WHAT IS MINIMUM VIABLE PRODUCT

THE CONCEPT

"Minimum"

The most rudimentary bare-bones foundation of the solution possible.

"Viable"

Sufficient enough for early adopters.

"Product"

Something tangible customers can touch and feel.

The dream of building a startup and getting it running is appealing for a budding entrepreneur. Thousands of success stories in entrepreneurship can be considered prominent reasons for starting up your own business. However, let’s take a look at the dark side! Many startups have also failed with considerable loss to investors. So, where do these startups fail? Was it the lack of a new idea or lack of investment? A Minimum Viable Product is more of a prototype containing only the bare essentials targeted at solving customer’s problems. Developing an MVP helps collect feedback about a particular product or service from users before moving towards product development.?

MVP?plays a crucial role in defining your new business idea’s feasibility in your target market. Imagine you're a start-up with a brilliant product idea. How do you know anybody is willing to pay for it? You build it, right? Nope. You can test your assumption easier. For example, instead of building the product, you create a landing page. Ask people to sign up to get notified once the product is finished. Run an AdWords campaign. Do people sign up? If so, build a "Buy" page. Do people click to buy at a feasible price? Great, go ahead and build a 1st version of the product.

THE TYPES

1. The Wizard of OZ

The Wizard of Oz MVP creates an illusion of a fully functional product, but secretly depends on manpower to deliver the solution. On the front end, you deliver the impression of a completely functional product; however, on the back end of the product, you have to execute all orders manually.

With this approach, you can quickly create effective prototypes. You can also test the market response to your service or product without really creating anything.

A great example here is the first site of Zappos, a specialized footwear eCommerce startup.

2. Concierge

With a concierge MVP, you will have to perform each and every function of your service or product manually. To resolve the problems of each customer, you will have to work with them directly. By completing each step of customer orders yourself and collecting direct feedback, you can determine how your end product should look like.

A famous example of this type of MVP is Food on the Table (later acquired by Scripps Networks Int.).

3. Scattered MVP

The main goal of this type is to convey the value of using the already existing tools instead of creating a unique solution. The prototype of the product actually looks like a complete product. Thus, one can use simple software, put everything together, and add all the necessary functionality after receiving the feedback.

4. Single Parameter Product

To create this type of product, you need to determine what should be the core functionality. Understand that while you are creating a single-feature product, that one feature has to work extremely well.

HOW TO DEVELOP

DO's

• Determine the purpose of your product and the problem it will solve
• Narrow down your target audience
• Analyze your competitors
• Make a SWOT analysis
• Determine your user flow
• Make a list of functions with a gradation by priority
• Choose the most suitable method for managing and developing profit centers
• Test your end-product

Don't

• Limited focus on iteration and brainstorming to find alternatives for a better solution can negatively impact the product
• Failure in rounding up on a product objective before development often leads the team to develop the wrong product
• Excessive, unnecessary features in an MVP generally tend to reduce user experience quality or irritate the users
• Failure in asking the right questions and obtaining proper feedback can create discrepancies in understanding customer needs

THE BENEFITS

1. Quicker to Market

Who doesn’t want to launch their product sooner than later? The great thing about an MVP approach is that you are developing and delivering less functionality out of the gate. This means you can get the product in the hands of your users sooner and cheaper than if you went for all the bells and whistles.

2. A Clear Product Focus

An MVP approach forces you to find clarity. Your product could solve a lot of problems for a lot of people. We are wired as humans to add stuff in and do more, rather than to simplify and strip away.

By adding in lots of functionality, it’s easy to lose focus on the specific problem you are trying to solve. It is easier to be successful by solving one problem and solving it well than to be average in several things.

Challenge yourself to get clear. Clarity drives a strong product and a strong message to your users.

3. You Learn What Your Customer Wants

By releasing an MVP, you set yourself up for learning what the customer wants. We all think we understand our users, but the truth is, we don’t. A minimum viable product allows you to not waste time guessing and to truly find out.

Once you put an MVP product in the hands of your users, they will tell you what is missing and hence, what is important to them. Based on their feedback, you can prioritize your next set of features and hit your target.

COMPANIES THAT ADOPTED MVP