The most effective way to define needs for an outsourced service, particularly a less critical one, is by focusing on measurable outcomes and goals. This approach aligns with the ITIL principle of value co-creation. By defining what needs to be achieved rather than how it should be done, the organization empowers the service provider. This gives the provider the flexibility to innovate, use their expertise, and take full ownership of delivering the required results. This outcome-based method fosters a stronger partnership and ensures the service delivers tangible value without requiring micromanagement from the customer organization.

A. This is too narrow. While financial targets are important, they represent only one aspect of value; the primary focus should be on the service outcomes that justify the cost.

B. This is overly prescriptive. Linking requirements to a specific "current service solution" restricts the provider's ability to innovate and improve the service, which is a key benefit of outsourcing.

D. This incorrectly places the burden of defining internal processes (value streams) on the customer. The customer should define the desired outcomes, not the provider's operational methods.

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1. AXELOS

ITIL® 4: Drive Stakeholder Value. TSO (The Stationery Office)

2020.

Section 4.3.3

"Defining service requirements": This section explicitly advocates for outcome-based requirements. It states

"Requirements should be expressed in terms of the outcomes that the service consumer wants to achieve

rather than the specific features or functions of the service... This gives the service provider more flexibility in how they design and deliver the service

and it can lead to more innovative and effective solutions." This directly supports option C.

Section 2.3.2

"Focus on value": This section explains that value is the "perceived benefits

usefulness

and importance of something." It is co-created through the achievement of outcomes

supported by outputs. Defining needs through outcomes (Option C) is the most direct way to focus on value.

Section 4.2.1

"Agreeing and planning value co-creation": This section emphasizes the collaborative agreement on intended outcomes. "The service provider and service consumer should agree on the intended outcomes of the service and how the service will help the service consumer to achieve them." This reinforces the principle behind option C.

Portfolio management is the practice responsible for ensuring an organization has the right mix of products and services to execute its strategy within its funding and resource constraints. A key activity of this practice is to review the entire service portfolio to identify and recommend the retirement of services that are no longer providing sufficient value or are not aligned with strategic objectives. This process explicitly aims to free up constrained resources (e.g., financial, human, technical) so they can be reallocated to new or more valuable initiatives, such as expanding into new markets as described in the scenario.

A. Service level management focuses on negotiating and meeting agreed-upon service levels for active services; it does not decide which services to offer or retire.

B. Business analysis identifies business needs and recommends solutions but does not have the authority to manage the entire service portfolio or make strategic divestment decisions.

C. Service catalogue management provides a single source of information on operational services for users but is not responsible for the strategic decisions about which services to retain or retire.

1. AXELOS. (2019). ITIL® Foundation: ITIL 4 Edition. TSO (The Stationery Office).

Section 5.2.11

Portfolio management: "The purpose of the portfolio management practice is to ensure that the organization has the right mix of programmes

projects

products

and services to execute its strategy within its funding and resource constraints." The section further clarifies that this includes decisions to "retire... existing products and services."

2. AXELOS. (2020). ITIL® 4: Direct

Plan and Improve. TSO (The Stationery Office).

Section 4.3.6

Portfolio management: This section describes how portfolio management helps "determine the optimum mix of initiatives to achieve strategic objectives

under the constraints of available resources... It involves reviewing the existing portfolio to identify candidates for improvement

replacement

or retirement."

3. Iden

J.

& Eikebrokk

T. R. (2013). Implementing IT Service Management: A systematic literature review. International Journal of Information Management

33(3)

512-523.

Section 4.2

Portfolio Management: The review highlights that a central tenet of portfolio management is the "evaluation and prioritization of IT investments

" which includes the "decommissioning of legacy systems and services to free up resources for more valuable projects." (DOI: https://doi.org/10.1016/j.ijinfomgt.2013.01.004)

This scenario is a clear example of value co-creation. According to ITIL, value is not simply delivered by a provider but is co-created through the active collaboration between the provider and the consumer. The organization (the service consumer) recognizes that to realize the full value of the 'platform as a service' solution, it must contribute by changing its own processes and ways of working. This active participation and contribution from the consumer is the essence of a co-creation relationship, where both parties are involved in creating value.

A. Partnership: This is a general business term. 'Co-creation' is the specific ITIL concept that describes the active role of the consumer in value realization.

B. Basic Relationship: This implies a simple, transactional exchange with minimal consumer involvement, which is the opposite of the active optimization described in the scenario.

C. Cooperative Relationship: While related, 'co-creation' is more precise. It specifically emphasizes the joint creation of value, not just working together on tasks.

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1. AXELOS. (2020). ITIL® 4: Drive Stakeholder Value. TSO (The Stationery Office).

Section 2.1.1

The concept of value co-creation: "Value is co-created through an active collaboration between providers and consumers

as well as other organizations that are part of the relevant service relationships... The consumer is always an active participant in the co-creation of value." The act of optimizing internal work is a direct example of this active participation.

2. AXELOS. (2019). ITIL® 4 Foundation. TSO (The Stationery Office).

Section 2.3

Service relationships: This section introduces the service relationship model and states

"In a service relationship

organizations will take on the roles of service provider and service consumer. The provider and consumer work together to co-create value."

3. Vargo

S. L.

& Lusch

R. F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science

36(1)

1-10. https://doi.org/10.1007/s11747-007-0069-6

Foundational Premise 6 (FP6): "The customer is always a co-creator of value." This academic principle is a cornerstone of modern service management and ITIL 4

confirming that the consumer's actions (like optimizing processes) are integral to value creation.

Customer journey mapping is a fundamental practice for understanding the service experience from the customer's perspective. By visualizing every touchpoint, action, and emotional state, the service provider can gain deep insights into customer behavior. This process helps identify pain points, "moments of truth," and unmet expectations that are likely causing customers to leave. The primary goal is to diagnose the problem by understanding the customer's actual experience and the outcomes they are (or are not) achieving, which directly addresses the scenario of rapid customer loss.

A. This is a potential long-term outcome of improvements made after the journey is understood, not the immediate reason for mapping it.

B. Journey mapping helps to identify customer risks and pain points; it does not automatically remove them. Removal requires subsequent action.

D. While efficiencies found through journey mapping could potentially lead to cost savings, making services cheaper is not the primary purpose or a guaranteed result.

1. AXELOS. (2020). ITIL® 4: Drive Stakeholder Value. TSO (The Stationery Office).

Section 3.2.3

"Mapping the customer journey

" states: "The main goal of customer journey mapping is to see the service or services from the customer’s perspective... It helps service providers to understand the experience of the customer (or user) and to measure it in terms of actions

feelings

and the achievement of their goals." This directly supports that the purpose is to understand behavior and outcomes.

Section 3.2.3

Table 3.2

outlines the steps of journey mapping

which include identifying touchpoints and "customer’s feelings

pain points

and moments of truth." This confirms the focus on understanding the customer's specific experience to diagnose issues.

The 'shift-left' approach aims to move service and support activities closer to the end-user, typically through self-service portals, knowledge bases, and automation. The fundamental prerequisite for this model's success is user enablement. If users are not provided with adequate training or do not possess the necessary digital literacy and skills to effectively use these new tools, they will find the experience frustrating and challenging. This lack of capability is a primary reason for the failure of shift-left initiatives, as it prevents users from successfully resolving their own issues, thereby defeating the purpose of the approach.

B. A shift-left approach, particularly through self-service portals, often increases the creation of formal, auditable records under the provider's control.

C. Privacy concerns are a general aspect of service design and data management, not a challenge specifically inherent to the shift-left delivery model itself.

D. A key driver and benefit of implementing a shift-left approach is to improve scalability by empowering users and automating responses, thus reducing the load on support teams.

1. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 4.3.3

"Shifting left

" explains that this approach involves moving work to less expensive resources

including the users themselves via self-service. The text states

"For this to be successful

the people to whom the work is being moved must have the knowledge

skills

tools

and authority to complete it." This directly supports that a lack of user skills is a primary reason for challenges.

2. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 4.2.2

"Onboarding

" emphasizes the importance of ensuring users are ready to use a service. It states that effective onboarding includes "providing users with the necessary knowledge and skills to use the service." A failure in this area would lead to the challenges described in the question.

The objective is to improve the receipt of user feedback. Sharing a user's feedback on social media without their explicit consent is a serious breach of privacy and trust. This action would likely deter the user and others from providing honest feedback in the future, directly undermining the goal of encouraging more feedback. While transparency can be beneficial, it must not compromise confidentiality. Options A, B, and C are all established methods for actively encouraging and managing feedback by making it easier to provide, showing it is valued, and incentivizing participation. Option D is a counterproductive action taken after feedback is received, which damages the user relationship.

A. Adding social media channels is a proactive step to meet users on their preferred platforms, making it easier for them to provide feedback.

B. Responding individually demonstrates that the feedback is heard and valued, which encourages the user and others to engage again in the future.

C. Offering rewards or incentives is a common and effective marketing and service management technique to motivate users to provide feedback.

1. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 4.3.4

"Relationship management

" emphasizes that effective relationships are built on trust. Sharing private user feedback publicly without consent (Option D) would directly violate this trust

damaging the relationship and discouraging future communication.

2. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 4.3.3

"Communication and collaboration

" advocates for using a variety of communication channels tailored to stakeholder preferences (supporting Option A) and ensuring communication is a two-way process

which includes responding to stakeholders (supporting Option B).

3. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 5.1.3

"Value propositions

" discusses understanding what stakeholders value. Providing an incentive (Option C) is a way of offering value in exchange for the user's time and effort in providing feedback

thus facilitating value co-creation.

According to the ITIL 4 framework, all service management activities must be driven by business value. When a business-critical service is failing, the primary step is to engage with stakeholders to understand the precise impact on business goals and outcomes. This coordination, as described in option B, is a core aspect of the 'Engage' value chain activity and the 'Focus on value' guiding principle. It ensures that subsequent improvement actions are correctly prioritized and justified, addressing the root business problem rather than just the technical symptoms. Implementing technical solutions without this business context risks misallocating resources on improvements that do not deliver the expected value.

A. Improving the Recovery Time Objective (RTO) is a reactive measure for disaster recovery; it does not address the root cause of the frequent downtimes or slow performance.

C. Scaling up infrastructure is a presumptive technical solution. The root cause has not been identified and may not be related to insufficient capacity or resilience.

D. Spreading demand is a specific capacity and demand management tactic. It assumes the problem is caused by peak loads, which may not be the case.

---

1. AXELOS

ITIL® 4: Drive Stakeholder Value (2020). Section 2.1

"The customer journey

" emphasizes the importance of understanding the customer's perspective

needs

and desired outcomes throughout the service lifecycle. Option B is a direct application of this principle

re-engaging the customer to understand the value context of the failing service.

2. AXELOS

ITIL® 4 Foundation

ITIL 4 Edition (2019). Section 4.3.1

"Focus on value

" states

"Everything that the organization does needs to map

directly or indirectly

to value for the stakeholders." Before taking action

the service provider must understand how the performance issues are impacting value

which requires coordination with the business.

3. AXELOS

ITIL® 4 Foundation

ITIL 4 Edition (2019). Section 4.5

"The ITIL service value chain

" describes the 'Engage' activity as providing "a good understanding of stakeholder needs... and a continual engagement with all stakeholders." The scenario necessitates this 'Engage' activity to reassess needs before proceeding to 'Improve' or 'Design and Transition'.

Setting an early-bird price is a promotional pricing strategy specifically designed to encourage demand and incentivize early adoption of a new service. This method creates initial momentum, helps build a customer base quickly, and can generate valuable early feedback. It directly addresses the goal of stimulating demand by offering a clear financial benefit to the first wave of consumers, which is a key marketing and sales activity in the service value chain as described in ITIL 4.

A. A freeze period is a change enablement or release management practice used to reduce risk by limiting changes before a deadline, not to encourage service demand.

B. Adding a cancellation fee acts as a deterrent or a penalty, which discourages potential customers from trying a new service rather than encouraging them.

D. Increasing the overall price is a strategy typically used to manage or reduce high demand, especially when capacity is constrained, not to encourage it.

1. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 4.2.3

"Shaping demand and service offerings." This section explains that service providers can influence demand through various means

including differentiated charging models. An early-bird price is a specific charging tactic to shape demand during a service launch.

2. ITIL® 4: Drive Stakeholder Value. AXELOS. (2020). Section 2.3.3

"Marketing activities." This section details how marketing activities are used to communicate the value of services and encourage their consumption. Promotional pricing is a fundamental marketing technique to achieve this objective.

The ITIL guiding principles are the foundational, strategic recommendations that guide an organization in all circumstances, especially during significant initiatives like a cloud migration. Adopting these principles ensures a holistic, value-focused, iterative, and collaborative approach. Placing continual improvement at the center ensures that the migration process and the resulting services are continuously refined. This overarching framework is the most comprehensive approach, as it provides the context and guidance within which specific activities (like journey mapping or risk analysis) are performed. It addresses the "how" of the entire initiative, not just a single part of it.

B. Drawing a customer journey map is a valuable technique to understand value, but it is a specific tool within a larger strategic approach, not the entire approach itself.

C. An onboarding workshop is a specific, tactical activity for stakeholder engagement, not the comprehensive, guiding framework needed for a major business initiative.

D. SWOT and risk analysis are essential planning and decision-making tools, but they represent specific steps rather than the overarching guiding philosophy for the entire initiative.

1. AXELOS. (2020). ITIL® 4: Drive Stakeholder Value (DSV). TSO (The Stationery Office).

Section 2.1

"The ITIL guiding principles": This section emphasizes that the principles are universal and enduring

designed to "guide organizations in their work as they adopt a service management approach and adapt ITIL guidance to their own specific needs and circumstances." This supports their use as the core approach for a major initiative.

2. AXELOS. (2019). ITIL® 4: Foundation

ITIL 4 Edition. TSO (The Stationery Office).

Chapter 4

"The ITIL guiding principles

" and Section 4.1

"Introduction to the ITIL guiding principles": This chapter explicitly states that the principles are recommendations that "can guide an organization in all circumstances

regardless of changes in its goals

strategies

type of work

or management structure." This confirms their role as the best foundational approach for any change or project.

An "out-of-the-box" service is a standardized, non-customized product designed to meet the common needs of a broad market segment. The service provider develops such offerings by conducting market research and analysis to identify generic requirements shared by a target consumer group. This approach allows the provider to create a pre-packaged solution that addresses widespread needs efficiently. The focus is on the collective market rather than the unique, detailed requirements of any single organization, which is a process reserved for bespoke or customized services.

B. Negotiating detailed requirements is characteristic of a customized service, not a pre-defined, out-of-the-box solution.

C. A Request for Proposal (RfP) is a formal process used to procure a custom-designed service, which contradicts the "out-of-the-box" nature of the service.

D. Service Level Management for a standard service focuses on agreeing to performance levels for the existing offering, not on negotiating detailed functional requirements.

1. AXELOS. (2020). ITIL® 4: Drive Stakeholder Value. TSO (The Stationery Office).

Section 2.2.1

Markets: "A service provider needs to understand the market it operates in... This includes identifying the target customers for its services and the needs that the services will fulfil." This section emphasizes that for broad offerings

providers analyze the market as a whole

not just one organization.

Section 4.3.1

Designing the service offering: "A service offering may include goods

access to resources

and service actions... These offerings are designed to appeal to a target consumer group." This confirms that standard ("out-of-the-box") offerings are designed based on the aggregated needs of a target group

which are identified through market analysis.