Use a Digital Positioning Tool to Determine the Appropriate Position for a Digital Organization (3.3 Including Subsections) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A traditional insurance company has used a digital positioning tool and found that it is in the 'digital conservative' quadrant (high capability, low ambition). The company's market is being disrupted by insurtech startups that offer fully digital, customer-centric services. The company's leadership is divided: the CIO wants to leverage the existing high capability to launch a new digital customer portal, while the CMO wants to acquire a startup to quickly gain digital ambition. The company has a limited budget and a risk-averse culture. Based on the tool's results, what is the most appropriate strategic action?

   • AInvest heavily in a complete digital transformation of all operations at once.
   • BAcquire the startup to immediately gain digital ambition and catch up with disruptors.
   • CLaunch the digital customer portal as a low-risk initiative that leverages existing capability and gradually increases ambition.
   • DDo nothing and wait for the market to stabilize before making any digital investments.
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2. 7application · medium

   A healthcare provider uses a digital positioning tool and finds that it is positioned in the 'digital explorer' quadrant, characterized by high ambition but low capability. The tool's guidance suggests that organizations in this quadrant often struggle to deliver on their digital ambitions. What strategic action is most aligned with the tool's interpretation?

   • AReduce ambition and focus only on maintaining existing services.
   • BOutsource all digital initiatives to a third-party provider to compensate for low capability.
   • CInvest in building foundational digital capabilities, such as data management and IT infrastructure, before launching new digital services.
   • DImmediately launch a wide range of new digital services to capitalize on the high ambition.
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4. 8expert · hard · select all that apply

   A hospital network has used a digital positioning tool and found that it is in the 'digital laggard' quadrant (low capability, low ambition). The network is under pressure from patients to offer online appointment booking and telehealth services. The network's leadership is risk-averse and has a limited budget. Based on the tool's results, which of the following strategic actions are appropriate? Select all that apply.

   • ASet a highly ambitious desired position to motivate the organization, even if it is not achievable in the short term.
   • BEngage clinical staff in the design of digital services to ensure adoption and alignment with patient needs.
   • CUse the tool to identify quick wins that can be achieved with existing resources.
   • DPrioritize a small number of high-impact digital initiatives, such as online appointment booking, to build momentum.
   • EInvest in a comprehensive digital transformation program to catch up with leading hospitals.
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5. 9application · medium

   A retail chain uses a digital positioning tool and finds that it is positioned in the 'digital laggard' quadrant, with low digital maturity and low digital ambition. The company's market is being disrupted by online-only competitors. What is the most appropriate strategic response based on the tool's results?

   • AImmediately adopt a high-risk, high-reward digital transformation to catch up quickly.
   • BDevelop a digital strategy that gradually increases both digital ambition and capability, starting with high-impact initiatives.
   • CMaintain the current position and focus on cost-cutting to survive.
   • DIgnore the tool's results and continue with the existing business model.
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6. 10foundation · easy

   After using a digital positioning tool, an organization finds that its current position is 'high digital maturity' but its desired position is 'low digital ambition'. What is the most appropriate strategic action?

   • AInvest heavily in new digital capabilities to increase ambition
   • BRe-evaluate the desired position, as it may be inconsistent with the organization's high maturity
   • CIgnore the result and proceed with the current strategy
   • DImmediately reduce digital capabilities to match the low ambition
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