ITIL-4-DITS ITIL 4 Leader: Digital & IT Strategy Exam Questions and Answers

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. References: ITIL 4 Leader: Digital and IT Strategy, page 5-6

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

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. References: ITIL 4 Leader: Digital and IT Strategy, page 64

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. References: ITIL 4 Leader: Digital and IT Strategy, page 17

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. References: ITIL 4 Leader: Digital and IT Strategy, page 5-6

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