The Operations Manager claims that hiring 10 people is 'less risky' than a software project. How should the BA evaluate this 'Option' against the API?

Perform a 'Total Cost of Ownership' (TCO) analysis over 3 years, comparing $1.8M in salary costs vs. $1.2M in one-time API costs plus maintenance.

Explanation

BA decision-support involves 'Financial Analysis.' While hiring is faster (OPEX), automation (CAPEX) is usually more cost-effective over a multi-year horizon. The TCO provides the Board with the long-term impact of both decisions. This utilizes the 'Strategy Analysis' domain task of 'Define Change Strategy' by assessing the costs and benefits of different approaches to achieving the future state.