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 2)

Questions 6–10

1. 6application · medium

   A retail company implemented a new e-commerce platform six months ago. The business case projected a 15% increase in online sales and a 12% reduction in order-fulfillment costs. Actual results show a 9% sales increase and a 5% cost reduction. The strategy office is preparing a quarterly review. What should they do with the business case?

   • APresent the original projections to the board without mentioning the actual results to avoid scrutiny
   • BArchive the original business case and create a new one for the next strategic initiative
   • CAdjust the original projections to match actual results and resubmit them as the new baseline
   • DUpdate the business case with actual results, analyze the variance, and document lessons learned for future initiatives
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2. 7application · medium

   A non-profit organization is presenting a business case for a new donor-management system. The board is composed of volunteers with diverse backgrounds, including a former accountant, a community organizer, and a technology executive. The business case author has limited time for the presentation. What is the most effective presentation structure?

   • AProvide a 50-page document and ask the board to read it before the meeting, then use the meeting for Q&A
   • BLead with a detailed financial model, then discuss the technical architecture, and end with community impact
   • CPresent separate sections tailored to each board member's background, starting with the technology executive
   • DPresent a single narrative that connects the system to the organization's mission, followed by a high-level cost-benefit summary
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4. 8foundation · easy

   What is the purpose of options analysis in a business case?

   • ATo guarantee that the chosen strategy will succeed
   • BTo compare alternative strategies and select the most suitable one
   • CTo avoid the need for stakeholder input
   • DTo list all possible strategies without any evaluation
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5. 9application · medium

   A healthcare provider is developing a business case for a patient portal that will integrate with electronic health records. The IT director is concerned about data breaches, while the clinical staff worry about workflow disruption. The CFO questions the ROI. The business case author needs to address these concerns to gain approval. What should the author do first?

   • ADraft the business case with a focus on ROI to win over the CFO, as financial approval is the primary gate
   • BQuantify the cost of a potential data breach and include it as a risk-adjusted cost in the analysis
   • CConduct a stakeholder analysis to map each group's influence and interest, then tailor the business case narrative to each audience
   • DBuild a prototype of the portal to demonstrate workflow impact to clinical staff
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6. 10expert · hard

   A manufacturing company is evaluating a robotic process automation (RPA) initiative. The business case author has calculated an ROI of 150% over 3 years. However, the risk assessment identifies a 30% probability that the RPA vendor will go out of business, which would require a costly migration to another platform. The migration would cost $200K. How should the author adjust the ROI calculation?

   • ASubtract the expected value of the risk ($60K) from the net benefits before calculating ROI
   • BIgnore the vendor risk because it is unlikely to materialize
   • CSubtract the full $200K from the net benefits to be conservative
   • DAdd the $200K to the project cost and recalculate the ROI
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