ITIL 4 Foundation Practice Exam

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What does digital transformation involve?

The replacement of technology without changing models
The evolution of business models to meet customer needs
The eradication of traditional business methods
Only enhancing existing services

The correct answer is: The evolution of business models to meet customer needs

Digital transformation revolves around the evolution of business models to meet changing customer needs. This is essential in today's fast-paced and technology-driven environment, where customer preferences and behaviors are constantly shifting. Businesses must adapt and innovate not just their technologies but also how they deliver value to their customers. This often involves rethinking and redesigning processes, products, and services to create a more customer-centric approach. Adopting new technologies or improving existing services is part of this journey, yet these actions should align with broader strategic objectives. Simply implementing new technology without considering how it changes customer interactions or enhances value to customers would not qualify as true digital transformation—hence the inaccuracy of those related options. Moreover, digital transformation does not mean entirely discarding traditional business methods but rather integrating them with new approaches that resonate with modern demands. Thus, the focus is on evolution and adaptation to create better outcomes for customers and the business itself.