During a 'Analyze Current State' exercise, you discover that the existing legacy system has a technical debt that costs \($200,000\) annually in maintenance. A new solution costs \($800,000\) to implement and will reduce maintenance to \($40,000\) per year. However, the organization's internal rate of return (IRR) is 12%. What is the most critical non-financial factor you must assess before recommending this change strategy?https://go-math-science.com/computing/software-engineering/requirements-engineering/cbap-certification-practice-exams/cbap-practice-exam-5/during-a-analyze-current-state-exercise-you-discover-that-the-existing-legacy-system-has-a-technical-debt-that-costs-200-000-annually-in-maintenance-a-new-solution-costs-800-000-to-implement-and-will-reduce-maintenance-to-40-000-per-year-however-thehttps://go-math-science.com/@@site-logo/logo-new.png
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During a 'Analyze Current State' exercise, you discover that the existing legacy system has a technical debt that costs \($200,000\) annually in maintenance. A new solution costs \($800,000\) to implement and will reduce maintenance to \($40,000\) per year. However, the organization's internal rate of return (IRR) is 12%. What is the most critical non-financial factor you must assess before recommending this change strategy?
publish date: 2026/03/25 20:30:20.192429 UTC
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Correct Answer
The organization's cultural readiness and capacity to absorb the change
Explanation
In Strategy Analysis, organizational 'readiness' and 'culture' are primary constraints that can cause a technically sound strategy to fail.
