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Business Model Zen

Diagnose

Instructions!
to diagnose


version 1.5

1) Before diagnosing, you are recommended to design the preliminary business model with ZEN canvas.!
2) Diagnose each blocks one by one following block number (located in upper right corner of each block).!
3) If your business fall in red zone while assessing, it is a important signal to review and redesign your business model again. (blue is OK, green needs some review) !

What are candidate solutions for customer problem? Which ideas are in the top priorities? !

Generating Ideas!

4!

6!

Who should I work with to make the Solution?!

Cooperator !

What are the concrete actions to go to market and test


market hypothesis?!

Do & Test!

for Innovation

9!

Cooperator area Asses Criteria(1)



How many cooperation do you consider? !
Check if you
can invite
more
cooperators


Were potential ideas fully


deduced and discussed?

Cooperator area Asses Criteria(2)



Is cooperation possibility high? !
Check if you
can invite
more
cooperators


High!

II

Low


High


IV

II
IV

III

Low (Must-Have)!

X axis: Degree of external cooperation



Y axis: Degree of ecosystem value integrity


2!

Customer

3!

What is my customers unmet needs?!

Problem

Reconsider: IV


Pass: I

Check If OK: II, III

Solution

Cooperator !

Check if
adjusting
customer !
Value is
needed


Check if you
can find more
customer
groups who
has same
problem


High


II

Low


IV

III
Low


II

Check if
differentiation
point exist
really


Empathy

III
Low


How can I evoke empathy from my customer?!

Is the degree of customer empathy enough? 




High (Substantial)


II

Check if retargeting
customer is
needed


I
Low


IV

Check if the
problem really
happens !
widely and
frequently!

III

Low (Incremental)


High


II

Low


High


IV

Check if you
define
competition in
customers eye


III
Low


Check if
solution has
comparative
advantage!

X axis: Mission and customer value fitness




X axis: Number of customers




X axis: Degree of market competition on solving problem




X axis: Degree of target customers empathy on problem




Y axis: Mission and target customer fitness




Y axis: Importance of customer problem (payment inclination)




Y axis: Degree of differentiation




Y axis: Degree of target customers empathy on solution




Pass: I

Pass: I

Pass: I

Check If OK: II, III


 
 Reconsider: IV


What is my promise to customer?!

Mission

Check If OK: II, III

Reconsider: IV


Are the needs attractive enough to the market?!

Market

Revenue

Profit area Asses Criteria (I)



Is the profit model powerful enough? !
Check if
fund raising
will be
possible!

Is the market chance


grasped through the chance
search still valid?

Long


Short


IV

III
Low


Pass: I 
 
 
 Check If OK: II, III 
 
 Reconsider: IV

Net Customer Lifetime Value = Customer Lifetime Value !

 Customer Acquisition Cost Customer Retention Cost


Exploring Opportunities!

This work is licensed under the Creative Commons Attribution-Non Commercial-Share Alike 3.0 Unported License.!
To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/ .!

Profit area Asses Criteria (II)



Is the profit model powerful enough?

Low


II

Pass: I

Advantage

High


IV

III
High


Pass: I

Check If OK: II, III

Does my concept have emotional and cultural aspects?!

Reconsider: IV


High Concept

7!

High


II

I
High


Low


IV

Check if
fund !
raising will
be possible!

X axis: Marginal Profit




 Y axis: Investment in Initial stage


Check If OK: II, III

Profit area Asses Criteria (III)



Are the portfolio and relevant ability enough?!
Check core
revenue
source and
competency


Low


Check if
business
itself is
attractive!

X axis: Period to earn profit after launching



Y axis: Net Customer LTV 


What are the business opportunities according to business environments, customer needs, lifestyle, social culture and
technology that are changing?!

Reconsider: IV


What is main revenue stream of my business?!

Check if
business
itself is
attractive!

High


II

Check If OK: II, III

Does it have unfair advantages over my competitors?!


1!

8!

Empathy area Asses Criteria




High


High


IV

Check if retargeting
customer is
needed


5!

How much can the solution be differentiated? 




High


Low


High


for Market

Solution area Asses Criteria




How big is the sum of problem?




Does the mission match the actually pursued value?




Reconsider: IV


What are my value propositions to the customer?!

Problem area Asses Criteria



Customer area Asses Criteria


Check if
cooperation!
is easy or !
strong really


X axis: Easiness to cooperate with



Y axis: Independency to cooperators


Who should I work with to enter the Market?!


Who is my customer?!

Are the practice plans


for the market approach
specific enough?

High


Check !
if you can
suggest
positive value


Check If OK: II, III

Low


III
Low!

Pass: I

High (Nice-to-Have)!

III
Low


Check if
revenue
source can be
diversified!

Are the standards for


verifying BM hypothesis
clear and measurable?

X axis: 
 Relevancy between revenue source!
and core competency!
Y axis: Diversity of revenue source


Reconsider: IV


Marginal Profit = Marginal Revenue Marginal Cost




Pass: I

What is main cost structure of my business?!

Check If OK: II, III

Cost

Reconsider: IV


What are the key metrics to test market hypothesis?!


If gap exists, what is the main cause of it? !
Do we need partial adjustment or big change?!

10!

Learn & Pivot!

http://businessmodelzen.com


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