What is a Minimum Viable Product?
An MVP primarily serves to test new product ideas for their market viability and thus supports startups, for example, in their initial phase of idea generation and validation. But this method is also a good opportunity for established companies to make their own product development more agile. First, a simple basic product is created. This preliminary version of the later product is minimally functional, focusing only on the crucial core functions, is usable, and already has good usability. An MVP doesn’t have to be perfect by any means; it should only convey the actual idea and intended benefit of the product. This allows for quick and low-effort verification of whether there is a market demand and whether it meets the target group’s wishes. Based on the feedback received from potential users, the MVP is then continuously expanded and improved.
An MVP is thus about two very different factors that need to be skillfully combined: simplicity and utility.
What are the advantages of MVPs?
1. Reduce Risk
When developing a new product, one initially makes numerous assumptions and conjectures, both about the sales market and potential users. However, some of these assumptions may prove to be incorrect or only partially true during the development process. Using an MVP can help verify these assumptions early and relatively inexpensively. Furthermore, the risk is further minimized when the numerous feature ideas are limited at the beginning of the process, thereby reducing complexity.
2. Shorten Time-to-Market
A classic product development with a full-fledged end product takes a lot of time and money. Accordingly, companies aim to reduce the development time and thus the time-to-market as much as possible. This is achieved, for example, by reducing the product features to the basic functions, because according to the Chaos Report by the Standish Group, more than 60% of functions in the software sector are not used.
Advantages of Using Minimum Viable Products
3. Meet Customer Needs More Precisely
MVPs help to recognize the needs of potential customers early on. This allows companies to respond very precisely to users’ wishes from the beginning and thus offer them the greatest possible added value.
4. Further Develop and Improve the Product
By initially focusing on the pure core functions, there is future potential for further development and improvement of the product. Through the gradual introduction of additional features along customer wishes, the product matures further and can unfold its full potential over time. To achieve this goal, however, it is crucial to conduct extensive analyses of the MVP and consistently implement and live the feedback received.
Where are MVPs Used?
MVPs are often used in agile product development and form a counterpart to classical methods. This approach is particularly popular in modern software development. Today, everyone has the opportunity to publish and update products such as web portals or apps quickly and easily. Thus, the customer can use the MVP directly, and companies receive immediate feedback from their target group to improve and expand the product.
