volume_mute

The 'Paperwork Gap' accounts for 4 hours of manual re-typing. What is the 'Opportunity Cost' the BA should present to the CEO regarding the Admin staff?

publish date1969/12/31 00:00:00 UTC

volume_mute

Correct Answer

The fact that those 4 hours could be spent on 'Exception Handling' and 'Customer Retention' calls instead of data entry.

Explanation

Opportunity cost is the value of the 'Next Best Alternative.' By automating data entry, the staff's human intelligence can be re-allocated to high-value tasks that directly reduce the 12% cancellation rate. This is part of 'Strategy Analysis,' specifically identifying the 'Potential Value' of a solution by quantifying the benefits of re-deploying resources.

Reference

go-math-science.com


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