IIBA CBAP Exam - Topic 2 Question 85 Discussion

Actual exam question for IIBA's CBAP exam

Question #: 85
Topic #: 2

[All CBAP Questions]

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 onvolved 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 processes 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 system have some of the tem 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?

ABuy the new system with only the first 8 features.

BUpgrade system A with the first 8 features

CUpgrade system B with the first B features

DBuy the new system with only the first 5 features

Show Suggested Answer

Suggested Answer: B

by Evangelina at Apr 20, 2024, 08:01 AM

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Precious

4 months ago

Totally agree, System A is the way to go!

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Buck

4 months ago

Buying a new system seems too expensive for just 8 features.

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Rodolfo

4 months ago

Wait, can we really trust System B with all that legacy code?

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Robt

4 months ago

I think upgrading System A is the best option.

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Leota

5 months ago

System A is user-friendly but going offline daily is a big issue.

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Jaime

5 months ago

Buying the new system with only the first 8 features could work, but I wonder if that would really meet all the regulatory requirements coming next year.

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Darrin

5 months ago

I feel uncertain about System B; even though it can handle more claims, the legacy code might complicate the upgrade.

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Merlyn

5 months ago

I remember a similar question where we had to prioritize features based on budget constraints. Buying a new system seems risky given the budget limit.

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Tracie

5 months ago

I'm not entirely sure, but I think upgrading System A with the first 8 features might be the best option since it’s user-friendly and processes most claims.

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Ilene

5 months ago

Based on the information provided, I'm leaning towards upgrading System A with the first 8 features. That seems to be the most cost-effective solution that still meets the majority of the requirements. I'll double-check the numbers, but that's my initial thinking.

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Xuan

5 months ago

I'm a bit confused by all the details here. I think I need to re-read the question a few times to make sure I understand the tradeoffs between the systems and the budget constraints. This is going to require some careful analysis.

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Rasheeda

5 months ago

Okay, let me think this through step-by-step. The key is to prioritize the features and see which solution can deliver the most critical ones within the $3.5 million budget. I'll need to analyze the cost breakdown carefully.

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Brianne

5 months ago

Hmm, this is a tricky one. I'm leaning towards upgrading System A since it already handles 75% of the claims and the stakeholders seem to like it. But I'll need to double-check the costs to make sure it fits the budget.

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Margarita

6 months ago

This is a complex question with a lot of details to consider. I'll need to carefully review the information about the two existing systems and the new system to determine the best solution that stays within the $3.5 million budget.

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Rosio

6 months ago

This question seems pretty straightforward. I think the key is to focus on the change control phase of the maintenance life cycle and identify the issues it addresses.

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