Business analytic ( business insight analysis)

Assessment Requirement:
Submit a report of 2000 words excluding cover page, content page, and references.
Make sure that you have carefully read and fully understood the tasks before answering
them. Complete the tasks fully but concisely and as directly as possible. Follow all
specific instructions for individual questions.
Answer all tasks in your own words. Do not copy any text from the notes, readings or
other sources. The assignment must be your own work only.
Suppose your organization is facing a problem in their legacy system that analyses organization
social network data. You as business analyst have to decide whether to buy a new software or
upgrade their legacy system. Some influential stakeholders believe that by upgrading this
software your organization can save millions, while others feel that staying with the legacy
software is the safest option, the following alternatives would be taken into consideration:
Upgrade the legacy system: The upgrading that is proposed to be done inside the
organization itself will cost 80,000 AED and the probability of having successful upgrade
is 40 % with revenue of 600,000 AED, on the other hand the unsuccessful upgrade could
lead to loss only with no benefits.
Build new software: To build the new software, this will lead to either a successful
deployment (with probability of 40%) or an unsuccessful one. If the deployment is
successful then the revenue is 800,000, However, if the deployment is unsuccessful, then
losses will materialize and the impact is 90,000, which is the cost of building a new
software in all cases.
Stay with the legacy software: If the company decides to stay with the legacy software,
the associated cost is mainly maintenance and will amount to 30,000.
You are hired as Business Analysts to investigate and analyse this situation. In your
analysis, you are required to do the following
1. Develop the payoff table that is associated with all possible combinations of
alternatives actions, then decide and evaluate on the optimal solution for the
above scenarios. In your evaluation, you should show a comprehensive knowledge
of using the five decision models that covered during the classes.
(CLO3/20 marks)

2. Now consider that another company offers to sell to your organization a new
software that meets their requirements. In order to buy this new software, the
associated cost is AED 900,000, and will lead to revenue of AED 1 million.
a) Develop a decision tree that shows all previous set of alternatives with
their outcomes (full decision tree is needed), and with reference, discuss
your approach in developing the decision tree
(CLO1 7 marks, CLO4/23 marks)
b) Deduce and evaluate one optimal solution as a result of the analysis that
you have developed in part a.
(CLO5 /10 marks)
c) As a Business Analyst, you are asked to propose another new alternative
of actions, design new full scenario with their
outcomes/costs/profits/probabilities and develop a new decision tree
that includes all previous alternatives (including alternatives proposed in
this part). Then, deduce and evaluate one optimal solution accordingly,
with proper justifications that demonstrate your comprehensive
knowledge in decision analysis gained during the course, write your
reference (if available)
(CLO4 10 marks, CLO5/10 marks)
3. Appraise various literature review on linear optimization approach and critically
justify if linear optimization approach can be used to solve the above problem
Include citation on your findings.
(CLO2/7 marks, CLO5/13)