Examice

An insurance company wants to implement a business intelligence solution to consolidate data from various different internal systems to provide a better understanding of their customer base.

A business analyst (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implementation partners. Among other information, the business analyst requests the following:

✑ Licensing costs for Year 0 based on meeting 1 Central Processing Unit (CPU) license

✑ Licensing costs for specific user types such as Report Creators. Online Analytical Processing (OLAP) users and Power uses Predicted licensing costs for renewing in Years 1 ad 2

✑ Full implementation costs

After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:

The BA also conducts a sensitivity analysis to compare the expected costs should the company's needs grow based on the following information:

Scenario 1: Ten extra report creator, 1 extra OLAP user and 1 extra power user licenses and 2 extra CPU licenses

Scenario 2: Twenty five extra report creator, 1 extra OLAP user and 1 extra power user licenses and 3 extra CPU licenses

The insurance company has a maximum budget of $810,000 for the entire implementation and operation over the first three years. Which vendor or vendors meet that criteria?

Correct Answer: A

To determine which vendor meets the $810,000 budget for the entire implementation and operation over the first three years, we need to calculate the total costs for each company, including license, implementation, and travel expenses. 1. Company A: License Costs for Year 0: $323,458 License Costs for Years 1 and 2: $270,092 Implementation Costs: $28,500 + $55,000 + $121,500 = $205,000 Travel Expenses: $10,000 Total Cost for Company A: $323,458 + $270,092 + $205,000 + $10,000 = $808,550 2. Company B: License Costs for Year 0: $373,355 License Costs for Years 1 and 2: $202,086 Implementation Costs: 150 days @ $1,500 per day = $225,000 Travel Expenses: $10,000 Total Cost for Company B: $373,355 + $202,086 + $225,000 + $10,000 = $810,441 3. Company C: License Costs for Year 0: $400,244 License Costs for Years 1 and 2: $214,096 Implementation Costs: 159 days @ $1,350 per day = $214,650 Travel Expenses: $10,000 Total Cost for Company C: $400,244 + $214,096 + $214,650 + $10,000 = $838,990 The only company that meets the budget of $810,000 is Company A, with a total cost of $808,550.