Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.


Editor's Note: Take a look at our featured best practice, Market Analysis and Competitive Positioning Assessment (45-slide PowerPoint presentation). A Market Analysis and Competitive Positioning Assessment is a comprehensive evaluation tool designed to analyze market dynamics, identify competitive standings, and uncover strategic insights for business growth and positioning. This assessment delves into the intricacies of market trends, [read more]

Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Business Analysis is a specialized field focused on understanding organizational needs and addressing business challenges.  It is crucial across various industries for collaborating with stakeholders to resolve business issues, particularly as organizations worldwide increasingly embrace Digitization.

Business Analysis entails a thorough examination of business environments, system enhancement options, defining requirements, and alignment of systems with strategic goals. Business Analysts employ a number of techniques to understand a business’s current state, identify opportunities, and facilitate communication between stakeholders and technical teams.

Heptalysis is one of the Business Analysis techniques crucial for the in-depth evaluation of new ventures and startups.  It views each venture as a potential investment that demands impartial and rigorous assessment.  The Heptalysis approach standardizes investment screening processes for investors.  This technique treats every investment opportunity as a system that employs resources to generate returns within a specific timeframe, while also considering associated risks.

Heptalysis is particularly useful for evaluating investment opportunities, providing a structured approach that goes beyond surface-level analysis by deeply investigating the potential and viability of business initiatives.  The technique offers a holistic view of a venture’s strategic, financial, and operational aspects, enhancing Decision making processes by providing a clear framework to assess risks and potentials. The framework’s focus on elements like Margin of Safety ensures that all potential risks are evaluated at multiple levels, allowing for better contingency planning and risk mitigation.

The framework’s focus on elements such as Execution Plan and Human Capital ensures that a startup doesn’t just have a viable product but also a robust strategy and team to bring it to market successfully.  Heptalysis facilitates unbiased and structured evaluation, making it an invaluable tool for removing subjectivity from investment decisions and ensuring sound and well-considered investments. This is crucial in maintaining high standards of diligence and accountability in venture capital and startup ecosystems.

While particularly popular in tech and startup communities, Heptalysis is adaptable and can be effectively used across various industries wherever comprehensive venture assessment is needed.  The framework breaks down business evaluation into 7 critical elements:

  1. Market Opportunity
  2. Product/Solution
  3. Execution Plan
  4. Financial Engine
  5. Human Capital
  6. Potential Return
  7. Margin of Safety

Each of these elements plays a crucial role in determining the overall attractiveness and sustainability of the investment opportunity.  By detailing each of the key elements, Heptalysis ensures that all critical factors are considered, making it an invaluable tool for investors, business analysts, and stakeholders looking to make informed and strategic investment decisions in new business ventures.

Let’s dive deeper into the initial two elements of the framework.

Market Opportunity

The assessment of Market Opportunity is the foundation of the Heptalysis framework. This element involves a thorough analysis of the market size, growth potential, customer demographics and needs, and competitive landscape. It is critical to determine whether there exists a substantial and sustainable demand and market for the product or service the venture intends to offer.

Key questions addressed in this phase include the awareness of potential customers about their needs, determining that the venture attends to a genuine need, the differentiation of the new offering from existing alternatives, willingness of the target audience to pay for the offering, and the alignment of the market opportunity with the organization’s strategic goals.


Building on a clearly defined Market Opportunity, the Product/Solution element evaluates the viability, uniqueness, and competitiveness of the proposed offering to capitalize on the opportunity. This stage scrutinizes how the product or service meets the identified market needs and stands out from the competition. It assesses the technical feasibility, readiness, user experience, and value proposition of the solution. For a product or solution to be considered viable, it must not only address the market needs effectively but also offer a sustainable competitive advantage. It scrutinizes the product’s ability to satisfy customer needs without introducing significant new problems.

Interested in learning more about the other elements of Heptalysis framework? You can download an editable PowerPoint presentation on Heptalysis here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

22-slide PowerPoint presentation
A key choice in any business strategy is 'where to play'. This understanding the market that the business chooses to compete in with a clear understanding of key customer, geographies, products, growth, value, competitors and shares etc. A fundamental requirement for any market assessment is the [read more]

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources

56-slide PowerPoint presentation
Marketing Research and Forecasting Demand Contents 1. Types of Marketing Research Firms 2. The Marketing Research Process 3. Research Approaches 4. Research Instruments 5. Questionnaire Do's and Don'ts 6. 12 Question Types 7. Qualitative Measures 8. Sampling Plan 9. Contact [read more]

17-slide PowerPoint presentation
36-slide PowerPoint presentation

About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

, , , , , , , , , , , , , , , , , , , ,

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com

Acquisition Strategy
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
Change Management
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hoshin Kanri
ISO 27001
Information Technology
Innovation Management
Integrated Financial Model
Key Performance Indicators

Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Lean Manufacturing
M&A (Mergers & Acquisitions)
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management

Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Risk Management
Robotic Process Automation
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety

Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy

© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.