Spreadsheet: 387ada8a-7c96-4439-9c7f-13831905888d
Sheet: Due Diligence Tool_Example

 |  | Business Model KPI Evaluation Part II: Due Diligence Tool
 |  | Based on Master Thesis, [NAME], December 2010
 |  | Download: www.business-model-design.org
 |  | Contact:    [EMAIL]
 |  | Company Name:
 |  |  | Overall Evaluation
 |  |  | (Scale: 0 = no entry, 1 = poor, 4 = very good)
 |  |  | value | certainty | weight | Category | Detailed Description
 |  |  | Scalability
 |  |  |  |  |  | Content
 |  |  | 3 | 0.75 | 0.75 | Resources | Technical infrastructure supporting core business is scalable and scalable at low cost
 |  |  | 4 | 0.75 | 1 | Goods | Product is scalable and can grow according to growth of customer company's demands
 |  |  | 2 | 1 | 0.75 | Processes | Scalability with lean company configurations (HR, office space and infrastructure) possible
 |  |  |  |  |  | Structure
 |  |  | 3 | 0.25 | 0.75 | Exchange Mechanisms /  Revenue Streams | Three customer segments, triple use of assets
 |  |  | 4 | 0.75 | 1 | Participating Parties /  Customers | Customer base is scalable
 |  |  |  |  |  | Governance
 |  |  | 3 | 0.75 | 0.75 | Governance Instruments /  Legal Forms | No banking licence necessary for most of customers, therefore no heavy regulations
 |  |  | Lock-In
 |  |  |  |  |  | Content
 |  |  | 1 | 0.75 | 0.75 | Resources | Promotion of trust through third party opinion, e.g. rating agency, customer reference, health/hygiene controll, etc.
 |  |  | 2 | 0.75 | 0.75 | Resources | Technology enabling customization (done by company) and/or personalization (done by customer) of offerings and features
 |  |  | 1 | 0.75 | 1 | Resources | Dominat brand and popular design
 |  |  | 1 | 0.5 | 0.75 | Goods | Proprietary standards, product design and features that keeps customers coming back for upgrades and add-ons
 |  |  |  |  |  | Structure
 |  |  | 2 | 0.75 | 0.75 | Participating Parties /  Partners | Learning investments made by participants evoking hig switching costs
 |  |  | 2 | 0.75 | 0.75 | Participating Parties /  Partners | Direct network externalities
 |  |  | 4 | 0.75 | 0.75 | Participating Parties /  Partners | Indirect network externalities
 |  |  | 1 | 0.75 | 0.75 | Participating Parties /  Customers | Customer strongly wants or needs goods and has high willingness to pay
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Customer Relationships | Venture uses velvet ropes so that customer does not feel locked-in
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Customer Relationships | Venture binds its fate to the fate of customers
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Distribution Channels | Numerous affiliate programs
 |  |  | 3 | 0.75 | 0.75 | Exchange Mechanisms /  Others | High Transaction reliability
 |  |  | 2 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Reliable transaction safety mechanisms
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Posivite feedback loops
 |  |  |  |  |  | Governance
 |  |  | 3 | 0.75 | 0.75 | Governance Instruments /  Control Methods | Information flow security and control processes generate trust. Customers can control use of personal information
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Control Methods | Reputation built by transaction history and use of rating system
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Legal Forms | Long-term supply contracts
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Incentive Schemes | Loyalty programs
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Incentive Schemes | Befefits of being part of a community are leveraged
 |  |  | Uniqueness
 |  |  |  |  |  | Content
 |  |  | 2 | 0.5 | 1 | Goods | Product is unique and no substitute available in market today
 |  |  | 3 | 0.75 | 1 | Goods | Product has strong USP
 |  |  | 4 | 1 | 0.75 | Processes | Programming flexibly adaptable according to contract volume due to unique partnership with developper units around the globe
 |  |  | 3 | 0.25 | 1 | Resources | Competitive core technology
 |  |  |  |  |  | Resources | Resources are rare, unlikely to become common and not easily substitutable
 |  |  |  |  |  | Structure
 |  |  | 1 | 0.5 | 0.5 | Participating Parties /  Other | Unprecedented and unique constellation of participating parties
 |  |  | 4 | 1 | 1 | Nature of Linkages /  Others | Customer is accompanied with suitable solutions from a start-up to an established company. This makes nature of linkages unique.
 |  |  |  |  |  | Governance
 |  |  | Efficiency
 |  |  |  |  |  | Content
 |  |  | 1 | 0.75 | 0.75 | Goods | Access to large selection of products, services, information
 |  |  | 4 | 1 | 0.75 | Processes | Efficient organizational processes
 |  |  | 3 | 0.75 | 0.75 | Processes | Time-to-market and time-to relevance is low
 |  |  | 4 | 0.75 | 0.75 | Processes | Transaction transparency enables well informed decisions, i.e. information provided about flows and use of information, goods, services
 |  |  | 4 | 0.75 | 0.75 | Resources | High quality of information reduces information asymmetry: accuracy, relevance and completeness of information
 |  |  |  |  |  | Structure
 |  |  | 4 | 1 | 1 | Participating Parties /  Partners | Costs reduction for participants in terms of marketing, sales, transaction processing, communication
 |  |  | 2 | 0.75 | 0.75 | Participating Parties /  Partners | Costs reduction for participants in terms of inventory
 |  |  | 4 | 1 | 1 | Participating Parties /  Partners | Costs reduction for participants in terms of search and bargaining costs
 |  |  | 1 | 0.75 | 0.75 | Participating Parties /  Partners | Value for participating parties in value net is not likely to decrease
 |  |  | 4 | 0.75 | 1 | Nature of Linkages /  Others | Scalability of business model i.e. scalability of transaction volume
 |  |  | 4 | 1 | 0.75 | Exchange Mechanisms /  Others | Transaction speed
 |  |  | 4 | 0.75 | 1 | Exchange Mechanisms /  Others | Transaction simplicity from user's point of view
 |  |  | 3 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Efficiency of information flow given
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Supply and/or demand aggregation, e.g. bulk purchase
 |  |  | 1 | 0.75 | 0.75 | Sequence of Exchange | Customer pays before he receives goods
 |  |  |  |  |  | Governance
 |  |  | 2 | 0.75 | 0.75 | Governance Instruments /  Incentive Schemes | Right mix of incentives and monitoring prevents firm from slack
 |  |  | Profitability
 |  |  |  |  |  | Content
 |  |  | 1 | 0.75 | 0.75 | Goods | Product allows profitable margins
 |  |  | 1 | 0.75 | 0.75 | Resources | Company has one of these "choke points": technical standard, control of some costly infrastructure, preferential access to a government buyer, a patent, a prime location
 |  |  | 4 | 0.75 | 0.75 | Resources | Multiple use of assets, can be leveraged across more than one business unit
 |  |  | 4 | 0.75 | 0.75 | Resources | Company is creating an asset that is so critical to the success of other companies
 |  |  |  |  |  | Structure
 |  |  | 4 | 0.75 | 0.75 | Participating Parties /  Customers | Market size and growth
 |  |  | 2 | 0.75 | 0.75 | Participating Parties /  Customers | Large base of customers from which feedback can be extracted
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Revenue Streams | Strong revenue streams, strong margins, healthy financial structure
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Cost Structure | Low operating costs, low cost of resources
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Positive feedback loops are possible and necessary. Early flywheel for success can be identified
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Revenue Streams | Virtuous cycles of increasing returns can be created
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Very short learning circle can be set up that improves products/services faster than competitors
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Others | Network Effects: company makes use of current networks or can create networks where currently no networks exist
 |  |  | 4 | 0.75 | 0.75 | Nature of Linkages /  Others | Business model is sustainable for an extended period
 |  |  | 1 | 0.75 | 0.75 | Sequence of Exchange | Profitable position in overall value calue creation chain
 |  |  |  |  |  | Governance
 |  |  | 3 | 0.75 | 0.75 | Governance Instruments /  Control Methods | First mover advantage is attainable. This advantage is likely to produce an insurmountable lead
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Other | Company can turn being first into being first again and again
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Other | Company can lock up scarce assets away from competitors
 |  |  | Inimitability
 |  |  |  |  |  | Content
 |  |  | 2 | 0.75 | 0.75 | Goods | Products and services are difficult to immitate
 |  |  | 1 | 0.75 | 0.75 | Processes | Processes are difficult to immitate
 |  |  | 1 | 0.75 | 0.75 | Resources | Combination of resources is difficult to immitate
 |  |  | 3 | 0.75 | 0.75 | Resources | High level of experience with staff
 |  |  | 1 | 0.75 | 0.75 | Resources | High level of reputation of company or staff
 |  |  |  |  |  | Structure
 |  |  | 1 | 0.75 | 0.75 | Participating Parties /  Other | Unique constellation of participating parties is difficult to imitate
 |  |  | 2 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Reinforcing nature of corresponding business model elements is difficult to imitate
 |  |  | 3 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Exchange mechanisms are complex and therefore difficult to imitate
 |  |  | 4 | 0.75 | 0.75 | Nature of Linkages /  Others | Privileged relationships with partners or customers are difficult to imitate
 |  |  |  |  |  | Governance
 |  |  | 2 | 0.75 | 0.75 | Governance Instruments /  Other | Corporate culture is difficult to imitate
 |  |  | Adaptability
 |  |  |  |  |  | Content
 |  |  | 3 | 0.75 | 0.75 | Goods | Products/services are quickly adaptable  according to market feedback
 |  |  | 4 | 0.75 | 0.75 | Processes | Production with oursourcing partners allows flexibility
 |  |  | 4 | 0.75 | 0.75 | Resources | Innovative thinking with management and staff
 |  |  |  |  |  | Structure
 |  |  | 3 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Busines model plasticity enables quick reaction to changing circumstances
 |  |  | 4 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Learning  effect: company has the chance of an early start in accumulating knowledge
 |  |  | 4 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Learning  effect: company can build in feedback into products/services on real time basis
 |  |  | 2 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Learning  effect: company can continuously learn faster than competitors
 |  |  | 4 | 0.75 | 0.75 | Exchange Mechanisms /  Cost Structure | Production with oursourcing partners allows variable rather than fixed costs
 |  |  |  |  |  | Governance
 |  |  | 2 | 0.75 | 0.75 | Governance Instruments /  Legal Forms | Short-term contracts
 |  |  | Plausibility
 |  |  |  |  |  | Content
 |  |  | 1 | 0.75 | 0.75 | Goods | USP is plausible
 |  |  |  |  |  | Structure
 |  |  | 3 | 0.75 | 0.75 | Participating Parties /  Partners | Roles of stakeholders are plausible
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Revenue Streams | Assumptions concerning revenues are plausible
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Cost Structure | Assumptions concerning costs are plausible
 |  |  |  |  |  | Governance
 |  |  | Fit
 |  |  |  |  |  | Content
 |  |  | 4 | 0.75 | 0.75 | Goods | Good fit between goods offered and needs&wants of customers
 |  |  |  |  |  | Structure
 |  |  | 3 | 0.75 | 0.75 | Participating Parties /  Other | Participating parties have reinforcing effect on each other
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Others | Nature of linkages have potential for reinforcement
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Exchange mechanisms create reinforcing loops
 |  |  |  |  |  | Governance
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Other | Business model is well aligned with company goals
 |  |  | Novelty
 |  |  |  |  |  | Content
 |  |  | 4 | 0.75 | 0.75 | Goods | New products, services, information or the combination thereof
 |  |  | 1 | 0.75 | 0.75 | Goods | Unprecedented variety and number of goods, services, information
 |  |  | 1 | 0.75 | 0.75 | Resources | Complementary resources are combined and create innovation
 |  |  | 1 | 0.75 | 0.75 | Resources | Novel assets make business model efficient
 |  |  |  |  |  | Structure
 |  |  | 4 | 0.75 | 0.75 | Participating Parties /  Other | Connects previously unconnected participants
 |  |  | 4 | 0.75 | 0.75 | Participating Parties /  Other | Unprecedented variety and number of participants
 |  |  | 4 | 0.75 | 0.75 | Nature of Linkages /  Others | New transaction links between participants
 |  |  | 3 | 0.75 | 0.75 | Nature of Linkages /  Others | Unprecedented richness (quality and depth) of some of the linkages
 |  |  | 4 | 0.75 | 0.75 | Nature of Linkages /  Others | Unprecedented business model, firm claims to be the first to introduce such a business model
 |  |  |  |  |  | Governance
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Incentive Schemes | New incentives offered
 |  |  | Robustness
 |  |  |  |  |  | Content
 |  |  | 3 | 0.75 | 0.75 | Goods | Core offering is not likely to decrease in benefit
 |  |  | 1 | 0.75 | 0.75 | Goods | Large goods portfolio hedges risk of relying on single revenue source and evens fluctuations in revenues
 |  |  | 1 | 0.75 | 0.75 | Resources | Variety of resource sources hedges bottle-neck risk
 |  |  |  |  |  | Structure
 |  |  | 3 | 0.75 | 0.75 | Participating Parties /  Customers | Fluctuations in customers needs and wants are likely to stay low
 |  |  |  |  |  | Governance
 |  |  | 4 | 0.75 | 0.75 | Governance Instruments /  Control Methods | Unovertakable head-start through first-mover advantage, critical mass, brand popularity
 |  |  | 2 | 0.75 | 0.75 | Governance Instruments /  Other | It is difficult or unlikely for participating partners to capture value from focal firm by exercising bargaining power (hold up)
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Other | Focal firm is able to detect evolving technologies, customer needs and regulatory barriers timely
 |  |  | Completeness
 |  |  |  |  |  | Content
 |  |  | 4 | 1 | 0.75 | Goods | Considered
 |  |  | 4 | 1 | 0.75 | Processes | Considered
 |  |  | 4 | 1 | 0.75 | Resources | Considered
 |  |  |  |  |  | Structure
 |  |  | 4 | 1 | 0.75 | Participating Parties /  Partners | Considered
 |  |  | 4 | 1 | 0.75 | Participating Parties /  Customers | Considered
 |  |  | 4 | 1 | 0.75 | Exchange Mechanisms /  Revenue Streams | Considered
 |  |  | 4 | 1 | 0.75 | Exchange Mechanisms /  Cost Structure | Considered
 |  |  | 4 | 1 | 0.75 | Sequence of Exchange | Considered
 |  |  | 4 | 1 | 0.75 | Nature of Linkages /  Customer Relationships | Considered
 |  |  | 4 | 1 | 0.75 | Nature of Linkages /  Distribution Channels | Considered
 |  |  |  |  |  | Governance
 |  |  | 4 | 1 | 0.75 | Governance Instruments /  Control Methods | Considered
 |  |  | 4 | 1 | 0.75 | Governance Instruments /  Legal Forms | Considered
 |  |  | 4 | 1 | 0.75 | Governance Instruments /  Incentive Schemes | Considered
 |  |  | Complimentarities
 |  |  |  |  |  | Content
 |  |  | 1 | 0.75 | 0.75 | Goods | Horizontal complementarities of products & services are leveraged, e.g. one-stop shopping
 |  |  | 1 | 0.75 | 0.75 | Goods | Vertical complementarities of products & services are leveraged, e.g. after sales services
 |  |  | 1 | 0.75 | 0.75 | Goods | Easy to attract complementary offerings
 |  |  | 1 | 0.75 | 0.75 | Resources | Click-and-Mortar: combination of on-line and off-line resources and capabilities
 |  |  | 1 | 0.75 | 0.75 | Resources | Complimentary technology of participants are leveraged
 |  |  |  |  |  | Structure
 |  |  | 1 | 0.75 | 0.75 | Participating Parties /  Other | Activities of participants are leveraged, e.g. supply chain integration
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Others | Access to complementary products, services and information from firm, partner firms or customers
 |  |  | 1 | 0.75 | 0.75 | Nature of Linkages /  Others | Alliance capabilities of partners are leveraged
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Affiliate programs
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Cross-selling
 |  |  | 1 | 0.75 | 0.75 | Exchange Mechanisms /  Others | Combination of on-line and off-line transactions (click-and-mortar)
 |  |  |  |  |  | Governance
 |  |  | 1 | 0.75 | 0.75 | Governance Instruments /  Incentive Schemes | Incentives to develop co-specialized resources
 |  |  | Patentability (USA only)
 |  |  |  |  |  | Content
 |  |  | 3 | 0.75 | 0.75 | Goods | Software patentable in USA
 |  |  |  |  |  | Structure
 |  |  |  |  |  | Governance
 |  | Caption
 |  | Value | Certainty | Weight
 |  | 1 | 0.25 | 0.25
 |  | 2 | 0.5 | 0.5
 |  | 3 | 0.75 | 0.75
 |  | 4 | 1 | 1
 |  | Content
 |  |  | Goods
 |  |  | Processes
 |  |  | Resources
 |  | Structure
 |  |  | Participating Parties /  Partners
 |  |  | Participating Parties /  Customers
 |  |  | Participating Parties /  Other
 |  |  | Exchange Mechanisms /  Revenue Streams
 |  |  | Exchange Mechanisms /  Cost Structure
 |  |  | Exchange Mechanisms /  Others
 |  |  | Sequence of Exchange
 |  |  | Nature of Linkages /  Customer Relationships
 |  |  | Nature of Linkages /  Distribution Channels
 |  |  | Nature of Linkages /  Others
 |  | Governance
 |  |  | Governance Instruments /  Control Methods
 |  |  | Governance Instruments /  Legal Forms
 |  |  | Governance Instruments /  Incentive Schemes
 |  |  | Governance Instruments /  Other