ITIL ITIL-4-Foundation ITIL 4 Foundation Exam Exam Practice Test

Value Streams & Processes

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. This dimension defines the activities, workflows, controls and procedures needed to achieve agreed objectives. What matters in service management is that an organization establishes an operating model that that effectively organizes the key activities needed to manage products and services.

Value streams

A value stream is defined as a series of steps an organization undertakes to create and deliver products and services to consumers.

Structuring the organization’s service and product portfolios around value streams allows it to have a clear picture of what it delivers and how, and to make continual improvements to its services. By mapping its value streams, an organization can identify what is critical, what introduces waste and what can be improved upon.

Processes

A process is defined as a set of interrelated or interacting activities that transform inputs into outputs.

Processes define the sequence of actions and their dependencies, as well as describe what is done to accomplish an objective. Processes are underpinned by policies and can be broken down further through procedures which outline what is done, when, and by whom.

https://www.bmc.com/blogs/itil-four-dimensions-service-management/

ITIL 4 defines a service as:

A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.

The key phrase in the question is “facilitates outcomes that customers want to achieve”, which is directly part of the definition of a service in ITIL 4.

Therefore, the correct answer is A. Service.

Why the other options are incorrect:

B. WarrantyWarranty is one of the two aspects of value (warranty and utility). It relates to how the service performs (availability, capacity, continuity, security), but warranty alone does not ‘facilitate outcomes’ – it describes assurance about performance.

C. OrganizationAn organization is a person or group of people with functions and responsibilities, authorities and relationships. Organizations provide and consume services, but the concept that “facilitates outcomes” is specifically the service.

D. IT assetIT assets (hardware, software, etc.) are components that support services and are financially valuable, but on their own they do not “facilitate outcomes that customers want to achieve” – that is done through services built from these assets.

References (Aligned with ITIL 4 Foundation concepts)

ITIL 4 Foundation: Definition of service

ITIL 4 Foundation: Key concepts of value, outputs, outcomes, utility, and warranty

In ITIL 4, the purpose of the relationship management practice is to:

Establish and nurture the links between the organization and its stakeholders

Identify, analyze, monitor, and continually improve relationships with stakeholders at strategic and tactical levels

Option C closely reflects this wording: “Identifying, analyzing, monitoring, and the continual improvement of relationships with stakeholders.” This matches the official purpose description, so C is correct.

The other options actually describe other practices:

A. Creating collaborative relationships with key suppliers… – This aligns with supplier management, which focuses on obtaining value from suppliers and managing supplier relationships.

B. Setting clear business-based targets so that the delivery of a service can be properly assessed – This is the purpose of service level management, not relationship management.

D. Handling all pre-defined, user-initiated service requests in an effective and user-friendly manner – This describes service request management.

Therefore, the option that correctly reflects the purpose of the relationship management practice is C.

The continual improvement practice aligns the organization’s practices and services with changing business needs through the ongoing identification and improvement of services, service components, practices, or any element involved in the efficient and effective management of products and services1. A continual improvement register (CIR) is a tool used to track and manage improvement ideas from identification through to final action2. It helps to prioritize, monitor, and communicate the status of improvement initiatives3. The other statements are not true because:

Used to help plan changes, assist in communication avoid conflicts and assign resources: This describes the purpose of a change schedule, which is a tool used by the change enablement practice2.

Used to select the right method, model or technique for identifying improvements: This describes the purpose of a continual improvement model (CIM), which is a tool used by the continual improvement practice2.

Used to provide a formal description of one or more services designed to address the needs of a target consumer group: This describes the purpose of a service offering, which is an output of the engage activity of the service value chain1. References: ITIL Foundation - ITIL 4 Edition, page 15; ITIL® 4 – A Pocket Guide, page 34; ITIL® 4 Practice Guide: Continual Improvement, page 9.

Costs are the amount of money spent on a specific activity or resource. From the service consumer’s perspective, there are two types of cost involved in service relationships:

Costs removed from the consumer by the service (a part of the value proposition). For example, for a car sharing service, the customer does not pay for the actual cost of purchasing the car.

https://www.bmc.com/blogs/itil-key-concepts-service-management/

In order to be aligned to customer outcomes and expectations, SLM requires focus and effort to engage and listen to the requirements, issues, concerns, and daily needs of customers:

Engagement is needed to understand and confirm the actual ongoing needs and requirements of customers, not simply what is interpreted by the service provider or has been agreed several years before. ITIL4 refers to value as being co-created, since it needs the input and validation of customers.

Listening is important as a relationship-building and trust-building activity, to show customers that they are valued and understood. This helps to move the provider away from always being in ‘solution mode’ and to build new, more constructive partnerships. Each customer is unique, and the service provider must not have a one-size-fits-all approach.

The activities of engaging and listening provide a great opportunity to build improved relationships and to focus on what really needs to be delivered. They also give service delivery staff an experience-based understanding of the day-to-day work that is done with their technology, enabling them to deliver a more business-focused service. When the customer is engaged and listened to, they feel valued and their perception of the service and service management activities improves.

https://www.bmc.com/blogs/itil-service-level-management/

The purpose of the improve value chain activity is to ensure continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management.

https://wiki.process-symphony.com.au/framework/lifecycle/service-value-systemitil-4/#:~:text=The%20purpose%20of%20the%20improve,four%20dimensions%20of%20service%20management.

The purpose of the service configuration management practice is to ensure that accurate and reliable information about the configuration of IT assets, and the relationships that support them, is available when and where it is needed1. IT assets are any financially valuable components that can contribute to the delivery of an IT product or service2. Configuration items are any component that needs to be managed in order to deliver an IT service3. References: ITIL Foundation - ITIL 4 Edition, page 15; ITIL® 4 – A Pocket Guide, page 36; ITIL® 4 Practice Guide: Service Configuration Management, page 7.

It is important to understand the difference in these terms not just for clarity, but because outputs are much easier to measure than outcomes.

Outputs are nearly always quantitative, with data available to show whether these have been delivered. Outputs are easy to report on and to validate. There is no grey area.

Outcomes are more challenging to verify because they are both qualitative and quantitative. Whether your outcomes have been achieved will rely, to a great extent, on the perception of the people who receive the service. Perceptions are not easy to measure or report on, but it is essential you find a way to do so.

https://www.bmc.com/blogs/outcomes-vs-outputs/

In ITIL 4, the continual improvement practice is focused on aligning the organization’s services, practices, and all elements of the service value system with changing business needs by identifying and making improvements on an ongoing basis.

ITIL 4 explicitly mentions that, to support continual improvement, organizations can use and build competencies in a variety of methods and techniques, such as:

SWOT analysis (strengths, weaknesses, opportunities, and threats)

Balanced scorecard

Lean, Six Sigma, and other improvement and measurement tools

The guidance explains that such techniques help organizations to evaluate current performance, identify improvement opportunities, and measure progress. This is directly linked to the continual improvement practice.

Why the other options are not correct:

A. Incident managementFocuses on managing incidents and restoring service quickly. While it may use some analysis tools, it is not the practice that explicitly promotes SWOT or balanced scorecards as general organizational competencies.

C. Service request managementManages user requests for services (like access, information, or standard changes). Its focus is on handling requests efficiently, not on strategic improvement techniques.

D. Change enablementEnsures that changes are properly assessed and authorized. It may use risk and impact assessment methods, but the explicit recommendation to develop skills in SWOT and balanced scorecard belongs to continual improvement.

Therefore, B. Continual improvement is the correct option.

References (ITIL 4 Foundation):

ITIL® Foundation: ITIL 4 Edition – Continual improvement practice (purpose, key activities, and methods)

ITIL® Foundation: ITIL 4 Edition – Mention of SWOT analysis, balanced scorecard, and other improvement techniques as supporting tools for continual improvement

This is one of the most important questions for continual improvement. This question helps to define measurable targets for the IT service provider that will help to reach the vision of the company in the long-term. At this stage, we look at the identified key performance indicators from the previous step and determine what values we want to target for each of these indicators. This decision must be made with the business’s vision in mind, but also with a sense of what is practically possible.

https://blog.masterofproject.com/continual-improvement-model/

ITIL® has defined four dimensions that collectively are critical to the effective and efficient delivery of value to customers and other stakeholders in the form of products and services. These dimensions are:

Organizations and People

Information and Technology

Partners and Suppliers

Value Streams and Processes

https://www.bmc.com/blogs/itil-four-dimensions-service-management/

In ITIL 4, the service value chain is a central element of the service value system and is composed of six activities. Each activity transforms inputs into outputs, contributing to the overall creation of value.

Key points:

Every value chain activity takes one or more inputs (such as information, resources, or outputs from other activities).

It then performs work that transforms these inputs.

It produces one or more outputs that are used by other activities or delivered to stakeholders.

Why the other options are incorrect:

A. Inputs and outputs are fixed for each value chain activity – ITIL 4 explicitly allows for flexibility; inputs and outputs vary depending on the value stream and context.

B. Some value chain activities only have inputs, whereas others only have outputs – This contradicts the model; each activity must receive inputs and produce outputs.

C. Governance determines the inputs and outputs – Governance influences direction and controls but does not prescribe specific inputs and outputs for the value chain activities.

Therefore, the correct statement is that each value chain activity receives inputs and provides outputs.

A service level agreement (SLA) is a documented agreement between a service provider and a customer that identifies both services required and the expected level of service1. A necessity to a successful SLA is that the language and terms used in the SLA should be commonly understood by all parties, to avoid ambiguity, confusion, and disputes2. The other statements are not true because:

Base the SLA on system-based metrics that are useful to the service provider: The SLA should be based on customer-based metrics that are meaningful to the customer and reflect the value of the service2.

In order to promote consistent service, they should be carried forward, unchanged, from one year to the next: The SLA should be reviewed and updated regularly to reflect changing business needs, customer expectations, and service performance2.

Vague targets, such as those related to user experience should be avoided: The SLA should include both quantitative and qualitative targets, such as those related to user experience, satisfaction, and perception, as well as availability, reliability, and security2. References: ITIL Foundation - ITIL 4 Edition, page 16; ITIL® 4 – A Pocket Guide, page 37; ITIL® 4 Practice Guide: Service Level Management, page 8.

Partners and suppliers are one of the four dimensions of service management that influence the effectiveness and efficiency of service delivery1. This dimension covers the relationships that an organization has with other organizations that are involved in the design, development, deployment, delivery, support, and improvement of services2. This dimension also includes the contracts, agreements, and policies that govern these relationships3. References: ITIL Foundation - ITIL 4 Edition, page 8; ITIL® 4 – A Pocket Guide, page 19; ITIL® 4 Practice Guide: Partner and Supplier Management, page 7.

IT asset is any financially valuable component that can contribute to the delivery of an IT product or service. The scope of IT asset management typically includes all software, hardware, networking, cloud services, and client devices

https://wiki.process-symphony.com.au/framework/lifecycle/process/it-asset-management-itil-4/#:~:text=IT%20asset%20is%20any%20financially,cloud%20services%2C%20and%20client%20devices.

A service relationship is defined as the cooperation between a service provider and service consumer. Service relationships are established between two or more organizations to co-create value. An organization can play the role of provider or consumer interchangeably, depending on the situation.

https://www.bmc.com/blogs/itil-key-concepts-service-management/#:~:text=and%20stakeholder%20management.-,Service%20Relationships,interchangeably%2C%20depending%20on%20the%20situation.

In ITIL 4, a service request is defined as a user request for information, advice, or a standard change, or for access to a service.

A user asking, “How do I create a report?” and contacting the service desk is:

Requesting information/advice

A normal, expected interaction with the service

Not reporting a service failure or interruption

Handling such requests is the purpose of the service request management practice, which ensures that:

Service requests are handled efficiently and user-friendly

Users receive help, information, or access according to agreed procedures

Requests follow pre-defined workflows where possible

Therefore, the practice most likely to help in solving this issue is C. Service request management.

Why the other options are incorrect:

A. Incident managementIncident management deals with unplanned interruptions, reductions in service quality, or failures. Here, the service is working; the user just needs guidance, not restoration of service.

B. Service level managementThis focuses on defining, negotiating, and managing service level agreements (SLAs) and overall service performance, not answering “how to” questions.

D. Change enablementThis practice manages changes to services and components, reducing risk. A user asking how to create a report is not requesting a change to the service.

References (Aligned with ITIL 4 Foundation concepts)

ITIL 4 Foundation: Definition of service request and service request management

ITIL 4 Foundation: Distinction between incidents and service requests

The change schedule is used to help plan changes, assist in communication, avoid conflicts, and assign resources. It can also be used after changes have been deployed to provide information needed for incident management, problem management, and improvement planning

https://www.bmc.com/blogs/itil-change-enablement/#:~:text=The%20change%20schedule%20is%20used,problem%20management%2C%20and%20improvement%20planning.

The Obtain/Build activity is responsible for ensuring that all service components are available when and where needed, and that they meet the agreed specifications.

https://www.beyond20.com/blog/what-is-the-itil-4-service-value-chain/#:~:text=The%20Obtain%2FBuild%20activity%20is,they%20meet%20the%20agreed%20specifications.

In ITIL 4, the ‘improve’ value chain activity is part of the service value chain within the service value system. Its official purpose is to ensure continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management.

Option A matches the core wording of this purpose:

“Ensure the continual improvement of practices across all value chain activities.”

Even though the full ITIL statement also mentions products, services, and the four dimensions of service management, this option is the only one that directly reflects the continual improvement focus of the improve activity across the value chain.

Why the other options are not correct:

B. Ensure services continually meet expectations for quality, costs, and time to marketThis is more aligned with design and transition, obtain/build, and deliver and support, which focus on planning, building, and delivering services that meet agreed requirements, costs, and time constraints.

C. Ensure a shared understanding of the improvement direction for services across the organizationThis sounds closer to guiding principles or governance, and to some aspects of service level management and continual improvement planning, but it is not the formal purpose statement of the improve value chain activity.

D. Ensure continual engagement and good relationships with all stakeholdersThis aligns strongly with the engage value chain activity, whose purpose is about understanding stakeholder needs, ensuring transparency, and maintaining relationships.

Therefore, A is the correct option because it directly reflects the official purpose of the ‘improve’ value chain activity in ITIL 4.

References (ITIL 4 Foundation):

ITIL® Foundation: ITIL 4 Edition – Service Value System, Service Value Chain – Improve activity (purpose)

ITIL® Foundation: ITIL 4 Edition – Overview of service value chain activities

An SLA is defined as a documented agreement between a service provider and a customer that identifies both services required and the expected level of service.

SLAs are used to measure the performance of services from the customer’s point of view, and it is important that they are agreed in the wider business context.

Some of the key requirements for successful SLAs include:

They must be related to a defined ‘service’ in the service catalogue. Individual metrics without a specified service context are unhelpful.

They should relate to defined outcomes and not simply operational metrics. This can be achieved with balanced bundles of metrics, such as customer satisfaction and key business outcomes.

They should reflect an ‘agreement’: an engagement and discussion between the service provider and the service consumer. It is important to involve all stakeholders, including partners, sponsors, users, and customers.

They must be simply written and easy to understand and use for all parties.

https://www.bmc.com/blogs/itil-service-level-management/#:~:text=Service%20Level%20Agreements%20(SLAs) &text=Some%20of%20the%20key%20requirements,and%20not%20simply%20operational%20metrics.

ITIL® defines a problem as a cause, or potential cause, of one or more incidents. A known error is a problem that has been analyzed but not resolved.

https://www.bmc.com/blogs/itil-problem-management/

In ITIL 4, service request management is one of the 7 practices described in more detail.

A service request is defined as a user request for something to be provided – for example:

access to an application or file

information or advice

a standard change that is preapproved

a new or replacement item of equipment

The key idea is:

A service request is a formal request from a user for something they are entitled to receive as part of a service.

Looking at each option:

This describes an incident.

An incident is an unplanned interruption to a service or reduction in its quality.

A request to restore normal service operation after something has gone wrong is handled by the incident management practice, not by service request management.

So this is not a service request.

This normally relates to a change.

Implementing a patch modifies the live environment.

This is usually handled through the change enablement practice (and then deployment management), often as a normal change or standard change, depending on the organization’s policies.

Although some standard changes can be triggered via service requests, ITIL Foundation typically uses clearer examples (such as access requests). This option is not the best example.

This is a classic example of a service request:

A user is asking for access (permission) to something as part of an existing service.

It is not fixing something broken, it is asking for something to be provided.

ITIL 4 explicitly lists access requests (for example, to applications, services, or data) as a common type of service request within the service request management practice.

Therefore, C is the correct answer.

This describes problem management:

When we investigate the root cause of one or more incidents, we are using the problem management practice.

The aim is to understand and remove the underlying cause, not to provide a standard service action requested by a user.

So this is not a service request.

This aligns with ITIL 4 Foundation descriptions of:

Service request – a user request for something to be provided.

Service request management practice – managing all types of service requests in a user-friendly and efficient way.

Incident management – restoring normal service operation as quickly as possible.

Problem management – identifying and managing the causes of incidents.

Change enablement – ensuring that changes are evaluated, authorized, and managed.

That is why “a request for access to a file” is the correct example of a service request.

When focusing on value, the first step is to know who are the customers and key stakeholders being served. Next, it is important to have an understanding of what consitutes value from the consumer’s perspective.

https://www.bmc.com/blogs/itil-guiding-principles/#:~:text=When%20focusing%20on%20value%2C%20the,value%20from%20the%20consumer 's%20perspective.

Service management is the term used to describe how organizations manage their services to deliver value to their customers and other stakeholders. Service management requires a set of specialized organizational capabilities, such as processes, roles, tools, and competencies, that enable the effective and efficient delivery of services1. Service management is also a professional practice supported by an extensive body of knowledge, experience, and skills3. References: ITIL Foundation - ITIL 4 Edition, page 2; ITIL® 4 – A Pocket Guide, page 11.

Individual metrics without a specified service context are unhelpful. They should relate to defined outcomes and not simply operational metrics. This can be achieved with balanced bundles of metrics, such as customer satisfaction and key business outcomes.

https://www.bmc.com/blogs/itil-service-level-management/#:~:text=Service%20Level%20Agreements%20(SLAs) &text=Individual%20metrics%20without%20a%20specified,satisfaction%20and%20key%20business%20outcomes.

In ITIL 4, guiding principles are defined as recommendations that guide an organization in all circumstances, regardless of changes in goals, strategies, work type, or management structure. They are explicitly intended to support decision-making and actions at all levels of the organization.

The guiding principles help people decide:

How to approach work

How to prioritize activities

How to respond to challenges or opportunities

How to adapt service management practices to the organization’s context

The other options are important ITIL concepts, but they do not primarily exist to guide decisions in every situation:

Four dimensions of service management give a holistic view of what must be considered, but do not themselves provide decision rules.

Service value chain describes core activities that create value, not a decision framework.

Practices describe how specific types of work are organized, not general decision guidance.

Therefore, the ITIL concept that helps an organization make good decisions in all circumstances is the guiding principles.

The purpose of the monitoring and event management practice is to systematically observe services and service components and record and report selected changes of state identified as events1. This practice helps to identify and prioritize any issues or opportunities for improvement in the delivery or support of services2. The other statements describe the purposes of different practices: incident management (A), service request management (B), and change enablement (D)3. References: ITIL Foundation - ITIL 4 Edition, page 14; ITIL® 4 – A Pocket Guide, page 31; ITIL® 4 Practice Guide: Monitoring and Event Management, page 7.

The organizations and people dimension sets out the people aspects of service management to be considered when designing, operating and changing service offerings. People include employees, managers, executives, customers, supplier employees, or anybody else who is involved in the creation or consumption of services.

https://assyst.ifs.com/blog/what-are-the-four-dimensions-of-itil-4

The incident management practice aims to minimize the negative impact of incidents by restoring normal service operation as quickly as possible1. A complex or major incident is an incident that has a significant impact or urgency for the business and requires a high level of coordination and resources to resolve2. This may require a temporary team to work together, such as a major incident team or a swarming team3. References: ITIL Foundation - ITIL 4 Edition, page 14; ITIL® 4 – A Pocket Guide, page 32; ITIL® 4 Practice Guide: Incident Management, page 8.

https://assyst.ifs.com/blog/the-7-guiding-principles-of-itil-4-0

Don't over-engineer solutions. Think about what you can do now.

Like focus on value, this principle is heavily focused on the prevention of waste. Waste correlates with complexity. Higher complexity means there are more opportunities for waste to creep into a system.

Focus on delivering the desired outcome, not building the most elegant and elaborate solution. Use the minimum number of steps to deliver that outcome, ensuring you are not over-processing (delivering quality above and beyond what is required).

The purpose of the SLM 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. SLM involves service level activities, including:

Defining service levels

Documenting

Actively managing them

https://www.bmc.com/blogs/itil-service-level-management/

The ITIL guiding principle ‘focus on value’ states that everything an organization does should link back, directly or indirectly, to value for itself, its customers, and other stakeholders1. A good way to apply this principle is to understand why services are used by service consumers, what outcomes they enable, and how they contribute to value creation2. This helps to align the service provider’s activities and resources with the needs and preferences of the service consumers3. References: ITIL Foundation - ITIL 4 Edition, page 6; ITIL® 4 – A Pocket Guide, page 24; ITIL® 4 Practice Guide: Focus on Value, page 9.