Redefining the Minimum Viable Product for Corporates

Many corporates are seeking innovation to boost their service line and to enter new emerging markets. Many innovation initiatives do not have a clear objective or aim. Organisations are developing products using ideologies from the lean startup movements (which a lot of my work is based on).

A favourite method is the ‘Minimum Viable Product’ which is described by Eric Ries, Pioneer of the Lean Startup movement as

The version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.

Over time, the Minimum viable product has been simplified to the smallest thing you can build that lets you quickly make it around the build/measure/learn loop. To be frank, I have no problem with that however I feel like that large corporates are simply implementing innovation for innovation’s sake and that is not understanding the premise of innovation, leading to failure. A favourite quote of mine is by Alexander Osterwalder, Creator of the Business Model Canvas.

Innovation doesn’t need to be expensive, innovation isn’t about R&D or technology, innovation is about creating value for your customers.

Value for Customers!!!! Are we really providing value for our customers with our products? How many of us actually speak to our customers before building?

My definition for a Minimum Viable Product, something that I try to convey to clients:

A Minimum Viable Product is the smallest thing you can build that delivers customer value (and as a bonus captures some of that value back).

or we could say this

The version of a product that qualifies the interest in it and the need for its existence. It therefore kickstarts customer development before you even have customers.

We need to deliver the core of a product experience so that customers can make a full assessment and feed us with information which can then be used during iteration process to create a viable, desirable and delightful product. Even if there is pressure from internal stakeholders — asking them questions such as: What keeps them up at night? What are their needs?

In order to tailor ideas to stakeholders, create gains or solve their pains for them throughout the innovation process, taking prototypes to your stakeholders and co-creating with them like you would with your customers is a great step to build a good minimum viable product, one that meets business and customer objectives. During the process, you may also need to look at metrics that matter — learning possible revenue models + how much people are willing to pay (not something we like to talk about, but our product needs to be viable) = more helpful when it comes time to pitch your idea to stakeholders. Even if it is quick back-of-the-napkin estimates for market size and expenses necessary to get to market. Think about customer awareness and activation, what will that cost and how much of your target market could you feasibly reach?

Five steps to redefining the product development process:

Understand the target user and their goals (Speak to them)

Identify 2–3 scenarios where your product can be of value to the customer.

Keep the experience simple but desirable.

Create the smallest thing that can deliver customer value.

Measure, learn, iterate.

Let’s not innovate for innovation sake. Let’s use innovation to solve problems that really matter.