An organization has been implementing Scrum for years. Under what circumstances does the organization really need an empirical approach to solving a problem? (Choose the best answer)

An organization has been implementing Scrum for years. Under what circumstances does the organization really need an empirical approach to solving a problem? (Choose the best answer)
A . When working with new and unproven technology.
B. When business risk is high.
C. When the market is changing rapidly.
D. When technical risk is high.
E. All of the above / Listed options.

View Answer

Answer: E

Explanation:

An organization needs an empirical approach to handle different types of Risks (problems) in the product development process. Risk has been identified as an unfavorable situation or condition which should be avoided or minimized in order to be successful in the product development process. To make this concept clearer, the risk in the new product development process will be broken down into different risk categories. The main categories of risk are technical, market, commercial and organizational risks:

Technical Risk

Technical risk, or technology related risks is an intrinsic risk and can entail a number of sub-sections such as the design of the product, manufacturing technology and intellectual property.

Market Risk

Market risks can include factors such as consumer acceptance and marketing risks, competitor risks and the risks of substitution in the market the firm is competing in. Commercial Risk

Commercial risk is concerned with the extent to which a product, or rather a product idea, would be financially feasible for the firm developing the product Organizational Risk

Finally, organizational risk in the new product development process includes factors such as the communication within the firm while striving for the realization of the product as well as the idea acceptance of the new product of different parties of the company and the availability of necessary resources for the development of the new product.