Scaled Agile Exam SAFe-APM Topic 3 Question 36 Discussion

Actual exam question for Scaled Agile's SAFe-APM exam

Question #: 36
Topic #: 3

[All SAFe-APM Questions]

Why is it important for every business to allocate funding to investment horizon 3?

ATo ensure necessary investment is allocated to retire an existing product

BTo create future products that can create new revenue streams

CTo improve existing products so income exceeds costs

DTo identify the Features in the users of the product like most

Show Suggested Answer

Suggested Answer: B

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.

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.

by Delbert at Jul 09, 2025, 08:56 PM

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Fatima

2 days ago

I think it's also important to identify the features in the users of the product that they like most to ensure customer satisfaction and loyalty.

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Romana

6 days ago

Hmm, I'm torn between B and C. But I gotta say, option D sounds like a job for a crystal ball. Let's leave the psychic readings to the professionals, shall we?

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Mitsue

7 days ago

I believe allocating funding to investment horizon 3 is crucial to improve existing products so income exceeds costs.

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Johana

13 days ago

I agree with Royce. Investing in future products can help the business stay competitive and grow.

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Royce

20 days ago

I think it's important to allocate funding to investment horizon 3 to create future products that can create new revenue streams.

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Lisha

21 days ago

I think C is the correct answer. Improving existing products to generate more income than costs is a smart business move. Why reinvent the wheel when you can make it spin better?

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Lindsey

24 days ago

Option B is the way to go! Future products are the key to unlocking new revenue streams. Who needs to retire old products when you can create the next big thing?

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Silvana

2 days ago

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Salome

8 days ago

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