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NEW QUESTION # 19
An organization has started a digital transformation programme, and wants to create a culture of innovation. This month, the CIO plans to deliver a presentation on how chatbots can improve the customer registration experience.
Which approach is the CIO using to support the programme?
- A. Working with workflow and talent management
- B. Giving employees time for training and development
- C. Establishing a mantel intelligence culture
- D. Encouraging digital technology opportunities
Answer: D
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 25-26
NEW QUESTION # 20
Which statement is CORRECT about risk management in digital organizations?
- A. All the organization's slaveholders should contribute to risk assessment
- B. All risk management should start by assessing the current state
- C. All risk management efforts should focus on assets owned by the organization
- D. All risks could cause harm to the organization if they are not managed
Answer: A
NEW QUESTION # 21
An organization has identified an opportunity to provide increased value to the healthcare user market. It wants to provide online access to healthcare services before its competition.
Which is the NST value proposition for the healthcare user market to include in the strategy?
- A. Consumers will be able to access advice and request prescriptions quickly at al limes without attending a medical facility
- B. Healthcare professionals will be able to promote the services to healthcare users and reduce costs
- C. The organization will be able to utilize Innovative technology to develop software apps in faster times to market
- D. Shareholder will receive Improve dividends from increased proms without significant Investment
Answer: A
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 12-13
NEW QUESTION # 22
An organization is planning a large scale digital transformation programme to significantly improve its digital capabilities. Which Is the BUT approach for defining and implementing this programme?
- A. The Chief Digital Officer should define and implement the programme
- B. A digital task force should be appointed to define and Implement me programme
- C. individual initiatives should be defined and implemented separately
- D. The organization's governing body should define and implement the programme
Answer: B
NEW QUESTION # 23
An insurance company generates sales from its website, from agents in a call center, and from third parties working for other financial service organizations. The product is very product is very popular and users are generally satisfied. The organization regularly collects and analysis data about service consumers, and this shows users have different levels of satisfaction, depending on how the product was sold.
What should the insurance company consider NEXT to help resolve the situation?
- A. Omnichannel delivery
- B. Market relevance
- C. Customer feedback
- D. Customer analytics
Answer: D
NEW QUESTION # 24
An organization has established a dear vision for digital transformation and has started their transformation journey. They have documented al their value streams and started to improve these. They use technology appropriately to maximize customer experience and operational excellence. They understand and manage risks, and they have a comprehensive approach to Identifying and using innovative Ideas.
What else do they need lot the digital transformation to succeed?
- A. Management of threats and opportunities
- B. Management of staff skills and competence
- C. Improved use of automation
- D. Linked processes and practices to value creation
Answer: B
NEW QUESTION # 25
An organization wants to ensure that all Key stakeholders are aware of the strategic direction and support it. What is the MOST approach to achieve this?
- A. Utilize metrics to ensure stall comply with the strategy
- B. Deliver compulsory strategic awareness sessions regularly
- C. Tallor strategic communications to the stakeholders preferences
- D. Ensure there is one common communication channel for the strategy
Answer: C
Explanation:
Tailoring strategic communications to the stakeholders' preferences is the best approach to ensure that all key stakeholders are aware of the strategic direction and support it. This means that the organization considers the needs, expectations, interests, and preferences of different stakeholders when communicating the strategy. This can help increase stakeholder engagement, understanding, alignment, and buy-in. Reference: ITIL 4 Leader: Digital and IT Strategy, page 10-11
NEW QUESTION # 26
A service provider a developing an operating model to support a new social media service that enables their business strategy.
They have included the following in the operating model:
* a definition of how suppliers will be Involved in the delivery of the service
* a description of me main performance measures required
Which additional element MUST be included to ensure that the essential themes of the operating model are covered?
- A. Descriptions of the series of steps for the work that is required to create and support the service
- B. Definitions of the service management toolsets needed to support the service
- C. A list of vendors who will provide the components mat form the social media service
- D. An inventory of the mam technology components that will be located at the head office data centre
Answer: A
NEW QUESTION # 27
Which is NOT an essential consideration when developing a digital strategy?
- A. Understanding which systems will form die digital technology programme
- B. Understanding how to identify potential opportunities
- C. Understanding the risks involved with digital opportunities
- D. Understanding emerging technologies Hal could affect the organization
Answer: A
NEW QUESTION # 28
An organization cannot afford the loss that comes from taking risks that go wrong, but they suffer big losses because they often take these risks anyway.
What combination of risk capacity and risk appetite this situation?
- A. High risk capacity, high risk appetite
- B. High risk capacity, low risk appetite
- C. Low risk capacity, low risk appetite
- D. Low risk capacity, high risk appetite
Answer: D
NEW QUESTION # 29
Which is NOT an essential consideration when developing a digital strategy?
- A. Understanding which systems will form die digital technology programme
- B. Understanding how to identify potential opportunities
- C. Understanding the risks involved with digital opportunities
- D. Understanding emerging technologies Hal could affect the organization
Answer: A
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 5-6
NEW QUESTION # 30
An organization has utilized digital technology to make significant improvements to business processes that have contributed to the achievement of its strategic objectives. What does this describe?
- A. Organizational disruption
- B. Operational technology
- C. Digital positioning
- D. Digital transformation
Answer: D
Explanation:
Digital transformation is the use of digital technology to create new or modify existing business processes, culture, and customer experiences to meet changing market needs and expectations. An organization that has utilized digital technology to make significant improvements to business processes that have contributed to the achievement of its strategic objectives has undergone a digital transformation. Reference: ITIL 4 Leader: Digital and IT Strategy, page 5
NEW QUESTION # 31
A software development organization has a very traditional way of working that no longer meets their market needs. They currently manage all budgets via their development and operations business units. They want to change so that they can develop and deploy solutions rapidly In response to constantly changing market needs.
How should they change their funding model to support this?
- A. Provide additional funding via the research and development budget
- B. Switch to funding programmes and protects
- C. Provide additional funding lo development and operations
- D. Switch 10 funding teams and value streams
Answer: D
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 50-51
NEW QUESTION # 32
An insurance company generates sales from its website, from agents in a call center, and from third parties working for other financial service organizations. The product is very product is very popular and users are generally satisfied. The organization regularly collects and analysis data about service consumers, and this shows users have different levels of satisfaction, depending on how the product was sold.
What should the insurance company consider NEXT to help resolve the situation?
- A. Market relevance
- B. Customer feedback
- C. Omnichannel delivery
- D. Customer analytics
Answer: C
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 17
NEW QUESTION # 33
Which term includes the use of hardware and software to store, retrieve, transmit, and manipulate data?
- A. Digital strategy
- B. Digital technology
- C. Digital business
- D. Digital transformation
Answer: B
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 5-6
NEW QUESTION # 34
An organization wants to ensure that all Key stakeholders are aware of the strategic direction and support it.
What is the MOST approach to achieve this?
- A. Utilize metrics to ensure stall comply with the strategy
- B. Deliver compulsory strategic awareness sessions regularly
- C. Tallor strategic communications to the stakeholders preferences
- D. Ensure there is one common communication channel for the strategy
Answer: C
NEW QUESTION # 35
An organization has identified three initiatives to support a digital transformation strategy:
1. Upgrading technology
2 Adopting new software development approaches
3. Changing the structure of teams and departments
The project, management office has been tasked with Identifying and developing the business case(s) needed to review these initiatives Which is the BEST approach to take when creating the business case(s)?
- A. Create three different business cases providing justification for each Initiative
- B. Create one single business case that provides justification for all three initiatives
- C. Create one business case for the technology upgrade, and another for the remaining Initiatives
- D. Create one business case for the organizational change, and another for the remaining Initiatives
Answer: A
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 49-50
NEW QUESTION # 36
Which is an example of industry disruption?
- A. An organization transitioned a large number of its services to a cloud provider to remain competitive In their market
- B. A service provider has launched a new app to support collaboration that is easy to use, and is popular with consumers from many markets
- C. A mobile phone provider has adopted a new operating model in response to threats from the competition which has resulted In the provider becoming the market leader
- D. A software provider has developed a new satellite navigation system for the serf-driving cat market that has become the system of choice for car manufacturers
Answer: D
NEW QUESTION # 37
Why might an organization choose to Implement an Innovation even though it does not meet its minimum requirement for "return on Investment' (ROI)?
- A. The innovation will deliver significant benefit for the organization
- B. The innovation is essential for the a organization to survive
- C. The innovation is low cost
- D. The innovation is low risk
Answer: A
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 27-28
NEW QUESTION # 38
Which is an example of industry disruption?
- A. An organization transitioned a large number of its services to a cloud provider to remain competitive In their market
- B. A service provider has launched a new app to support collaboration that is easy to use, and is popular with consumers from many markets
- C. A mobile phone provider has adopted a new operating model in response to threats from the competition which has resulted In the provider becoming the market leader
- D. A software provider has developed a new satellite navigation system for the serf-driving cat market that has become the system of choice for car manufacturers
Answer: D
Explanation:
A software provider has developed a new satellite navigation system for the self-driving car market that has become the system of choice for car manufacturers is an example of industry disruption. Industry disruption is about creating new markets or value propositions that challenge or replace existing ones. The software provider has created a new value proposition for the self-driving car market that has disrupted the existing satellite navigation systems and gained a competitive advantage. Reference: ITIL 4 Leader: Digital and IT Strategy, page 37-38
NEW QUESTION # 39
Which parallel model is based on using the Income generated by an existing business model to fund a new digital business model until can fund itself?
- A. synergism
- B. Erosion
- C. Concurrence
- D. Cannibalism
Answer: A
Explanation:
Synergism is a parallel model that is based on using the income generated by an existing business model to fund a new digital business model until it can fund itself. It is a way of balancing the risks and rewards of innovation and disruption by creating a synergy between the old and the new business models. Reference: ITIL 4 Leader: Digital and IT Strategy, page 39
NEW QUESTION # 40
An organization identified activities that are performed by many different people who follow detailed procedures to ensure they carry out all the steps. The procedures are very clear, and if staff follow the exact steps in the procedure then the results are always good, but this takes a lot of time.
- A. Intelligent automation
- B. Technology replacement modernization
- C. Complex automation
- D. Simple automation
Answer: D
Explanation:
Simple automation is about using technology to automate repetitive and standardized tasks that follow clear and detailed procedures. This can help reduce human errors, save time and resources, and improve efficiency and quality. Reference: ITIL 4 Leader: Digital and IT Strategy, page 63
NEW QUESTION # 41
Which is the BEST approach to defining a vision and a strategy in an organization with multiple specialization divisions?
- A. Vision and strategy should be defined in collaboration with the leaders of the organization and division
- B. Vision and strategy should be defined by the governing body and communicated to the divisions' leaders
- C. Vision and strategy should be defined by the executive leader and communicated to me divisions
- D. Vision and strategy should be defined in collaboration with the enterprise architects and consultants
Answer: A
NEW QUESTION # 42
Which is a leadership skill that relates to having a digital mindset?
- A. Measuring the success of strategic digital initiatives
- B. Looking at the potential of new tools to meet customer needs
- C. Bulking a rapport with regulators and government officials
- D. Sharing success stories frequently to motivate others
Answer: B
NEW QUESTION # 43
An organization identified activities that are performed by many different people who follow detailed procedures to ensure they carry out all the steps. The procedures are very clear, and if staff follow the exact steps in the procedure then the results are always good, but this takes a lot of time.
- A. Intelligent automation
- B. Technology replacement modernization
- C. Complex automation
- D. Simple automation
Answer: D
Explanation:
Simple automation is about using technology to automate repetitive and standardized tasks that follow clear and detailed procedures. This can help reduce human errors, save time and resources, and improve efficiency and quality. Reference: ITIL 4 Leader: Digital and IT Strategy, page 63
NEW QUESTION # 44
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