Creating an “MVP”: Fail fast, Validate faster!

Introduction

In a recent exploration of the MVP concept by Carlos Beneyto, titled "Creating an ‘MVP,’ from 0 to 1 Without Bullshit", the author delves into the changing landscape of business and entrepreneurship. While some considerations resonate, a deeper analysis reveals a need for a nuanced understanding of Minimum Viable Products (MVPs) in today's dynamic environment.

The Evolving Market from complicate to complex

The distinction between complication and complexity is often explained through the Cynefin framework, a sense-making model. In a complicated system, there is a clear cause-and-effect relationship that can be understood through expertise and analysis. On the other hand, complex systems involve multiple interacting factors, and cause and effect can only be deduced in retrospect.

In the automotive industry the shift is clear:

Complicated (Past):

• Mechanical Systems: In the past, the automotive industry primarily dealt with complicated systems. Vehicles were mechanical in nature, and understanding and predicting their behavior often relied on engineering expertise.

Complex (Present and Future):

• Electric and Autonomous Vehicles: With the advent of electric and autonomous vehicles, the automotive landscape has become more complex. These systems involve not only intricate engineering but also factors like AI, data analysis, and user behavior. The interactions between these elements are dynamic and may lead to unexpected outcomes.
• Connected Cars: The integration of connectivity in cars introduces complexities related to cybersecurity, data privacy, and seamless communication between vehicles and infrastructure. These issues are not purely mechanical but involve social, technological, and regulatory elements.

In this situation, when cause and effect can only be determined in retrospect, adaptive methods are essential.

Enter Eric Ries and the Lean Startup approach, a game-changer in product management and entrepreneurship. Breaking down the process into vision, guidance, creation-measurement-learning, and acceleration, Ries emphasizes the importance of iterating quickly and efficiently.

MVP Reimagined: Minimum Awesome Product (MAP)

Beneyto's Perspective

For Beneyto, the MVP is not enough. Enter the concept of the Minimum Awesome Product (MAP), a product that not only satisfies initial customers but meets a minimum standard of quality expected by users. The analogy of building a car from a skateboard versus a scooter challenges the conventional MVP approach.

A Counter Perspective

Contrary to Beneyto, adhering to Eric Ries’ MVP Definition is crucial for Product Managers. The MVP is a tool for learning and validating hypotheses rapidly, emphasizing the importance of the Build-Measure-Learn feedback loop.

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

I think there's a big misunderstanding, the MVP is not just a "prototype", but it's something that goes?beyond design and technical testing.

Unlike prototypes, an MVP's primary purpose is to test fundamental hypotheses for the business model. It can take various forms, from smoke tests to live prototypes, all aimed at validating critical assumptions about the market and user behavior.

The value path is paved with intermediate MVPs testing key assumptions. By outlining and ordering business model risks, product managers can identify potential roadblocks early on, minimizing the risk of failure and capital losses.

The rule is "Fail fast, Validate faster!".

Learning from History: MVP Success Stories

Facebook's Simple Beginnings

Facebook's MVP connected students at Harvard University through a basic platform. This validated the idea of social connectivity before expanding into the global phenomenon we know today.

Uber's Single-Feature Triumph

When Uber (then called UberCab) launched in 2009, it only worked on iPhones or via SMS, and it was available only in San Francisco. Uber’s MVP was enough to prove that the idea of a cheap ride-sharing service had a market. Validated learning and data from the first app helped Uber to scale the business rapidly to where they are today.

Originally, the application only allowed users to hail a black luxury car and the price was approximately 1.5 times that of a taxi.

This single-feature approach allowed the founders to validate their idea, gathering valuable feedback for subsequent iterations and expansions.

Uber is the perfect example of a single-feature MVP. You can go this route if your app only has one core service you want to evaluate.

Dropbox's Video Demo

Dropbox is a unique example of creating an MVP without an actual product.

Instead, Dropbox founder Drew Houston chose a video that walked customers through how the service worked.

His MVP was, for all intents and purposes, nothing more than a product demonstration. But it worked better than Houston could have expected.

The service's beta waiting list grew from 5.000 to 75.000 users nearly overnight and this was the KPI that validated the initial hypotesis.

Houston, on the other hand, had no choice but to keep things basic. The main feature of Dropbox, seamless file sharing, was difficult to create. It requires technical skills and months of development, putting a proper MVP out of reach.

A video, on the other hand, offered advantages. It was simple to distribute.

From MVP Icons to Personal Experience

In my personal journey through MVP implementation, I encountered a significant challenge while developing a new software feature within a complex software framework that required integration with a third-party API library. The conventional software development approach was not only time-consuming, stretching over several months, but also carried the inherent risk of investing resources into something that might not resonate with our customers. Faced with the complexity of the task, I decided to pivot towards a Minimum Viable Product (MVP) strategy that prioritized learning and adaptability.

Recognizing the potential pitfalls of a lengthy development process, I invited a select group of key customers to participate in the MVP testing phase. Rather than waiting for the software to be fully developed, we manually executed the integration using real individuals: documents were manually converted instead of using the third-party API interface.

This hands-on approach allowed us to validate the concept without investing extensive time and resources in software development. The MVP, implemented manually by our team, provided invaluable insights into customer preferences and needs. This agile approach not only saved time but also ensured that the final software solution aligned closely with what our customers truly required. The experience reinforced the importance of flexibility and rapid iteration in the dynamic landscape of software development.

Implementing the MVP: A Strategic Approach

The Experimentation Phase

Implementing an MVP involves accurate data collection on customer behavior, real interactions, and the identification of unexpected patterns. The product manager's role is to answer critical questions about consumer awareness, willingness to purchase, and brand loyalty.

The BML Cycle

The Build-Measure-Learn (BML) cycle is a structured approach to validating hypotheses. From defining the idea to learning what needs to be understood, measuring the right metrics, and building the MVP, each phase is crucial for success.

Product Managers, in my opinion, should ask themselves the following questions:

1. Are customers aware of the problem you're attempting to solve?
2. Would they buy a solution if one existed?
3. Would they purchase it from us?
4. Are we able to develop a solution to this problem?

And the MVP is the toll to be used to answer those questions.

Misconceptions about MVPs may lead to flawed implementations. It's essential to recognize that an MVP is not just a prototype but a strategic tool for testing business hypotheses. Educating stakeholders and teams on the true essence of an MVP is crucial.

Conclusion

In conclusion, the MVP concept is a powerful tool for navigating the ever-evolving landscape of product management. Whether leaning towards MAP or MVP, understanding the nuances and adapting strategies to the dynamic nature of the market is key. As we embrace change, innovation, and complexity, the MVP remains a compass for product managers seeking to learn, adapt, and succeed in the world of business. Continuous refinement of the MVP approach, based on historical successes and evolving market demands, will be the cornerstone of future product management strategies.