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

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

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

Customer and market relevance is about understanding and meeting the needs and expectations of customers and markets, especially in a dynamic and competitive environment. Operational excellence is about delivering services efficiently and effectively, with high quality and reliability. An innovative social media platform can help improve engagement with young consumers by enhancing customer and market relevance, while operational excellence can support the delivery of the platform and its services. References: ITIL 4 Leader: Digital and IT Strategy, page 15-16

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. References: ITIL 4 Leader: Digital and IT Strategy, page 50-51

Comprehensive and Detailed Explanation From Exact Extract:

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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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.

What markets do we serve? is the best question to support the objective of ensuring that the strategy sufficiently addresses the external perspective. It helps to understand the current and potential customers, segments, needs, expectations, and preferences of the markets that the organization operates in or wants to enter. It also helps to identify the opportunities, threats, and trends in the external environment that can affect the organization’s strategy. References: ITIL 4 Leader: Digital and IT Strategy, page 7-8

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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.

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