Scaled Agile SAFe-APM SAFe Agile Product Manager (APM 6.0) Exam Practice Test

The chasm is the gap in the technology adoption lifecycle between the early adopters and the early majority. The early adopters are visionaries who are open to trying new technologies, whereas the early majority are pragmatists who are more cautious and skeptical. The chasm occurs due to the different expectations and requirements of these two groups. A product that appeals to the early adopters may not appeal to the early majority, who value reliability, compatibility, and convenience over novelty and differentiation. Therefore, a product needs to cross the chasm by finding a niche market, establishing a clear value proposition, and creating a strong word-of-mouth.

References:

Crossing the Chasm & Scale Your SaaS: This article from Userpilot provides a practical guide on how to cross the chasm and scale a SaaS product, with examples and tips on finding product-market fit, defining a beachhead market, and creating a whole product.

Crossing the Chasm in the Technology Adoption Life Cycle: This article from Business to You explains the concept and purpose of the technology adoption lifecycle and the chasm, and how they can help marketers understand and target different customer segments.

The strategic sweet spot of a company is where it meets customer’s needs in a way that rivals can’t, given the context in which it competes12. It is where the company’s capabilities match customer needs in a way that the competition can’t. Finding the strategic sweet spot is a key challenge of strategic thinking and a source of competitive advantage.

References:

How to find your strategic sweet spot and why it matters

The Strategic Sweet Spot - Harvard Business Review

Feature estimates are aggregated back into the Epic estimate as part of the lean business case. The lean business case is a lightweight and collaborative artifact that captures the rationale, assumptions, and financial projections for an Epic. The lean business case includes the Epic value statement, which consists of the value proposition, the benefit hypothesis, and the Epic estimate. The Epic estimate is the total effort required to implement the Epic, expressed in story points. The Epic estimate is derived from the sum of the Feature estimates, which are the effort required to implement each Feature that contributes to the Epic, also expressed in story points. The Feature estimates are aggregated back into the Epic estimate as part of the lean business case to provide a realistic and data-driven projection of the cost and duration of the Epic.

References:

Lean Business Case - Scaled Agile Framework

Epic - Scaled Agile Framework

Feature estimates are aggregated back into the Epic estimate as part of …

According to the SAFe® Agile Product Management APM (6.0) documents and learning resources, Weighted Shortest Job First (WSJF) is a prioritization model used to sequence work for maximum economic benefit. It is calculated by dividing the cost of delay by the job duration or size. To estimate the cost of delay, three factors are considered: user and business value, time criticality, and risk reduction or opportunity enablement. To estimate the job duration or size, a relative scale such as Fibonacci is used. The highest value in the Fibonacci scale is set as the “ceiling” and the lowest value is set as the “floor”. The items are then scored by comparing them to the ceiling and the floor, and assigning them the closest Fibonacci number. The WSJF score is then obtained by dividing the cost of delay score by the job duration or size score. The items with the highest WSJF score are prioritized first.

References:

WSJF - Scaled Agile Framework

Weighted Shortest Job First (WSJF) | Definition and Overview - ProductPlan

Weighted Shortest Job First - Open Practice Library

A secondary persona is a type of persona that represents another user of the primary interface who can be accommodated as long as the targeted persona’s experience is not compromised. A secondary persona is not the main focus of the product design, but still has some needs and expectations that should be considered. A secondary persona can help to identify additional features, functionalities, or scenarios that can enhance the product value and usability, without sacrificing the primary persona’s satisfaction.

References:

Design Thinking - Scaled Agile Framework

Personas - Scaled Agile Framework

When dealing with a complex product, a secondary persona could be best defined as what?

According to the SAFe® Agile Product Management APM (6.0) documents and learning resources, the Product Manager is responsible for defining and communicating the product vision and roadmap to the Agile Release Train (ART) during PI Planning. The product vision describes the future state of the product and the value it will deliver to the customers and the enterprise. The roadmap outlines the features and enablers that will realize the vision over time. The Product Manager also presents the top 10 features for the upcoming Program Increment (PI) and their priorities based on the Weighted Shortest Job First (WSJF) method.

References:

Agile Product Management - Scaled Agile Framework

Product and Solution Management - Scaled Agile Framework

PI Planning - Scaled Agile Framework

WSJF - Scaled Agile Framework

A measurement that can help drive Value Stream innovation and improvements is the percentage of Customers activating the product. This metric indicates how many Customers are actually using the product after acquiring it, and how well the product meets their needs and expectations. A high percentage of Customers activating the product means that the product delivers value and solves a problem for the Customers, and that the Value Stream is aligned with the Customer-centric mindset. A low percentage of Customers activating the product means that there is a gap between the product offering and the Customer demand, and that the Value Stream needs to innovate and improve the product design, delivery, and marketing.

References:

Value Stream KPIs - Scaled Agile Framework

The Four Most Useful Value Stream Metrics in Software

What is an example of a measurement that can be used to help drive …

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.

Qualitative research fuels innovation when it is designed to explore the context in which Customers use the product. Qualitative research is a type of research that collects and analyzes non-numerical data, such as words, images, or emotions. Qualitative research can help understand the needs, problems, and opportunities of the Customers, as well as their behaviors, attitudes, and preferences. By exploring the context in which Customers use the product, qualitative research can help identify the pain points, gaps, and unmet needs of the Customers, and generate ideas for improving the user experience and value proposition of the product. Qualitative research can also help validate the assumptions and hypotheses behind the product design, and test the prototypes and solutions with the Customers.

References:

Design Thinking - Scaled Agile Framework

Qualitative Data – Strengths and Limitations

New Research: Data And Culture Fuel Innovation - Forbes

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

One of the key job functions that differentiates a Product Manager from a Product Owner (PO) in SAFe® is prioritizing the backlog. A Product Manager is responsible for defining and prioritizing the features and capabilities that deliver value to the customers and the business. A Product Manager owns and maintains the Program Backlog, which is the single source of truth for the work that needs to be done by the Agile Release Train (ART). A Product Owner, on the other hand, is responsible for defining and accepting the user stories that implement the features and capabilities. A Product Owner owns and maintains the Team Backlog, which is the subset of the Program Backlog that the Agile Team works on. A Product Owner collaborates with the Product Manager to align the Team Backlog with the Program Backlog and the Vision.

References:

Product and Solution Management - Scaled Agile Framework

Product Owner (PO) Sync - Scaled Agile Framework

SAFe Product Manager vs Product Owner - Striking Differences - KnowledgeHut

Design Thinking is a creative process that involves empathizing with customers, defining the problem, ideating possible solutions, prototyping, and testing. Design Thinking can help API design and development by ensuring that the APIs are user-centric, meet the needs and expectations of the customers, and deliver value to the business. Design Thinking can also help API design and development by fostering collaboration, experimentation, and feedback among the stakeholders, such as product managers, developers, and customers.

References:

Design Thinking - Scaled Agile Framework

How to Design an API – Application Programming Interface Best Practices

Best Practices in API Design - Swagger

Design Thinking and the Continuous Delivery Pipeline (CDP) are both approaches that aim to deliver value to customers by understanding their needs, validating assumptions, and iterating on solutions. Design Thinking is a creative process that involves empathizing with customers, defining the problem, ideating possible solutions, prototyping, and testing. The CDP is a workflow that consists of four aspects: Continuous Exploration, Continuous Integration, Continuous Deployment, and Release on Demand. The CDP enables the delivery of small batches of new functionality, which are then released to fulfill market demand. Both Design Thinking and the CDP use feedback from customers to improve products, as feedback loops are essential for learning and adapting to changing needs and preferences.

References:

Design Thinking - Scaled Agile Framework

Continuous Delivery Pipeline - Scaled Agile Framework

Introduction to Continuous Delivery in SAFe | CDP in … - PremierAgile

According to the SAFe® Agile Product Management APM (6.0) documents and learning resources, Business Owners are key ART stakeholders who have the primary business and technical responsibility for return on investment (ROI), governance, and compliance. They are critical for evaluating fitness for use and actively participating in solution development. They can provide current business feedback to guide feature enhancements by assessing the value proposition, the competitive advantage, and the expected market share of the features. They can also help align the features with the product vision and roadmap, and prioritize them based on the WSJF method.

References:

Business Owners - Scaled Agile Framework

Customer Centricity - Scaled Agile Framework

WSJF - Scaled Agile Framework

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.

Investment horizon 3 is the longest-term horizon that focuses on exploring and developing breakthrough innovations that can create new markets and revenue streams for the business. It is important for every business to allocate funding to investment horizon 3, because it enables the business to anticipate and respond to the changing customer needs, technological trends, and competitive threats, and to secure its future growth and survival. Investment horizon 3 requires a high level of creativity, experimentation, and risk tolerance, but it can also generate a high level of return and differentiation.

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.

Enduring Ideas: The three horizons of growth | McKinsey: This article from McKinsey presents the original framework of the three horizons of growth, and discusses how it can help businesses balance their current and future opportunities and challenges.

Product strategy is the high-level plan that defines the vision, goals, and direction of a product. Product strategy guides the development and delivery of a product that meets the needs and expectations of the customers and the business. Product strategy is primarily driven by the research activity of understanding Customers and values. This activity involves identifying and segmenting the target market, analyzing the customer needs, problems, and opportunities, defining the value proposition and the benefit hypothesis, and validating the assumptions and hypotheses with customer feedback. Understanding Customers and values helps to align the product strategy with the customer-centric mindset and the business outcomes.

References:

Customer Centricity - Scaled Agile Framework

Product and Solution Management - Scaled Agile Framework

Using Market Research To Drive Business Strategy | PlanBeyond

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 explain how the customers want to use the product by describing their behaviors, motivations, pain points, and expectations. Personas also help product teams design and deliver solutions that meet the customer needs and create value.

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.

What are Personas?: This article from Agile Alliance defines personas and describes their benefits and characteristics. It also provides some tips and examples on how to create and use personas effectively.