Increasing Business Performance Based on Current and Unrealized Value

As a Product Owner with authority over pricing, promotion, and investment in new features, it’s essential to make strategic decisions based on key data points to enhance business performance. This article explores the first action to take given the product’s high Current Value and high Unrealized Value.

Exam Question

You are a Product Owner at a small company with a single product. You have authority over pricing, promotion, and how much is invested in new features or capabilities. Your product has:

• High Current Value – as indicated by high customer satisfaction.
• High Unrealized Value – as indicated by low market share.

Using those two data points, what is the first action you should take to increase the business performance of the product?
(choose the best answer)
A. Drop the price for the product to attract a greater number of customers.
B. Improve the marketing of the product to attract a greater number of customers.
C. Release an identical product to market, but give it a new product name.
D. Increase the number of product features to attract a greater number of customers.

Correct Answer

B. Improve the marketing of the product to attract a greater number of customers.

Explanation

Correct Answer

B. Improve the marketing of the product to attract a greater number of customers:
Given that the product already has high customer satisfaction (high Current Value) but low market share (high Unrealized Value), the key issue lies in market awareness and customer acquisition. Improving the marketing efforts can help increase the product’s visibility and attract more customers, thereby capturing a larger market share. Effective marketing can highlight the product’s existing strengths and customer satisfaction to a broader audience, leveraging the high Current Value to address the Unrealized Value.

Incorrect Answers

A. Drop the price for the product to attract a greater number of customers:
Dropping the price might attract more customers, but it can also reduce profit margins and potentially devalue the product in the eyes of consumers. Given the high customer satisfaction, the issue is not necessarily the price but rather market awareness.

C. Release an identical product to market, but give it a new product name:
Releasing an identical product under a new name does not address the core issue of low market share and may create confusion among existing and potential customers. It’s more effective to focus on increasing the visibility and perceived value of the current product.

D. Increase the number of product features to attract a greater number of customers:
While adding features can enhance the product, it is not the primary issue here. The product already has high customer satisfaction, indicating that current features meet customer needs well. The main challenge is increasing market share, which can be more effectively addressed through improved marketing.

Responsibilities in Scrum

• Product Owner: Maximizes the value of the product by making strategic decisions on pricing, promotion, and feature investment. They analyze key data points to identify areas for improvement and growth.
• Scrum Master: Supports the Product Owner in implementing strategies and facilitates Scrum events to ensure alignment with the product vision.
• Developers: Collaborate with the Product Owner to implement new features and improvements based on strategic decisions.

Relevance to the PSPO II Exam

Understanding how to leverage Current Value and Unrealized Value to make strategic decisions is crucial for the PSPO II exam. It demonstrates knowledge of evidence-based management and strategic product development.

Key Takeaways

• High customer satisfaction indicates that the product meets current customer needs well (high Current Value).
• Low market share indicates high potential for growth (high Unrealized Value).
• Improving marketing efforts can effectively increase market share by attracting more customers.

Conclusion

To increase the business performance of a product with high Current Value and high Unrealized Value, focusing on improving marketing efforts is the most strategic action. This approach leverages existing customer satisfaction to attract a broader audience and capture a larger market share. For more information on preparing for the PSPO II exam, visit our PSPO II Exam Prep.