MVP

The abbreviation MVP stands for Minimum Viable Product and means something like minimum viable product. An MVP is therefore the first functional version of a product. This is brought to market as quickly as possible in order to obtain direct user feedback and develop the product together with the target group.

Background

The term MVP comes from the core idea of the Lean Startup method and was coined in 2001 by the entrepreneur Frank Robinson.

Computer science student Eric Ries and his lecturer Steve Blank used the term as an essential element of the lean start-up method, which is about bringing a product to market as quickly as possible in order to obtain early feedback from users and develop the product close to the needs of the target group.

Why launch an MVP on the market?

And that is precisely the aim of the MVP. The first functional product is brought to market as quickly as possible in order to minimize bad investments and to develop the product in line with the actual market and customer needs.

What is an MVP?

When developing an MVP, it is important not to plan the perfect product for a long time and in detail, but to solve a customer need directly and to go to market with a still imperfect product in order to obtain user feedback.

MVP presentation by Henrik Kniberg ©Henrik Kniberg

This does not mean that you already know the end product and leave out essential elements, as with a car, for example. You know you want to bring a car onto the market in the end, but it is still too time-consuming and costly to bring the entire car onto the market at the beginning, so you start with one wheel, then two wheels and so on. This is not an MVP, because the original customer need that you want to satisfy with a car, namely getting from A to B, is not solved with a single wheel.

Instead, it would be better to consider how to solve the customer need with simple means and launch a suitable product on the market. For example, the development of a skateboard would be a conceivable first step. Once customers have given feedback, e.g. that it is difficult to steer, the product would then be further improved and a scooter would be launched on the market. This would then continue with a bicycle, then a motorcycle and finally a car. The core idea is always the iterative further development of a product based on user feedback.

The constantly repeating cycle of product development using MVP therefore consists of an initial idea that is turned into a product. The product is then tested on the market and you can learn from the feedback you receive and develop a new idea, which is then turned into an improved product and so on.

Advantages of an MVP

The advantages of product development using MVPs definitely lie in cost savings and risk minimization. By developing a product closely in line with customer needs, bad investments can be avoided and you can be sure that you are developing a product that is useful and meaningful for your own target group. Particularly in the case of long-term and detailed product planning, it can quickly happen that market conditions or customer needs have changed during the development phase. This can quickly lead to bad investments and you end up developing a product that is neither used nor bought. To prevent this, product development using an MVP offers clear advantages.

Disadvantages of an MVP

One of the disadvantages of product development using MVPs is that you can quickly get bogged down by the endless repetition of product iterations. In addition, MVPs are often criticized for the fact that more and more unfinished products are coming onto the market that cannot hold their own in the long term. However, this is not the aim of an MVP.