Are you clueless about Minimum Viable Product (MVP)? Don’t worry. You’re not alone. Many people are clueless and confused of this concept as well. This article will help you better understand the concept of Minimum Viable Product (MVP).
“The only way to win is to learn faster than anyone else.”
Defining Minimum Viable Product
The Minimum Viable Product comes with its surname “maximum confusion”. That’s why even experts are confused of the MVP’s concept.
The basic basis of argument of the MVP is to launch the product as quickly as possible to get as much validation of the business hypothesis as possible while minimizing risks and investments. Launching a product before your competitors do will give you an edge in your startup.
To illustrate further, here is how Elon Musk, an entrepreneur who is phenomenal at the 3-step MVP process, did it.
1 Begin with a simple individual product that can deal with a small sub-set of a huge problem.
He released an electrical car, which in less than 3 years became the world’s best-selling plug-in electric operated car.
2 Keep repeating the first step while constantly dealing with bigger and bigger problems.
Battery power keeps on enhancing so that vehicles can perform better. He improved the efficiency of his product by increasing the speed to 60mph in 2.28 seconds, installing self-driving technology to decrease accidents, featuring the Tesla Part 2 with electric operated vehicles, merging the Tesla with Solar City, and working on the completion of the Gigafactory.
3 Always communicate the vision of the Grand Problem that you will solve.
Musk’s greatest vision is a world operated entirely by the sun and a multi-planet habitation. He may not be the world’s best speaker, but he has taken the world’s attention because he regularly conveys his vision while providing MVPs along your way.
If Musk did not start addressing the Grand Problem which is building the Gigafactory without addressing smaller problems, he might have launched the wrong MVP that costs a fortune. His idea would be wasted because he has failed to provide the needs of people. In return, people can’t see his vision. As a result, his MVP’s would not be viable at all.
The common mistake of entrepreneurs is that they just think about how to quickly deal with the Grand Problem. They launch an MVP and the market would not respond positively because they fail to provide the market the journey they need.
Applying the 3 Steps of MVP Procedure in Practice
Say for example, you have released your product. A few clients have signed-up on your preliminary launch. Your analysis tells you that there are downloads. However, you also observe that involvement is terrible. Your economic forecasts far surpass the utilization you expected.
Contrary to well-known beliefs, this is usually not a tragedy.
The great advantage is that people will register depending on some portions of your vision. That’s the starting portion of verifying your industry. It’s at this stage that the product strategist must get outside, discuss to clients, and view the situation:
- What exact part of your vision captured the customers?
- What exactly makes your item hard to use in getting towards the vision?
- Is there a competitor who is doing this much than you are? How did they do it differently?
- Is the issue that clients want to resolve different from the issue you’re dealing?
MVP of the Most Popular Products Today
MVP is such an intelligent process to follow. However, you might find the process to be overwhelming at some point. To help build your confidence to take on this strategical marketing move, we’ll present you some inspirations. From here, we’ll show you the most popular MVPs of today.
In their foundation in 1976, Apple kept things minimal for their start-up company. They launched Apple 1, the brand’s first computer, in 1976. The Apple 1 was just a simple circuit board. It didn’t even have a monitor or a keyboard.
Today, we can tell how successful of a company Apple has grown to be. Take note that it took them decades to reach to where they are now. Taking the concept of the Minimum Viable Product into consideration, it’s important to set your priorities right. You have to decide which products or features to build first and which ones to build later.
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).
Back in 1995, eBay wasn’t eBay. It was called AuctionWeb, and the website didn’t have the same features way back in the days. If you just do some research and look closely to the patterns of their progress, you will understand how they’ve used the value of MVP to reach different milestones in their business over the years.
Perry Chen, founder of Kickstarter, sketched his visions for Kickstarter’s initial version in 2006. Even if he was fully aware of the fact that he was not a designer himself, he still initiated the process.
Today, Kickstarter continues to evolve. In fact, just recently, the website changed their funding process into one that gives people the freedom to fund project creators for support. You might think that this is the most obvious solution for the business, but it took the team 6 or 7 years to actually launch the idea.
Minimum Viable Product isn’t about crafting a bad first product. Rather, it’s about listing priorities on a to-do list, analyzing their levels of importance, and working on crossing out each item on the list accordingly one step at a time. It’s a long, demanding process, but it’s going to be worth it.
MVP is an organized definition and sense-making process. It is a scientific method that depends on information and well-defined statistics. However, the procedure is guided by the vision of the entrepreneur who thinks of a better and a more satisfying future. Not only can the entrepreneur see the future, but he can see the direction where people need to visit to get to that future. Most importantly, they know which MVPs to provide as a transportation to move people from here to there.