The official ITIL V4 Foundation guidance defines the purpose of the supplier management practice as ensuring that an organization's suppliers and their performances are managed appropriately. This management is crucial for supporting the seamless provision of quality products and services. The term 'performances' encompasses all aspects of the supplier's contribution, including meeting agreed-upon targets for quality, timeliness, and cost, as outlined in contracts and service level agreements.

A. costs: While managing costs is an important aspect of supplier management, 'performances' is the broader and officially stated term that includes cost, quality, and other metrics.

B. users: Suppliers provide services to the organization, which then delivers them to its users. Suppliers do not have 'users' in the context of this practice's purpose.

C. value: Although suppliers contribute to value co-creation, the practice focuses on managing their tangible 'performances' to achieve that value, making it the more precise term.

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

Section 5.2.17

"Supplier management": The purpose statement is explicitly defined as: "The purpose of the supplier management practice is to ensure that the organization’s suppliers and their performances are managed appropriately to support the seamless provision of quality products and services." (p. 119)

The value proposition of a service communicates the value that the service will deliver. A key part of this value is the financial aspect from the consumer's perspective. ITIL 4 defines two types of costs for the consumer: costs removed by the service and costs imposed by the service. Costs removed are a direct financial benefit and a critical component of the value proposition, as they represent money the consumer no longer has to spend. This directly contributes to the service's attractiveness and perceived value.

A. This describes costs imposed on the consumer. While these are part of the overall value calculation, the value proposition typically emphasizes the benefits, such as costs removed.

C. This describes outcomes. Outcomes are the results that a service facilitates, which in turn enable the consumer to realize value, but they are not costs.

D. This is the definition of value (and closely related to utility). While the value proposition communicates this overall value, the question specifically asks about the costs included.

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

Section 2.5.4

"Costs": This section explicitly states

"From the service consumer’s perspective

there are two types of cost involved in a service relationship: 1. Costs removed from the consumer by the service... This is part of the value proposition." This directly supports option B as a correct answer.

Section 2.5.4

"Costs": The same section also defines the second type of cost: "2. Costs imposed on the consumer by the service (the total cost of consuming a service)." This corresponds to option A. However

the value proposition focuses on communicating the benefits

making "costs removed" a more central element.

Section 2.5.1

"Value and value co-creation": This section defines value as "the perceived benefits

usefulness

and importance of something

" which aligns with option D. However

the question specifically asks about "costs

" making B the more precise answer.

The purpose of the service level management practice is to set clear, business-based targets for service performance so that the delivery of a service can be properly assessed, monitored, and managed against these targets. This involves negotiating Service Level Agreements (SLAs) which must be based on a clear understanding of the customer's needs and experience. The practice focuses on collecting and analyzing information from various sources, including customer feedback, business metrics, and operational metrics, to ensure that the defined service levels accurately reflect the customer's desired outcomes and overall experience (CX/UX).

A. Continual improvement uses metrics to identify and manage improvement opportunities, but it is not the practice primarily responsible for defining customer experience metrics.

B. The service desk is the entry point for users and captures their immediate feedback and issues, but it does not define the formal service level metrics.

D. Problem management focuses on identifying and managing the causes of incidents to prevent their recurrence, not on defining service performance metrics with customers.

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

Section 5.2.15

"Service level management": States the purpose is "to set clear business-based targets for service performance...". It emphasizes that SLM "involves listening to customers to understand and document their needs" and that a key input is "customer feedback". It explicitly mentions the need to gather and analyze "customer experience (CX) and user experience (UX) information".

Section 5.1.2

"Continual improvement": Defines its purpose as aligning practices and services with changing business needs through ongoing improvement

which is distinct from setting initial service targets.

Section 5.2.8

"Problem management": Defines its purpose as reducing the likelihood and impact of incidents by identifying root causes.

The most effective way to ensure third-party suppliers contribute to continual improvement is by formally including these expectations within legally binding contracts. Contracts define the scope of services, performance targets, and responsibilities for all parties. By embedding clauses that detail the supplier's approach and commitment to service improvement, the organization establishes a clear, measurable, and enforceable framework for collaboration. This aligns with the ITIL supplier management practice, which focuses on managing supplier performance to support the seamless provision of quality services, and this inherently includes ongoing improvement.

B. Requiring a specific methodology like agile is overly prescriptive; the focus should be on the outcome of improvement, not the specific method used.

C. Not all improvements are large enough to warrant formal project management practices; many are small, incremental changes handled through other processes.

D. Problem management is only one of many sources for improvements; this option is too narrow and ignores other inputs like performance reviews or user feedback.

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1. AXELOS. (2019). ITIL® Foundation

ITIL 4 edition. TSO (The Stationery Office).

Section 5.2.18 (Supplier management): This section explains that the purpose of the supplier management practice is to ensure suppliers and their performance are managed appropriately. This is achieved through "negotiating contracts and agreements" which define the required performance levels and expectations. Including continual improvement in these contracts is a direct application of this practice.

Section 5.1.2 (Continual improvement): This section states that continual improvement should be integrated into the services and practices of an organization. For services involving third parties

this integration is formalized through the supplier relationship and its governing contracts.

The continual improvement register (CIR) is a dynamic tool used to log and manage improvement opportunities throughout their lifecycle. As new improvement ideas are identified and documented in the register, it is essential to regularly review and re-prioritize the entire list. This ensures that resources are allocated to the initiatives that offer the most value to the organization in alignment with current business objectives and constraints. This ongoing prioritization is a fundamental aspect of managing the CIR effectively within the continual improvement practice.

A. The CIR is used and managed at all organizational levels, from individual teams to senior management, not exclusively at the senior level.

B. The CIR is for tracking improvement ideas for existing services and processes, whereas user demand for new services is captured through other practices.

C. Organizations often maintain multiple CIRs at various levels (e.g., team, department, enterprise-wide), not just a single one for the whole organization.

1. AXELOS. (2019). ITIL® Foundation

ITIL 4 edition. TSO (The Stationery Office).

Section 5.1.2

Continual improvement practice: "The continual improvement register (CIR) is a database or structured document to track and manage improvement ideas from identification through to final action... As new ideas are added

they need to be prioritized against the existing ideas in the CIR." (Supports option D).

Section 5.1.2

Continual improvement practice: "There can be more than one CIR in an organization

as they can be maintained at all levels

from individual teams to the entire organization." (Refutes options A and C).

The 'obtain/build' value chain activity has the explicit purpose of ensuring that service components are available when and where they are needed and that they meet agreed specifications. This activity encompasses the acquisition of components from third parties, as well as the in-house development and building of components. It is during this activity that components are verified against their design specifications before being integrated into a service. This ensures that the building blocks of the service are fit for purpose and meet quality requirements.

A. Plan: This activity focuses on creating a shared vision and strategic direction for the organization's products and services, not on verifying individual component specifications.

B. Design and transition: This activity creates the specifications and plans the transition into the live environment, but the actual acquisition and verification of components occurs in 'obtain/build'.

D. Deliver and support: This activity is concerned with the ongoing operational delivery of services to users and ensuring they meet agreed service levels, not building the components.

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

Section 4.5.4

Obtain/build: "The purpose of the obtain/build value chain activity is to ensure that service components are available when and where they are needed

and meet agreed specifications." (p. 51)

Section 4.5.2

Plan: "The purpose of the plan value chain activity is to ensure a shared understanding of the vision

current status

and improvement direction..." (p. 50)

Section 4.5.5

Design and transition: "The purpose of the design and transition value chain activity is to ensure that products and services continually meet stakeholder expectations for quality

costs

and time to market." (p. 52)

Section 4.5.6

Deliver and support: "The purpose of the deliver and support value chain activity is to ensure that services are delivered and supported according to agreed specifications..." (p. 52)

The 'optimize and automate' guiding principle focuses on maximizing the value of work performed by both human and technical resources. A key objective of automation is to handle routine, repetitive, and standardized tasks efficiently and consistently. By automating these activities, organizations can free up their human workforce from mundane work. This allows skilled personnel to focus on more complex, strategic, and value-adding activities that require human judgment, creativity, and problem-solving skills, thereby enhancing overall organizational capability and innovation.

A. The principle explicitly states that optimization should precede automation to avoid automating an inefficient process.

B. Automation is most suitable for standardized and repetitive tasks, as non-standard tasks are difficult and costly to automate effectively.

C. Technology reduces the need for human intervention in specific tasks but does not eliminate it; human oversight and exception handling remain crucial.

1. AXELOS. (2019). ITIL® Foundation

ITIL 4 Edition. TSO (The Stationery Office).

Section 4.3.7

"Optimize and automate": "Automation can also free up human resources from repetitive

mundane work

allowing them to focus on more complex tasks and on innovation." (Supports option D).

Section 4.3.7.1

"Optimization and automation guidance": "Before an activity can be effectively automated

it should be optimized to whatever extent is possible and reasonable." (Refutes option A).

Section 4.3.7

"Optimize and automate": The definition of automation as performing steps "correctly and consistently" implies it is best for standardized tasks. (Refutes option B). The text also refers to "limited or no human intervention

" which is different from complete elimination. (Refutes option C).

The 'service level management' practice is responsible for setting clear, business-based targets for service levels and ensuring these are met. This requires a deep understanding of the customer's business objectives, needs, and priorities. Therefore, competencies in business analysis are essential to translate business needs into technical service level targets. Furthermore, since Service Level Agreements (SLAs) are formal agreements, often with financial implications, skills in commercial management are crucial for negotiation, agreement, and managing the provider-customer relationship from a commercial perspective.

A. Problem investigation and resolution are core competencies of the 'problem management' practice, which focuses on reducing the likelihood and impact of incidents by identifying their root causes.

B. Incident analysis and prioritization are key competencies of the 'incident management' practice, which aims to restore normal service operation as quickly as possible.

D. Balanced scorecard reviews and maturity assessments are tools and techniques primarily associated with the 'continual improvement' and 'measurement and reporting' practices to assess and improve services and practices.

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

Section 5.2.15

Service level management: This section states

"The service level management practice requires practical skills in business analysis and commercial management

as it is focused on understanding business needs and ensuring that these are met. Business liaison and relationship management skills are also important." This directly supports option C.

Section 5.2.8

Problem management: This section details the activities of problem identification

control

and error control

confirming that investigation and resolution are its domain.

Section 5.2.5

Incident management: This section describes the skills for incident management

including the prioritization and resolution of incidents.

Section 5.1.2

Continual improvement: This section discusses various methods for improvement

including maturity assessments.

According to ITIL 4, an IT asset is defined as any component with financial value that contributes to the delivery of an IT product or service. The 'IT asset management' practice is specifically concerned with the lifecycle of these assets to maximize their value, control costs, and manage financial risks. This financial aspect is the key characteristic that distinguishes an IT asset from other components, such as a configuration item (CI), although many components can be both.

A. This describes an activity related to resolving an incident or a problem, not a component or asset.

B. This is the definition of a configuration item (CI), which is any component that needs to be managed to deliver a service, but it lacks the specific financial focus of an IT asset.

C. This is the definition of a service request, which is a formal request from a user for a pre-defined and pre-agreed service action.

1. AXELOS. (2019). ITIL® Foundation

ITIL 4 edition. TSO (The Stationery Office).

Appendix A: Glossary

Page 223: "IT asset: Any financially valuable component that can contribute to the delivery of an IT product or service."

Section 5.2.8

IT asset management

Page 121: The purpose of the IT asset management practice is "to plan and manage the full lifecycle of all IT assets

to help the organization: maximize value

control costs

manage risks..." This reinforces the financial aspect.

Appendix A: Glossary

Page 219: "Configuration item (CI): Any component that needs to be managed in order to deliver an IT service." (This confirms why option B is incorrect).

Appendix A: Glossary

Page 228: "Service request: A request from a user or a user’s authorized representative that initiates a service action which has been agreed as a normal part of service delivery." (This confirms why option C is incorrect).

The 'Value streams and processes' dimension focuses on how the various parts of an organization work in an integrated and coordinated way to enable value creation. It defines the activities, workflows, controls, and procedures needed to achieve objectives. A process is a set of interrelated activities that transform inputs into outputs, and a value stream is a series of steps an organization undertakes to create and deliver products and services to consumers. Therefore, this dimension is directly concerned with activities and workflows.

B. Partners and suppliers: This dimension focuses on an organization's relationships with external companies that are involved in service delivery, not its internal activities.

C. Information and technology: This dimension pertains to the information, knowledge, and technologies required for the management of services, not the flow of work itself.

D. Organizations and people: This dimension covers roles, responsibilities, organizational structures, and culture, focusing on the human and structural elements rather than the specific workflows.

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

Section 3.4

Page 33: "The value streams and processes dimension is concerned with how the various parts of the organization work in an integrated and coordinated way to enable value creation through products and services. The dimension focuses on what activities the organization undertakes and how they are organized..."

Section 3.4.2

Page 34: A process is defined as "a set of interrelated or interacting activities that transform inputs into outputs." This explicitly links activities to this dimension.