Organizations should reduce their investment in a product when the product's: (choose the best answer)

An organization should reduce investment when a product's Unrealized Value (UV) is very small. Unrealized Value represents the potential future value that could be gained by meeting all potential customer needs. A small UV indicates that the product has likely reached market saturation or its maximum potential value. At this stage, further significant investment would yield diminishing returns. The strategic focus should shift from growth to maintenance, sustaining the product's Current Value with minimal new investment. This allows the organization to reallocate resources to other products or opportunities that have a larger Unrealized Value and greater potential for growth.

B. Current Value is very low: A low Current Value, especially when paired with high Unrealized Value, is often a reason to increase investment to capture the market opportunity.

C. Current Value is very high: A high Current Value indicates current success. Investment is often required to maintain this market position, innovate, and defend against competitors.

D. Unrealized Value is very large: A large Unrealized Value signals a significant market opportunity and is a primary reason to increase investment, not reduce it.

E. None of the above: Option A provides a clear, strategic reason for reducing investment based on the principles of Evidence-Based Management.

1. Scrum.org. (2020). The Evidence-Based Management Guide.

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"Unrealized Value" section: Defines Unrealized Value as the potential future value and states

"Organizations need to consider the Unrealized Value that exists in the market they serve when making investment decisions."

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"Putting EBM into Practice" section: Provides a scenario: "An organization with a product that has high CV and low UV might consider how to sustain that value with minimal further investment." This directly supports that low UV is a trigger to reduce investment.