A new AI research capability could become a feature or a standalone product. Which would you choose?
Make your call first. Use the published answer and rubric to examine your reasoning when you are ready.
Case briefRead the inputs, then make your call
A fictional document suite can offer a research capability inside the suite or as a standalone product.
| Integrated offer | 10,000 eligible accounts; 1,000 paid activations; $12 incremental monthly revenue and $4 variable cost per active account. |
|---|---|
| Standalone offer | 300 paying accounts; $30 monthly revenue and $8 variable cost each. |
| Acquisition | The standalone cohort cost $9,000 to acquire. Retention, fixed costs and cannibalization are not yet known. |
Your task. Choose the first offer, compare like-for-like economics and state what would justify a different product boundary.
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