Understanding MVP: Striking the Balance Between Minimum and Viable

"Is this feature needed for MVP? Why do we need more budget for our MVP? Why didn't users mention this requirement during MVP definition? Why can't we deliver the MVP faster?" If any of these questions sound familiar, keep reading.

If you've ever been part of an Agile team or involved in technology development, you've likely encountered the term "MVP," or Minimum Viable Product. Despite its seemingly straightforward definition, the concept of MVP often leads to confusion and misapplication. Misunderstanding MVP can cause product failures, as teams may incorrectly prioritize "minimum" over "viable." This article aims to demystify MVP and provide clarity on its true meaning and application in product development.

Many product development teams, including product managers, owners, developers, and UI/UX researchers, often overemphasize the "minimum" aspect of MVP. It's frequently mistaken for a first release, a functional prototype, or merely a tool for user feedback. Often, MVP is defined based on the available budget or teams’ available capacity. 

Defining MVP: Breaking Down the Terms

Minimum

According to Merriam-Webster, "minimum" means the least quantity assignable, admissible, or possible. In product development, this translates to the essential features required to deliver a viable product. "Minimum" here is a qualifier for the more crucial elements: Viable and Product.

Viable

"Viable" is defined as capable of existence and development as an independent unit. For a product to be viable, it must exist independently and sustain itself in the market. It should not require subsequent developments to meet viability. Economically, a viable product must be sustained indefinitely if market conditions remain stable.

Product

A "product" literally means something useful or valued. Economists describe it as something with utility. Essentially, a product is a solution, tool, application, or service that meets user needs. It must provide tangible or perceived value to the customer.

Breaking Down the Key Attributes of MVP

Customer Utility Test

An MVP must exist as a product that meets customer utility. A feature without customer value cannot be an MVP. Minimum and viable are qualifiers, but the core lies in MVP being a product first. The priority should be Product > Viable > Minimum. The output should be a product that is viable and meets minimum user requirements.

Viability Is Crucial

An MVP should be viable, meaning the product shouldn't need additional features for its basic existence.

Economic Perspective

MVP is an economic concept. It’s defined by customer needs and market trends, not by the budget. The development budget influences iteration cycles but not the MVP itself.

MVP and Budget

MVP is defined by the list of viable and minimum features to create a product. It requires a fixed budget. The budget determines how far beyond you can take the product ahead of MVP, but there is a minimum budget needed for an MVP, governed by required features.

MVP Is Not a Shortcut

MVP isn't about cutting corners; it's about delivering a functional and valuable product.

How To Achieve MVP

In Agile development, reaching an MVP involves iterative product development cycles. It requires a deep understanding of user needs, built through various stages: product design, functional prototyping with actual testers, and iterative development cycles leading to the MVP.

Putting MVP in Perspective

Let us understand MVP with an example of a car as a product. A car is a product that meets customers' utility for transportation, convenience, and luxury. If you were building a car, it must work and have baseline features such as tires, chassis, seats, power, and steering mechanisms. For a car to be viable, it should be usable by the customer for the entire lifetime of the car, say 15 years, without needing hardware additions. At the MVP stage, an air conditioning feature would be considered a required minimum feature, as it is generally expected by customers. On the contrary, a sunroof feature wouldn’t meet the MVP mark as it isn’t generally required. However, if a sunroof is a key product distinction for your car, then it could be part of the minimum requirement. 

In the context of technology development, an MVP must be a fully usable application that can be put in the hands of general users. It should have all the features that are generally expected in that specific application. For example, if you are building a website, then a mobile-friendly version is a must-have feature for MVP, but a desktop application isn’t.

Conclusion

The MVP definition isn’t tricky if the right economic framework is applied. Answer a simple question: can the product be sustained in the hands of users without any interventions? If you answered yes, then you have your MVP.

MVP isn't an end state but a stable starting point. It will need updates as customer needs and market conditions evolve. Understanding and defining MVP helps set the right expectations for development teams, project sponsors, and customers. Challenge your product managers to define MVP accurately, and ensure the team knows the product stage.