A Minimum Viable Product or MVP is a strategy used by companies to gauge the likeability of a product amongst the target consumers. Without spending too much of monetary resources and time. This strategy works best for startups, where the stakes can be high. The term Minimum Viable Product was coined and defined in 2001 by Frank Robinson (CEO of SyncDev Inc) and then familiarized by Steve Blank and Eric Ries, both entrepreneurs.
In software companies, the MVP can help the product team gain prompt user feedback. This way they can rework on the shortcomings and make a better product.
Let’s have a brief look at MVP
Many companies, to test the product at the initial stage, release its MVP to check the acceptability among the consumers and to check its performance. To develop a minimum viable product, you don’t have to spend a hefty amount and introduce only the core features that form the basis of your app development. The feedback that you receive through MVP from customers is very crucial. You can get rid of all the roadblocks, improve and make the app eminent
If the MVP fails to create any hype among the end-users, retract and redesign the roadmap(mobile app development) without losing huge chunks of money.
Why businesses need an MVP?
In a Survey by Go Globe, the statical data shows-
1. 74% of high growth internet startups fail due to unanticipated scaling.
2. 29% of startups fail due to a lack of cash flow before getting established.
Not all business ideas are successful and or are good enough to attract customers. Even though the idea in your head sounds like a million bucks, you have to ask whether it will be as good to people out in the world.
With MVP you can get a reality check. The best part is the feedback from all the potential customers. It gives you an insight into market needs and trends. Imagine, all the user feedback is integrated at the very initial stages in MVP. It will prove to be advantageous when you re-release the final product.
The success of a new application or product depends on the efficiency and uniqueness of the ideas and how it’s implementation will impact the audience.
Benefits of Minimum Viable Product
1. Releasing a full-featured app can sink soon if it fails to attract the end-users taking all the time & money with it. On the other hand, releasing MVP with core features is a minimum risk endeavor.
2. Creating an app with USP or core features takes less time thus cutting the development cost.
3. MVP is the prototype of your final product and you can test its viability among the target audience without having to invest tons of money. If it’s perceived well, you can present the final product to the potential investors with the proofs of the viability of your product.
4. After the release of MVP, it is easier for developers to add features one after the other. Another advantage of minimum features is that it is easier to make changes and delete if need be. Additionally less are the chances for the bugs to appear.
5. Another great advantage of MVP is that you can release it among various target groups at the same time. You will know in which group it is well received thus helping you find the crème de la crème.
Here some examples of MVPs’, which today are a sensation worldwide.
The founders began their journey by developing a simple website. Next, they gathered up beds in their small apartment and posted photos of it on a web page. When they got three willing customers, they realized the potential.
As of today, Airbnb has 150 million users, 4 million listings, and is valued at $30 billion. It offers accommodation, a list of restaurants and events in destination cities along with feedback and ratings.
When Napster collapsed Daniel Ek 一 the co-founder of Spotify 一 noticed a great opportunity to develop a new platform where users could get legal music instantly for a modest fee. Daniel Ek and Martin Lorentzon built an MVP (an app) and it just streamed music. Their family and friends were the first to try the app. After receiving the green flag from their folks they were ready to present it to a larger audience. Once Spotify was accepted by users, they got artists on board and expanded to more countries.
Today, Spotify is a popular on-demand service for music, podcasts, and streaming videos. It is now available in 79 countries and as of June 2018, it had had 83 million paid subscribers.
Are you planning to develop a mobile app? If yes, let’s have a look for how you can build a Minimum Viable Product.
1. Ideate and Evaluate
(A) You may have the most brilliant idea, but measuring it against the actual problem it will solve, can be an eye-opener. Your idea has to resolve the obstacles that people face.
(B) Study your market and your competitors.
It is important to ask yourself-
-What will you offer your customers that is different compared to your competitors?
– Has or has not the market reached the saturation for that particular app idea
2. Grab the opportunity
Once you know you have a market for your app.
– Plan User Journey- End goal achieved by User
3. Develop Core Features
To create an MVP, determine the core feature and focus on them.
– Use the Prioritization matrix. It will help you decide on what features MUST include in your minimum viable product.
– It will also help you decide on features that are to be included in later releases
Once you have a clear understanding of the above step, it is time to build and release MVP in the market.
To sum it up, an MVP or Minimal Viable Product is hands down the fittest strategy for companies to find out the behavior of their target audience without investing a tremendous financial and time resources. The startups can benefit a lot from MVP. It will help them formulate the business philosophy and identify the fundamental functions of a project to sustain it over a longer period.