Determining the Value Proposition

  • Collect and analyze information from a variety of sources
  • Use valuation tools and techniques
  • Contribute to determining the value proposition of the initiative

Once the problem is defined, a BA pulls information from multiple sources — financial data, market research, prior project records, direct stakeholder input — and runs it through valuation techniques like cost-benefit analysis or a SWOT analysis to help answer the real question: is this initiative actually worth doing, and what specific value would it create? This is a contributing role, not a solo decision — the BA feeds analysis into a judgment leadership ultimately makes.

The value proposition that comes out of this step is what later gets measured against in Domain V's evaluation tasks, so vague or unsupported value claims here tend to make it impossible to judge success honestly once the solution ships. A value proposition stated as "this will improve customer experience" with no measurable component behind it isn't something anyone can actually evaluate later.

Study focus: expect a scenario where several possible initiatives are described with rough cost and benefit figures, asking which valuation technique (or which initiative) best supports a given decision — these questions reward matching the right technique to the kind of comparison actually being made.

Key terms in this chapter

Valuation technique · Value proposition · Cost-benefit analysis · SWOT analysis

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