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

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.

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

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

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

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

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

Digital transformation is the most relevant approach to achieve the objective of continually maintaining market relevance. It is about using digital technology to create new or modify existing business processes, culture, and customer experiences to meet changing market needs and expectations. It also helps to create value, enhance competitiveness, and foster innovation. References: ITIL 4 Leader: Digital and IT Strategy, page 5

A low risk capacity means that an organization cannot afford the loss that comes from taking risks that go wrong, while a high risk appetite means that an organization is willing to take those risks anyway. This situation can lead to big losses and unsustainable outcomes. References: ITIL 4 Leader: Digital and IT Strategy, page 57

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

Comprehensive and Detailed Explanation From Exact Extract:

ITIL 4 emphasizes that digital and IT strategies must becontinually generated and adapteddue to the rapidly evolving technology landscape, market dynamics, and customer expectations. Unlike traditional strategies updated annually or quarterly, a continual strategy management approach allows organizations to stay agile and resilient. Option C best aligns with ITIL 4’s adaptive operating model, where strategic planning and execution are iterative and responsive to internal and external changes.

Comprehensive and Detailed Explanation From Exact Extract:

The scenario describes a high-demand, competitive market already populated with similar offerings. According to ITIL 4 Leader: Digital & IT Strategy, when entering such markets, the most effective strategy is to use acompetitive pricing modelthat considers market benchmarks, competitor pricing, and perceived value. Option B reflects this adaptive approach—aligning prices with market conditions while maintaining differentiation. Setting prices too high (A) can deter new customers. Options C and D may be relevant in regulated or long-term stability contexts, but not for initial market entry in a competitive landscape.

Comprehensive and Detailed Explanation From Exact Extract:

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.

Comprehensive and Detailed Explanation From Exact Extract:

Digital technology is described in ITIL 4 as the convergence ofinformation technology (IT)andoperational technology (OT). This includes systems that control physical devices, processes, and infrastructure combined with traditional IT systems to enable end-to-end digital capabilities. Option B directly reflects this definition. Option C refers to a digital business, not digital technology. Option D is too narrow and option A misidentifies digital technology as an organizational function.

Comprehensive and Detailed Explanation From Exact Extract:

Encouraging small-scale experimentation supports aninnovation-driven culture, as recommended in ITIL 4 Leader: Digital & IT Strategy. This approach promotes rapid feedback, iterative improvements, and the discovery of new value streams—all of which can lead to competitive advantages. The other options may be side benefits, but the core purpose of such experiments is tostimulate innovation and learning.

Comprehensive and Detailed Explanation From Exact Extract:

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.