ITIL-4-DITS Questions and Answers

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

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PESTLE analysis examines external environmental factors—Political, Economic, Social, Technological, Legal, and Environmental—that affect the organization. Given the scenario includes customers in a regulated environment and IT service delivery expectations, the most relevant factor is changinggovernment policieson secure IT systems (Political/Legal). These directly affect service compliance and must be considered in strategic planning. Options A and C are internal operational considerations. Option D, while important for sustainability, is less immediately relevant than regulatory compliance.

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When entering a new market with unique regulatory requirements, the best strategic approach is to developnew business and operating modelstailored to those constraints. ITIL 4 Leader: Digital & IT Strategy recommends adapting strategy through market-focused operating model redesigns that meet regulatory, cultural, and technological needs. Simply scaling existing resources (A), making product changes without addressing business practices (C), or partially adapting the old model (D) won’t fully align with stringent regulatory conditions.

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This scenario describes a risk attitude where the organization knowingly accepts a high level of risk in pursuit of potential gains. According to the ITIL 4 Leader: Digital & IT Strategy guidance, arisk-seekingattitude is characterized by a willingness to pursue opportunities that have uncertain outcomes and potentially high rewards, even when there is a significant chance of failure or negative impact. This is contrasted with risk-averse (avoiding risk), risk-tolerant (accepting risk but not seeking it), and risk-neutral (indifferent to risk levels). Here, launching new but unreliable technology despite known concerns fits a risk-seeking approach.

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The scenario describes using technology to analyze howpeoplebehave—internally, that refers to employees. To driveoperational excellence, the organization needs to focus on improving internal processes, workforce effectiveness, and productivity. The ITIL 4 guidance emphasizes usingEmployee 360analytics to optimize internal operations, identify inefficiencies, and enable better resource management. In contrast, Customer 360 and omnichannel delivery focus on external customer experience, and modernization addresses infrastructure—not behavior-driven operational improvement. This aligns with the ITIL principle that internal visibility supports operational efficiency and service reliability.

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Digital readiness assessments evaluate whether an organization is equipped to succeed in a digital strategy environment. A key component isstaff capability and learning culture—whether the workforce has the skills, knowledge, and mindset needed for digital transformation. ITIL 4 stresses that organizational learning, upskilling, and leadership development are vital to readiness. Option C aligns directly with this. The other options focus on security, investment, or operations—not strategic capability building.

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This scenario represents aresource-based advantage: the organization leverages proprietary, non-replicable internal resources—both technical and organizational—that deliver sustained competitive advantage. According to the ITIL sample rationales, resource-based advantages are defined as "organizations rely on … resources that other organizations do not… valuable, rare, non-replicable, durable, and organization-specific"

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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.

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The termfunding mixrefers to the combination of various sources of capital or financing available to an organization, such as internal funds, investor capital, loans, or revenue streams. ITIL 4 identifies analyzing the funding mix as a key part of financial strategy, especially when planning or executing digital initiatives. Operating and capital expenditures are types of spending, not sources. Freemium models refer to pricing strategies, not funding.

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

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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.

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PESTLE (Political, Economic, Social, Technological, Legal, Environmental) is a strategic analysis framework specifically designed to help organizations identify a broad spectrum of external risks and influences. ITIL 4 recommends using PESTLE for evaluatingmacro-environmental factorsthat could impact the organization’s strategic direction and risk posture. OKR (Objectives and Key Results) is a goal-setting framework. Customer analytics focuses on customer behavior, and portfolio optimization is about investment and resource allocation.

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According to ITIL 4,business strategyis the “art and science of planning and marshalling resources for their most efficient and effective use to achieve the organization's goals.” It represents a formalized means ofdefining and communicatingthe organization's objectives and the approach it will take to meet them. Option A captures this essence accurately. Option B reflects adaptability. Option C aligns with operating model design. Option D refers to governance or operational structures.