Developing a new product is always connected with unpredictable costs and challenges. A minimal viable product helps with recognizing such issues earlier and minimizing them thanks to better development process planning.
Minimum Viable Product Definition
A minimum viable product (MVP) is the initial working version of a software product that has enough functionalities to generate value for users and convince investors to sink money into it. A good MVP should be fast to build, contain only the most necessary functionalities for the product to work, and have enough functionalities to generate value for users and convince investors.
What is a minimum viable product in business?
An MVP is often used by companies to show the business value of a potential product, accelerate time-to-market to gain competitive advantage, and outdo potential competitors.
Here are several more reasons why businesses choose to create a minimum viable product for developing software today.
- Early user feedback – an MVP helps companies get earlier data verifying consumers' interest in their product. Positive outcomes give the green light to develop the full version of the product.
- An MVP saves time and money – investing in a full-fledged product without understanding users' needs and requirements or checking the market potential is risky.
- Trends check – distributing an MVP to the target audience allows for checking which market trends are the best direction for further development of the product. Analysis of feedback and lessons learned can be used to ensure the product succeeds.
- Potential user base – another advantage of releasing an early version of the product is that it provides an opportunity to establish a base of early adopters who can become brand ambassadors, helping spread the news about the product.
