Value Modeling is a technique used to highlight what is of value to the customer and to help the team make better decisions. It involves creating a model that explicitly assesses and quantifies value from a stakeholder's perspective. This model typically includes an analysis of real or perceived benefits to the customer, which are then weighed against various costs, including direct costs (e.g., development, implementation) and opportunity costs (the value of the next-best alternative that was not chosen). This comprehensive assessment of benefits versus multiple cost types is the core purpose of Value Modeling.

A. Minimum Viable Product (MVP): This is a product version with just enough features to be usable by early customers who can then provide feedback for future product development, not a cost-benefit analysis technique.

B. Impact Mapping: This is a strategic planning technique used to visualize and connect business goals with the actors, impacts, and deliverables needed to achieve them, focusing on alignment rather than cost assessment.

C. Kano Analysis: This technique categorizes product features based on how customers perceive them and their effect on customer satisfaction (e.g., Basic, Performance, Excitement), not on a detailed cost analysis.

International Institute of Business Analysis (IIBA). (2017). Agile Extension to the BABOK® Guide (Version 2).

Section 5.21

Value Modelling: "Value models are used to highlight what is of value to the customer and to help the team make better decisions... A value model may include real or perceived benefits to the customer

direct costs

and opportunity costs." (p. 111). This directly supports the correct answer.

Section 5.11

Minimum Viable Product: Describes MVP as a tool for learning and hypothesis testing with minimal investment. (p. 89).

Section 5.8

Impact Mapping: Defines this as a technique to "ensure that delivery options are aligned with business objectives." (p. 81).

Section 5.9

Kano Analysis: Explains its use for "understanding which product characteristics will drive customer satisfaction." (p. 84).