ITIL 4: Digital and IT strategy: Reference and study guide

1 Introduction

Digital technology has ushered in a new age of business, society, and economy. Things work differently today than they did just 20 years ago, and they will continue to change at unprecedented rates. But as different as the world is, many things have not changed. The best and worst of human nature finds expression through digital technology. The principles of business and commerce remain very much the same as they have for decades, if not centuries. An organization that embraces the changes brought by digital technology will be even more successful if it remembers that it exists for the benefit of the humans it serves and gainfully employs, and the environment in which it operates.

While digital technology creates new opportunities and capabilities, many of the principles and practices that have been learned over decades are just as important as ever, if not more so. Governance, leadership, service, and quality are not uniquely digital issues. Simply putting the word ‘digital’ in front of them will not absolve any organization or leader from having to define and implement them.

Digital technologies may make that task easier, but experience has shown that they also introduce more levels of complexity, volatility, and uncertainty. In most cases, the best way to achieve excellence is to rely on those things that will last beyond the most recent wave of technology innovation, and not to assume that new technology, having solved its own problems, will be able to solve yours.

ITIL®4: Digital and IT Strategy focuses on the importance and challenges of creating an appropriate digital strategy to enable businesses to succeed, and how both digital and IT strategies can and should be integrated and aligned with the wider organization’s goals. It explores the use of the ITIL framework to support an organization in its digital transformation journey by providing a structured and flexible approach for addressing service management challenges and utilizing the potential of modern, digital technology to keep the organization viable in a rapidly changing world. It also adds a new perspective to the ITIL suite and elevates the discussion around ITIL concepts to the strategic level among companies and business leaders.

Digital and IT strategy (DITS) is a means for real-world organizations to find better ways of meeting the needs of real-life communities using a combination of existing and emerging technologies. Some of these will require new practices and changes to the prevailing culture, but many will rely on existing practices and approaches. For strategy is not just about introducing innovation, but about building a future using a combination of the new and the old. Some readers may expect this publication to be a revelation of the ‘next big thing’ in strategy; however, research has shown that successful organizations have been doing many things right, and that they should continue to do them. Often we know those things that we should be doing, but aren’t, and ITIL®4: Digital and IT Strategy can help you to get back on track. Our hope is that it will assist your teams to explore new ways of working, view emerging technologies and innovation through a new lens, have more meaningful conversations, and ultimately provide better products and services for everyone in society.

The Digital and IT Strategy course is designed specifically for digital leaders. The structure of the course was created to give leaders hands-on, practical experience using DITS concepts in a classroom environment, and is comprised of two elements:

•Case study assessment These are ‘open book’ practical assignments completed as part of a DITS class (described further in section 11.3 ), which allow students to explore, apply, and discuss DITS concepts with a small team of peers.

The level of thinking required for the practical assignments is Bloom’s Level 4. Candidates need to ‘analyse’ the information provided and make a judgement on whether a course of action is effective and appropriate.

•Multiple-choice question (MCQ) examination This is a ‘closed book’ exam taken after candidates successfully pass the case study assessment (described further in section 11.4 ).

The level of thinking required for the examination is Bloom’s Levels 2 and 3, that of ‘comprehension’ and ‘application’, respectively.

Candidates must pass both elements to earn the DITS designation. Chapters 2–10 of this guide detail key DITS content that is tested as part of the case study assessment and multiple-choice question examination. These two elements are covered in more detail in Chapter 11.

2 Using DITS in an organization

There are several tools and techniques that can help digital leaders craft an organization’s strategy. This chapter will outline some of these key concepts.

2.1 The ITIL guiding principles

ITIL specifies seven guiding principles, outlined in Table 2.1.

Table 2.1 Description of seven guiding principles

These guiding principles are essential for any organization pursuing a digital strategy. However, these are not the only principles an organization will use when creating and implementing its strategy. The strategy should include any principles that decision-makers need to use when implementing a strategic initiative, or when defining a lower level of