ITIL 4 Leader Digital and IT Strategy v1.0

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Exam contains 59 questions

A service provider that has grown rapidly in the social media market wants to increase its competitive advantage by launching new functionality for its services. However, there are concerns that the technology the service provider plans to use is unreliable and causes service outages. The service provider is convinced that the new functionality will be popular and has decided to launch the changes despite the technical concerns.

Which risk attitude is this an example of?

  • A. Risk-averse
  • B. Risk-seeking
  • C. Risk-tolerant
  • D. Risk-neutral


Answer : B

An organization has a successful relationship with its customers and its market position has been improving. The organization's leaders now want to achieve operational excellence to increase their commercial success.

Which is the BEST way to address this objective in the organization's strategy?

  • A. Focus the strategy entirely on the operational excellence, because this is the defined objective.
  • B. Create a separate strategy for achieving operational excellence and another one for achieving customer and market relevance.
  • C. Create a balanced strategy addressing operational excellence, and customer and market relevance.
  • D. Focus the strategy on customer and market relevance, and operational excellence will naturally improve.


Answer : C

An organization uses data virtualization and analysis technology for understanding the behavior patterns of people. They want to utilize this technology for a new initiative to improve operational excellence.

What is the BEST way to improve operational excellence with these technological capabilities?

  • A. Technology replacement modernization
  • B. Omnichannel delivery and support
  • C. Employee 360
  • D. Customer 360


Answer : C

An organization is achieving better results than its competitors by developing unique technical and organizational solutions. These solutions are kept confidential.

What is this an example of?

  • A. Incumbency advantage
  • B. Resource-based advantage
  • C. Customer relevance
  • D. Organizational agility


Answer : B

An organization is using customer journeys to help it increase market relevance. It monitored the journey taken by one specific user of their product, and made changes to ensure that the user had a great end-to-end experience. It measured average user satisfaction before and after making changes, and found little improvement.

Which aspect of the customer journey does the organization also need to consider?

  • A. Purpose
  • B. Personas
  • C. Current-state
  • D. Touchpoints


Answer : B

How frequently should an organization generate and manage its strategy?

  • A. Once, and never again
  • B. Annually
  • C. Continually
  • D. Every three months


Answer : C

An organization works in a very competitive market. They have grown very fast because they were able to adapt their products and services very quickly as the internal and external conditions changed. To be successful in the long term, they now need to reduce costs and improve efficiency.

Which characteristic should they focus on to achieve this?

  • A. Lean
  • B. Agile
  • C. Resilient
  • D. Continuous


Answer : A

Which approach would MOST help an organization to plan a digital transformation if it does not have a digital strategy?

  • A. Plan the transformation as a series of minor incremental improvements
  • B. Plan a large-scale transformation, which will define the strategy
  • C. Follow the guidance of a best practice digital transformation framework
  • D. Define a digital strategy first then base the transformation planning on it


Answer : D

A commercial service provider has a strategy to introduce cloud storage services that will be popular with a wide range of consumers in multiple markets. Features will include fast upload speeds and secure storage.

Which should be included in the operating model for the new service?

  • A. A user-friendly interface that is available anytime, from any location
  • B. The infrastructure, skills and processes required to support the service
  • C. User access via a wide range of channels and platforms
  • D. Free limited storage combined with a tiered charging structure


Answer : B

What should leaders of digital organizations focus on when educating shareholders about changes in strategy?

  • A. Ensuring that shareholders understand changes to the financial value of the organization
  • B. Ensuring that shareholders will be able to implement new or modified plans
  • C. Teaching shareholders about entrepreneurship, and the history of innovation
  • D. Ensuring that shareholders can continue to meet the leaders' outsourcing needs


Answer : A

An organization develops and delivers a range of digital products and services.

Which is the BEST approach to addressing the risks related to digital technology?

  • A. Focusing on protecting the assets inside the organization
  • B. Accepting extra work and investing in large projects
  • C. Reducing the use of digital technology
  • D. Taking small calculated risks that do not have a large impact


Answer : D

A commercial service provider is using PESTLE analysis to help them develop a new strategy. Their customers work in a regulated environment and expect the IT services to be delivered through multiple channels.

Which factor is the MOST relevant to consider in this situation?

  • A. Service provider staff have many skills and can support a range of different technologies
  • B. Government policies for using secure IT systems change regularly and will affect the IT services
  • C. Service provider value streams for creating new IT services are too complex and outdated
  • D. Service provider policies for reusing and removing IT equipment are maintained and audited


Answer : B

An organization is planning to provide existing services to a new market. The demand for the organization’s services in the market is high and the potential customers have a good understanding of the value that can be created with the services. However, the new market has specific and strict regulations on how customer data must be handled.

Which is the BEST strategy to meet the demand in this market?

  • A. Increase the amount of equipment, people, and other resources to deliver the services to the new market
  • B. Create new business and operating models to address the specific requirements of the new market
  • C. Replace the existing services or products with new or updated services or products for the new market
  • D. Copy the current operating model and adapt it to meet the additional regulations for the new market


Answer : D

Which describes digital technology?

  • A. The internal IT team of a service provider organization
  • B. A combination of information technology and operational technology
  • C. An organization that is enabled to do business significantly differently
  • D. The application of technology for detecting changes in physical devices


Answer : B

Which describes business strategy?

  • A. A means of defining and communicating how an organization intends to achieve its goals
  • B. A way to stay relevant to customer needs or market dynamics as they change
  • C. A description of how the organization should be configured to provide value to customers
  • D. A model to define how the organization will be run


Answer : A

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Exam contains 59 questions

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