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What is MVP? (Minimum Viable Product) Concept and Application

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When developing startups or new products, you often hear the term MVP. What is MVP and why is it important?

What is MVP?​

MVP (Minimum Viable Product) is a product with only the minimum features necessary to solve customers' core problems. It's an initial version designed to test market response with minimum cost and time before creating a perfect product. It was introduced as a core concept in Eric Ries' Lean Startup methodology.

Characteristics of MVP​

  • Core features only: Contains only the most important core value of the product.
  • Quick launch: Prioritizes speed over perfection to quickly introduce to market.
  • Learning tool: A tool to learn about the product and market through customer feedback.
  • Resource saving: Invests only minimum development cost and time.
  • Iterative improvement: Continuously improves based on feedback.

How to Use MVP​

Step 1: Identify Core Problem​

Clearly define what is the most important problem the product aims to solve for customers. Focus on one urgent and important problem among many.

Step 2: Define Minimum Features​

Select only the absolutely necessary minimum features to solve that problem. It's important to distinguish between "features without which the product won't work" and "nice-to-have features."

Step 3: Develop Quickly​

Develop a product with only the selected minimum features as quickly as possible. Focus on making a working product rather than pursuing perfection.

Step 4: Market Launch​

Provide the developed MVP to actual customers. Testing with early adopters is typical.

Step 5: Collect Feedback​

Actively collect customer reactions and feedback. Identify which features they like, what's inconvenient, and what additional features they want.

Step 6: Learn and Improve​

Analyze collected feedback to improve the product or pivot if necessary. Develop the product through iteration of this process.

Examples of MVP​

Dropbox: Before developing the actual product, Dropbox created and published a 3-minute demo video. After confirming people's enthusiastic response, they started full-scale development.

Airbnb: Airbnb started when the founders laid out 3 air mattresses in their apartment living room to provide overnight accommodation. The website was very simple, but they confirmed there was demand.

Zappos: The online shoe store Zappos started without inventory. When orders came in, they would go directly to shoe stores, buy shoes, and ship them to customers. This way they validated the potential of the online shoe market.

Buffer: The social media management tool Buffer created only a landing page before product development to measure people's interest. After confirming sufficient interest, they began development.

Advantages and Disadvantages of MVP​

Advantages​

  • Quick market validation: Can quickly verify if the idea works in the market.
  • Resource saving: Don't waste time and cost on unnecessary feature development.
  • Risk reduction: Can reduce the possibility of failure before large investment.
  • Customer-centric: Can create products based on actual customer feedback.
  • Learning opportunity: Can quickly learn about the product and market.

Disadvantages​

  • Brand risk: Incomplete products may negatively affect brand image.
  • First impression: May lose potential customers due to unfinished product.
  • Quality misunderstanding: If MVP is made too crude, it's difficult to convey the product's true value.
  • Feature shortage: Users may feel inconvenient with only minimum features.

Frequently Asked Questions​

Q: Is MVP always an incomplete product?

A: MVP is not incomplete but rather a complete product with minimum features. Core features must work properly; it simply lacks additional features.

Q: Does every business need MVP?

A: While useful for most new products or services, it should be approached carefully in industries where safety or regulations are critical (medical, aviation, etc.).

Q: What's the difference between MVP and prototype?

A: Prototypes are mainly for internal testing and not actually sold. On the other hand, MVP is a product that is sold to and used by actual customers.

Q: How minimal should MVP be?

A: It should be at the minimum level that can solve customers' core problems. If too minimal, it can't deliver value; if too many features are included, it loses the meaning of MVP.

Q: What comes after MVP?

A: Based on feedback, add features and improve or pivot if necessary. Develop into a complete product through iterative improvements.

Conclusion​

MVP is an effective way to validate the market and learn with minimum cost and time. Instead of wasting time and resources trying to create a perfect product, you can confirm actual customer response through MVP and improve the product accordingly. It's a useful approach not only for startups but for all companies developing new products!