What does ROI (Return on Investment) measure in a cost-benefit analysis?

The ratio of net benefits to the total investment cost

The time required to recover the initial investment

The number of stakeholders who support the strategy

The total revenue generated by the organization

What is the primary purpose of a business case when advocating for a Digital and IT Strategy?

To justify the investment by presenting costs, benefits, risks, and alignment with organizational objectives

To replace the need for stakeholder engagement during the strategy lifecycle

To guarantee that the strategy will achieve all its projected benefits

To provide a detailed technical design of the proposed IT solution

In a cost-benefit analysis, what is the first step in quantifying benefits?

Comparing the strategy to competitors' strategies

Assigning a monetary value to each identified benefit

Listing all possible benefits without evaluation

What is the purpose of using visual aids when presenting a business case?

To help decision-makers understand complex data and comparisons

To make the presentation longer and more detailed

To hide potential risks from the audience

To replace the need for a verbal explanation

ITIL 4 Strategic Leader

Domain 14Objective 3

Know How to Use Business Cases to Advocate for a Digital and IT Strategy (5.3.2, 5.3.3, 5.3.4 Including Subsections for All) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 1)

Part of the Understand the steps and techniques involved in defining and advocating for a Digital and IT Strategy domain, which makes up ~6% of our current practice bank.

28questions here

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8concepts

Questions 1–5

1foundation · easy
What does ROI (Return on Investment) measure in a cost-benefit analysis?
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2foundation · easy
What is the primary purpose of a business case when advocating for a Digital and IT Strategy?
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3foundation · easy
Which technique is commonly used in options analysis to compare alternative strategies?
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4foundation · easy
In a cost-benefit analysis, what is the first step in quantifying benefits?
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5foundation · easy
What is the purpose of using visual aids when presenting a business case?
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