Which option best defines external value?

• A. Customers and users
• B. Internal stakeholders
• C. Regulators
• D. The development team

Answer: (A)

External value is the benefit delivered to people outside the company who use or pay for the product—customers and users. This is what the Product Owner aims to maximize, since it directly reflects the product’s impact in the market: things like increased productivity, cost savings, higher satisfaction, or revenue for the client. Internal stakeholders and the development team are internal to the organization, and regulators focus on compliance and risk rather than delivering direct value to customers. So customers and users are the best fit for defining external value because they are the external recipients who experience the product’s outcomes.