What is MVP? The term MVP is familiar in game titles and is also commonly used in business, especially for startups. Let’s learn about MVP with Twendee in the article below.
What is MVP?
MVP stands for “minimum viable product“. This is the first version of the new product that the enterprise launches, with the minimum features so that the startup can quickly reach the first customers and get the most feedback from customers with the least amount of effort.
MVPs are often used by startups or businesses launching new products. MVP products are typically manufactured and tested on a small scale.
A trial product, product demo, or lean version are all good concepts or examples of MVP. An MVP is considered successful when it has few features to serve users. Besides, those features must convince users to buy the official version when it comes out.
For example, there are many customers who want to move faster. The most logical thing is to sell them a car; however, the process of producing a car takes a lot of time and money. Instead, you start with a minimally available product, a skateboard. It will help customers solve the fundamental problem of moving faster. After verifying that customers really have a need to buy transportation, you will conduct continuous product improvement, helping customers move faster and faster.
Why should a startup start with an MVP instead of a finished product?
MVP helps increase the probability of project success
Recently, CB Insights, a company specializing in providing data aggregation, analysis, and reporting services, conducted a study on the top 20 reasons why startups fail. A scary number shows that 42% of startups fail due to “no market need” or “no market demand” or 29% of startups fail because of “running out of cash.”.
The secret to building a good MVP is to ask. If you have an idea for a new product but don’t know if people need it, MVP will answer questions; it helps you test the market soon and get real feedback from potential customers. You will soon know if your product is on the right track, what needs to be adjusted, what features attract customers to use it, or even if you need to change the business model. MVP helps increase the likelihood of project success by constantly learning and testing to help you build a product that meets market needs.
The second most important thing is the least amount of effort. With meager resources, building a large number of features, in the beginning, makes startups quickly use up financial resources, even without the budget to launch products to market. By launching the product with as few features as possible and with the fewest resources, you can avoid the situation where, unfortunately, if the MVP is not well received, you still have plenty of resources to change.
MVP brings a lot of great advantages to startups:
- Reduce the amount of work that has to be redone.
- Reduce initial product development costs.
- Limit product rework.
- Fast market proofing speed
- Risk reduction
- Earn money very early.
MVP helps startups attract investors
Very few investors like to spend money on an idea or a prototype product when they need a real product. MVP is the ideal product. As long as there are customers willing to pay for your MVP, investors will certainly soon “drop money” on your startup.
The role of MVP for startups
- MVP is a tool to help startups research the needs of the market and test the hypotheses that they set out when starting a business. If this process is successful, you can proceed to the next steps, such as adding more staff and improving the product for the next test. As a result, your product becomes more and more complete.
- MVP helps you get feedback from product users. In this product testing step, you need to monitor and analyze the feedback from users, thereby drawing on experience to fix bugs, add new features, and improve the product. In the process of letting customers use the product, you can attract potential customers for your business.
- When launching a minimally available product, it can validate that it is your product. You will be recognized as the first to come up with that product.
- You can also do MVP business if it is suitable for a group of customers who do not place high demands on other features.
Meaning of MVP terms in different fields
MVP in business
MVP models are also known as MVP models or MVP frameworks. This concept describes the formulas, ways, or procedures for implementing MVP, including testing, engineering, and product development in the enterprise.
MVP of game
In the gaming industry, MVP stands for “most valuable player” or “most valuable professional.” This is a title for players with excellent achievements when participating in a game. Whether your team wins or loses, there is still one person on your team who has won this title.
MVP in mobile app technology
MVPs in the field of mobile apps are also quite similar to startups. Most businesses, before launching the official version on the market, will launch an MVP. From there, businesses will receive feedback from users to build a complete version.
To achieve MVP in the field of mobile apps, businesses need to make a detailed plan for themselves. At the same time, it is also necessary to perform the following specific steps in turn:
Step 1: Find out if the MVP product you are about to sell is popular or not. Then analyze your competitors to make your product more attractive.
Step 2: The MVP needs an appropriate design for the product to provide a good user experience.
Step 3: Enterprises need to state the benefits and difficulties of using MVP products. This tactic helps businesses identify the potential price increase of mobile apps upon official launch.
Step 4: Businesses need to make a list of features that their mobile app will have. Then start organizing and developing features to ensure simplicity for the MVP.
Step 5: After the MVP is launched on the market, businesses should rely on user reviews to evaluate how good or bad their products are. The improvement and editing will help businesses create the best-quality official product.
MVP of Microsoft
At Microsoft, MVP means individuals who will not directly work at Microsoft’s office. They are just the people who make great, important contributions to the company’s technological development.
To be able to become an MVP for Microsoft, each individual needs time to experience many things to gain experience. Including participating in seminars and sharing personal experiences on YouTube channels. At the same time, that individual MVP must also be responsible for connecting employees at Microsoft with other MVPs.
After achieving the title of MVP recognized by Microsoft, it is necessary to work hard and show your professionalism for one year. This will help the individual maintain the title for himself and have a good profile when working here.
MVP of Facebook
Before the current resounding success, in 2004, Mark Zuckerberg introduced users to an experimental MVP called Facebook. Initially, this MVP only functioned as a social network exclusively for students at Harvard University. Within a month, half of Harvard students signed up to become Facebook members. By March, the website had expanded to include universities at Yale, Columbia, and Stanford. With his classmates, Mark decided to develop a business-oriented social networking site.
After seeing the popularity and growing strength of Facebook, Mark decided to improve and expand its scale. Of course, this action is completely right, and the best proof is the development of Facebook now.
MVP of Airbnb
Airbnb’s MVP model was formed in a rather random way. At first, the founder of Airbnb wondered, “Is it better for customers to pay to stay in a stranger’s home?” To be able to answer their concerns, the founders decided to take pictures of available apartments and then post them on a website with a simple interface to run ads about rental services.
As a result, the number of customers booking rooms through the website increased rapidly. This made the founders make the decision to complete the Airbnb website in a short time. Up until now, Airbnb has become the most convenient website in the field of booking, possessing many great features and tools.
MVP of Twitter
Twitter’s predecessor, MVP, was just a podcasting platform called Odeo. However, having only been operating for a while, Odeo has gradually lost market share due to the launch of iTunes. That’s when the company needs to change the way it operates so as not to go bankrupt. After a hackathon, Odeo transformed into Twitter.
Originally, twttr was designed for internal users at Odeo as a means for employees to exchange messages. After that, their employees had to pay huge phone bills due to their activity on the platform. Seeing its market potential, in 2006, Twitter changed its name to Twitter and became increasingly popular after going public.
MVP of Dropbox
Anyone who wants to securely store their data in the cloud must have heard of the Dropbox app. Dropbox’s MVP is mainly focused on capturing user interest before launching the actual product.
In the beginning, the founders weren’t really interested in building an online service with high availability and reliability. They simply recorded a three-minute video showing how Dropbox works and collecting emails from potential customers. As a result, more than 75,000 people signed up to use Dropbox’s service within a day. It was this that strengthened the trust of the Dropbox manufacturer, and they decided to start building the hugely successful Dropbox that it is today.
MVP of Groupon
When it first launched, Groupon was just a WordPress blog called The Point. The point is completely different from Groupon today. Although it failed, it also provided a deeper understanding of the market for developers.
Then they focused on offering deals as WordPress blog posts, and it became more popular. This helps the founders, who have gradually oriented it to a combination of mobile and website interfaces and constantly innovate products during operation to provide users with the best experience.
In this article, Twendee has provided readers with an overview of MVP and its meaning in different fields. Hopefully, the above information will help your business develop an effective MVP. If your business is interested in a solution to build MVP products, contact Twendee immediately so that our team of experts can assist you: https://startup.twendeesoft.com/
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