Disruption Risk Assessment
Assesses the disruption vulnerability of a business model across frontstage, backstage, and profit formula.
PURPOSE
Companies often underestimate how vulnerable their existing business model is to disruption by new competitors or technologies. The Disruption Risk Assessment makes this vulnerability systematically visible and shows where the greatest weaknesses lie. It creates urgency for proactive innovation before it's too late.
HOW TO USE
You analyze your own business model in three areas: Frontstage (value proposition and customer segments), Backstage (key resources and activities), and Profit Formula (revenue streams and cost structure). For each area, you assess how easily it could be attacked by competitors or new technologies. The result shows overall vulnerability and prioritizes areas for action.
WHAT IT IS
The Disruption Risk Assessment is an analysis tool by Strategyzer for evaluating the disruption vulnerability of existing business models. It divides the business model into three areas (Frontstage, Backstage, Profit Formula) and evaluates the vulnerability of each. The tool is part of the Invincible Company framework and helps companies assess their strategic defensibility.
EXAMPLE
Example: You lead the strategy department of a traditional publishing house and wonder whether your business model is threatened by digital platforms. With the Disruption Risk Assessment, you evaluate your Frontstage (customer access), Backstage (value creation), and Profit Formula for vulnerability. You find that your dependence on physical distribution carries a high disruption risk.