When is the best time to invest in new products?

• A. After you've captured 100% of current product's market share
• B. Only during the annual planning cycle
• C. When you have a secure source of profits from existing products
• D. When the development team demands it

Answer: (C)

Investing in new products should happen when the business has a stable cash flow from current offerings to finance that exploration. Having a secure source of profits provides the financial runway to fund discovery, build prototypes, run experiments, and learn without risking existing operations. It also supports prudent portfolio management: you’re using proven cash flow to validate new ideas rather than chasing opportunities on fragile or uncertain footing.

The other scenarios don’t fit because market share targets aren’t a reliable timing signal for investment, since markets and opportunities can shift and waiting for a perfect share is impractical. Limiting investments to an annual planning cycle sacrifices agility and continuous learning that Scrum teams rely on. Letting the development team dictate when to invest ignores value and profitability considerations and can lead to misaligned priorities.