- 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)

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
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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