Exam IIBA-CBDA topic 1 question 7 discussion

Based on data analytics, this is a good goal as the analysis determines an increased revenue which is good for the company.

A. It meets all the criteria for a well-defined objective. This is a smart goal.

I think A. It meets all the criteria for a well-defined objective. This goal is well-defined because it satisfies the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound. It clearly specifies a reduction in price by 20%, a measurable increase in revenues of 2% over a 6-month period, and sets a clear timeline. According to the IIBA Guide to Business Data Analytics (3.15 Problem Shaping and Reframing - Purpose), well-defined objectives help to refine the problem so that a solution process can be applied effectively. Supporting Reference: IIBA Guide to Business Data Analytics, Chapter 3.15 (Problem Shaping and Reframing - Purpose).

Answer: A A well-defined objective is one that is specific, measurable, achievable, relevant, and time-bound (SMART)1. The goal of increasing sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period meets all these criteria, as it clearly states what the desired outcome is, how it will be measured, whether it is realistic and attainable, how it aligns with the organization's strategy, and when it will be achieved.

I'm dabbling between A & B but, I think B might be more correct... A is more a BABOK answer in my mind. B. The organization can derive additional revenue from the product This choice reflects the outcome of the data analysis indicating that reducing the price of the mature product by 20% would result in increased revenues of 2% over a 6-month period. Data analysis would substantiate that the strategy can indeed lead to additional revenue generation, making it a sound decision from a data-driven perspective.