An organization has to change its way of working to support a completely new way of creating its services. What is this an example of?

The scenario describes an organization adopting a "completely new way of creating its services." This is the definition of innovation, which is the introduction of something new and is a fundamental driver of digital and IT strategy. This change is not incremental but represents a significant, potentially radical, shift in processes and value creation, which is a core aspect of innovation within the ITIL 4 DITS framework.

B. Operational technology: This refers to technology used to manage physical processes and machinery. While it might be part of the change, it is a category of technology, not the act of changing the way of working.
C. Ecosystem disruption: This is the effect a change has on the wider market or business ecosystem. The question describes the organization's internal action, which is the cause, not the external effect of disruption.
D. Incremental transformation: This involves small, continuous changes. The phrase "completely new way" directly contradicts the concept of an incremental approach, suggesting a more radical or transformational change.

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

Section 2.2.1 (Strategy and innovation): Defines innovation as 'the introduction of something new'. It further explains that innovation can be incremental or radical. A "completely new way" aligns with the concept of radical innovation, which is a key theme.

Section 4.3.3 (Approaches to digital transformation): Contrasts incremental improvement with radical transformation. The scenario clearly points towards a more radical approach, which is a form of innovation, rather than a gradual, incremental one.

Section 3.2.2 (The convergence of IT and OT): Defines Operational Technology (OT) as the hardware and software that monitors or controls physical devices, distinguishing it from the strategic act of innovation.