may discover new needs, identify gaps, or revise their expectations. Change requests may also arise due to changes in the business environment, such as new regulations, market trends, or competitor actions. Change requests are less frequent in the later stages of a project, when the requirements are more stable and the solution is being designed, developed, and tested. References:

A Guide to the Business Analysis Body of Knowledge (BABOK Guide), Version 3, Chapter 4: Requirements Life Cycle Management, Section 4.5: Manage Changes1

CBAP Certification Study Guide v3.0, Chapter 4: Requirements Life Cycle Management, Section 4.5: Manage Changes2

The business analysis approach is a plan that describes how the business analysis activities will be performed, including the deliverables, the team roles, the analysis techniques, the communication methods, the change management process, and the stakeholder engagement strategy. The business analysis approach does not define the requirements for solutions acceptance, which are the criteria that the solution must meet to be accepted by the stakeholders. The requirements for solutions acceptance are part of the solution scope, which is an output of the enterprise analysis tasks, not the business analysis approach. References:

[A Guide to the Business Analysis Body of Knowledge (BABOK Guide)], version 3, page 24, section 2.21

[CBAP Certification Study Guide v3.0], Chapter 4: Requirements Life Cycle Management, Section 4.1: Plan Business Analysis Approach, page 4-22

Business Analysis Approach, paragraph 1

Total cost of ownership (TCO) is a financial estimate that helps consumers and enterprise managers determine direct and indirect costs of a product or system. TCO goes beyond the initial purchase price or implementation cost to consider the full cost of an asset over its useful life. It is a key concept in the business analysis tasks of enterprise analysis and solution assessment and validation. TCO can help evaluate the feasibility and viability of different solution options and compare them with the business need and expected benefits. References:

IIBA BABOK Guide v3, p. 30, 176, 264

CBAP 150 Practice Questions Flashcards, Question 1

Production Costs: What They Are and How to Calculate Them - Investopedia

Cost of Solution vs. Cost of Problem · Jens Oliver Meiert