PeopleCert ITIL-4-DITS ITIL 4 Leader: Digital & IT Strategy Exam Exam Practice Test

Elimination of waste is about identifying and removing any activities, resources, or outputs that do not add value to the customers or the organization. This can help optimize value streams and processes, improve efficiency and effectiveness, reduce costs and risks, and increase customer satisfaction. References: ITIL 4 Leader: Digital and IT Strategy, page 64

Switching to funding teams and value streams is the best way to change their funding model to support their objective of developing and deploying solutions rapidly in response to constantly changing market needs. Funding teams and value streams means allocating budgets based on the value delivered by cross-functional teams working on end-to-end processes that create value for customers. This can help increase agility, flexibility, collaboration, and innovation. References: ITIL 4 Leader: Digital and IT Strategy, page 50-51

Digital technology includes the use of hardware and software to store, retrieve, transmit, and manipulate data. It is one of the components of digital transformation, which is the use of digital technology to create new or modify existing business processes, culture, and customer experiences. Digital strategy is the plan for how an organization will use digital technology to achieve its goals and objectives. Digital business is the business model that leverages digital technology to create value for customers and stakeholders. References: ITIL 4 Leader: Digital and IT Strategy, page 5-6

Management of staff skills and competence is what the organization needs for the digital transformation to succeed. This means that the organization ensures that its staff have the necessary skills and competence to support the digital transformation and deliver value to customers. This can involve training, development, coaching, mentoring, recruitment, retention, and motivation of staff. References: ITIL 4 Leader: Digital and IT Strategy, page 68-69

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

All the organization’s stakeholders should contribute to risk assessment because they have different perspectives, insights, and interests in relation to the organization’s objectives, activities, and outcomes. Their involvement can help identify, analyze, evaluate, and treat risks more effectively and comprehensively. References: ITIL 4 Leader: Digital and IT Strategy, page 59

A sourcing strategy is about deciding how to acquire and manage the resources and capabilities needed to deliver services, including suppliers and partners. An organization that is continually changing to maintain customer and market relevance needs a sourcing strategy that can support these changes by enabling flexibility, agility, innovation and collaboration with suppliers and partners. References: ITIL 4 Leader: Digital and IT Strategy, page 75-76

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In the ITIL 4 Service Value System (SVS), “Value” is the core output and the guiding principle of all activities. Evaluating how consumers perceive products and services aligns with value realization—how well the organization is delivering benefits, utility, and satisfaction to stakeholders. Governance (B), Opportunity (C), and Practices (D) relate to enabling structures and capabilities but do not directly involve measuring perceived value.

Comprehensive and Detailed Explanation From Exact Extract:

In a business case,opportunity costrefers to the value of the best alternative that is foregone when a particular investment is chosen. ITIL 4 states that assessing opportunity cost helps decision-makers understand the trade-offs involved in choosing one path over another. Therefore, option D—describing the value that would be generated if a different investment were made—is the correct approach to addressing opportunity cost in the business case.

Consumers will be able to access advice and request prescriptions quickly at all times without attending a medical facility is the best value proposition for the healthcare user market to include in the strategy. It describes how the online access to healthcare services will benefit the consumers by meeting their needs and expectations, creating value and convenience for them, and differentiating the service from the competition. References: ITIL 4 Leader: Digital and IT Strategy, page 12-13

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Digital readiness assessments evaluate whether an organization is equipped to succeed in a digital strategy environment. A key component isstaff capability and learning culture—whether the workforce has the skills, knowledge, and mindset needed for digital transformation. ITIL 4 stresses that organizational learning, upskilling, and leadership development are vital to readiness. Option C aligns directly with this. The other options focus on security, investment, or operations—not strategic capability building.

The innovation will deliver significant benefit for the organization is a reason why an organization might choose to implement an innovation even though it does not meet its minimum requirement for “return on investment” (ROI). This means that the organization values the long-term or intangible benefits of the innovation more than the short-term or financial returns. For example, the innovation might enhance customer satisfaction, brand reputation, market share, or social impact. References: ITIL 4 Leader: Digital and IT Strategy, page 27-28

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

Cyber security risk is the most likely type of risk to be identified by modeling and test reviews. Modeling and test reviews are methods of assessing risks by simulating or testing different scenarios, outcomes, or impacts. Cyber security risk is the risk of unauthorized access, use, disclosure, modification, or destruction of data or systems. Modeling and test reviews can help identify cyber security risks by exposing vulnerabilities, weaknesses, or flaws in the data or systems. References: ITIL 4 Leader: Digital and IT Strategy, page 60-61

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Focusing on a single user’s journey without segmenting or understanding different customer types limits insight into broader user needs. The ITIL 4 guidance highlights the importance of definingpersonas—distinct customer types with different needs, motivations, and preferences—so changes can be aligned to the broader audience. Without personas, improvements may benefit only one segment and not lift average satisfaction across all users. Defining personas ensures that the strategy addresses diverse user experiences and drives measurable improvements.

Adjusting competitive prices for the market and competition is about setting prices that reflect the value of the services, the demand and supply in the market, and the prices of similar or substitute services offered by competitors. This can help attract customers, increase sales, and gain market share. References: ITIL 4 Leader: Digital and IT Strategy, page 81

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

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According to ITIL 4,business strategyis the “art and science of planning and marshalling resources for their most efficient and effective use to achieve the organization's goals.” It represents a formalized means ofdefining and communicatingthe organization's objectives and the approach it will take to meet them. Option A captures this essence accurately. Option B reflects adaptability. Option C aligns with operating model design. Option D refers to governance or operational structures.