Entry Certificate In Business Analysis ECBA · Free Practice Question Medium
Question 17
A Business Analyst is asked to justify the cost of a new data analytics initiative. What should be the primary argument in their justification of value?
- A The sophistication of the analytics tools being proposed
- B The ability of the analytics initiative to provide actionable insights that lead to better decision-making, increased efficiency, new revenue streams, or improved risk management, with clear examples of potential benefits
- C The volume of data that can be processed by the new system
- D The project plan and the expertise of the data science team
Reveal correct answer
Correct answer: B
Explanation
This scenario highlights the importance of justifying investments based on the tangible business value they will deliver. For a data analytics initiative, the value lies in the actionable insights it provides and the positive impact those insights have on key business outcomes like decision-making, efficiency, revenue, and risk management.A. Technical sophistication is not the primary driver of business value
B. Yes! This option directly links the initiative to tangible business outcomes and demonstrates the potential return on investment
C. Data volume alone doesn't guarantee business insights or value
D. While important for execution, they don't directly articulate the business value
Discussion
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