When applying the Business Model Hacking method, you follow a creative process: first diverge and then converge. First you will generate as many ideas as possible using the Business Model Hacks and then you will transform the individual ideas into prototype business models. After you’ve done that, it’s time to converge and thus select and make choices. The Business Model Selection Matrix can help you to make a first selection in business model prototypes.
Explanation Business Model Selection Matrix
The Business Model Selection Matrix is a handy tool that helps you to assess and select business models. With the Business Model Selection Matrix you score the business models on 2 criteria: the potential and the extent to which the new business model can be copied by the competition.
- It helps to quickly make a selection in prototype business models
- It sparks a discussion that can lead to a tightening of the business models
- It’s easy and fast to perform
Before you get started with the Business Model Selection Matrix, it is important that you have several prototype business models to score on the canvas. Work these out using the Business Model Canvas at the napkin sketch level.
Ideally, you have more than 5 business models to score. If you have less, it is advisable to continue in the brainstorming phase. There is a good chance that only the obvious options are on the table. While it is precisely the deviant, smartly found business models that often make a real impact.
1. Study the detailed business models and give them a short and powerful name
Take a short time to review the detailed business models and give them a descriptive name. For example: Subscription model for access to courses and tools that help you to apply Business Model Hacking. Write the names on post-its.
2. Briefly explain each business model
Choose a post-it on which a business model is described. Check whether everyone understands the most important features of the business model.
3. Place the post-its with the business model on the matrix
Proceed as follows: Appoint a facilitator who will paste the stack of post-its with the descriptions of business models on the Business Model Selection Matrix. This will stand near the canvas and hold the post-it in the middle of the canvas. The team directs the facilitator and determines where the business model will be placed. The team does this by calling up and down. After the vertical position has been determined, it is time to determine the horizontal position. The team members call left or right until the final position is determined. Do this with all business models.
4. Lead the discussion and sharpen it
When all the business models have been placed on the Business Model Selection Matrix, it is time to discuss with each other. Have each team member study the matrix. Which business models are still wrong? And why? Have the discussion and ensure that the business models are scored as well as possible.
Tip: It is important to stimulate the discussion. Ask questions or discuss a posted canvas to start the conversation.
Ready to hack your business model?
Discover the Business Model Hacking method and design powerful business models with which you can increase your impact and beat the competition.