Scaled Agile SAFe-APM Exam - 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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Tresa

2 months ago

D is interesting, but I feel like it’s not the main focus here.

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Jovita

2 months ago

I think C is more important. Improving what we have is crucial.

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Edwin

3 months ago

Definitely B! Future products are key for growth.

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Jaime

3 months ago

Wait, are we sure investing in future products is always a good idea?

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Roslyn

3 months ago

A is a must too, can't let old products drag us down.

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Eleonora

3 months ago

I feel like improving existing products is crucial, so option C could be right, but I also see the value in identifying user features from option D.

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Jacqueline

3 months ago

I’m a bit confused; I thought horizon 3 was more about retiring old products rather than creating new ones. Maybe option A is relevant too?

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Caitlin

4 months ago

I remember a practice question that emphasized the importance of innovation, so I feel like option B makes the most sense here.

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Eva

4 months ago

I think investment horizon 3 is about future products, but I'm not sure if it's just for new revenue streams or also for improving existing ones.

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Marguerita

4 months ago

This question seems straightforward, but I want to make sure I understand the concept of investment horizon 3 before answering.Liam: Okay, I think I got this. Investment horizon 3 is about funding future products and revenue streams, so I'll go with option B.Olivia: The key here is that every business needs to invest in new products and innovations to stay competitive. I'm confident option B is the right answer.Ethan: Hmm, I'm a bit unsure. Is option C also a valid answer since improving existing products can create more income? I'll have to think this through carefully.

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Agustin

4 months ago

Hmm, I'm a bit unsure. Is option C also a valid answer since improving existing products can create more income? I'll have to think this through carefully.

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Nguyet

4 months ago

The key here is that every business needs to invest in new products and innovations to stay competitive. I'm confident option B is the right answer.

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Abel

5 months ago

Okay, I think I got this. Investment horizon 3 is about funding future products and revenue streams, so I'll go with option B.

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Brett

5 months ago

This question seems straightforward, but I want to make sure I understand the concept of investment horizon 3 before answering.

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Fatima

7 months 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

7 months 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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Lonna

5 months ago

True, but let's not rely on psychic readings to identify user preferences. Let's stick to data-driven decisions.

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Tracey

5 months ago

I see your point, but improving existing products can also help increase income and exceed costs.

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Elden

7 months ago

I think option B is the way to go. Creating new revenue streams is crucial for business growth.

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Mitsue

7 months ago

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

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Johana

7 months ago

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

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Royce

8 months 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

8 months 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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Colton

6 months ago

I think B is also crucial, creating new revenue streams can help a business stay competitive.

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Emogene

7 months ago

I agree, C is definitely important for business success.

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Lindsey

8 months 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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Catalina

7 months ago

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Silvana

7 months ago

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Salome

7 months ago

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