cbap question 490 discussion

Question 490

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?

• A. Buy the new system with only the first 8 features.
• B. Upgrade system A with the first 8 features
• C. Upgrade system B with the first B features
• D. Buy the new system with only the first 5 features