What is an MVP and how is it useful in the development of new ventures and corporate innovation?
A minimum viable product (MVP) is a development technique in which a new product or service is developed with basic features that is provided to early users. Since it doesn’t include the final set of features, the company can just get the response on the initial product (prototype) from early users, who will provide diverse feedbacks on the MVP. With the market feedbacks, it will become easier and more confident for the company to design and develop the final, complete set of features with optimal customer value.
The below are the benefits of the MVP in the development of new ventures and corporate innovation.
Firstly, it is time efficient for the company to drive rapid development and testing of the MVP. The duration of MVP testing may differ by product or by company. Just by launching it with only sufficient functions and features, they can rapidly check whether a new product or service can satisfy initial users. It is the way to test core assumptions about desirability, feasibility and viability of the new product rapidly.
Secondly, it is productive iterative process (Build-Test-Learn) for the company to improve the features and functions for which teams are focused on better quality and higher customer satisfaction. The iterative process of building, testing and learning allows to drive the generation of more customer-value driven product or service.
Thirdly, it is cost effective. It is the tool to figure out the market potentiality inexpensively. Since it is inexpensive, it can be used often by small to medium companies or start-ups or companies in developing countries. (Of course, it can be used for large companies as well.) Companies do not need to spend too much money on checking the market potential at initial stage. So, it is regarded very cost effective.
Fourthly, it helps with faster investment decision. With the fast outcomes of potentiality, the company can determine quickly whether to invest or not at full swing.
With the market feedbacks on the MVP, it is much easier and effective for the company to design and develop the final, complete set of features with optimal customer value.