Scaled Agile SAFe-APM SAFe Agile Product Manager (APM 5.1) Exam Practice Test

A value exchange pivot is a type of pivot that changes the way customers pay for the product or service, or the way the business generates revenue from the product or service. A value exchange pivot would indicate that customers want to pay in a different way, because it reflects a change in the customer preferences, behavior, or expectations regarding the payment method, frequency, or amount. For example, a business may pivot from a one-time purchase model to a subscription model, or from a fixed-price model to a pay-per-use model, based on the customer feedback and data.

References:

• Pivot: This article from the Scaled Agile Framework defines the concept and purpose of pivot, and how it helps to validate or invalidate the assumptions and hypotheses of a product or service using experiments and feedback.
• The 10 Types of Startup Pivots: This article from Forbes provides an overview of the 10 types of startup pivots, and how they can help entrepreneurs adapt and innovate in response to the market and customer needs. It also provides some examples of successful pivots by well-known companies.

T-Shirt sizing is a sizing standard that is used to estimate Feature effort in the analysis stage of the ART Kanban. T-Shirt sizing is a relative estimation technique that uses predefined categories, such as XS, S, M, L, XL, to assign a size to a Feature based on its complexity, uncertainty, and dependencies. T-Shirt sizing is a quick and simple way to compare and prioritize Features without getting into too much detail or precision. T-Shirt sizing also helps to calculate the Weighted Shortest Job First (WSJF) value of a Feature, which is a prioritization method that considers the cost of delay and the job size.

References:

• ART and Solution Train Backlogs - Scaled Agile Framework
• ART Kanban - Scaled Agile Framework
• New and Updated Kanban Articles provide more effective guidance for …
• Program and Solution Kanbans - Scaled Agile Framework

A product vision is a statement that describes the desired outcome and value proposition of a solution. It helps guide the development of the solution by providing a clear and compelling direction. A product vision also helps drive a solution roadmap, which shows the planned features and milestones for the solution over a timeline. A product vision is part of the solution intent, which is the repository of the current and intended solution behavior and design.

References:

• Solution Intent
• Solution Vision
• Roadmap
• Solution Management

The PO Sync is an ART event used to gain visibility into the ART’s progress toward meeting its PI objectives and to make any necessary adjustments. The PO Sync is commonly facilitated by the Release Train Engineer (RTE), who is the servant leader and chief Scrum Master for the ART. The RTE helps to coordinate the PO Sync by inviting the Product Owners and Product Management, setting the agenda, managing the timebox, and resolving any impediments or conflicts.

References:

• Product Owner (PO) Sync - Scaled Agile Framework
• Release Train Engineer and Solution Train Engineer - Scaled Agile Framework
• 5 Practices to Start Scaling Agile by Mike Hall | Agile Velocity

Outcome metrics are the metrics that measure the impact and value of a product on the customers and the business. Outcome metrics help product managers to guide the evolution of the products by focusing on the desired outcomes and benefits, rather than the outputs and features. Outcome metrics also help product managers to validate the assumptions and hypotheses behind the product strategy, and to iterate and improve the product based on customer feedback and data.

References:

• Outcome Metrics - Scaled Agile Framework
• 5 Essential Metrics for Product Managers
• Output vs. Outcome Metrics: What’s the Difference? | ProductPlan

Market segmentation is the process of dividing a market into distinct groups of customers who have similar needs, preferences, or behaviors. Market segmentation helps enterprises identify and target the most valuable and profitable customer segments, design and deliver solutions that meet their needs, and optimize their marketing strategies and campaigns. However, market segmentation is not only based on quantitative factors, such as size, growth, and profitability, but also on qualitative factors, such as values, mission, and vision. A market segment should align with the enterprise’s values and mission, which reflect its purpose, identity, and culture. A market segment that aligns with the enterprise’s values and mission will help the enterprise achieve its strategic goals, create a positive brand image, and build trust and loyalty with customers.

One of the characteristics of effective market segmentation is that the segment should be valuable enough to be economically feasible. This means that the segment should have enough potential customers who are willing and able to pay for the products or services offered by the enterprise. The segment should also generate enough revenue and profit to cover the costs of marketing, production, and distribution. The segment should also have a positive impact on the enterprise’s return on investment (ROI) and net present value (NPV). A segment that is not valuable enough to be economically feasible will not be sustainable or profitable for the enterprise.

References:

• Customer Centricity - Scaled Agile Framework
• Advanced Topic - SAFe for Marketing - Scaled Agile Framework
• What is one consideration when evaluating the fit for a market segment?
• 5.4 Essential Factors in Effective Market Segmentation

 Time criticality is one key component of Cost of Delay (CoD), which is the money or value that will be lost by delaying or not doing a job for a specific time period relative to other jobs. Time criticality reflects the urgency or sensitivity of a job to time, and how its value changes over time. For example, a job that has a fixed deadline, a seasonal demand, or a high risk of obsolescence has a high time criticality, and its CoD increases rapidly as time passes. A job that has a stable demand, a low risk of competition, or a long-term benefit has a low time criticality, and its CoD increases slowly or remains constant over time.

References:

• WSJF: This article from the Scaled Agile Framework explains the concept and purpose of Weighted Shortest Job First (WSJF), which is a prioritization model that uses CoD and job duration to sequence jobs for maximum economic benefit. It also describes the four components of CoD: user or business value, time criticality, risk reduction and/or opportunity enablement, and job size.
• Cost of Delay - Scaled Agile Framework: This article from the Scaled Agile Framework defines CoD as the numerator in WSJF prioritization, and provides some examples of how to estimate CoD for different types of jobs.

One of the strengths of qualitative research is that it can be applied to a large number of people, as it does not require a fixed sample size or a predefined set of questions. Qualitative research can use various methods, such as interviews, focus groups, observations, or document analysis, to collect data from different sources and contexts. This allows researchers to explore a wide range of perspectives, experiences, and meanings, and to generate rich and diverse insights.

References:

• 23 Advantages and Disadvantages of Qualitative Research
• 5 Strengths and 5 Limitations of Qualitative Research

The BMC is a strategic management tool that lets you visualize and assess your business idea or concept. It consists of nine boxes that represent different fundamental elements of a business, such as customer segments, value propositions, channels, and cost structure. The BMC helps you to design, analyze, optimize, and communicate your business model, and to test and iterate it as you learn from the market feedback. The BMC can be used for any type of business or product, regardless of whether it generates revenue or not, as long as it delivers value to the customers.

References:

• Business Model Canvas - Wikipedia: This article from Wikipedia explains the concept and history of the BMC, and describes its nine building blocks and their relationships.
• Business Model Canvas: Explained with Examples | Creately: This article from Creately provides a detailed guide on how to create a BMC, with examples and templates for different types of businesses and products.
• Business Model Canvas – Download the Official Template: This website from Strategyzer offers the official template and online courses, books, and webinars to master the BMC.

The ART Sync is a weekly event that brings together the representatives of the teams and stakeholders of an Agile Release Train (ART) to review the progress and status of the current Program Increment (PI). The ART Sync tracks the progress of the ART toward meeting the PI Objectives by using various metrics and indicators, such as the PI burnup chart, the team and ART predictability measures, the feature completion report, and the dependencies and risks status. The ART Sync also provides an opportunity to identify and resolve any impediments, issues, or blockers that may affect the PI delivery.

References:

• ART Sync: This article from the Scaled Agile Framework explains the purpose, agenda, and participants of the ART Sync, and how it supports the alignment, collaboration, and execution of the ART.
• PI Objectives: This article from the Scaled Agile Framework defines the concept and attributes of PI Objectives, and how they can be used to align and measure the outcomes of an ART or Solution Train.

The Architectural Runway is a key part of the Feasible aspect of the Design Thinking model. The Design Thinking model is a framework that guides the creation of innovative solutions that are desirable, viable, feasible, and sustainable. The Feasible aspect focuses on the technical and operational aspects of the solution, such as the architecture, infrastructure, integration, performance, and security. The Architectural Runway is a concept that describes the existing code, components, and technical infrastructure that enable the development and delivery of near-term features without excessive redesign and delay. The Architectural Runway supports the Feasible aspect by providing the necessary technical foundation and alignment for developing business initiatives and implementing new features and capabilities.

References:

• Architectural Runway - Scaled Agile Framework
• Design Thinking - Scaled Agile Framework

An up-sell feature is a feature that encourages customers to buy a more expensive or advanced version of a product or service, or to add additional products or services to their purchase. An up-sell feature can increase the revenue and profit per customer, and enhance the customer value proposition. An add-on feature is a type of up-sell feature that adds functionality or benefits to the existing product or service, and usually requires an extra payment or subscription. For example, a cloud storage service may offer an add-on feature of extra storage space or enhanced security for a higher fee.

References:

• Feature Categories: This article from the Scaled Agile Framework explains the concept and purpose of feature categories, and how they can help product teams prioritize and communicate the value of features. It also describes the four main feature categories: new business, up-sell, operational efficiency, and retainment.
• Product Roadmap: Examples, Types and Key Features: This article from AltexSoft provides a comprehensive guide on product roadmaps, including their key features, common types, and examples. It also provides some tips and best practices on roadmap creation and communication.

Personas are fictional characters that represent the ideal customers or users of a product or service. They help product teams understand and empathize with the needs, goals, and preferences of their target segments. Personas can help define the features and benefit hypothesis of a product’s strategic intent, which is the assumption that a certain set of features will deliver a specific benefit to the customers or users. By using personas, product teams can validate their feature and benefit hypothesis with real user feedback, and prioritize the features that deliver the most value and satisfaction to their personas.

References:

• Personas: This article from the Scaled Agile Framework explains the concept and purpose of personas, and how they can be used in a SAFe context to support customer-centricity, design thinking, and lean UX.
• Strategic Intent: This article from the Scaled Agile Framework defines the concept and components of strategic intent, and how it guides the portfolio vision, lean budget guardrails, and portfolio backlog.
• Feature and Benefit Hypothesis: This article from the Scaled Agile Framework describes the concept and process of feature and benefit hypothesis, and how it helps product teams test and validate their assumptions about customer value.

Retainment is the category of a new feature that aims to keep existing customers loyal and satisfied with the product or service, and prevent them from switching to competitors or alternatives. Retainment features can include loyalty programs, referral incentives, customer feedback mechanisms, personalized offers, and improved customer service. Retainment features can help the business reduce customer churn, increase customer lifetime value, and enhance customer advocacy.

References:

• Feature Categories: This article from the Scaled Agile Framework explains the concept and purpose of feature categories, and how they can help product teams prioritize and communicate the value of features. It also describes the four main feature categories: new business, up-sell, operational efficiency, and retainment.
• How to Stop Losing Customers: 6 Proven Ways | Pressfarm: This article from Pressfarm provides some practical tips and examples of how to stop losing customers and increase customer retention, such as staying connected, offering excellent customer experience, and providing value-added services.

The horizon model is a framework that helps organizations balance their investments across different time horizons and types of innovation. According to the Scaled Agile Framework, there are four horizons: Horizon 0, Horizon 1, Horizon 2, and Horizon 31. Horizon 1 describes the desired state as stable solutions that deliver high value with minimal new investment. These are the core products or services that generate most of the current revenue and profit, and have a loyal customer base. Horizon 1 solutions require continuous improvement and optimization, but not significant new investment or disruption. Horizon 1 can be further divided into two sub-horizons: Investing and Extracting2.

References:

• Horizon Planning: This article from the Scaled Agile Framework explains the concept and purpose of horizon planning, and describes the four horizons and their characteristics, challenges, and best practices.
• SAFe®’s investment horizon model — A synopsis: This article from Medium provides a summary of the SAFe investment horizon model, and illustrates how it can help organizations allocate their resources and manage their portfolio.

The value of a market segment is determined by the potential revenue and profit that can be generated from selling products or services to that segment. One of the key factors that influences the value of a market segment is the amount customers are willing to pay for products or services, which reflects their perceived value and price sensitivity. Customers who are willing to pay more for products or services that meet their needs and preferences are more valuable than customers who are willing to pay less or switch to cheaper alternatives. Therefore, understanding the customer’s willingness to pay is essential for setting optimal prices and maximizing the value of a market segment.

References:

• Market Segmentation: Definition, Example, Types, Benefits: This article from Investopedia explains the concept and purpose of market segmentation, and describes the four primary types of market segmentation: demographic, geographic, psychographic, and behavioral.
• Value-based Market Segmentation – Divide Markets into Value Categories: This article from Marketing Insider provides a detailed guide on how to conduct a value-based market segmentation, which is based on the actual value perceived and delivered to customers. It also discusses the benefits and challenges of value-based market segmentation, and provides some examples and best practices.
• Market Segmentation: Definition, Types, Benefits, & Best Practices: This article from Qualtrics XM provides an overview of market segmentation, and discusses the benefits and best practices of market segmentation for businesses. It also provides some examples and tips on how to segment markets effectively.

According to the Scaled Agile Framework, the Portfolio Backlog contains the highest-level portfolio epics, which are large, cross-cutting initiatives that require analysis, approval, and funding by the Lean Portfolio Management (LPM) team1. The ART Backlog contains the features, which are services provided by the system that fulfill stakeholder needs2. Features are derived from epics and are typically implemented by one Agile Release Train (ART) within one Program Increment (PI)3. Therefore, Request 1, which is an incremental innovation that can be done by one ART in one PI, should be added to the ART Backlog as a Feature. Request 2, which is a major opportunity impacting multiple stages of the Value Stream and requiring the participation of two ARTs over multiple PIs, should be added to the Portfolio Backlog as an Epic.

References:

• Portfolio Backlog: This article from the Scaled Agile Framework explains the purpose, structure, and content of the Portfolio Backlog, and how it is managed by the LPM team using the Portfolio Kanban system.
• Features: This article from the Scaled Agile Framework defines the concept of features, their attributes, and their relationship with epics and stories.
• ART Backlog: This article from the Scaled Agile Framework describes the role, composition, and management of the ART Backlog, and how it supports the PI Planning process.

A successful minimum viable product (MVP) that has value in the market reveals that the Epic hypothesis has been validated and that development should continue. An MVP is an early and minimal version of a new product or solution that is used to test the assumptions and hypotheses behind an Epic. An MVP provides the fastest and cheapest way tolearn from real customers and to measure the impact and value of the Epic. A successful MVP means that the Epic has proven its desirability, viability, feasibility, and sustainability, and that there is still more value to be delivered by implementing additional features and capabilities. Therefore, development should continue until the Epic is completed or the value hypothesis changes.

References:

• Epic - Scaled Agile Framework
• Minimum Viable Product (MVP) - Scaled Agile Framework
• Innovation Accounting in SAFe - Scaled Agile Framework