Information Technology Infrastructure Library (ITIL) Foundation Practice Exam

In which stage of the service lifecycle does business case development primarily occur?

1. Service Design

2. Service Strategy

3. Service Transition

4. Service Operation

The correct answer is: Service Strategy

Business case development primarily occurs in the Service Strategy stage of the ITIL service lifecycle. During this phase, organizations focus on understanding their market and developing strategies to align services with business goals. The business case serves as a critical tool for justifying the investment in new services and is built upon an analysis of the current market demands, potential customer needs, and the capabilities of the organization. This stage involves assessing different service options, evaluating risks, estimating costs, and exploring resource requirements—all of which are essential for informed decision-making regarding service investments. The business case provides a structured approach to ensure that the proposed services not only meet the needs of the business but also provide a viable financial return. In contrast, other stages of the service lifecycle, such as Service Design, Service Transition, and Service Operation, focus more on the implementation, management, and delivery of services rather than the initial justification for their development. These stages typically come after the business case has been established in Service Strategy.