Minimum Viable Product (MVP)
| Field | Entrepreneurship, Product development |
|---|---|
| Abbreviation | MVP |
| Coined by | Frank Robinson, popularized by Eric Ries |
| Coined date ynes | 2001 |
| Related | Lean startup, Agile software development, Product-market fit |
A Minimum Viable Product (MVP) is a product development strategy where a new product is created with the least amount of features necessary to satisfy early customers and gather feedback for further development.[1] The concept is widely used in startups and entrepreneurship to test ideas quickly and efficiently, minimizing wasted time and resources. By focusing on core functionalities, an MVP allows teams to learn what customers truly need without building a fully polished product.[2]
Overview
The MVP approach is rooted in the lean startup methodology, which emphasizes rapid iteration and customer feedback.[1] The goal is to release a basic version of a product to a small group of early adopters, observe how they use it, and improve based on their input. This contrasts with traditional product development, where companies might spend years perfecting a product before launching it.[3]
For example, a startup building a food delivery app might create an MVP with just one feature: allowing users to order from a single restaurant. If customers respond positively, the team can add more features, like multiple restaurant options or payment integrations, in later versions.[2]
History
The term "Minimum Viable Product" was coined in 2001 by Frank Robinson, CEO of SyncDev, and later popularized by Eric Ries through his work on the lean startup methodology.[4] Ries' 2011 book, The Lean Startup, brought the concept to a global audience, making it a cornerstone of modern entrepreneurial practices.[1]
The idea draws inspiration from agile software development, which prioritizes iterative progress, and earlier business concepts like customer development, introduced by Steve Blank.[2] Over time, the MVP concept has been adopted beyond tech startups, influencing industries like healthcare, education, and retail.[3]
Purpose and Benefits
The primary purpose of an MVP is to test a business hypothesis with minimal investment.[1] Key benefits include:
- Speed to Market: An MVP can be launched quickly, allowing companies to test ideas in weeks rather than months.[2]
- Cost Efficiency: By focusing on essential features, startups avoid spending on unnecessary development.[3]
- Customer Feedback: Early adopters provide insights into what works and what doesn’t, guiding future development.[1]
- Risk Reduction: Testing an idea with an MVP reduces the chance of building a product no one wants.[2]
For instance, Dropbox famously used an MVP in the form of a short demo video to gauge interest before building their file-sharing platform.[5] This approach validated demand without coding a full product.
Criticisms and Challenges
While the MVP approach is popular, it has faced criticism. Some argue that releasing an unpolished product can harm a company’s reputation if it fails to meet customer expectations.[6] Others note that defining "minimum" is subjective and can lead to disagreements within teams.[3] Additionally, an MVP may not suit industries with high regulatory requirements, like healthcare, where incomplete products could pose risks.[6]
Examples
- Twitter: Initially launched as "twttr" in 2006, it had basic messaging features to test the concept of microblogging.[7]
- Airbnb: The founders started with a simple website offering air mattresses in their apartment to validate demand for peer-to-peer lodging.[8]
- Zappos: Began as an MVP by selling shoes online without inventory, using photos from local stores to test market interest.[9]
How to Build an MVP
Creating an MVP typically involves the following steps:[1]
- Identify the Core Problem: Understand the main problem your product aims to solve.
- Define Key Features: Focus on the smallest set of features that address this problem.
- Build a Prototype: Develop a basic version of the product, often using tools like no-code platforms or simple coding frameworks.
- Test with Early Adopters: Release the MVP to a small group of users and collect feedback.
- Iterate: Use feedback to improve the product, adding features as needed.
Applications Beyond Startups
While MVPs are most associated with startups, they are also used in larger organizations and non-tech industries. For example:
- In education technology, an MVP might be a basic learning app tested in one classroom before scaling.[3]
- In healthcare, an MVP could be a simplified telemedicine tool to test patient demand.[6]
- In retail, an MVP might involve a pop-up store to gauge interest in a new product line.[2]
See Also
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Ries, Eric (2011). The Lean Startup. Crown Business. ISBN 978-0307887894.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 Blank, Steve (2013). "Why the Lean Start-Up Changes Everything". Harvard Business Review.
- ↑ 3.0 3.1 3.2 3.3 3.4 Moogk, David R. (2012). "Minimum Viable Product and the Importance of Experimentation in Technology Startups". Technology Innovation Management Review.
- ↑ Robinson, Frank. "Minimum Viable Product". SyncDev. Retrieved 2025-06-01.
- ↑ Houston, Drew. "Dropbox: The MVP That Started It All". Dropbox Blog. Retrieved 2025-06-01.
- ↑ 6.0 6.1 6.2 Cagan, Marty (2017). Inspired: How to Create Tech Products Customers Love. Wiley. ISBN 978-1119387503.
- ↑ Saga, Carl. "The Twitter History". Retrieved 2025-06-01.
- ↑ Gallagher, Leigh. "The Airbnb Story". Houghton Mifflin Harcourt. Retrieved 2025-06-01.
- ↑ Hsieh, Tony (2010). Delivering Happiness. Business Plus. ISBN 978-0446563048.