A retail company is considering implementing a chatbot for customer service. The chatbot will cost $40,000 to develop and $10,000 per year to maintain. It is expected to handle 30% of customer inquiries, saving $60,000 per year in labor costs. However, there is a risk that customer satisfaction may drop, leading to lost sales. How should the business case handle the intangible factor of customer satisfaction?

Include a qualitative assessment of customer satisfaction risk and a mitigation plan, such as a hybrid model with human escalation.

Quantify customer satisfaction in dollars by estimating potential lost sales, but do not include a mitigation plan.

Ignore customer satisfaction because it is intangible and cannot be measured.

Assume customer satisfaction will remain the same because the chatbot is efficient.

A software company wants to improve its deployment frequency. The team is considering three options: (1) adopt a new CI/CD tool, (2) hire additional DevOps engineers, or (3) provide training to existing staff. The team needs to build a business case. What is the most appropriate way to assess these options?

Implement all three options to maximize the chances of success.

Choose the option with the lowest upfront cost, as that is the most important factor.

Select the option that is most popular among the development team.

Compare the costs, benefits, and risks of each option, and select the one that best aligns with organizational objectives.

A business case for a new HR self-service portal has been submitted for approval. The approval board includes the CFO, the CHRO, and the head of IT. During the review, the CFO questions the payback period, the CHRO asks about employee satisfaction impact, and the head of IT asks about integration with existing systems. What is the best way to handle these questions?

Ask the board to approve the case and promise to provide details later.

Provide a single response that focuses on the financial payback, as the CFO is the most senior member.

Revise the business case to remove any mention of employee satisfaction and integration to avoid further questions.

Address each question with specific evidence: financial projections, employee satisfaction survey data, and integration feasibility.

Why is it important to identify stakeholders and their interests when building a business case?

To identify which stakeholders can be ignored

To satisfy regulatory requirements for stakeholder consultation

To avoid any communication with stakeholders during the process

To ensure the business case addresses their needs and gains their support

ITIL 4 Strategic Leader

Domain 4Objective 5

Know How to Build, Justify and Advocate for a Business Case (5.4.2, 2.4.3, 2.4.3.1-2) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 4)

Part of the Understand and know how to use the key principles and methods of continual improvement for all types of improvements domain, which makes up ~13% of our current practice bank.

34questions here

7free pages

9concepts

Questions 16–20

16application · medium
A retail company is considering implementing a chatbot for customer service. The chatbot will cost $40,000 to develop and $10,000 per year to maintain. It is expected to handle 30% of customer inquiries, saving $60,000 per year in labor costs. However, there is a risk that customer satisfaction may drop, leading to lost sales. How should the business case handle the intangible factor of customer satisfaction?
Select an answer first
17application · medium
A software company wants to improve its deployment frequency. The team is considering three options: (1) adopt a new CI/CD tool, (2) hire additional DevOps engineers, or (3) provide training to existing staff. The team needs to build a business case. What is the most appropriate way to assess these options?
Select an answer first
18application · medium
A business case for a new HR self-service portal has been submitted for approval. The approval board includes the CFO, the CHRO, and the head of IT. During the review, the CFO questions the payback period, the CHRO asks about employee satisfaction impact, and the head of IT asks about integration with existing systems. What is the best way to handle these questions?
Select an answer first
19foundation · easy
Why is it important to identify stakeholders and their interests when building a business case?
Select an answer first
20application · medium
A business case for a new automated testing tool includes the following: purchase cost, annual license fees, training costs, expected reduction in testing hours, and the risk of tool adoption resistance. Which component of the business case is missing?
Select an answer first

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Know How to Build, Justify and Advocate for a Business Case (5.4.2, 2.4.3, 2.4.3.1-2) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 4)

Questions 16–20

Why is it important to identify stakeholders and their interests when building a business case?

A business case for a new automated testing tool includes the following: purchase cost, annual license fees, training costs, expected reduction in testing hours, and the risk of tool adoption resistance. Which component of the business case is missing?

Keep studying — Understand and know how to use the key principles and methods of continual improvement for all types of improvements