What measures should they examine to help improve the ability to deliver value?

A company has many unique variations of the same product that it sells to different customers. Some versions are decades old. Maintaining all these versions leaves very little time to improve the product.

What measures should they examine to help improve the ability to deliver value? (Choose two)
A . Innovation Rate.
B. Velocity.
C. Cycle Time.
D. Installed Version Index.

View Answer

Answer: A,D

Explanation:

Were you looking for Ability to Innovate? Well that’s a great start. Remember it’s a Key Value Area. Within KVA there are many KVM’s. (Key value areas). Innovation rate is a key value measure under Ability to Innovate.

Innovation rate can be defined as the percentage of effort or cost spent on new product capabilities, divided by total product effort or cost. This provides insight into the capacity of the organization to deliver new product capabilities. The Innovation rate would show really low as maintaining multiple versions would leave the organization very time to improve the product.

In such situations, the team could also look into the Installed Version Index which would show the number of versions of a product that are currently being supported. This would also reflects the effort the organization spends supporting and maintaining older versions of software.