Answering: “Product A is a big revenue producer; it has:”

Taking a long-term view, weight investment toward Product B, which has high unrealized value. Product A already captures most of its value, so extra investment there yields less.

Exam Question

Product A is a big revenue producer; it has:
– high Current Value and low Unrealized Value.
Product B is a new product with a lot of potential; it has:
– low Current Value and high Unrealized Value.
Using those two data points and taking a long-term view, which of the options below should you pursue?
(choose the best answer)
A. Invest equally in both products.
B. Weight your investment toward Product A; you do not want to risk losing customers.
C. Weight your investment toward Product B; since it has more potential.

Correct Answer

C. Weight your investment toward Product B; since it has more potential.

Why This Is the Correct Answer

Evidence-Based Management describes Current Value as what a product delivers now and Unrealized Value as the potential value still to be captured. Product A earns well today but has little room to grow, so more investment mostly protects what exists. Product B earns little now but has a large gap between what it delivers and what it could deliver. With a long-term view, the bigger return on new investment lies in closing that gap. This does not mean abandoning Product A; it still needs enough support to keep its value. It means the weight of new investment goes to Product B, with results measured as it goes.

Why the Other Options Are Wrong

A. Invest equally in both products. Equal investment ignores the evidence. The two products have very different room to grow.

B. Weight toward Product A to keep customers. This protects short-term revenue but puts most money where growth is limited. It does not fit a long-term view.

Exam Tip

Watch for “long-term view” in EBM questions. It usually points toward Unrealized Value rather than Current Value.

Key Takeaways

• Unrealized Value shows where growth potential lies.
• High current value with little upside gives smaller returns on new investment.
• Weighting investment is not the same as abandoning a product.