Maximizing Efficiency: The Importance of Building a Minimum Viable Product (MVP)
This blog is continuation of our previous blog on Product Discovery, here we will discuss Minimum Viable Product(MVP) and try to understand the importance around this topic. We will cover what an MVP is and what are its different types.
Moving past the discovery phase requires creating a tangible result called the Minimum Viable Product (MVP). The MVP is the ultimate goal in discovery, serving as a prototype or description of the actual product. It’s crucial to note that the MVP is more than a traditional product; it acts as an artefact, including concepts, stories, or videos.
An artefact, in this context, is any physical thing with only the most basic features needed for gathering feedback from early users. It intentionally avoids extra details, concentrating on the crucial feature meant for testing. The MVP can be a prototype or any form of artefact. The main idea behind the MVP is to skip unnecessary complexities or features until a viable value proposition is confirmed.
The main idea behind the MVP is to avoid making products that customers might not want. This means avoiding unnecessary features, especially in the first version for early users. When creating the MVP, the main goal is to learn as much as possible while spending as little time and money as needed on prototypes and artefacts. This ensures that every dollar and day spent adds significant value to the learning process.
Breaking down the definition of MVP shows a strategy that prioritizes efficiency and effectiveness. The focus is on gaining valuable insights while minimizing time and costs, highlighting the importance of a streamlined and targeted approach to product development.
Key Takeaways
* The Minimum Viable Product (MVP) is a basic version designed for testing with early adopters, who might pay or provide feedback.
* Developing the MVP aims to prevent the creation of unwanted products for customers.
* The main goal in MVP development is to maximize validated learning about customers for every dollar and day spent.
Breaking Down the MVP Definition
MINIMUM:
The concept of “minimum” revolves around the idea that when we begin building a product, there are typically just one or two fundamental problems that the product aims to solve. For instance, the iPod was initially designed to store and play music on the go, and Facebook’s core purpose was to help people find friends and share information. eBay, in its early stages, focused on facilitating the buying and selling of used items.
This simplicity, starting with the purity of addressing one core problem, is the essence of the minimum approach — no unnecessary bells and whistles, no complications. Although products like Facebook have evolved to include additional features such as video sharing and messenger services, the initial emphasis is on solving a single problem effectively. The idea is to avoid unnecessary complexity and features in the early stages, preserving the simplicity of addressing the product’s core purpose.
VIABLE:
What do we mean by “viable”? Viable refers to the financial dimension of the product, addressing questions like, will people use it? Is it valuable? And if they use it, are they willing to pay for it? It’s worth noting that not everyone may pay, as there could be both free and paid versions of the product, but at least some users should find it valuable enough to pay for.
PRODUCT:
The “product” can come in different types. For example, there’s the concierge MVP, where instead of making the actual product, you offer a manual service to test if there’s demand. Or, it could be a crowdsourced MVP, like Kickstarter, where you gather money from potential customers to see if they’re interested in buying. Another option is the single-featured MVP, beginning with a basic version that concentrates on one key feature to keep the product simple.
Key Takeaways
MINIMUM: There are usually just one or two core problems that products need to solve.
VIABLE: Two questions to ask
* Will people use it?
* Will someone pay for it?
PRODUCT: Any artefact such
* A prototype
* A commercial product
* A business concept
Types of MVP Artefact:
- Explainer Video: A brief video (ranging from 90 seconds to 3 minutes) designed to explain your product’s functionality and the reasons why people should consider buying it.
- Concierge MVP: Instead of delivering a tangible product, initiate with a manual service that mirrors precisely the steps users would take if they were using your product.
- Crowdsourced MVP: Kick off a crowdfunding campaign on platforms such as Kickstarter, IndieGoGo, and RocketHub to gauge whether customers are genuinely interested in purchasing your product.
- Single Featured MVP: Present a product with a sole standout feature to maintain simplicity in the initial stages.
Examples of MVP Artefact:
- Explainer Video MVP: Example
Picture this: You’re introducing a new language-learning app. Instead of building the entire app, you make a quick 2-minute video that clearly explains how the app functions, its main features, and what makes it special. This video acts as your Explainer Video MVP. You show it to a specific group of potential users to see if they’re interested and to collect feedback. Their responses help you confirm if people like your app idea, allowing you to decide whether it’s worth investing more in development. This method lets you test the market with minimal resources before deciding on a big product launch. - Concierge MVP: GRUBHUB (Example)
Let’s look at a real example of the concierge MVP with the founders of Grubhub. In the beginning, they had no restaurants or customers. So, what did they do? They manually took orders. When an order came in, the founders themselves went to the restaurant, picked up the order, and delivered it to the customer. This hands-on approach helped them test assumptions about the types of food people order, how often they order, and overall demand. Once they confirmed these assumptions, they went on to create the online site and develop the mobile app. - Crowdsourced MVP: Example
Imagine you have an idea for a new smartwatch with special health features. Instead of spending a lot of time and money developing it right away, you decide to try a Crowdsourced MVP method. You set up an appealing campaign on a crowdfunding site like Kickstarter, showcasing your smartwatch idea and its possible benefits.
People interested in your idea can pledge money to support your project. If you reach your funding goal, it shows there’s real interest and demand for your smartwatch. With this confirmed support from the crowd, you can then go ahead with developing the smartwatch, knowing there’s a market for it. This approach helps you reduce financial risk and test interest before fully committing to production. - Single Featured MVP: Example
Imagine you want to create a task management app. Instead of making a full-featured app from the start, you choose a single-featured MVP. This means creating a simple app focused only on creating and managing to-do lists. Users can add tasks, mark them as done and set due dates. The goal is to keep the MVP minimal, with just the basic feature of task management.
By launching this single-featured MVP, you can quickly see if users find value in the simple task management functionality. Their feedback on this essential feature helps you understand if there’s demand for your app. Once you confirm the value of this core functionality, you can think about adding more features based on user preferences. This way, you build on a solid foundation that users find crucial.
In summary, the Minimum Viable Product (MVP) is a lightweight and cost-effective way to test the core discovery hypothesis. It can take various forms, emphasizing the concept of “minimum.” The key is to avoid getting carried away — don’t invest in complex prototypes. Instead, adopt a hacker mindset: keep it quick, keep it simple, and keep it inexpensive.
I’ve shared my views on MVP in this blog. I have learned this in a course that I’ve done a long time back and a lot of the elements are taken from there. I felt the need to share this information as it might be helpful to many. The examples for MVPs are created with the help of ChatGPT apart from Grubhub 😅. This blog is intended for Product Managers and others who can gain insights into the topic, as knowledge is always beneficial. I would love to hear your thoughts on this topic in the comments. If you enjoyed this article, please Follow me here on Medium for more stories on similar topics and other Product Management-related subjects.
If you are hungry for insightful and thought-provoking content? Look no further! Subscribe to my Medium Blog and get regular updates on the latest articles and musings.
I am always open to having a healthy conversation over a cup of coffee.
Let’s connect on LinkedIn! We can also connect on Twitter — I’m always up for a chat. Whether you have questions, need help, or just want to say hi, feel free to reach out!
