ITIL-4-DITS ITIL 4 Leader: Digital & IT Strategy Exam Questions and Answers

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When entering a new market with unique regulatory requirements, the best strategic approach is to developnew business and operating modelstailored to those constraints. ITIL 4 Leader: Digital & IT Strategy recommends adapting strategy through market-focused operating model redesigns that meet regulatory, cultural, and technological needs. Simply scaling existing resources (A), making product changes without addressing business practices (C), or partially adapting the old model (D) won’t fully align with stringent regulatory conditions.

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A digital strategy provides the foundational vision and goals that guide the planning and implementation of digital transformation. According to ITIL 4 Leader: Digital & IT Strategy, defining the digital strategy should always come first to ensure that transformation efforts are aligned with organizational goals and business value outcomes. Jumping into transformation without a strategic framework risks misalignment and wasted investment. Therefore, the correct approach is to first define the digital strategy, then develop a transformation plan based on that strategy.

Encouraging digital technology opportunities is the approach that the CIO is using to support the programme of creating a culture of innovation. This means that the CIO is promoting and facilitating the exploration and adoption of new digital technologies that can create value for the organization and its customers. By delivering a presentation on how chatbots can improve the customer registration experience, the CIO is demonstrating how digital technology can enable innovation and enhance customer value. References: ITIL 4 Leader: Digital and IT Strategy, page 25-26

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PESTLE analysis examines external environmental factors—Political, Economic, Social, Technological, Legal, and Environmental—that affect the organization. Given the scenario includes customers in a regulated environment and IT service delivery expectations, the most relevant factor is changinggovernment policieson secure IT systems (Political/Legal). These directly affect service compliance and must be considered in strategic planning. Options A and C are internal operational considerations. Option D, while important for sustainability, is less immediately relevant than regulatory compliance.

Looking at the potential of new tools to meet customer needs is a leadership skill that relates to having a digital mindset. It shows curiosity, openness, and willingness to explore and adopt new technologies that can enhance customer value and experience. It also demonstrates a customer-centric and innovative approach to digital transformation. References: ITIL 4 Leader: Digital and IT Strategy, page 25-26

An organization’s products are required for the execution of an activity is the best description of the relationship between organization’s products, services, and resources. A product is a configuration of an organization’s resources designed to offer value for a consumer. A service is a means of enabling value co-creation by facilitating outcomes that customers want to achieve without specific costs and risks. A resource is anything that might help deliver an organizational objective. References: ITIL 4 Leader: Digital and IT Strategy, page 11-12

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The ITIL 4 Leader: Digital & IT Strategy guidance promotes a strategic approach to digital risk-taking. While completely avoiding digital risks (C) can lead to stagnation, the best path is to takesmall, calculated risks(D), allowing for innovation with managed exposure. This enables agility while minimizing negative impacts. Over-investing (B) or having a narrow focus on internal assets (A) does not provide a balanced or strategic view of digital risk management.

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IT strategy is focused on how IT enables thebusiness strategyand aligns IT capabilities with business goals. ITIL 4 Leader: Digital & IT Strategy clearly separates business strategy (organizational-wide) from IT strategy, which supports and enables these goals through technology. Therefore, understanding how IT contributes to achieving business outcomes is a fundamental aspect of IT strategy.

Vision and strategy should be defined in collaboration with the leaders of the organization and division to ensure alignment, coherence, and buy-in across the organization. This can help create a shared understanding of the goals, values, and direction of the organization and its divisions, as well as leverage the expertise and insights of different leaders. References: ITIL 4 Leader: Digital and IT Strategy, page 9-10

Customer and market relevance is about understanding and meeting the needs and expectations of customers and markets, especially in a dynamic and competitive environment. Operational excellence is about delivering services efficiently and effectively, with high quality and reliability. An innovative social media platform can help improve engagement with young consumers by enhancing customer and market relevance, while operational excellence can support the delivery of the platform and its services. References: ITIL 4 Leader: Digital and IT Strategy, page 15-16

Descriptions of the series of steps for the work that is required to create and support the service are part of the essential themes of the operating model. They define how value is created and delivered through value streams and processes. They also help align the work with the strategy, vision, and goals of the organization and its stakeholders. References: ITIL 4 Leader: Digital and IT Strategy, page 19-20

Omnichannel delivery is about providing a consistent and seamless customer experience across different channels and touchpoints. This can help increase customer satisfaction, loyalty, and retention. The insurance company should consider how to align and integrate its different sales channels to deliver a unified and coherent service to its customers. References: ITIL 4 Leader: Digital and IT Strategy, page 17

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An operating model defines how a service is delivered and supported operationally. According to ITIL 4 Leader: Digital & IT Strategy, an effective operating model includes elements such as the supporting infrastructure, the required skill sets, and the operational processes. These elements are foundational to ensuring performance, availability, security, and scalability of the service. While options A, C, and D describe product features or marketing aspects, only option B defines the core components needed to operate the service reliably and efficiently.

Creating three different business cases providing justification for each initiative is the best approach to take when creating the business case(s). This can help evaluate the costs, benefits, risks, and impacts of each initiative separately and compare them with each other. It can also help prioritize and sequence the initiatives based on their feasibility and desirability. References: ITIL 4 Leader: Digital and IT Strategy, page 49-50

Understanding which systems will form the digital technology programme is not an essential consideration when developing a digital strategy. It is a more detailed and technical aspect that can be defined later in the implementation phase. The essential considerations when developing a digital strategy are more focused on understanding the organization’s vision, goals, values, customers, markets, competitors, opportunities, risks, and capabilities. References: ITIL 4 Leader: Digital and IT Strategy, page 5-6