ITIL 4 DITS cheat sheet

Strategy is a pattern of decisions that sets long-term direction, scope, and resource allocation; it answers where to compete, how to win, and what capabilities are required.

Digital strategy applies digital technology to change business models, products, and customer experience; IT strategy focuses on technology delivery, operations, and service management.

Four strategy levels: enterprise/corporate strategy (portfolio scope), business unit strategy (competitive position), operational strategy (functional delivery), and digital/IT strategy (technology enablement).

PESTLE covers Political, Economic, Social, Technological, Legal, Environmental external factors; SWOT covers internal Strengths and Weaknesses plus external Opportunities and Threats.

Porter's five forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and rivalry among existing competitors.

Value disciplines (Treacy and Wiedema): operational excellence, product leadership, and customer intimacy; a viable strategy leads on one and meets thresholds on the other two.

Ansoff matrix grows along product (existing/new) and market (existing/new) axes: market penetration, product development, market development, diversification.

The ITIL 4 service value chain has six activities: plan, improve, engage, design and transition, obtain/build, and deliver and support.

Strategy must link to the organization's purpose, mission, vision, and values; mission states present purpose, vision states future desired state, values state behavioural guardrails.

An operating model defines how value is created and delivered: it comprises people, process, technology, information, partners, and governance arrangements.

Business model canvas blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, cost structure.

Digital operating models shift from siloed functional structures to cross-functional product teams with end-to-end accountability for value streams.

Value stream mapping identifies the sequence of activities delivering value to a customer and exposes handoffs, queues, and waste between steps.

Build-buy-partner decision rule: build when the capability is differentiating and core; buy when it is commodity and mature; partner when speed or scale exceeds internal capacity.

Organizational structures range from functional (efficiency, specialization) to divisional (product/market focus) to matrix (dual reporting) to networked/agile (autonomous teams).

Governance of an operating model allocates decision rights: who decides, who is consulted, who is informed, and who is accountable for outcomes.

A digital platform provides shared reusable services (data, identity, integration, APIs) that product teams consume to reduce duplication and time to market.

Sourcing models include insourcing, outsourcing, multisourcing, joint ventures, and strategic alliances; each trades control against flexibility and cost.

Revenue models include subscription, pay-per-use, freemium, licensing, advertising, transaction/marketplace fees, and outcome-based or gain-sharing pricing.

Subscription models trade upfront revenue for recurring revenue and require attention to churn, customer lifetime value, and cost to serve.

Freemium decision rule: the free tier must create a large funnel and the paid tier must offer a value step-change that converts a predictable percentage.

Platform and multi-sided market models create value by matching two or more participant groups and benefit from network effects.

Network effects: direct (more users make the product more valuable to users) and indirect (more users on one side attract more on the other).

Pricing strategies include cost-plus, value-based, competitive, penetration (low entry price to gain share), and skimming (high initial price for early adopters).

Blue ocean strategy seeks uncontested market space through value innovation: raise and create value while reduce and eliminate cost-driving factors.

Lean startup uses build-measure-learn loops, minimum viable product, and validated learning to test business model hypotheses before scaling.

Digital business models often combine a product, a service wrapper, and a data or platform layer; each layer has separate revenue and cost logic.

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers.

Disruption typically starts at the low end or in underserved segments with a simpler, cheaper offer, then moves upmarket as capability improves.

Sustaining innovation improves existing products for existing customers; disruptive innovation creates new markets or reshapes value networks.

Transformation dimensions: customer experience, operational processes, business model, and organizational culture and capabilities.

Digital maturity models typically progress through ad hoc, opportunistic, systematic, and transformational stages; each stage changes governance and investment patterns.

Common transformation failure modes: no clear outcome, technology-led with no business case, change fatigue, and legacy system and data constraints.

Transformation requires a portfolio view: run the business (efficiency), grow the business (expansion), and transform the business (new models).

Change management levers include leadership sponsorship, communication, capability building, incentive alignment, and visible early wins.

Disruption risk assessment considers the pace of technology change, customer behaviour shifts, new entrant capability, and regulatory change.

Capability = a combination of people, process, technology, information, and partners that together produces an outcome; it is assessed by maturity and criticality.

Strategic capability gap analysis compares required capabilities for the strategy against current capability maturity and prioritizes investment.

Governance defines direction through leadership, agrees objectives, and monitors performance; management plans, builds, runs, and monitors activities in line with that direction.

Portfolio management balances investment across horizons and enforces stage gates: idea, evaluate, select, fund, deliver, realize value.

Business case components: benefits, costs, risks, timescales, options considered, and the recommended option with justification.

Benefits realization requires baselines, measurable targets, ownership, and post-implementation review; benefits not tracked are benefits not realized.

Risk management steps: identify, assess likelihood and impact, treat (avoid, reduce, transfer, accept), monitor, and report.

KPIs must be specific, measurable, achievable, relevant, and time-bound; leading indicators predict outcomes, lagging indicators confirm them.

Digital governance forums typically include an investment or portfolio board, an architecture or standards board, and a service or performance review board.