Explanation
According to the PMBOK Guide, a project approach is the way a project is planned, executed, monitored, controlled, and closed. A project approach should be designed based on the context of the project, its objectives, stakeholders, governance, and the environment1. A project approach should use "just enough" process to achieve thedesired outcome while maximizing value, managing cost, and enhancing speed1. A project approach can be predictive, agile, or hybrid, depending on the degree of uncertainty and change involved in the project2.
In this scenario, the project is in a very initial stage and the requirements are evolving, which means there is a high level of uncertainty and change. The customer would like to launch the product keeping the scope flexible, which means they are open to feedback and adaptation. The project team intends to start the work based on the forecast of a similar project delivered last year, which means they have some historical data and experience to guide them. These factors suggest that an agile approach would be suitable for this project, as it can provide flexibility, adaptability, and customer focus while delivering value incrementally and iteratively2.
One of the most popular agile approaches is Scrum, which is a framework for managing complex projects that deliver products or services in short iterations called sprints3. Scrum involves a self-organizing and cross-functional team, a product owner who represents the customer and defines the product backlog, and a Scrum master who facilitates the Scrum process and removes impediments3. Scrum also involves several events, such as sprint planning, daily Scrum, sprint review, and sprint retrospective, to ensure collaboration, communication, and continuous improvement3.
Therefore, executing the project as a Scrum project would suit the scenario, as it can accommodate the evolving requirements, the flexible scope, and the competitive market. Scrum can also leverage the forecast of the similar project as an input for the product backlog and the sprint planning, and adjust the work based on the feedback and the changes in the environment.
References: 1: 12 Principles of Project Management 2: Project Management Professional (PMP) Certification 3: PMP Certification Info Summary