Babok Chapter 5 Enterprise Analysis

Front 1

What is the best definition for the Enterprise Analysis Knowledge Area:
a. Enterprise Analysis consists of activities for defining business needs, recommending
a solution to meet those needs, and deciding on the solution.
b. Enterprise Analysis consists of activities for defming business needs, recommending
a solution to meet those needs, and substantiating the cost ofthe solution.
c. Enterprise Analysis spans the analysis work done after the executive team of the
organization develops strategic plans anti goals, and ends after projects have been
initiated.
d. Enterprise Analysis occurs after an organization has identified business
opportunities and the Business Architecture framework has been determined for
new business and technical system solutions.

Back 1

b. Enterprise Analysis consists of activities for defming business needs, recommending
a solution to meet those needs, and substantiating the cost ofthe solution.

Hint 1

Straight out of the definition of this KA. BABOK Section 5 overview.

Front 2

Consider a scenario in which a sponsor has initiated an effort to purchase and install a
COTS package. You discover that no other enterprise analysis work has been performed.
The first thing that should be done is to:
a. Determine the approach to implementing the COTS solution.
b. Define the scope of the COTS solution.
c. Determine how the COTS package meets the business need.
d. Define the business need that the COTS package is intended to address.

Back 2

d. Define the business need that the COTS package is intended to address.

Hint 2

The first task in enterprise analysis is to define the business need. Part of the definition of Enterprise Analysis and the NGASC mnemonic helps remember this. The 'N' stands for Business Need. BABOK 5.1

Front 3

The tasks for the Enterprise Analysis Knowledge Area include all of the following:
a. Create and maintain the business architecture, determine project scope, define the
requirements risk approach, prepare the decision package, and track project benefits.
b. Define the business need, conduct feasibility studies, prepare the decision package,
and determine organizational readiness.
c. Define the business need, determine gap in capabilities to meet the business need,
determine the solution approach, define the solution scope, and develop the business
case.
d. Define the business need, determine gap in capabilities to meet the business need,
determine the solution approach, help stakeholders understand new business
capabilities, and develop the business case.

Back 3

c. Define the business need, determine gap in capabilities to meet the business need,
determine the solution approach, define the solution scope, and develop the business
case.

Hint 3

Again, this is a direct answer from the definition, the Table of Contents, and the NGASC mnemonic. BABOK Section 5, overview.

Front 4

Which of these techniques are most applicable to preparing a business case?
a. Cost-benefit analysis, financial analysis, and SWOT analysis.
b. Document analysis, risk analysis, and vendor assessment.
c. Goal baselining, fmancial analysis, and SWOT analysis.
d. Competitive analysis and benchmark studies, estimating techniques, and risk
analysis.

Back 4

a. Cost-benefit analysis, financial analysis, and SWOT analysis.

Hint 4

Cost-benefit analysis and financial analysis are listed as the major parts of decision
analysis. SWOT analysis is also listed as a technique. Each of the other answers has
only two applicable elements or techniques. BABOK 5.5.5.

Front 5

Which of the following statements best describes the role of the Domain SME when defining
solution scope?
a. Measures the business analysis performance.
b. Modeling the scope of potential solutions.
c. Approval of the Business Case.
d. Provides estimates to the project manager.

Back 5

b. Modeling the scope of potential solutions.

Hint 5

SMEsneed to participate in defining the scope of solutions. BABOK 5.4.6.

Front 6

Which of the following steps will logically occur last in enterprise analysis:
a. Determine gap in capabilities to meet the business need.
b. Determine the solution approach.
c. Define the business case.
d. Define the solution scope.

Back 6

c. Define the business case.

Hint 6

Part of the definition of EA and the NGASe mnemonic helps remember this.
The 'C' stands for Business Case. BABOK5.5.

Front 7

Root cause analysis is a technique used with which of the following aspects of enterprise
analysis:
a. Defining the business goals and objectives.
b. Determining the gap in capabilities an organization has.
c. During SWOT analysis for determining weaknesses and threats.
d. Determining the business need.

Back 7

d. Determining the business need.

Hint 7

Business needs are problems or
opportunities, so root cause analysis will help
determine the underlying cause or source of
a problem. That is another way of describing
"business need," making this the right
answer. BABOK 5.1.5.

Front 8

Studying an existing enterprise architecture and doing document analysis will help the most
with which aspect of enterprise analysis:
a. Define business needs, particularly understanding business goals and objectives.
b. Define business needs, particularly understanding a business problem or opportunity.
c. Assess capability gaps, particularly understanding the current capabilities of the
enterprise.
d. Assess capability gaps, particularly assessing capability requirements.

Back 8

c. Assess capability gaps, particularly understanding the current capabilities of the
enterprise.

Hint 8

Understanding the current state and capabilities is needed in order to find and analyze the gaps. Enterprise architecture is an input to this task, and document analysis is a technique for doing it. BABOK 5.2.4 and 5.2.5.

Front 9

For which of the following tasks or elements would it be most appropriate to generate
alternatives during enterprise analysis:
a. Assess new capability requirements.
b. Determine solution approach.
c. Determine implementation approach.
d. Define solution scope.

Back 9

b. Determine solution approach.

Hint 9

Alternative generation is listed as an element of the task Determine Solution
Approach. Generating alternatives during this task helps to find the optimal solution to meet a business need. BABOK 5.3.4.

Front 10

Suppose you were assigned to a project that has a defined and approved solution scope for a new COTS package. The next thing you would do is:
a. Define a business case, starting with identifying and quantifying the benefits and costs.
b. Define a business case, starting with determining the measurement process for
benefits and costs.
c. Finish defming the solution scope by adding the implementation approach.
d. Finish de:fming the solution scope by conducting a vendor assessment.

Back 10

a. Define a business case, starting with identifying and quantifying the benefits and costs.

Hint 10

Once the solution scope has been defined, a business case needs to be defined. The first steps of defining a business case are to identify and quantify the benefits and costs of the proposed solution. BABOK 5.5.3.

Front 11

List the tasks part of Enterprise Analysis

Back 11

Define business need
Assess capability gaps
Determine solution approach
Define solution scope
Define business case

Hint 11

Mnemonic NGASC

Front 12

Explores important aspects of a decision having a limited number of alternatives, and/or where uncertainty exists.
a. Feasibility Analysis
b. Gap Analysis
c. SWOT Analysis
d. Problem or Vision Statement

Back 12

b. Gap Analysis

Hint 12

Gaps are the differences between the current and future states. Gap analysis compares the states to identify differences between them. It can then be determined whether the organization has the capability to address the business
need, or whether a project is needed to add the capability.

Front 13

Aids in clarifying appropriate boundaries for the solution.
a. Decision Analysis
b. Problem or Vision Statement
c. Scope Modeling
d. Root Cause Analysis

Back 13

c. Scope Modeling

Hint 13

Aids in clarifying appropriate boundaries for the solution scope. Methods such as Context Diagrams, Work Breakdown Structures, and Use Case Diagrams can help model scope.

Front 14

Helps in understanding the work needed to integrate the proposed solution into the existing environment.
a. Gap Analysis
b. Problem or Vision Statement
c. SWOT Analysis
d. Interface Analysis

Back 14

d. Interface Analysis

Hint 14

Helps in understanding the work needed to integrate the proposed solution into the existing environment.

Front 15

Projecting the time and costs of doing something, such as a proposed project.
a. Estimating Techniques
b. Benchmarking
c. Scope Modeling
d. Functional Decomposition

Back 15

a. Estimating Techniques

Front 16

Comparing an organization's products, processes, performance, or other measures against similar organizations.
a. Estimating Techniques
b. Benchmarking
c. Scope Modeling
d. Functional Decomposition

Back 16

b. Benchmarking

Hint 16

Benchmarking is a technique for learning from key competitors and from an industry as a whole. Benchmarking aims to discover industry best practices, and to recommend which ones to adopt. Competitive analysis is one form of benchmarking. It focuses on comparing an organization's own characteristics against features and functions that key competitors have, to determine changes needed to meet or exceed the competition.

Front 17

Clarifies the business need, identifies stakeholders, and projects the potential benefits that a proposed solution will have.
a. Root Cause Analysis
b. Benchmarking
c. Feasibility Analysis
d. Problem or Vision Statement

Back 17

d. Problem or Vision Statement

Hint 17

Clarifies the business need, identifies stakeholders, and projects the potential benefits of a proposed solution to address the business need. A typical problem statement consists of:
Define the problem/situation.
Who is affected by the problem?
How the problem impacts each category of stakeholder.
Provide the key benefits produced by solving the problem.

Front 18

Helps in breaking down deliverables into sub-deliverables and for determining activities to accomplish them.
a. Estimating Techniques
b. Decision Analysis
c. Functional Decomposition
d. Interface Analysis

Back 18

c. Functional Decomposition

Hint 18

Decomposition breaks down something that is higher-level- such as functional areas, their processes, or project deliverables - into simpler subsets for the purpose of studying or analyzing it. This technique is often presented using graphical models, such as a decomposition diagram as shown below .

Front 19

Helpful in making wise investment choices, using tools such as cost-benefit analysis and financial analysis.
a. Estimating Techniques
b. Decision Analysis
c. Feasibility Analysis
d. Benchmarking

Back 19

b. Decision Analysis

Hint 19

Helpful in making wise investment choices. Key Components:
a) Cost-Benefit Analysis - Used to compare benefits of a proposed solution against the costs of obtaining them.
b) Financial analysis - employed to quantify costs and benefits, and to estimate market assets.

Front 20

A strategic planning tool to help manage change in an organization, and to uncover missed opportunities and threats.
a. Benchmarking
b. Decision Analysis
c. Feasibility Analysis
d. SWOT Analysis

Back 20

d. SWOT Analysis

Hint 20

Typically used as a strategic planning tool, SWOT analysis is used to explore the current state of an organization using 4 key strategic variables. It stands for Strengths, Weaknesses, Opportunities, and Threats. Applied to enterprise analysis, SWOT can also be used to help perform opportunity analysis (using the 0 or opportunity) and competitive analysis (using the T or Threat).

Front 21

Identifies and analyzes potential ventures to realistically address business needs.
a. Benchmarking
b. Decision Analysis
c. Feasibility Analysis
d. SWOT Analysis

Back 21

c. Feasibility Analysis

Hint 21

An initial study to determine whether a solution is viable to accomplish a desired
outcome, whether it's to solve a problem or seize an opportunity.

Front 22

Compares the desired state of an organization against its current state, to determine changes needed.
a. Feasibility Analysis
b. Gap Analysis
c. SWOT Analysis
d. Problem or Vision Statement

Back 22

b. Gap Analysis

Hint 22

Gaps are the differences between the current and future states. Gap analysis compares the states to identify differences between them. It can then be determined whether the organization has the capability to address the business
need, or whether a project is needed to add the capability.

Front 23

Using analytical techniques to determine the principal source( s) of a problem.
a. Decision Analysis
b. Problem or Vision Statement
c. Scope Modeling
d. Root Cause Analysis

Back 23

d. Root Cause Analysis

Hint 23

Root cause analysis (sometimes called problem analysis) is mainly used to uncover the source or "root" cause( s) of business problems. There are several types of analytical tools that can be used, and the BOK describes two in this section. The tools can also be used to determine the main "drivers" or factors for an opportunity.

Front 24

A budgeting method to calculate the hypothetical annual yield of an investment.
a. Discounted Cash Flow (DCF)
b. Net Present Value (NPV)
c. Internal Rate of return (IRR)
d. Average Rate of Return (ROR)

Back 24

c. Internal Rate of return (IRR)

Hint 24

This is a budgeting method to calculate the hypothetical annual yield of an investment. If the IRR is greater than what financial markets pay for similar or lower risks, than the project is a good investment. For example, if an IRR of a proposed project is 5% and current interest rates are at 3%, then the project would be a good investment.

Front 25

The length of time for an investment to pay for itself.
a. Discounted Cash Flow (DCF)
b. Pay Back Period
c. Cost-Benefit Analysis (CBA)
d. Average Rate of Return (ROR)

Back 25

b. Pay Back Period

Hint 25

The length of time (in months or years) for an investment to pay for itself. In the previous example, the pay-back period would be 5 years ($200K per year after 5 years = $1 M).

Front 26

Choose projects with the most valuable benefits after considering costs, adjusted for their time-value.
a. Discounted Cash Flow (DCF)
b. Pay Back Period
c. Cost-Benefit Analysis (CBA)
d. Average Rate of Return (ROR)

Back 26

c. Cost-Benefit Analysis (CBA)

Hint 26

Quantifying costs and expected benefits of a project. The goal is to choose projects with the most valuable benefits after considering costs, adjusted for their time-value.

Front 27

Compares returns on a prospective project vs. what money could potentially earn in financial markets.
a. Discounted Cash Flow (DCF)
b. Pay Back Period
c. Cost-Benefit Analysis (CBA)
d. Average Rate of Return (ROR)

Back 27

a. Discounted Cash Flow (DCF)

Hint 27

This technique values projects or other assets using the concept of "time value of money." It compares returns on a prospective project vs. what money could potentially earn in financial markets. Using formulas to estimate future cash flows from a project, it discounts them to determine a present value.

Front 28

Alternatives are judged on how well they support various objectives, and relative scores are used to calculate the best alternative.
a. Cost-Benefit Analysis (CBA)
b. Elimination of Dominated Alternatives
c. Pay Back Period
d. Weighted Ranking

Back 28

d. Weighted Ranking

Hint 28

The variables used as the basis for choosing are assigned weights, such as from 1 to 100 or a percentage. The alternatives are judged on how well they support each objective, and relative weighted scores are used to calculate the best alternative. A decision tree may assist the process.

Front 29

The ratio of money earned or lost over some time period, compared to what was invested.
a. Discounted Cash Flow (DCF)
b. Net Present Value (NPV)
c. Internal Rate of return (IRR)
d. Average Rate of Return (ROR)

Back 29

d. Average Rate of Return (ROR)

Hint 29

It is the average ratio of money earned or lost over some time period, compared to what was invested. ROR is also known as Return on Investment (ROI). For example, if$l million was invested in a project, and it saves $200,000 per year, then the ROR would be 20%.

Front 30

Facilitating a decision if a choice is judged to be worse than one or more of the other choices.
a. Cost-Benefit Analysis (CBA)
b. Elimination of Dominated Alternatives
c. Pay Back Period
d. Weighted Ranking

Back 30

b. Elimination of Dominated Alternatives

Hint 30

This is eliminating an alternative(s) if it is judged to be worse than (l.e., "dominated" by) one or more ofthe other alternatives.

Front 31

The estimated future value a project might bring less its calculated value today.
a. Discounted Cash Flow (DCF)
b. Net Present Value (NPV)
c. Internal Rate of return (IRR)
d. Average Rate of Return (ROR)

Back 31

b. Net Present Value (NPV)

Hint 31

NPV also uses "time value of money" to judge the value of potential capital investments. NPV is the estimated future value a project might bring less its calculated value today ("present value") of what the future value will be. If the NPV is greater than zero (i.e., greater than what an investment in the financial markets could yield over the same time) it's a good investment. IfNPV is zero or less, it's not a good investment.

Front 32

Name the Elements of Define Business Case:

Back 32

• Benefit identification
• Cost identification
• Risk Assessment for the solution
• Measurement Process

Hint 32

Mnemonic BC RAMP ("Bic Ramp")

Front 33

What is the purpose of a benchmark?
a. To define the business goals and objectives
b. To compare strengths of an organization against its peers
c. To determine the scope
d. To determine the solution

Back 33

b. To compare strengths of an organization against its peers

Hint 33

BABOK 9.2 page 156

Front 34

When a business need is defined as a bottom up need, what is it referring to?
a. business goals and objectives
b. management needs some more information
c. market problems
d. a problem with the current state

Back 34

d. a problem with the current state

Hint 34

BABOK 5.1.2 page 83

Front 35

You are defining a business problem and the brainstorming with a group of stakeholders. The techniques you use analyzes cause and effects what techniques are you using?
a. the five whys
b. brainstorming
c. context diagram
d. Fishbone diagram

Back 35

d. Fishbone diagram

Hint 35

BABOK 9.25.3 page 202

Front 36

What is the purpose of a context diagram?
a. shows the external entities and data stores
b. helps to determine strengths and weaknesses
c. illustrates the organization functions
d. determines the scope of the software application

Back 36

a. shows the external entities and data stores

Hint 36

BABOK 9.27.3 page 206

Front 37

What is the solution scope comprised of?
a. time and schedule
b. strengths and weaknesses
c. features and functions
d. determines the scope of the software application

Back 37

c. features and functions

Hint 37

BABOK 5.4 page 91

Front 38

What is the purpose of the implementation approach?
a. defines how the business will accept the solution
b. how the solution approach will deliver the solution scope
c. is not applicable to business analysis
d. determines the scope of the software application

Back 38

b. how the solution approach will deliver the solution scope

Hint 38

BABOK 5.4.4.2 page 93