Tally the Results: The Structural Lock-In Scorecard

Tally the Results: The Structural Lock-In Scorecard

The Five Questions Scorecard

For each question, determine if the answer indicates “Ceiling possible” or “Floor only”:

Question 1: Can AI Replicate This In Six Months?

  • YES → Floor only
  • NO → Ceiling possible ✓

Question 2: Is Switching Cost Greater Than 12 Months of Fees?

  • NO → Floor only
  • YES → Ceiling possible ✓

Question 3: Does the Product Become the System of Record?

  • NO → Floor only
  • YES → Ceiling possible ✓

Question 4: Is There a Services and Implementation Layer?

  • NO → Floor only
  • YES → Ceiling possible ✓

Question 5: Does Data Gravity Compound Over Time?

  • NO → Floor only
  • YES → Ceiling possible ✓

Classification

Score Classification Implication
4-5 Strong Ceiling Advance to full Ceiling diligence
3 Weak Position Higher risk, requires exceptional execution
0-2 Floor Only Evaluate on Floor criteria or pass

The Critical Rule

If the answers are ambiguous, it’s middle. Pass.

Ambiguity is a signal, not a challenge to overcome. Companies with clear structural positions have clear answers to these questions.


This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.

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