Minimum Viable Product (MVP) (noun)
Definition:
A Minimum Viable Product (MVP) is a development concept in which a new product or service is created with the minimum features necessary to satisfy early adopters and validate its viability in the market. The MVP approach allows businesses to gather valuable user feedback, test assumptions, and refine the product iteratively before investing significant time and resources into full-scale development. This concept is commonly employed in the startup ecosystem and is a core principle of the Lean Startup methodology.
Etymology:
The term “Minimum Viable Product” originates from the combination of the words “minimum” (referring to the least amount required), “viable” (meaning capable of working or succeeding), and “product” (referring to the good or service being developed). Entrepreneur and author Eric Ties popularized the concept as part of the Lean Startup methodology in the early 2010s.
Usage:
- The startup launched an MVP of their mobile app to gauge user interest and gather feedback before adding more advanced features.
- By focusing on developing a Minimum Viable Product, the company minimized risk and iterated quickly based on user feedback.
Characteristics of an MVP:
- Essential Features: An MVP includes only the core features necessary to demonstrate the product's value proposition and address a specific problem or need.
- Simplicity: An MVP is designed to be as simple as possible, reducing complexity and development time while providing a functional and valuable user experience.
- User Feedback: The primary goal of an MVP is to collect feedback from early adopters, enabling businesses to identify areas of improvement and validate market demand.
- Iterative Development: MVPs are part of an iterative development process, with each iteration building upon the feedback and learnings from previous versions.
- Cost-Effectiveness: The MVP approach minimizes the financial and resource investment required for initial product development, reducing the risk of launching new products or services.
Benefits of a Minimum Viable Product:
- Reduces development risk by validating market demand and user preferences before committing significant resources to full-scale development.
- Accelerates time to market by focusing on the essential features and functionality, allowing businesses to launch products more quickly.
- Facilitates iterative development, enabling businesses to make data-driven decisions and refine their products based on real-world user feedback.
- Enhances customer engagement by involving early adopters in the development process and building a community around the product.
- Encourages innovation by enabling businesses to test new ideas and concepts with minimal financial risk and resource investment.
Related Terms:
- Lean Startup
- Product Development
- Agile Methodology
- Prototyping
- User Feedback