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IIBA Exam CBAP 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?

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Lamar
6 months ago
Actually, I think buying the new system with only the first 5 features might be a better option. It could be more efficient in the long run.
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Layla
7 months ago
I agree with User 1, we should focus on upgrading system A since it processes the majority of claims.
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Arthur
7 months ago
But what about system B? It can handle more claims and upgrading it might be more cost-effective.
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Jose
7 months ago
I think we should upgrade system A with the first 8 features.
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Graham
8 months ago
Or maybe we should just buy the new system with only the first 5 features.
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Lucina
8 months ago
I agree with Nichelle, upgrading system A seems more feasible.
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Adolph
8 months ago
But what about upgrading system B with the first 8 features?
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Nichelle
8 months ago
I think upgrading system A with the first 8 features might be the best option.
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Kirk
8 months ago
We need to make sure the project stays within budget.
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