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NEW QUESTION # 13
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 10 funding teams and value streams
- C. Switch to funding programmes and protects
- D. Provide additional funding lo development and operations
Answer: B
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 # 14
Which statement about metrics is CORRECT?
- A. Lagging metrics predict what a is likely to happen in the future
- B. Leading metrics ate difficult to measure, but easy to Influence
- C. Legging metrics report what has been achieved
- D. Lagging metrics are easy to measure and to influence
Answer: C
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 83-84
NEW QUESTION # 15
An organization is entering a new market with a range of services. Similar services already exist in the market, and the demand is high.
Which is the BEST approach to pricing and charging for the services in the new market?
- A. Establish long-term contracts with fixed prices to help secure future Income
- B. Adopt a short-term Increase in the pricing and margins
- C. Ensure service costs are clear to the consumers to help regulate prices
- D. Adjust competitive prices for the market and competition
Answer: D
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 81
NEW QUESTION # 16
The leaders of an organization ate defining an approach to optimize its value streams and processes to create a more efficient way of working.
What should this approach focus on?
- A. Uninterrupted delivery
- B. Organizational agility
- C. Organizational resilience
- D. Elimination of waste
Answer: D
NEW QUESTION # 17
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 is low cost
- B. The innovation will deliver significant benefit for the organization
- C. The innovation is low risk
- D. The innovation is essential for the a organization to survive
Answer: A
NEW QUESTION # 18
An organization provides services to businesses and private customers, it is now reviewing. its strategy and needs to ensure that the strategy sufficiently addresses the external perspective.
Which question BEST supports this objective?
- A. How can we reduce costs?
- B. What markets do we serve?
- C. How can we improve operational efficiencies?
- D. How do we get to where we want to be?
Answer: B
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 7-8
NEW QUESTION # 19
The leaders of an organization ate defining an approach to optimize its value streams and processes to create a more efficient way of working.
What should this approach focus on?
- A. Uninterrupted delivery
- B. Organizational agility
- C. Organizational resilience
- D. Elimination of waste
Answer: D
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 64
NEW QUESTION # 20
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 low cost
- C. The innovation is low risk
- D. The innovation is essential for the a organization to survive
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 # 21
Which is a leadership skill that relates to having a digital mindset?
- A. Looking at the potential of new tools to meet customer needs
- B. Measuring the success of strategic digital initiatives
- C. Bulking a rapport with regulators and government officials
- D. Sharing success stories frequently to motivate others
Answer: A
NEW QUESTION # 22
An organization strategy requires them to continually maintain market relevance.
Which approach is the MOST relevant to achieve this objective?
- A. PESTLE analysis
- B. Customer 360
- C. Digital transformation
- D. Employee 360
Answer: B
NEW QUESTION # 23
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
NEW QUESTION # 24
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: D
NEW QUESTION # 25
An organization is entering a new market with a range of services. Similar services already exist in the market, and the demand is high.
Which is the BEST approach to pricing and charging for the services in the new market?
- A. Establish long-term contracts with fixed prices to help secure future Income
- B. Adopt a short-term Increase in the pricing and margins
- C. Ensure service costs are clear to the consumers to help regulate prices
- D. Adjust competitive prices for the market and competition
Answer: D
NEW QUESTION # 26
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. Shareholder will receive Improve dividends from increased proms without significant Investment
- C. The organization will be able to utilize Innovative technology to develop software apps in faster times to market
- D. Healthcare professionals will be able to promote the services to healthcare users and reduce costs
Answer: D
NEW QUESTION # 27
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. Concurrence
- B. synergism
- C. Erosion
- D. Cannibalism
Answer: C
NEW QUESTION # 28
Which is NOT an essential consideration when developing a digital strategy?
- A. Understanding how to identify potential opportunities
- B. Understanding which systems will form die digital technology programme
- C. Understanding the risks involved with digital opportunities
- D. Understanding emerging technologies Hal could affect the organization
Answer: B
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 # 29
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. Digital transformation
- B. Digital positioning
- C. Operational technology
- D. Organizational disruption
Answer: A
NEW QUESTION # 30
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. Healthcare professionals will be able to promote the services to healthcare users and reduce costs
- B. Consumers will be able to access advice and request prescriptions quickly at al limes without attending a medical facility
- C. Shareholder will receive Improve dividends from increased proms without significant Investment
- D. The organization will be able to utilize Innovative technology to develop software apps in faster times to market
Answer: B
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 # 31
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. Customer analytics
- B. Market relevance
- C. Customer feedback
- D. Omnichannel delivery
Answer: D
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 # 32
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. Deliver compulsory strategic awareness sessions regularly
- B. Ensure there is one common communication channel for the strategy
- C. Tallor strategic communications to the stakeholders preferences
- D. Utilize metrics to ensure stall comply with the strategy
Answer: C
NEW QUESTION # 33
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. Giving employees time for training and development
- B. Working with workflow and talent management
- C. Encouraging digital technology opportunities
- D. Establishing a mantel intelligence culture
Answer: C
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 # 34
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. Improved use of automation
- B. Linked processes and practices to value creation
- C. Management of threats and opportunities
- D. Management of staff skills and competence
Answer: D
Explanation:
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. Reference: ITIL 4 Leader: Digital and IT Strategy, page 68-69
NEW QUESTION # 35
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. An inventory of the mam technology components that will be located at the head office data centre
- B. Definitions of the service management toolsets needed to support the service
- C. Descriptions of the series of steps for the work that is required to create and support the service
- D. A list of vendors who will provide the components mat form the social media service
Answer: C
Explanation:
Descriptions of the series of steps for the work that is required to create and support the service are part of the essential themes of the operating model. They define how value is created and delivered through value streams and processes. They also help align the work with the strategy, vision, and goals of the organization and its stakeholders. Reference: ITIL 4 Leader: Digital and IT Strategy, page 19-20
NEW QUESTION # 36
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