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A Review Of The Minimum Viable Product Approach - Forbes

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"Minimum viable product" is a term coined by Frank Robinson and popularized by Eric Ries, founder of the Lean Startup methodology. According to ... BETAThisisaBETAexperience.Youmayopt-outby clickinghereMoreFromForbesSep24,2022,04:16amEDTGrowingPains:DoEuropeanSoftwareFoundersLackTheConfidenceToScale?Sep23,2022,06:00pmEDTWhatQualitativeMeasurementsAreImportantForGrowthMarketing?Sep23,2022,08:15amEDTLeaders:SimpleStrategiesForOfferingMoreFeedbackDuringTheWorkdaySep23,2022,07:53amEDTTheTechEntrepreneurKeepingHeavyIndustryWorkersSafeAndProductiveSep22,2022,05:02pmEDTStartingFromZero:WhatCanEstoniaTeachUsAboutBuildingAStartupEcosystem?Sep22,2022,08:15amEDTEightWaysToCreateAnIn-StoreExperienceThatWillSurpriseAndDelightSep22,2022,07:14amEDTPoliceAccountabilityDoneRight:LearningFromIndia'sDenotifiedTribesSep22,2022,02:00amEDTHowBinocsPromisesToHelpKeepCryptoInvestorsOutOfTroubleEditStoryEntrepreneursAReviewOfTheMinimumViableProductApproachYECCOUNCILPOSTExpertisefromForbesCouncilsmembers,operatedunderlicense.Opinionsexpressedarethoseoftheauthor.|Membership(fee-based)Dec8,2021,07:00amEST|SharetoFacebookSharetoTwitterSharetoLinkedinByMaksymBabych,founderandCEOofSpdLoad,thesoftwaredevelopmentcompanyforstartups. getty Usingaminimumviableproduct(MVP)totestabusinessmodelisprobablythemostpopularstartuplaunchscheme.World-famousUber,Dropbox,FigmaandSlackstartedtheirwaytounicornstatuswithMVPs. Inthisarticle,we'llrefreshyourmemoryonMVPs,lookatalternativestoMVPsanddelveintonewoptionsforfindingandvalidatingbusinessideas. TheBasicConcept:TheMinimumViableProduct "Minimumviableproduct"isatermcoinedbyFrankRobinsonandpopularizedbyEricRies,founderoftheLeanStartupmethodology.AccordingtoRies,anMVPistheversionofanewproductthatallowstheteamtogatherthemaximumamountofprovencustomerknowledgewiththeleastamountofeffort. Inreality,theideaofanMVPhaslittletodowithdevelopment.FoundersandmanydevelopersoftenconfusetheconceptsofanMVPandatechnologicalprototype.  MOREFROMFORBESADVISORBestTaxSoftwareOf2022BestTaxSoftwareForTheSelf-EmployedOf2022IncomeTaxCalculator:EstimateYourTaxes AnMVPisnotatechnologyprototypebutawaytovalidateitssale.Itmaynotbebasedonaprototypebutalandingpagewitha"Buy"button. Theprimarypurposeistotestabusinessideaatminimalcosttofindaresponsefromthetargetaudienceanddeterminefurtheriterationstoenhancethevaluedevelopment.  ThevarietyofinterpretationshascreatedseveralalternativesfortheMVPapproach.Let'stakealookatthem. TheExistingAlternativesToAnMVPApproach Asthestartupcommunityevolves,theterm"MVP"takesonnewshapesanddefinitions.  SomedefineanMVPas"thefirstversionofaproduct,"othersas"astripped-downversionofaproduct,"whileothersdenytheideaofanMVPaltogetheranddevelop"afull-scalebutsimpleproduct.” Ithappensduetoincreasedcustomerexpectationsbasedontheproliferationandadaptationofcomplextechnologiesandtechnology-basedproducts. Sowhatquestionshavethestartupmarketpreparedtoanswer? •MinimumLovableProduct "Minimumlovableproduct"isatermcoinedbyBriandeHaaff,founderoftheroadmapsoftwareAha!  WhilemanycompaniescreateMVPstogetaproductupandrunningquicklywithbasicfunctionality,fewconsideritcanleavecustomersfrustratedandcausethemtolookforalternativesolutions. TheMLPisaboutcreatingenoughfunctionalitysothatcustomerswilladoretheproductimmediatelyafterlaunch,notjusttolerateit. Theobviousdisadvantagesaretheunnecessaryincreaseinthecostofdevelopment.Butit'sworthnotingrightawaythatdevelopmenttoolsalsoallowyoutocreateaconvenientandattractiveproductoutofthebox. •MinimumMarketableProduct "Minimummarketableproduct"isatermcoinedbyMarkDenneandJaneCleland-Huangintheir2003bookSoftwarebyNumbers. AnMMPapproachisaboutcreatingaminimumsetoffeaturestotestafeasiblebusinessmodelformarketing. So,MMPbringstogetherminimumviableandloveableproducts.StartingwithanMMPimpliesthatyou’vealreadyestablishedyourtargetusersandmarketandyouhaveasolidunderstandingoftheproblemyou’retryingtosolvewithaproduct. Thealternativeslistedabovearealsoquitestudiedandwell-knownmodels.Iproposetotalkaboutnot-so-obviouswaystofindandtestbusinesshypotheses,whichcancompetewiththeMVP,MLPandMMP. TheNewAlternativesToAnMVP,MLPOrMMPApproach Theleanstartupapproachisbasedoninteractionwiththeend-users:thefamousbuild-measure-learnfeedbackloop. TheMVPanditscounterpartswerecreatedastoolstoimplementthisframework.Ontheotherhand,therearenew,originalsolutionsforvalidatingthebusinessideaandstartupmodel. •MinimumCatchyOffer Aminimumcatchyofferisanalternativetoaminimumviableproduct.When“product”meanssomethingcomplex,therequestisaboutsomethingquick,clearandunderstandable. ​​Aminimumcatchyoffercanbeonesentence.RememberTravisKalanick'sphraseaboutUber:"Youpushabutton,andinfiveminutes,aMercedesS-ClassorTownCarcomesandpicksyouupandtakesyouwhereyouwanttogo." ThisapproachisanexcellentexampleifyouarefacedwithwhetherornottoinvestindevelopinganMVP. •BlackHoleStrategy Theblackholestrategyisoppositetotheblueoceanstrategy.Theblueoceanstrategyisaboutfindinganewmarketandcreatingnewdemand.  Incontrast,thestrategyoftheblackholeisaboutfindinghiddenopportunitiestochangebehavioralpatternsofpeoplewhoareusedtodoingthingsinaparticularwayornotdoingthematall.Let’sconsideranexample. AccordingtothelatestStackOverflowresearch,alargepercentageofdeveloperslearnedtocodeontheirown,andonlyabout40%citedonlinecoursesasthelearningmethod.Whatwillbethemostprominenteducationalplatform?Theonethatwillstopsellingonlinecoursesandmakeaplatformthathelpsself-education. •LeanInvestor Thekeytothismodelistofirstattractaninvestor. Ifyoucannotattractaninvestor,whywastetimeandmoneyonsuchaproject?  Asyoucansee,thestartupworldisfullofbothestablishedandnewwaystocreatethenextbillion-dollarstartup.Thetruthis,therearenorules.Butbyapplyingatleastsomeoftherules,youcanaccelerateyourentrepreneurialspirit. YECEditorialStandardsPrintReprints&Permissions

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