Pass the ITIL 4 Managing Professional ITIL-4-Transition Questions and answers with ExamsMirror

Differential charging is a mechanism that allows the service provider to charge different prices for the same service depending on some pre-defined parameters, such as time of day, location, demand, etc. This way, the service provider can optimize the use of resources and encourage or discourage the consumption of the service at certain times or places. For example, a telecom operator may charge more for a phone call during peak hours than during off-peak hours. This is different from other charging mechanisms, such as:

Cost: The service provider charges the customer the exact amount of money that it costs to deliver the service, without any profit margin or overhead.

Cost plus: The service provider charges the customer the cost of delivering the service plus a fixed percentage or amount of profit.

Market price: The service provider charges the customer the price that is determined by the supply and demand of the service in the market, regardless of the actual cost of delivering the service. References:

Service financial management: ITIL 4 Practice Guide, section 2.2.1

Charging and ITIL Financial Management – What are the options?, section “Internal services – Living on the safe side”

Value stream mapping is a lean tool that documents the step-by-step processes required to bring a product or service to market. It helps visualize, analyze, and improve all the steps involved by identifying waste and reducing process cycle times. The ultimate goal of VSM is to create more value for customers while improving overall efficiency1. An organization that receives a high volume of calls from users complaining that their issues are not being resolved efficiently should use value stream mapping to help understand the end-to-end flow of user support. By laying out each step in detail within the user support process, VSM helps the organization better understand and more easily identify optimization opportunities. VSM also helps the organization see more than waste in their user support process, including the sources of waste, the value-adding and non-value-adding activities, the material and information flow, and the decisions that affect the flow2. Using value stream mapping, the organization can create a current state map that shows the actual condition of the user support process, and a future state map that shows the target image of how the user support process should work after making improvements. VSM also forms the basis of an implementation plan, a blueprint for improvement, that helps the organization design how the whole user supportprocess should operate2. Therefore, using value stream mapping is the first step the organization should take to start to improve the situation. References:

Understanding the Fundamentals of Value-Stream Mapping

Value stream mapping: Examples, process, template, and symbols

Large batch sizes of work are considered a barrier to high performance in Lean and Agile because they increase the amount of work in progress (WIP), which leads to longer cycle times, higher variability, lower quality, and reduced feedback and learning. Large batches also increase the risk of waste, rework, and delays, as well as the complexity and uncertainty of the work. Lean and Agile advocate for reducing batch sizes and limiting WIP, which enables faster flow, shorter feedback loops, higher quality, and more value delivery. Some of the practices that help reduce batch sizes and limit WIP are:

Pulling versus pushing work, which means that work is initiated only when there is a demand and capacity for it, rather than being assigned or scheduled in advance.

Making work visible, which means that the status and progress of work are transparent and accessible to all stakeholders, using tools such as Kanban boards, burn-down charts, and dashboards.

Limiting work-in-progress, which means that the number of work items in each stage of the workflow is restricted, based on the available resources and throughput, to prevent bottlenecks and overloading. References: 

Integrating ITIL 4 and Design Thinking | Cognixia, section “What is Design Thinking?”

Service design: ITIL 4 practice guide | Axelos, section 2.1.1

ITIL 4 , DESIGN THINKING & RAPID - Devoteam, section “Design Thinking”

ITIL4 meets design thinking | Axelos, section “Design thinking”

Results-based measurement and reporting is a method of measuring and reporting the outcomes and value delivered by products and services, rather than the activities and outputs involved in their creation and delivery12. Results-based measurement and reporting focuses on the achievement of objectives and the satisfaction of stakeholders, rather than the consumption of resources and the completion of tasks12.

An example of results-based measurement and reporting is measuring and reporting the customer satisfaction with closed incidents. This is because customer satisfaction is an indicator of the value and quality of the incident management practice and the service provided to the customers. Customer satisfaction reflects the extent to which thecustomers’ expectations and needs have been met by the resolution of the incidents. Customer satisfaction can also influence the customer loyalty, retention, and advocacy for the service provider34.

The other options are not examples of results-based measurement and reporting, because they measure and report the inputs and outputs of the service delivery, rather than the outcomes and value. Measuring and reporting the number of hours worked by service desk employees, the number of supplier-related interruptions to a service, and the cost of providing a service to customers and users are all examples of activity-based or output-based measurement and reporting. These metrics do not indicate the effectiveness or efficiency of the service delivery, nor the satisfaction or value perceived by the customers and users12.

References: 1: ITIL 4 Create, Deliver and Support, AXELOS, 2019, p. 29-30 2: Measurement and reporting management: ITIL 4 Practice Guide, AXELOS, 2020, p. 5-6 3: ITIL 4 Direct, Plan and Improve, AXELOS, 2019, p. 97-98 4: Reporting on value in service management, AXELOS, 2021, 3

 The most likely reason for an organization to delay a transformation to high velocity is that the organization is not ready for a cultural change. High velocity IT requires a significant shift in the mindset, values, and behaviors of the organization and its people, as well as the adoption of new ways of working, such as agile, lean, and DevOps. These changes can be challenging and disruptive for some organizations, especially those that have a traditional, hierarchical, or siloed culture. Therefore, the organization may need to assess its readiness and willingness for a cultural change before embarking on a transformation to high velocity IT. This reason is supported by the following references:

ITIL 4 Specialist: High-velocity IT explores the ways in which digital organizations and digital operating models function in high velocity environments1

ITIL 4 High-velocity IT: the digital enterprise2

ITIL®4 Specialist: High Velocity IT3

The correct answer is B because planning is the process of defining and organizing the activities and resources needed to achieve the objectives of a service or product. Planning should always consider the risks that may affect the delivery of value, and how to mitigate them. Risk management is the practice of identifying, analyzing, evaluating, and treating uncertainties that could prevent the achievement of goals or objectives. Risk management is an integral part of planning, as well as other service management practices, such as governance, continual improvement, and change control.

The other options are not correct because they do not describe the relationship between planning and risk accurately. Option A is wrong because planning and risk management are both strategic and tactical functions, depending on the scope and level of detail. Option C is wrong because planning does not only focus on what needs to be accomplished, but also how, when, who, and why. Risk management is not just part of how work is to be performed, but also why and what. Option D is wrong because risk management is not the exclusive domain of dedicated risk managers, but a shared responsibility of all stakeholders involved in service management.

References:

ITIL 4 Managing Professional Transition Module Sample Paper - English, Question 2, Page 5

ITIL 4 Managing Professional: Transition Module | Axelos, Section “What is the ITIL 4 Managing Professional Transition Module?”, Paragraph 3

ITIL® 4 Managing Professional Transition Course Online - Simplilearn, Section “Course Overview”, Paragraph 2

[ITIL 4 Foundation: ITIL 4 Edition], Chapter 4, Section 4.2.1, Page 54

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[ITIL 4 Foundation: ITIL 4 Edition], Chapter 4, Section 4.2.50,

 Omnichannel management is the practice of providing a consistent and integrated user experience across multiple channels of communication, such as phone, email, web, chat, video, social media, etc. Omnichannel management enables users to access support through their preferred channel and switch between channels seamlessly. Omnichannel management also allows the service provider to collect and analyze user feedback and behavior data from different channels to improve the service quality and user satisfaction. A web hosting provider that wants to apply more of a ‘shift left’ approach to service support should use omnichannel management to expand how users access support and improve the user experience. By offering video tutorials, instant messaging, and social networks as additional channels of support, the service provider can empower users to solve simple problems independently, reduce the workload of the service desk, and enhance the user engagement and loyalty. References:

ITIL® 4 High-velocity IT (HVIT) - Your companion to the ITIL 4 Managing Professional HVIT certification, Chapter 8: Co-creating value with users and customers

ITIL 4 Specialist: High-Velocity IT Training, Course Outline, Module 3: Working with customers and stakeholders in the digital world

A guide to understanding the shift left approach - LogRocket Blog

According to ITIL 4, value is co-created by two stakeholders in the service relationship: the consumer and the provider. The consumer is the person or organization that defines the requirements for a service and takes responsibility for the outcomes of service consumption. The provider is the person or organization that provides services to consumers. Value is co-created when the consumer and the provider collaborate and communicate to ensure that the service meets the consumer’s needs, expectations, and outcomes. Value is not delivered by the provider alone, but rather emerges from the interactions between the provider and the consumer. The other options are not correct, as they do not involve the consumer and the provider. The supplier is a person or organization that provides goods or services to the provider, but does not directly co-create value with the consumer. The investor is a person or organization that provides funding or resources for the provider, but does not directly co-create value with the consumer. References:

ITIL 4 and value co-creation | Axelos1

ITIL 4 – from creating value to co-creating value | Axelos2

What is co-creation in ITIL 4? - QRP International - Belgium3

Deriving Value Through Cocreation: ITIL And Other Best Practices Frameworks4

The value chain activity that ensures that products and services continually meet stakeholder expectations for quality, costs and time to market is design and transition. This activity involves the following steps12:

Defining the requirements and specifications of the products and services based on the demand and feedback from the customers and other stakeholders.

Designing the products and services according to the requirements and specifications, as well as the best practices and standards of the organization and the industry.

Developing and testing the products and services to ensure that they meet the quality criteria and the expected outcomes.

Deploying and releasing the products and services to the customers and users, ensuring that they are ready for use and operation.

Validating and evaluating the products and services to ensure that they deliver the intended value and meet the stakeholder expectations.

Transitioning the products and services from the development stage to the operational stage, ensuring that they are integrated with the existing processes, systems and resources of the organization. References: 1: ITIL 4 Create, Deliver and Support, AXELOS, 2019, p. 23-24 2: Value Chain Activity: Design & Transition - Altervista, 3

The value driven approach to service design is one of the seven guiding principles of ITIL 4, which are part of the ITIL 4 service value system (SVS). The SVS provides a flexible and adaptable approach to address service management challenges and utilize opportunities. It supports organizations in delivering value to their stakeholders in the form of goods, services, or other results1. The value driven approach to service design is based on the principle of focus on value, which states that everything an organization does should link back, directly or indirectly, to value for stakeholders2. This principle implies that service design should not be driven by technology, processes, or resources, but by the outcomes and benefits that customers and users expect from the service. To achieve this, service design should adopt an iterative approach based on frequent feedback, continual experimentation, and learning to ensure value co-creation. This means that service design should not be a one-time activity, but acontinuous cycle of improvement that involves testing, measuring, and validating assumptions and hypotheses about what customers and users value, and how the service can deliver it3. This approach also enables service design to respond to changing customer needs and expectations, as well as to emerging opportunities and threats in the market. By focusing on value, service design can ensure that the service is fit for purpose and use, and that it contributes to the organization’s overall goals and objectives. References:

ITIL 4 Managing Professional Transition Module, page 16

ITIL Service Design: Principles, Process and Its Importance, section 3.2.3

The ITIL 4 Service Value System Explained, paragraph 1

ITIL Service Value System (SVS), paragraph 1