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

Comprehensive and Detailed Explanation From Exact Extract:

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.

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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Innovation, as described in ITIL 4 Leader: Digital & IT Strategy, involvesintroducing new ways of creating value—this includes adopting entirely new service creation models, delivery mechanisms, or business practices. The key term in the question is "completely new," which distinguishes it from incremental transformation. Operational technology (B) is a type of technology. Ecosystem disruption (C) involves market-level changes, not internal shifts.

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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.

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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Adigital businessis defined in ITIL 4 as one that uses digital technology at the core of its operations and strategic decisions. It doesn’t just use technology to support business—it conducts business via digital means. Option D best captures this definition. Options A and B describe technical capabilities (information systems, digitization). Option C refers to operational technology.

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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.

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The organization has already demonstrated agility—rapid adaptation to change. However, their new objective is to improve efficiency and reduce costs, which aligns most closely with the principles of aLeanapproach. According to ITIL 4 Leader: Digital & IT Strategy, Lean is focused on maximizing value while minimizing waste, making it highly effective for organizations seeking long-term sustainability and cost optimization after a growth phase. Agility relates to adaptability (which they already have), while resilience and continuity focus more on recovery and stability, not cost efficiency.

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

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This scenario reflects asynergisticmodel, where a new channel (third-party sales) is expected to complement and enhance the existing channel (direct website sales) through brand visibility and increased reach. According to ITIL 4, a “synergism” model is used when multiple channels reinforce each other, resulting in net-positive effects across the ecosystem. Cannibalism (A) would imply internal competition and reduced performance. Erosion (B) implies declining value. Concurrence (C) involves operating parallel models without direct beneficial interaction.

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To achieve a balance betweenoutward-facing(customer/market) andinward-facing(capability/operations) perspectives, the organization must focus not only on market opportunities and relevance but also on internal strengths and improvements. Option 3 addresses how technology (an internal asset) can enhance the customer experience (external impact), and option 4 focuses on analyzing staff capabilities—an internal factor related to operational excellence. This aligns with ITIL’s recommendation to assess both internal and external drivers when building balanced strategies.

A digital task force is a cross-functional team that is responsible for defining and implementing a large scale digital transformation programme. This can help ensure that the programme is aligned with the organization’s vision and strategy, has clear objectives and scope, follows a structured approach, leverages best practices and innovation, and delivers value to the organization and its stakeholders. References: ITIL 4 Leader: Digital and IT Strategy, page 47-48

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

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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.

Comprehensive and Detailed Explanation From Exact Extract:

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.