A multiyear ERP project must demonstrate value incrementally while preserving the final product's integrity. How should the project manager establish the delivery model?

The correct answer is to organize the project into multiple subsets based on business functions and deliver each subset as a component of the final product. This approach allows for incremental value delivery, which is crucial for multiyear projects, especially ERP implementations, while ensuring the integrity of the final, integrated product. Each delivered subset provides tangible value and feedback opportunities without fragmenting the overall solution into separate, disconnected products. The other options are less effective: Informing the steering committee and providing demos (first option) is a communication and reporting activity, not a delivery model. Reclassifying as a program of multiple small projects (second option) might lead to a collection of disparate products rather than an integrated ERP solution, compromising the final product's integrity. Scheduling routine demos and delivering a single product only after all features are finished (third option) fails to deliver value incrementally, which is a key requirement.