Understand the Following Concepts ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is a key opportunity that digital technology provides to organizations?

   • AGuaranteed competitive advantage
   • BElimination of all operational costs
   • CAccess to new markets and customer segments
   • DRemoval of the need for innovation
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A regional insurance company has a large archive of paper-based claim forms. The operations manager wants to make these forms searchable by customer name and claim date so that customer service agents can retrieve them faster. The IT team has been asked to implement a solution. Which action best represents the FIRST step in this initiative?

   • ARedesign the claims handling process to eliminate the need for paper forms altogether
   • BPurchase new hardware for the customer service team to access the digital archive
   • CScan the paper forms into PDF files and index them in a document management system
   • DTrain all customer service agents on a new digital claims processing workflow
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   Which statement best defines digital transformation?

   • AThe use of digital tools to automate a single process
   • BThe adoption of cloud computing for IT infrastructure
   • CA holistic change in an organization's strategy, operations, and value delivery driven by digital technology
   • DThe conversion of analog information into digital format
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A multinational corporation is transitioning to become a digital organization. The current structure is highly centralized, with all IT decisions made at the headquarters. The CEO wants to increase innovation and responsiveness to local market needs. Which structural change would BEST support the goal of becoming a more digital organization?

   • AIncreasing the central IT budget to fund more projects
   • BStandardizing all business processes across the globe
   • CCreating a new central innovation department
   • DDelegating more decision-making authority to local business units
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A music record label is experiencing a decline in physical CD sales due to the rise of streaming services. To respond, the label decides to make its entire catalog available on streaming platforms and also launches a direct-to-fan digital store. The label is using digital technology to:

   • ADigitize its existing business model without any strategic change
   • BReact to digital disruption by changing its distribution and sales model
   • CIgnore the disruption and focus on improving CD production
   • DUse digital technology only for internal administrative tasks
   Reveal Solution Discussion Select an answer first