Understand the Financial Aspects of Digital and IT Strategy in Terms of the Following ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 2)

Questions 6–10

1. 6foundation · medium

   What is a key activity of service financial management that supports balancing innovation and operational costs?

   • AConducting cost-benefit analysis for proposed investments
   • BEliminating all discretionary spending
   • CFunding all innovation projects without analysis
   • DIgnoring operational costs to focus on innovation
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A software company is shifting from selling perpetual licenses to a subscription model. The CFO wants to fund the development of new features through a model that aligns with the recurring revenue stream. Which funding model best supports this strategic shift?

   • AProduct-based funding, with a dedicated budget for the product team to manage across releases.
   • BService-based funding, where each customer pays for the specific features they use.
   • CProject-based funding, with a separate budget for each feature release.
   • DCost-based funding, where the budget is set by the cost of development plus a fixed margin.
   Reveal Solution Discussion Select an answer first
4. 8foundation · medium

   What is the primary role of financial policies in guiding digital and IT strategy decisions?

   • ATo replace the need for financial planning and forecasting
   • BTo ensure that all IT projects are funded equally regardless of strategic importance
   • CTo automate all financial transactions within the organization
   • DTo define the rules and constraints for budgeting, spending, and financial decision-making
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5. 9foundation · medium

   How does the portfolio management practice consider charging models in portfolio decisions?

   • ABy evaluating the financial impact of different charging models on the portfolio's value
   • BBy ignoring charging models as they are not relevant to portfolio decisions
   • CBy focusing only on cost-based charging models
   • DBy setting the charging models for all services
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A large enterprise has a financial policy that requires all IT investments to have a positive net present value (NPV) within three years. The portfolio management practice is reviewing a set of proposed initiatives. How should the practice enforce this policy?

   • ABy delegating the NPV calculation to each business unit to ensure consistency.
   • BBy allowing exceptions for initiatives that are strategically important, even if NPV is negative.
   • CBy rejecting any initiative that does not meet the NPV criterion.
   • DBy evaluating each initiative against the NPV criterion and providing feedback to sponsors on how to improve their proposals.
   Reveal Solution Discussion Select an answer first