A service provider wants to achieve a balance between customer/market relevance and operational excellence. They also want a balance between looking…

The ITIL 4: Digital and IT Strategy guidance describes a balanced strategy using four perspectives, which are based on two dichotomies: customer/market relevance versus operational excellence, and an internal versus an external view. The scenario states the organization has already addressed the two external perspectives. To achieve a balanced strategy, they must now address the two internal perspectives. Investigating how the provider's technology can enhance customer experience is an internal view of customer/market relevance ("How can we create more value?"). Analysing staff capabilities to identify strengths is an internal view of operational excellence ("What must we excel at?"). These two actions complete the four perspectives required for a balanced strategy.

Analyse threats to their existing customer base: This is an external view of market relevance, which the organization has already performed as part of its initial analysis. Identify new opportunities to provide services to the market: This is also an external view of market relevance, which the scenario indicates has already been addressed.

AXELOS. (2020). ITIL® 4: Digital and IT Strategy. TSO (The Stationery Office).

Section 3.1.3, Figure 3.2 'The four perspectives of a balanced strategy': This figure and the accompanying text explicitly detail the four quadrants of a balanced strategy. The question describes the completion of the two external-facing quadrants. The correct answer provides the two missing internal-facing quadrants: the internal view of customer/market relevance (option 3) and the internal view of operational excellence (option 4).