michaela-damm.jpg
blocshop
January 31, 2021
0 min read

Minimum Viable Products examples and how to implement them

Minimum Viable Products examples and how to implement them.png

What’s a Minimum Viable Product?

Minimum viable products (MVPs) are small, working increments of the new product or service a business wants to provide, and they are helpful when studying the market. It’s the most basic, yet still functioning, action that can show the customer what the product or service is offering. An MVP is minimal, meaning there are no extra features, and it’s viable, which means it can work as is. That’s a simple explanation, but the concept goes much deeper than that. There are a lot of things to plan and think about before you implement these methods into your business model. MVP is also a part of the project planning when estimating software budget.

4 things to consider for your MVP:

  • Value proposition - What are you offering the customer? How will this thing improve or ease their lives, or what problem will it solve?

  • Target market - This is a specific group of people the business wants to engage with and get feedback from. What is the ideal customer like? What do they have in common with each other?

  • Channel - How the target market will be reached. Does the ideal customer get most of their information from TV, or the Internet? What marketing styles test well with that demographic?

  • Customer relationship - To receive feedback on the MVP, the business must somehow stay in contact with the customer. It can be through subscriptions, donations, or many other methods.

For something to be a minimum viable product, it must go through a least one rotation of the build-measure-learn cycle. The primary function of an MVP is to gauge the potential success of the new idea, before launching into full-scale development. It is risky to start a new venture without testing it first.

What is the importance of an MVP?

The value of a minimum viable product lies in the data you receive from the ‘experiment’. The data is not based on conjecture, or statistics, it is instead based on observed behavior and real figures. An MVP’s purpose is to answer the most important questions about your business model, using the least amount of work and resources.

Key Attributes and Benefits of a Minimum Viable Product

  • Cheap (relatively) - It is unwise to pour a lot of money into a test product. You’re aiming for something lean and functional. Leave the luxury features out for now.

  • No waste - No waste of materials, time, or labor. It should be efficiently created.

  • Meets a market need - How many useless things do we have in the world nowadays? If no one needs it, no one will buy it.

  • Provides information - Perhaps the most important aspect in an MVP, you want to learn as much as you can about how it will fair when it’s fully developed.

  • Expands user base - Having a new idea out on the market can bring new users to your platform.

  • Possibility for future investors - Investors love to see what they’re putting their money into.

Examples of MVPs

Landing pages

This type of minimum viable product has a webpage that performs only the basic functions you want to test. Customers enter the landing page and then engage with it in a few ways. They could either place an order, sign up for updates, or something else.

Facebook started off as Thefacebook back in 2004 and was only a website for Harvard students to connect with others. Now it’s a company worth billions, with users worldwide.

Demonstration videos

An excellent way to generate interest is to create a video outlining what you're selling in a step-by-step format. This is great because you don’t need to provide an actual product.

Dropbox released a demonstration video before they even had a product to sell. As a result, they saved big on their budget and validated their business plan. They are one of the most successful users of a video MVP to date.

Design examples

These can be any display of design, such as blueprints, sketches, or mock-ups. It’s a simple software with equally simple functions. Over time, new features can be added and improved upon.

Etsy, a website for crafty people to sell their creations, started off with a lean, bare-bones website that allowed people to register, and sell their goods. Over time the design and features were improved, but the basic features of the website drew people in at the beginning.

Crowd-funding

Crowd-funding has skyrocketed in popularity through websites such as Kickstarter and IndieGoGo. The idea is simple: create a campaign using video, or other demonstration, and people can donate money to your project for development if it interests them.

Fidget Cube, a handheld anxiety-relieving device, received $6.4m in funding from Kickstarter, making it one of the most successful crowd-funding campaigns ever. Their original goal was $15k!

Concierge test

As the name suggests, this kind of MVP is a service that caters to the customer using a personal service. To test how the service would work, a human provides the service to the customer themselves, instead of using the software.

Amazon is a good example of this service that became incredibly successful. Jeff Bezos started out by placing books for sale on his website, and when customers placed an order, he bought the book himself and shipped it to the buyer.

Piecemeal

This kind of MVP uses functions and software that already exist elsewhere in your business infrastructure. By combining them in a different way, and adding a few new things, you can create a completely different user experience.

Uber, the multinational ride-sharing app, used this method to create UberEats, where customers can order food from their favorite restaurants to be delivered right to their door.

Wizard of Oz/Manual-first

Less whimsical than it sounds, a Wizard of Oz MVP is one that gives the appearance of a finished website or app, but in reality, it’s just a small team of people working behind the scenes. This type of MVP is similar to the concierge type because they both have a human doing the work.

The most popular example of this method is Zappos, an online shoe company. The creator, Nick Swinmurn, took pictures of shoes and posted them online to see if people would buy them. Thankfully, they did, and now Zappos provides an online shoe store to millions.

Software prototypes

A software prototype is a basic, functioning application that can be used. The prototype is only made up of the core functions, and other basic features. Prototypes and MVPs are similar, but MVPs focus on a larger audience than traditional prototypes.

Spotify started out by having a closed beta test, meaning it wasn’t open to the public. Once their business model proved to be a hit in the beta phase, they moved forward to launch. Now Spotify has over 130 million subscribers.

How to Implement an MVP

Your minimum viable product will look different than someone else’s, but there are some steps that you can follow, no matter what your goal is. To increase your chances of success, you should plan your business model thoroughly and carefully.

1. Market Research and Finish MVP Design

Close examination of the market is crucial to your venture. Is this needed? Is it going to be better than similar products or services? What sets your company apart from all the others who are doing the same thing? These questions and many more have to be answered.

A helpful strategy to use when finalizing your MVP is the Business Canvas Model, which is an outline of all the major components you should consider. It includes things such as key resources, activities, and partners; delivery channels, cost structure, and potential revenue streams.

2. Focus on Functionality and Basic Features

A good MVP does not contain all the benefits and features a finished product will have. You must decide what are the most important aspects to include in the MVP, and ideally, they’re the ones that will give you the most information about the market.

3. Build-Measure-Learn

Success doesn’t happen overnight. There is a lot of trial and error that goes into creating a flourishing business, and MVP creation is no different. This cycle is straightforward: build the MVP, measure the data through customer feedback, and then draw conclusions based on the results. Learn as much as you can from your MVPs, and use that knowledge to improve the next time.

Are you having trouble making a budget for your next MVP? Blocshop can help! Check out our step-by-step tips for how to allocate your software budget here. To learn more about the process that we'll use to estimate the price of your project read the software development cost article. We can help bring your MVP to life, as well as create custom software for your ongoing projects.


Learn more from our insights

DALL·E 2024-05-22 20.55.08 - A detailed and high-quality DSLR photo of a person using a laptop to shop online, showing personalized product recommendations on the screen. The back.webp
May 16, 2024

Key AI Trends in E-commerce and Overview of AI integrations for E-commerce Platforms in 2024

Transform your e-commerce platform with AI tools for personalization, analytics, chatbots, search, and fraud detection. Boost sales and improve customer experiences.

eIDAS mark.png
May 09, 2024

Digital Identity and Payment Services in the EU in 2024: Key Updates

eIDAS 2.0 and PSD3 are set to enhance how digital identities and payment services are managed across the European Union in 2024. Here’s an overview of how each framework contributes to the digital landscape of the EU, what to expect, and how to prepare.

eIDAS 2 in fintech and open banking EU market.png
May 06, 2024

What is eIDAS 2.0 and EU Digital Identity Wallet and how will it change the EU digital market

Learn how eIDAS 2.0 and the EU Digital Identity Wallet will transform digital transactions and identity management across the European Union.

best large language models for ERP systems.png
March 31, 2024

Language Models Best Suited for Integration into ERPs

Four prominent large language models stand out for their compatibility and effectiveness in ERP system processes and automation. See what they are.

PSD3 in open banking Blocshop.png
April 23, 2024

PSD2 vs. PSD3: The Evolution of Payment Services Regulation

What is PSD3 in open banking? See how PSD3 compares to PSD2 and what should banks and fintech businesses do to ensure regulatory compliance in the EU market.

roro665_hands_working_with_a_laptop_in_a_modern_office_there_is_20dca307-c993-4539-99d7-fd5ca264248c.png
April 14, 2024

Enhancing ERP Systems with AI Chatbots

Explore how AI chatbots can transform ERP systems, enhancing efficiency, decision-making, and user interaction.

eIDAS in fintech and open banking EU market.png
April 29, 2024

eIDAS: The regulation helping secure Europe's digital future

See how eIDAS enhances EU digital transactions with secure identity verification, supporting e-commerce and public services across Europe.

hybrid ERPs.png
March 21, 2024

Hybrid ERP: An Innovative Approach to Enterprise Resource Planning

Hybrid ERP is a blend of cloud and on-premise solutions. With expertise in both, Blocshop is uniquely positioned to help you with hybrid ERP development and implementation.

0-4 cover.png
October 03, 2023

IT Staffing: Individual Hiring vs. Specialized Developer Teams

Should you hire individual developers or go for a specialized, custom-built developer team?

chatgpt-35-limitations.jpg
July 17, 2023

ChatGPT-3.5: An Overview and Limitations

In this article, we'll take a closer look at the capabilities and limitations of ChatGPT-3.5, providing you with a comprehensive overview of what it can do and what its boundaries are. So, let's delve into the inner workings of this large language model.

gpt4 vs gpt3-5 and the key differnces.png
June 15, 2023

A Deep Dive into GPT-4 vs GPT-3.5 Differences and Ability to Revolutionize Software Development

There are key differences between ChatGPT-3.5 and ChatGPT-4 that software developers and companies procuring software solutions alike should be aware of. Let's see how these differences affect the output generated by these models on specific examples.

ai-development-cto-2023.jpg
May 09, 2023

AI-powered software development: What CTOs need to know in 2023

As technology continues to evolve at a rapid pace in 2023 and beyond, CTOs must stay ahead of the curve by utilizing predictive analytics, automated testing processes, and deployment solutions.

ai-web-development.jpg
May 05, 2023

How Artificial Intelligence is changing web development

AI technology is now being used in many different industries, including web development. It’s important to understand the impact that AI can have on web development as it can help companies to create more efficient and user-friendly websites.

cto-ai-software-development.jpg
May 05, 2023

How AI-powered software development is changing the role of the CTO

As AI-powered software development becomes increasingly commonplace, CTOs must prepare themselves to take on a new set of responsibilities that require more than just technical know-how.

build-mvp.jpg
April 17, 2023

How to build a minimum viable product (MVP)

The MVP is the version of a new product that allows Blocshop and your team to collect the maximum amount of validated learning about customers with the least amount of effort. The essence of your core idea is delivered as a barebones solution. The solutions is, however, sufficient for usage by early adopters. As a product, it has tangible qulities that express a look and feel.

ai-tools-developers.png
March 21, 2023

10 AI tools for developers you should know about in 2023

For developers, programmers, and data scientists, AI coding solutions can free up thinking time, allowing such professionals to focus on the fundamentals of their projects, and complete such projects much faster.

web-app-ideas.png
February 14, 2023

17 Ideas for Web Apps in 2023

Gazillions of web apps and ideas for web apps are floating around the metaverse - so creating one that properly represents a unique brand is a huge challenge. Our list provides a number of areas of simple app ideas to help businesses transform their online presence through a web app.

Top 15 micro-SaaS ideas for your startup in 2023.png
December 06, 2021

Top 15 micro-SaaS ideas for your startup in 2022

What exactly do we mean by micro SaaS? Micro Saas solutions use a web browser or mobile app interface. Micro SaaS solutions usually come about through the effort of an individual or very small team. It aims to solve precise problems. Micro SaaS projects have small budgets and overhead. Customers use Micro SaaS solutions on a monthly or yearly subscription basis. Micro SaaS projects target a small niche of the consumer market.

Software engineer hourly rates in 2021 (based on experience and location).png
November 22, 2021

Software engineer hourly rates in 2022 (based on experience and location)

Region influences salary more than any other factor. Taxes rates, cost of living, and government benefit programs affect the rates software developers charge. Software developers in the USA  and Canada earn more than software developers in other countries.

The best programming languages for app development in 2022.png
November 15, 2021

The best programming languages for app development in 2022

Software developers usually have three main ways to create an app. They can choose to code a native app, a hybrid app or a progressive web app. Developers create native apps to function on one specific platform, usually either iOS or Android. They create these apps using Swift or Objective C for iOS. For Android they use C++, Kotlin or several other languages.