A Minimum Viable Product (MVP) is a strategic approach to developing and launching new products with the least functionality required to address a specific user need. By releasing an MVP, companies aim to test assumptions, validate market demand, and gain feedback without investing heavily in a fully realised product. This concept has been widely adopted in product development, allowing teams to quickly test hypotheses, save on costs, and iterate based on real user data.

History and Evolution of the MVP

The concept of the MVP dates back to 2001 when Frank Robinson, a technology CEO, introduced it as a way to bring products to market quickly without overcommitting resources. Robinson envisioned the MVP as a “sound launching pad” — a miniature, viable product version that could evolve. In the 2010s, the MVP gained popularity with the rise of lean startups, largely due to the work of Eric Reis and Steve Blank. They defined MVP as a central component of the lean startup methodology, which prioritises iterative development, experimentation, and customer feedback over extensive pre-launch planning.

This lean approach shifted from traditional development models, often requiring substantial investments and long timelines before reaching customers. Instead, MVP allows businesses to test viability quickly, reducing the risk of spending resources on a product without market demand.

The Key Principles of Building an MVP

An MVP is typically designed by following a streamlined development process, which involves these critical steps:

1. Identify and evaluate the problem: Define the problem your product will address and ensure it's meaningful to your target market.

2. Analyse the competition: Understand what similar solutions are available and identify opportunities for differentiation.

3. Define the user flow: Outline the simplest way a user will interact with the product to solve their problem.

4. Prioritise the minimum set of features: Select the essential features that will allow users to understand the product’s purpose and value.

5. Build, test, and learn: Develop the MVP, test it with early adopters, gather feedback, and iterate accordingly.

Advantages and Disadvantages of the MVP Approach

While an MVP approach offers numerous benefits, there are also potential downsides that need consideration.

Advantages:

• Lower investment: By focusing only on essential features, companies minimise the initial time and cost investment, allowing for more flexibility to pivot or refine the product.

• Faster time-to-market: MVPs enable companies to launch quickly, gaining a competitive edge by establishing a presence in the market early.

• Market validation: Rapid testing with real users provides early validation, ensuring the product addresses a genuine need.

• Iteration: MVPs encourage fast development cycles and the ability to incorporate user feedback into future iterations.

• Early feedback: Initial user feedback helps shape product improvements and validate the product-market fit.

Disadvantages:

• Insufficient investment: Building only the “minimum” can result in an incomplete product that fails to effectively solve customer pain points.

• Risk of unmet expectations: Competitors might seize the opportunity if the MVP doesn’t meet customers’ basic expectations.

• Feature limitations: Too few features can limit the ability to test whether the product solves the intended problem.

• Iterative challenges: Rapid iterations can lead to an inconsistent user experience if not managed carefully.

• Feedback overload: Teams may become overwhelmed by feedback, diverting focus from core product development.

MVP in Modern Product Development

While the MVP approach remains popular, there’s growing awareness of its limitations, especially in competitive markets where users expect more than just a basic product. Many teams are moving beyond the MVP model to embrace the concept of the Minimum Lovable Product (MLP) — a version of the product that not only addresses the core user problem but also delights and engages users. The MLP aims to balance functionality with an appealing user experience, enhancing customer satisfaction from the start.

Moving from MVP to MLP

While MVPs are adequate for testing viability, businesses seeking lasting customer relationships increasingly focus on building lovable products. An MLP approach prioritises function, usability, design, and an emotional connection with users. This approach can be precious for businesses aiming to win market share and create loyal customers.

At Squad AI, we recognise the importance of balancing function with delight. Using insights from our product strategy tools, we help teams explore opportunity solution trees to align product development with business goals and customer needs. Through data-driven decision-making, teams can focus on building products that meet the market’s needs and inspire customer loyalty.

By using Squad AI, companies can better understand how to transition from a viable product to one that users genuinely love, capturing both market relevance and a competitive edge.