Anybody who is launching the project for the first time naturally comes to the question of what is minimum viable product and how it can be used as a part of a smart business strategy. In the article, we are giving an all-encompassing answer to this question, telling about the successful companies that leverage the minimum viable product and what advantages they get.
Customers are extremely picky these days. Once your solution is installed and launched for the first time – it has only a minute or two to capture the user’s attention.
At the same time – the development is overwhelmingly expensive. If the company or startup has limited time and budget for the project – MVP development is the best way to keep the balance between delivering main features and keeping costs at a reasonable level.
Customers are looking for robust solutions that are marked by simplicity and clarity. Therefore today’s market sets new requirements that companies would like to meet. MVP development has become a great solution for many businesses including startups and well-established enterprises. It enables the delivery of the user-attractive projects in a fairly shorter time and gives the chance to withstand the strong competition.
List of the contents:
- What is minimum viable product
- How do you develop an MVP
- What is MVP for tech companies
- Pros and cons of the minimum viable product
- In conclusion
MINIMUM VIABLE PRODUCT DEFINITION
So what does MVP mean? It stands for a minimum viable product. In short, this is the basic version that usually covers the fundamental components. Thus it includes features that target the main needs of the users. The minimum viable product facilities the overall development process. It helps to design, test and deliver the final app. Any additional features will be an advancement based on user experience and feedback. When your company is planning to build a new project, there are different ways to validate the ideas and understand users’ preferences. The MVP project will be a great choice to find the solution handling both aspects. It has already worked successfully for plenty of companies.
Moreover, the minimum viable product provides businesses with an opportunity for immediate benefits. The company receives a valuable and quick result whereas minimizing expenses. It lets the company test the received results as well as helps to plan the next steps thoughtfully. In this business practice, interactions with the potential users and their feedback are used to outline the final t features. The development team works with a complete understanding of what the users actually want. This leads to fewer edits and iterations, thus the work will be less time and money consuming. It is great to know minimum viable product definition but it will be much better to find out where you can use this approach.
A lot of enterprises have started and reached their success with this strategy. It is clear that this approach doesn’t need recommendations, it has spoken for itself. Here is just a few of them:
Amazon was initially started as an online bookstore in 1994 and its main focus was on selling low price books. The first version of amazon.com is a typical example of an MVP project where everything went from small to enormously huge. They empathized and supported the fundamental features to enter the market and later developed into the top 3 multinational technology company. The idea behind amazon.com then and now is almost the same, what changed is the number of features and product catalog around that idea.
It appeared as the internal use product of Odeo. It was an SMS-based platform for employees who were not only testing but also using for social interactions. Twitter was presented to the public in 2006, and now it is known as one of the most popular social platforms.
Andrew Mason had an idea to create a website that could bring people together for public meetings and activities. However he failed his initial target, he continued with the idea of sharing. He tried to share various deals daily by sending the discounts and vouchers manually to his subscribers and it met all his expectations. The project was launched in 2008 after successful testing, later Groupon created the backend and the voucher system.
The Swedish developers started with music streaming as their main product feature. They introduced the landing page in 2009 to check the needs of the market and if they could deal with all licensing concerns. Afterward, they were ready to enter not only the European music industry but become the world-known audio-streaming platform.
HOW DO YOU DEVELOP AN MVP AND WHERE CAN IT CAN BE APPLIED?
This strategy has become a popular approach among various companies. They have found the answer to the question “what is minimum viable product” and already implemented it in life. It greatly works for both startups and well-established enterprises. Let’s consider the strategies they usually apply.
MVP product strategy for startup
Firstly, it is frequently chosen for startups. The company has the chance to test their results, engage with potential users and continue developing all the required features gradually while also looking for possible investors.
The main reasons why startups develop MVPs – to show potential investors that they have the team that can work on something real, have achieved something viable, and have at least some user base that indicates demand.
When the entrepreneurs come up with the idea of producing something new, it will be the perfect match to leverage the startup process here. As we talk about startups, they require not only testing but resources as well. In most cases, the company has a limited budget to start. Thus they can focus on the initial idea and core functionalities. Later, when they present the MVP startup at the market they learn what direction they should move next. They start to work on improvement, adding new features or even change the initial ones if they do not get the positive feedback. At the same time, they have the opportunity to find new resources and investments if the first stage will be successful. Finally, they decrease the risks of failure as much as it is possible.
Typical startup MVP strategy: Idea – Initial funding – Launch – Market validation – More investment
Enterprise MVP process
Next, large enterprises also use this approach quite often in order to improve the quality of services and be aware of the current customers’ preferences. The minimum viable product app can be a reasonable decision for them. It is a reasonable option for both new and well-established market players.
In opposite to startups, enterprises don’t seek for the funding, they use MVPs as a part of the advanced resources utilization strategy. They researching the viability of a new product for the mass market or internal use throughout building extra layers around the core idea, leveraging the feedback of actual users.
In order to have a well-established business, the company has to be always up-to-date, follow all innovations and improve the provided services. It is misleading that a minimum viable product only corresponds to startups, it has already been integrated into the software development lifecycle. This is a proven business strategy. After defining the production priorities the developers are able to start the minimum viable product creation. At the launch, you will receive feedback for implementing the changes and improvement before investing too much time and resources into features that may be redundant.
MVP development: Market offering definition – Priority identification – Implementation – Launch – Feedback – Improvement
Despite the fact that the MVP development lifecycle is the same for both startups and enterprises, they chase the very different goals
WHAT IS MVP FOR TECH COMPANIES
One of the most important business and marketing rules in particular – users come first. You don’t want to spend a fortune on a glossy application even with a brilliant idea at its core to see that it is used only by a thousand people around the globe. The task of any business is to get maximum exposure at a minimum cost. Right, a startup can’t gain the user base without having at least some app. In this context, it is the perfect balance between reasonable resource utilization and gaining the attention of potential customers, investors, media, etc.
Many businesses apply the minimum viable product as it helps to simplify the development process and reach the final purpose. It goes without saying that every company wants to create a successful market offer. It can be only fulfilled when its production has constantly increasing popularity among users. Therefore launching the new project, companies should be able to clearly see the result from the customer’s perspective. As long as you combine your ideas with the preferences of the users, you will get the expected results. Both tech and non-tech companies apply MVPs for their software products and apps connected to their services. This approach is appropriate in different business spheres as everyone will benefit from it.
PROS ANS CONS OF THE MINIMUM VIABLE PRODUCT
MVP product benefits
Only needed functionality
When you start, attention should be concentrated on finding and implementing the core function of the application. You get the chance to test your idea, collect feedback, present your project quicker at the market, and cut down the costs.
The company has the opportunity to check the basic version via this approach. You are not dealing with the feature-heavy expansion without careful consideration at first.
The MVP process includes learning the users’ opinions and considering their conception of the final result. Sometimes you might even change your intentions to meet the customers’ needs and avoid adding unnecessary developing steps.
The MVP startup acknowledges that your offer is targeted at the chosen market. In addition, the developers should differentiate it from similar projects by focusing on developing special application features which they want to present to the public.
Minimum viable product development includes the core functionalities, therefore the company is concentrated only on creating outlined steps. The production launch appears to be faster. The following task is to gather feedback, continuing improvement and be ready to release the updates in a short time.
Starting MVP development is the most reasonable approach for your budget. You get the chance to investigate the market needs to make sure that your initial idea is attractive. Depending on users’ feedback, you will know exactly what will be the next features that deserve the resources. As for another benefit, you will have fewer expenses, because overall development time is considerably shorter.
Challenges related to MVP product
The companies might face the challenges of determining their core functions and purposes. Defining the minimum does not seem so easy, as we always want to add more and more features. It will be wiser to deliver something simple rather than spending resources on the unnecessary functions customers are not using. Actually, it is the first benefit that businesses should not forget that the minimum viable product is all about testing and learning from it.
When we want to add attractiveness we might think about the excellent design that will catch the eye of the users. It is really true but then they wait for the functionality. Creating an app startup, make sure more time is spent on functionality, and only then extra features and complex design.
Imperfect results on the first stage
The minimum viable product won’t be perfect in everything. So-called Pareto Principle should (20% of work give 80% of the results) should be applied. And sometimes it is hard to resist the temptation to spend too much time and resources on polishing unnecessary aspects of the software. As mentioned above, developers should mostly focus on the final goals, dealing with the minimum viable product developers should follow the step-by-step developing process. The company should accept that for example the app will not be created as the complex application including all possible and expected features. It is the basic version that still needs improvement and resources but the most important thing it provides you with the perfect foundation for your project.
We hope that you have found this article helpful and had the chance to find the answer to the question “What does minimum viable product mean”. We would like to stress the following points. This approach deals with the basic version of the project that includes core features. The presentation for the users before the launch gives you the chance to gather their feedback, analyze and learn it. The next stages of development and improvement will be explained and supported by the users’ needs. As a result, you will be sure that your company is developing and investing resources in something workable and it has the market demand.
In short, giving the correct answer to the question “what is MVP ” helps us fully realize its purposes and benefits. Both new and well-established businesses choose this approach for its numerous benefits.
If you plan to build something new, you should definitely consider this strategy. Don’t forget to have a professional consultation first, the qualified team will be a great decision here. If you have some ideas and need assistance, you are welcome to contact Existek. We are an outsourcing company with great expertise in software development as well as other business approaches. Feel free to contact us, use the contact form or the website chat widget to start the discussion. Our company is always glad to consult you and help to find your workable solution.