Benefits of Using MVP in Product Development

I don't think people know what they mean when they say "minimum viable product" (MVP). What it stands for and its implementation are nebulous to say the least. So I hear you saying, alright smartypants, so what is an MVP? Its is the most basic version of a product that still allows you to test your key hypotheses about customers' interests and behaviors. The goal is to put a product into the hands of users as quickly as possible to gather insights and iterate based on real feedback. With me so far? Ok now lets define the two most important words in there - Minimum and Viable - some more. Minimum: This refers to the smallest set of features needed to successfully deploy the product. The emphasis is on 'bare essentials' to test the most important hypothesis about the product. Viable: This means the product is sufficiently good to satisfy early adopters. The product should not only function to solve the basic problems but also deliver enough value that users are willing to adopt it and provide feedback. An MVP is crucial because it minimizes the resources spent on untested features and focuses on core functionalities that meet customer needs. It allows a startup to: - Test its hypotheses with minimal risk. - Learn from real user feedback. - Iterate quickly before additional features complicate the product. Lets take a real life example to bring this to life: Airbnb Its hard to recall now but Airbnb's MVP was three air mattresses in their living room and a simple website, which they called "Air Bed and Breakfast." What Made Airbnb's MVP Effective? Immediate Problem Solving: The MVP directly addressed a pressing need—accommodation for conference attendees when traditional options were unavailable. Low Complexity: The initial setup required minimal investment and effort: a basic website, some air mattresses, and the willingness to share their living space. Direct Feedback Channel: Hosting guests in their own home allowed the founders to interact directly with their users, gaining insights that were crucial for refining their concept. Scalability Test: This initial experiment tested not just the demand for such a service but also the feasibility of scaling this idea into different markets and events. The MVP strategy is about learning as much as possible with the least effort, reducing wasted development hours, and speeding up the learning curve about the market's actual needs and desires. It's not just about bringing a product to market; it's about bringing the RIGHT product to market and evolving it based on informed insights from actual users.

Startups often misunderstand the MVP. The term Minimum Viable Product is thrown around in every pitch deck and product sprint. But somewhere along the way, viable came to mean: → A barebones version → With limited features → Built to prove it works That’s not enough. Here’s a better definition: MVP = Minimum Valuable Product. → Valuable to whom? To the customer. To the person who is willing to use it, pay for it, or recommend it. Because the goal of an MVP isn’t just functionality. It’s validation. Here’s what the data says: → According to CB Insights, 35% of startups fail because there's no market need for the product. → Harvard Business School research shows that 65% of startups pivot, often because they built a product that didn’t resonate with the market. So the real question becomes: → Is your product solving a real problem? → Is it valuable enough that someone would pay for it, even in its early form? An MVP should do three things: 1. Address a specific, painful customer problem 2. Deliver immediate value, even if limited 3. Provide learning through real usage, not assumptions What’s not an MVP: → A feature-light demo with no user demand → A product built for a pitch deck, not for the user → A launch strategy that skips validation in favor of speed The right MVP doesn’t just prove you can code. It proves you understand the market. → That’s the difference between a product and a business. If you're building your MVP now, ask this: → Is this viable… or is this valuable?

3 secrets behind 100+ successful Quote-to-Cash projects (that resulted in 100+ million in customer revenue): 1. Focus on outcomes, not just requirements. Share the desired business outcomes during the sales process, not just the technical requirements. Why? Because the project champion buys the software based on expected results, but the vendor only focuses on the "feature" or the "requirement”. This misalignment often leads to unmet expectations and disappointed clients. By prioritizing outcomes: - You ensure client satisfaction - You deliver the expected growth and results It's a win-win for the client and the vendor. 2. Start with an MVP (Minimum Viable Product). An MVP helps achieve quicker time to value. A ten-month timeline? Not a chance. Aim for ten weeks. This way, you start realizing value sooner. For example: If the desired outcome is to implement software to give your reps 30% of their time back so they can focus on selling and crush their quota, start with an MVP that achieves 15% back. Then follow up with other phases that get the rest of the outcome. (reclaiming up to 30% of your time) And shorter projects face fewer changes, making success more achievable. 3. Success breeds success. There will always be naysayers, so early wins with an MVP help align expectations and gain support from stakeholders. The best part? You'll turn skeptics into supporters (and that's a great feeling). To recap: Focus on outcomes. Embrace the MVP approach. Leverage early wins to build momentum. Which 'secret' resonated most with you - 1, 2, or 3? Let me know. P.S. Follow me for more content like this.

The modern Airbnb website has almost nothing in common with its initial version. However, their first version is a classic example of a Minimum Viable Product - and offers two critical lessons on product development... 1. Validation is Just the Beginning  The journey of an MVP isn't about instant success. Airbnb's story shows that an MVP serves as a litmus test to verify if there's a genuine demand for a product.  However, recognizing that demand exists is the first step. The real challenge becomes pursuing growth opportunities and scaling the solution. 2. MVP: A Tool for Multi-dimensional Validation  An MVP can validate not just a product's necessity, but its functionality and market fit. Start by confirming a problem people actually face and are willing to pay for solutions. Airbnb did just this by first asking: Do people want an alternative to hotels? Are they willing to stay in a stranger's home?   Their initial website wasn't feature-rich. It lacked options, reviews, online payments, and direct booking. Yet, it confirmed a market interest. With that insight, they refined their MVP to validate solutions, progressively adding features to enhance user experience and solve the problem more effectively. Airbnb's evolution from a simple idea to a global platform exemplifies how MVPs can guide from validating an initial concept to fine-tuning a comprehensive solution. If you found this insightful, give it a thumbs up and follow me as I share my insights and learnings around the topics of business agility, leadership, and transformation management. 😎  #businessagility