Minimum viable product (MVP)

Why is a minimum viable product (MVP) important?

A minimum viable product (MVP) is important because it helps businesses test ideas with minimal resources. Instead of spending a lot of time and money on a full product, an MVP allows companies to see if there is real demand before further development.

An MVP reduces risk by helping teams learn early what works and what doesn’t within a broader digital transformation framework. It allows businesses to gather real user feedback, make improvements, and avoid wasting resources on unnecessary features.

An MVP also speeds up development, allowing teams to adjust based on actual user behavior instead of assumptions. Some leading IT organizations now use stage gates – structured decision points – to ensure teams agree on MVP goals before moving forward. These checkpoints help companies make better investment decisions and improve the chances of success.

For startups and new products, an MVP is a key step in innovation management, attracting early users, investors, and stakeholders while keeping costs low.

What are the goals of a minimum viable product (MVP)?

A minimum viable product (MVP) helps businesses test new ideas, reduce risk, and build better products based on real user feedback. It allows companies to launch quickly and improve over time.

Let’s look at the main goals of an MVP:

Validating market demand

• Tests whether customers are interested in the product.
• Provides real-world feedback before full development.
• Helps avoid wasting resources on ideas that may not work.
• Identifies the key features users find valuable.

Reducing development risks

• Limits investment by focusing on essential features first.
• Prevents overbuilding unnecessary functions too early.
• Allows teams to refine ideas before large-scale production.
• Uses real data to make informed product decisions.

Speeding up time to market

• Gets a working product in front of users faster.
• Enables quick adjustments based on real user behavior.
• Helps businesses stay ahead of competitors.
• Attracts early adopters and potential investors.

Who is involved in a minimum viable product (MVP)?

Creating a minimum viable product (MVP) involves many people, both inside and outside the company. Each group plays a role in planning, building, testing, and improving the product.

Internal stakeholders

• Product managers: Define the MVP’s vision, set priorities, and oversee development.
• Developers: Build the product, ensuring core functions work properly.
• Designers: Create a simple and user-friendly interface for users.
• Marketers: Promote the MVP and attract early users to test it.
• Executives and founders: Approve budgets, set goals, and provide direction.
• Customer support teams: Handle feedback, report issues, and assist users.
• Sales teams: Gather insights from potential customers and share trends.

External stakeholders

• Early adopters: Try the MVP, give feedback, and suggest improvements.
• Investors: Provide funding and assess the MVP’s growth potential.
• Partners: Offer tools, integrations, or services that add value.
• Beta testers: Test the MVP, find bugs, and recommend changes.
• Industry experts and advisors: Share insights on trends and best practices.
• Regulatory bodies: Ensure the MVP follows legal and industry rules.

What is required for minimum viable product (MVP) success?

To achieve MVP success, focus on three key areas: core functionality, acting on feedback and building a foundation for easy growth.

These areas ensure the MVP meets customer needs, gathers valuable insights, and lays the groundwork to scale the product with ease.

Focus on core functionality

Start with only the most important features that solve the main problem. Avoid adding extra functions that are not essential for the first version. Keep the MVP simple to streamline development, testing, and launch. Maintain a clear focus to ensure the product remains usable and valuable to early users without unnecessary complexity.

Gather and act on user feedback

Release the MVP to real users and pay attention to their experience. Collect feedback to understand what works well and what needs improvement. Track how users interact with the product and look for common issues or requests. Use this information to make smart updates and ensure future versions meet customer needs.

Build a scalable foundation

Ensure the MVP is built with technology and processes that allow for easy growth, including robust product analytics to measure performance. Avoid shortcuts that could cause problems later. Create a strong foundation to simplify adding new features, improving performance, and expanding the product over time. Enable business growth without requiring a complete rebuild.

Why do minimum viable product (MVP) projects fail?

Many MVP projects fail due to common challenges that prevent them from delivering value. These issues often stem from poor planning, unclear goals, or lack of proper execution.

Lack of clear objectives and focus

Without a clear vision, an MVP can become unfocused and try to do too much. Organizations may add too many features too early or fail to define the core problem the product should solve. This leads to a confusing product that does not effectively meet user needs.

Ignoring user feedback

An MVP relies on real-world feedback to improve, but some companies either collect the wrong data or fail to act on it. Ignoring user insights and overlooking potential digital adoption challenges can result in a product that does not evolve in the right direction, making it difficult to gain traction or grow.

Poor execution and scalability issues

If an MVP is rushed or built with weak technology, it may not work properly or be difficult to scale. Poor planning, bad user experience, or technical limitations can make the product unusable, leading to low adoption and eventual failure.

Minimum viable product (MVP) use cases

A minimum viable product (MVP) helps businesses test ideas quickly, reduce risks, and improve products based on real user feedback. 

While the concept applies across many industries, it can be difficult to picture how it works in real-life scenarios. 

Below are three examples of how an MVP can be used in different business settings.

E-commerce

Scenario: A startup wants to launch an online marketplace but is unsure which features customers will use most.

Method: Instead of building a full-featured platform, the company creates an MVP with only basic shopping, payment, and order tracking functions. It collects customer feedback to decide which features to add next.

Outcome: The startup avoids wasting resources on unnecessary features and focuses on what users actually want, leading to a more successful final product.

Mobile app development

Scenario: A fitness company wants to create a workout app but is unsure which types of workouts users prefer.

Method: The company develops an MVP with a simple interface offering just a few workout plans. It tracks user engagement and surveys users to learn which workouts they find most valuable.

Outcome: Based on user feedback, the company expands the app with popular workout styles, ensuring it meets customer demand and increases retention.

Healthcare technology

Scenario: A medical startup is developing an AI-powered symptom checker but is unsure if users will trust automated health advice.

Method: The startup releases an MVP with a basic chatbot that provides simple symptom analysis and suggests when to see a doctor. It collects feedback on accuracy, usability, and trust.

Outcome: The startup refines its AI model based on real user interactions, improving accuracy and building trust before fully launching the product.