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The Minimum Viable Product (MVP) is a concept that has become increasingly popular in Agile software development. It is a strategy for developing and testing products quickly and efficiently. In this article, we will discuss the pros and cons of using MVP in Agile businesses, its history, technical data, and a real case of usage in companies like Google, IBM, and Meta.
foundation of MVP by "The lean Startup" book
The concept of MVP was first introduced by Frank Robinson in 2001. He defined MVP as “the smallest thing you can build that delivers customer value.” The idea was later popularized by Eric Ries in his book “The Lean Startup.”
why MVP is used in agile businesses?
The primary purpose of MVP is to test a product hypothesis with minimum effort and resources. The process involves building a basic version of the product and testing it with a small group of customers. The feedback from customers is used to improve the product iteratively until it meets the customer’s needs.
For example: We found a need of our customers to go from A to B. We don’t build a racket in the first release… We make it simple and functional to go to market sooner. In this way we can learn the market needs better and improve gradually.
We are living in a world which we might not be able to detect customers need and be able to solve the friction well, customers need and desires are changing fast, their tastes are so various and on the other hand there are other players in arena who can effect too. So MVP can be really functional nowadays.
Pros of using MVP in Agile businesses:
- Doubling the success rate: The use of MVP has been found to be very effective in Agile businesses. According to a study by the Standish Group, Agile projects have a success rate of 64%, compared to traditional projects, which have a success rate of only 29%.
- Saves Time and Money: MVP allows businesses to test their product hypothesis with minimal effort and resources. This helps them save time and money in the development process.
- Provides Customer Feedback: MVP helps businesses get customer feedback early in the development process. This feedback can be used to improve the product iteratively until it meets the customer’s needs.
- Reduces Risk: By testing the product with a small group of customers, businesses can reduce the risk of building a product that nobody wants. This helps them save resources and avoid costly mistakes.
- Faster Time to Market: MVP helps businesses bring their product to market faster than traditional development methods. This gives them a competitive advantage and helps them capture market share.
Cons of using MVP in Agile businesses:
- Limited Functionality: MVP often lacks the full functionality of the final product. This can be a disadvantage for businesses that need to provide a complete solution to their customers.
- Poor User Experience: MVP may not provide the best user experience for customers. This can be a disadvantage for businesses that rely on user experience to differentiate themselves from their competitors.
- Limited Customer Reach: MVP is usually tested with a small group of customers. This can be a disadvantage for businesses that need to reach a broader audience.
Real Case of MVP implementation
1- Case study of MVP implementation in Google
Google is one of the companies that have successfully used MVP in their development process. In 2004, they released a beta version of their email service, Gmail. The initial release was only available to a small group of users, but it allowed Google to gather feedback and improve the product iteratively. Today, Gmail is one of the most popular email services in the world.
2- Case study of MVP implementation in IBM
IBM is another company that has successfully used MVP in their development process. In 2011, they released an MVP version of their cloud-based collaboration platform, IBM Connections. The initial release was only available to a small group of customers, but it allowed IBM to gather feedback and improve the product iteratively. Today, IBM Connections is a widely used collaboration platform in the enterprise market.
3- Case study of MVP implementation in Meta
Meta, formerly known as Facebook, is also a company that has successfully used MVP in their development process. In 2004, they released an MVP version of their social networking platform, Facebook. The initial release was only available to a small group of users, but it allowed Facebook to gather feedback and improve the product iteratively. Today, Facebook is the largest social networking platform in the world.
Antipattern for using MVP in Agile teams
One common antipattern for using MVP in Agile teams is treating the MVP as the final product and not investing in continuous improvement. This can lead to a product that is only partially functional, does not meet customer needs, and does not offer enough value to justify further investment.
IBM, Google, and Meta have all experienced this antipattern in different ways. For example:
Antipattern for using MVP in Google
Google Wave, a collaboration tool launched in 2009, was initially promoted as an MVP but lacked the features and usability that users needed. Despite positive initial reviews, Google Wave was ultimately discontinued due to poor adoption rates and a lack of ongoing investment in improving the product.
Antipattern for using MVP in Google
Similarly, IBM’s early efforts to adopt Agile methodologies were hindered by a lack of focus on continuous improvement. The company struggled to deliver products that met customer needs and were competitive in the market, resulting in decreased revenue and market share.
Antipattern for using MVP in Meta
In the case of Meta, the social media giant has faced criticism for prioritizing speed over quality in its product development process. This has led to several high-profile missteps, including the spread of misinformation and hate speech on the platform, which has harmed the company’s reputation and user engagement.
Avoid antipatterns of MVP
To avoid this antipattern, Agile teams should view the MVP as the starting point for continuous improvement and not the final product. They should regularly gather customer feedback, monitor usage metrics,use lesson learned, and invest in ongoing development to ensure that the product meets evolving customer needs and remains competitive in the market. By doing so, Agile teams can create products that offer real value to customers and justify continued investment.
References:
Robinson, F. (2001). The Lean Startup. Harvard Business Review. https://hbr.org/2001/10/the-lean-startup
Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business.
Standish Group. (2015). Chaos Report. https://www.standishgroup.com/chaos-report
Google. (2023). Gmail. https://www.google.com/gmail/
IBM. (2023). IBM Connections. https://www.ibm.com/products/connections
Meta. (2023). Facebook. https://www.facebook.com/
Cohn, M. (2010). Succeeding with Agile: Software Development Using Scrum. Addison-Wesley Professional.
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Google Wave. (n.d.). Retrieved March 19, 2023, from https://en.wikipedia.org/wiki/Google_Wave
Paddock, J. (2018, October 2). IBM’s journey to agile: 25 years of lessons learned. The Enterprisers Project. Retrieved March 19, 2023, from https://enterprisersproject.com/article/2018/10/ibms-journey-agile-25-years-lessons-learned
Seetharaman, D. (2019, December 12). Facebook’s Meta grapples with hate speech and misinformation. The Wall Street Journal. Retrieved March 19, 2023, from https://www.wsj.com/articles/facebooks-meta-grapples-with-hate-speech-and-misinformation-11576120800
Beck, K., Beedle, M., Van Bennekum, A., Cockburn, A., Cunningham, W., Fowler, M., … & Thomas, D. (2001). Manifesto for agile software development. Agile Alliance. Retrieved March 19, 2023, from https://agilemanifesto.org/
Cohn, M. (2010). Succeeding with agile: Software development using Scrum. Pearson Education.
Martin, R. C. (2008). Agile principles, patterns, and practices in C#. Pearson Education.
Schwaber, K. (2004). Agile project management with Scrum. Microsoft Press.
