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 4)

Questions 16–20

1. 16foundation · easy

   In the business case development process, what is the purpose of defining the scope?

   • ATo list all potential risks without prioritization
   • BTo guarantee the strategy will be delivered on time
   • CTo assign a budget to each department
   • DTo outline the boundaries and extent of the proposed strategy
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2. 17application · medium

   A financial services firm is building a business case for migrating its trading platform to a new cloud provider. The migration has a 12-month timeline. The risk assessment identifies a 20% probability that the migration will take 18 months, incurring an additional $500K in costs. How should the business case author incorporate this risk?

   • AInclude the $500K as a contingency reserve but do not include it in the ROI calculation
   • BIgnore the risk because it is only a 20% probability and the project is likely to succeed
   • CAdd $100K to the project cost, representing the expected value of the risk (20% × $500K)
   • DAdd the full $500K to the project cost to be conservative
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4. 18expert · hard

   A global corporation is proposing a digital transformation strategy. The business case author has identified that the European regional head is a powerful stakeholder who is concerned about data residency requirements. The author has also identified that the global CIO is a strong supporter. The European head has the authority to block the initiative. What is the most effective advocacy approach?

   • APresent the business case to the steering committee first and address the European head's concerns after approval
   • BEngage the European head early to understand the data residency concerns and incorporate a compliant regional deployment into the business case
   • CInclude a note in the business case that data residency is a legal requirement and the European head must comply
   • DAsk the global CIO to overrule the European head's concerns at the steering committee
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5. 19foundation · easy

   Which component is typically included in a business case for a Digital and IT Strategy?

   • AA list of all employee names and roles
   • BA detailed project schedule with daily tasks
   • CA guarantee of zero risk during implementation
   • DAn analysis of alternative options and their trade-offs
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6. 20application · medium

   A manufacturing company's IT strategy includes a shift to predictive maintenance using IoT sensors. The business case author must present this to the board, which includes members with limited technical knowledge. The board is concerned about the $2M investment. What is the most effective way to present the business case?

   • APresent a comprehensive list of all technical features and capabilities of the IoT platform
   • BOpen with a narrative about a recent equipment failure that cost $500K in downtime, then show how predictive maintenance would have prevented it
   • CLead with a detailed technical architecture diagram showing how sensors, gateways, and the cloud platform connect
   • DStart with the ROI calculation and then walk through the cost breakdown line by line
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