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Question 380

A large insurance company wants to buy a new claims processing system or upgrade one of its two existing systems. Each year the claims department is given a

$3,5 million budget to spend. Time is of the essence since there are some regulatory changes that will be coming the following year that will require several features that currently neither one of the two claims systems currently support.

There are eight stakeholders involved in this initiative. There are local to where the claim systems 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 systems. 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 modular 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 processes 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 systems have some of the ten 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 System A is unanimously selected to be the system for upgrade but the technical lead says that System A will have to be taken offline for 3 months, what kind of strategy should the project team develop while System A is offline?

    Correct Answer: A

    The project team should develop a change strategy while System A is offline. A change strategy will outline the context of the change, alternative strategies, investment and resources required, how value will be realized, and key stakeholders involved. It ensures a smooth transition from the current state to the future state and addresses organizational readiness, major costs, timelines, and alignment with business objectives.

Discussion
siliconvalleykamOption: A

Change is correct

Farooq_95Option: A

Change strategy needs to be developed so that change can be managed smoothly while upgrading system A when it is offline.

DeldimOption: C

C. Define Future State 6.2.5 Organizational Strategy: describes the path, method, or approach an enterprise or organization will take to achieve its desired future state. This can be implicitly or explicitly stated.

Deldim

I've changed my opinion; the change strategy is the correct answer. "Developing a change strategy is simpler when the current state and the future state are already defined The change strategy clearly describes the nature of the change in terms of: • context of the change, • identified alternative change strategies, • justification for why a particular change strategy is the best approach, • investment and resources required to work toward the future state, • how the enterprise will realize value after the solution is delivered, • key stakeholders in the change, and • transition states along the way" " The preferred change strategy should be selected considering: • organizational readiness to make the change, • major costs and investments needed to make the change, • timelines to make the change, • alignment to the business objectives, • timelines for value realization, and • opportunity costs of the change strategy."

paoloscottOption: A

Change Strategy.