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

Comprehensive and Detailed Explanation From Exact Extract:

The ITIL 4 Leader: Digital & IT Strategy emphasizes that effective digital and IT strategies should bebalancedand aligned with both operational capabilities and market/customer demands. Achieving operational excellence alone without maintaining strong customer and market relevance risks losing competitive advantage. Conversely, focusing only on market relevance may neglect the efficiency and quality required for sustainable success.

The best practice is tocreate a balanced strategythat integrates operational excellence with customer and market relevance, ensuring that improvements in operational performance support and reinforce the organization’s market position and customer relationships.

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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.

Lagging metrics report what has been achieved by measuring the outcomes or results of past actions or activities. They are easy to measure but difficult to influence. They are useful for evaluating performance and validating hypotheses. Leading metrics predict what is likely to happen in the future by measuring the inputs or drivers of future outcomes or results. They are difficult to measure but easy to influence. They are useful for forecasting and influencing performance. References: ITIL 4 Leader: Digital and IT Strategy, page 83-84

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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.

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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.

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

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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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.