Business Model Evaluation Scorecard

Business Model Evaluation Scorecard

Area Rating Description What we know... What we assume...

StrategyHow well does the idea fit with our current strategy?

0 5 10

What is the strategic purpose of the idea?

expanding or defending a current business

building a new one that has already been identified

laying the foundations for potential new businesses

Organization Resources & CompetenciesWhich do we need?Which do exist already?Which need to be build?Organizational capabilities for changeOrganizational readiness for change

FinanceFinancial Implications

Revenue potential(Qty x Price)Cost (fix + variable)Unit Margin TargetCash FlowPayback

Payoffs in the near < 1 yr medium < 3 yrs long term > 3 yrs

Net Present Value

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InnovationPotential for disruption

How innovative is the new model?(Technology/Value Proposition, Market, Supply Chain)

WHO – Market / Customer Segment Known to company and

industry Known to industry, new to

company New for company and industryWHAT – Value Proposition Known to company and


company New for company and industryHOW – do we produce and deliver the value proposition Known to company and


company New for company and industry

Key risk factors

Competition low mid high

Weaknesses

Threats

Expected blocks / hurdles to implementation



Key success factors

Strengths

Opportunities

Next stepsFirst experiment

The evaluation should/can furthermore include:

- A description of the business model- Goals the new business model / idea aims at achieving- The scorecard to give an overview of the evaluation- Detailed documents to support the different ratings and dimensions of the scorecard (e.g. cost calculations)
