Business Model Zen Diagnose

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- You can diagnose your business model and it suggests strategical checkpoint.
(you can download this file at http://businessmodelzen.com/?page_id=1105 )

*Instruction
Before diagnosing, you are recommended to design the preliminary business model with ZEN canvas.
Diagnose each blocks one by one following block number (located in upper right corner of each block).
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)

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Business Model Zen Diagnose

  1. 1. Business Model Zen Diagnostic version 1.5 http://businessmodelzen.com Customer Mission Problem Market Solution Advantage Empathy High Concept Revenue Cost Cooperator for Innovation Exploring Opportunities Generating Ideas Do & Test Learn & Pivot 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/ . Who is my customer? What is my promise to customer? What is my customer’s unmet needs? Are the needs attractive enough to the market? What are my value propositions to the customer? Does it have unfair advantages over my competitors? How can I evoke empathy from my customer? Does my concept have emotional and cultural aspects? What is main revenue stream of my business? What is main cost structure of my business? Who should I work with to make the Solution? Who should I work with to enter the Market? Instructions to diagnose 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? What are the business opportunities according to business environments, customer needs, lifestyle, social culture and technology that are changing? 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? What are the concrete actions to go to market and test market hypothesis? Cooperator for Market 2 3 1 4 5 6 7 8 9 10 X axis: Mission and customer value fitness Y axis: Mission and target customer fitness Low High Low High ‘Customer’ area Asses Criteria “Does the mission match the actually pursued value?” Pass: I Check If OK: II, III Reconsider: IV Check if adjusting customer Value is needed Check if re- targeting customer is needed X axis: Number of customers Y axis: Importance of customer problem (payment inclination) Low High Low High ‘Problem’ area Asses Criteria “How big is the sum of problem?” Pass: I Check If OK: II, III Reconsider: IV II I IV III X axis: Degree of market competition on solving problem Y axis: Degree of differentiation High Low Low (Incremental) High (Substantial) ‘Solution’ area Asses Criteria “How much can the solution be differentiated? ” Pass: I Check If OK: II, III Reconsider: IV X axis: Degree of target customer’s empathy on problem Y axis: Degree of target customer’s empathy on solution Low High Low High ‘Empathy’ area Asses Criteria “Is the degree of customer empathy enough? ” Pass: I Check If OK: II, III Reconsider: IV Check if re- targeting customer is needed Check why solution does not have comparative advantages Is the market chance grasped through the chance search still valid? Were potential ideas fully deduced and discussed? Are the standards for verifying BM hypothesis clear and measurable? Are the practice plans for the market approach specific enough? II I IV III X axis: Period to earn profit after launching Y axis: Net Customer LTV Long Short Low High ‘Profit’ area Asses Criteria (III) “Is the profit model powerful enough? ” Pass: I Check If OK: II, III Reconsider: IV Net Customer Lifetime Value = Customer Lifetime Value – Customer Acquisition Cost – Customer Retention Cost Check if fund raising will be possible Check if business itself is attractive II I IV III X axis: Marginal Profit Y axis: Investment in Initial stage Low High High Low ‘Profit’ area Asses Criteria (II) “Is the profit model powerful enough?” Pass: I Check If OK: II, III Reconsider: IV Check if business itself is attractive Check if fund raising will be possible Marginal Profit = Marginal Revenue – Marginal Cost II I IV III X axis: Relevancy between revenue source Y axis: Diversity of revenue source Low High Low High ‘Profit’ area Asses Criteria (I) “Are the portfolio and relevant ability enough?” Pass: I Check If OK: II, III Reconsider: IV Check core revenue source and competency Check if revenue source can be diversified and core competency II I IV III X axis: Degree of external cooperation Y axis: Degree of ecosystem value integrity Low High Low High ‘Cooperator’ area Asses Criteria(I) “How many cooperation do you consider? ” Pass: I Check If OK: II, III Reconsider: IV Check if you can invite more cooperators II I IV III X axis: Easiness to cooperate with Y axis: Independency to cooperators Low High Low (Must-Have) High (Nice-to-Have) ‘Cooperator’ area Asses Criteria(II) “Is cooperation possibility high? ” Pass: I Check If OK: II, III Reconsider: IV Check if you can suggest positive value Check if differentiation point exist really II I IV III II I IV III II I IV III Check if you could define competition in customer’s eye Check if you can find more customer groups who have the same problem Check if the problem really happens widely and frequently Check if you can invite more cooperators Check if cooperation is easy or strong really

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