Free PeopleCert ITIL-4-DITS Practice Exam with Questions & Answers | Set: 2

Vision and strategy should be defined in collaboration with the leaders of the organization and division to ensure alignment, coherence, and buy-in across the organization. This can help create a shared understanding of the goals, values, and direction of the organization and its divisions, as well as leverage the expertise and insights of different leaders. References: ITIL 4 Leader: Digital and IT Strategy, page 9-10

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

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

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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.

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

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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According to ITIL 4 Leader: Digital & IT Strategy, a critical role of leaders is to ensure that stakeholders, including shareholders, understand the strategic direction and how it impacts organizational value. Shareholders are primarily concerned with business performance and return on investment. Therefore, it’s essential that strategy communications emphasize how strategic changes affect the organization's financial health and competitive positioning. This builds trust and aligns stakeholder expectations.