ITIL-4-DITS Practice Exam Questions with Answers ITIL 4 Leader: Digital & IT Strategy Exam Certification

All the organization’s stakeholders should contribute to risk assessment because they have different perspectives, insights, and interests in relation to the organization’s objectives, activities, and outcomes. Their involvement can help identify, analyze, evaluate, and treat risks more effectively and comprehensively. References: ITIL 4 Leader: Digital and IT Strategy, page 59

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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 low risk capacity means that an organization cannot afford the loss that comes from taking risks that go wrong, while a high risk appetite means that an organization is willing to take those risks anyway. This situation can lead to big losses and unsustainable outcomes. References: ITIL 4 Leader: Digital and IT Strategy, page 57

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The scenario describes a high-demand, competitive market already populated with similar offerings. According to ITIL 4 Leader: Digital & IT Strategy, when entering such markets, the most effective strategy is to use acompetitive pricing modelthat considers market benchmarks, competitor pricing, and perceived value. Option B reflects this adaptive approach—aligning prices with market conditions while maintaining differentiation. Setting prices too high (A) can deter new customers. Options C and D may be relevant in regulated or long-term stability contexts, but not for initial market entry in a competitive landscape.

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The scenario describes how the organization is using innovation toradically change industry norms—providing services more efficiently and at lower cost than competitors in a regulated field. According to ITIL 4, this is a clear example of anindustry disruption—when innovation significantly alters the dynamics, expectations, or operational models across an entire sector. Ecosystem disruption involves broader stakeholder networks, market relevance is an outcome of this, and external focus is a strategic perspective, not a descriptor of the change itself.

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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.

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

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IT strategy is focused on how IT enables thebusiness strategyand aligns IT capabilities with business goals. ITIL 4 Leader: Digital & IT Strategy clearly separates business strategy (organizational-wide) from IT strategy, which supports and enables these goals through technology. Therefore, understanding how IT contributes to achieving business outcomes is a fundamental aspect of IT strategy.

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. References: ITIL 4 Leader: Digital and IT Strategy, page 27-28

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. References: ITIL 4 Leader: Digital and IT Strategy, page 81

 Simple automation is about using technology to automate repetitive and standardized tasks that follow clear and detailed procedures. This can help reduce human errors, save time and resources, and improve efficiency and quality. References: ITIL 4 Leader: Digital and IT Strategy, page 63

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

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The organization has already demonstrated agility—rapid adaptation to change. However, their new objective is to improve efficiency and reduce costs, which aligns most closely with the principles of aLeanapproach. According to ITIL 4 Leader: Digital & IT Strategy, Lean is focused on maximizing value while minimizing waste, making it highly effective for organizations seeking long-term sustainability and cost optimization after a growth phase. Agility relates to adaptability (which they already have), while resilience and continuity focus more on recovery and stability, not cost efficiency.