BM.18 Integrate all the evaluations and make the final selection

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OVERVIEW

This activity helps to select a new business model by providing a summary of key evaluation metrics for all the business model options being considered.

INPUT

• An assessment of the business benefits of the business model concepts from the activity BM.15 Evaluate the benefits.

 • An assessment of the implementation costs of the business model concepts from the activity BM.16 Evaluate the costs.

 • An assessment of the implementation risks of the business model concepts from the activity BM.11 Evaluate the risks.

OUTPUT

• A relative scoring of each of the business model options against a variety of indicators that show the benefits, costs and risks of implementing each of the new business model options.

• A recommendation as to which of the business model concepts you think the company should pursue used in the activity BM.19 Pitch the new business model to the CEO.

TEMPLATE

HOW TO GO ABOUT IT

1.

Begin by scoring the benefits of each of the business model options, relative to the current situation, using the following scoring scale:
0 – Option is more than 100% worse than the current situation. 1 – Option worse is than the current situation.
2 – Option is broadly the same as the current situation.
3 – Option is better than the current situation.
4 – Option is more than 50% better than the current situation.
5 – Option is more than 75% better than the current situation.

2.

Using the results of the Risk Register, assess the long term risk using the same scoring scale as described in point 1, then assess the implementation risk on a scale of high, medium or low; were ‘high’ risk would mean a high probability of failure in the implementation of the new business model and serious negative consequences of failure.

3.

For the cost indicators, use any data you have compiled on the investment costs to state an estimate of the upfront capital investment required to implement the new business model. Use the results of the implementation effort evaluation to score the implementation effort on a scale of high, medium or low; were ‘high’ effort would mean a significant proportion of company personnel involved in the implementation over an extended period of time.

4.

Once you have completed the matrix decide which of the business model options you will pitch the CEO in the next step.

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