What is MVP in software development, and what does it mean for business?

Creating a mobile / web application or website, especially an extensive one, which will be successful among users, is a real challenge. A project requiring time and experience is always burdened with the risk of failure. We explain how MVP, the subject we present in this article, helps produce valuable software.

What is MVP (Minimum Viable Product)?

MVP is an acronym for the English Minimum Viable Product, which means a minimally profitable product. This term refers to an approach that defines the scope of presentation to early adopters of a given product already at the development stage in its first form. Although it’s a basic version, it has enough functionalities to meet the needs of potential customers and allows them to test it.

The idea of ​​the Minimum Viable Product was popularized in the book published in 2011, The Lean Startup, by Eric Ries. According to his definition, MVP is a version of a new product that allows you to gain valuable knowledge about the customer with minimal effort.

MVP is part of the methodology, the assumption of which is to optimize business processes and reduce the waste of resources (time and money).

MVP in the software development process

The software development industry uses MVP to create mobile applications, web applications, websites, landing pages, and other products based on the software development process. Facebook, Airbnb, Amazon, and Dropbox – are just a few examples of companies that started their presence on the market in the MVP model.

MVP is an essential element of the software development process, which allows you to test the product early to make the necessary corrections before the actual release of the final version with all planned features.

How to build an MVP? Step by step

In IT, Minimum Viable Product allows you to release a product quickly, collect user feedback, and efficiently respond to their suggestions. Subsequent iterations of the software take into account the necessary corrections. The versions of the application or website improved thanks to MVP are based on valuable data from the users themselves.

The MVP process consists of the following:

• identifying the user of a given product,
• competition research,
• indication of functions that are most important to the user,
• MVP development – creating a test version of the software,
• accepting feedback and implementing corrections,
• creating subsequent, improved versions of the software.

The importance of MVP for business

Many entrepreneurs make one fundamental mistake at the beginning of work on a product. It creates overly complex versions of this product and delays its presentation to users until all functionalities are completed. It consumes much work and has yet to guarantee success among potential users. In case of a failure, you should consider the loss of time and costs. MVP allows you to avoid a situation where a product for which no demand reaches the market.

The way to avoid such a situation is to implement MVP based on testing products with minimum necessary functionalities. Minimum Viable Product also facilitates the introduction of changes in the software and reduces the cost of subsequent versions.

Building an MVP is also a way to attract the attention of investors. A functioning product at an early stage of development may be interesting enough for them to decide to support the project financially.

MVP helps us to:

• validate the idea more accurately,
• bring your product to market faster,
• better understand the target group,
• more efficiently identify problems and remove them,
• save time and money,
• create more refined products.

Up to 80% of projects in the software development industry are abandoned. Thus, developing MVP to validate the project and adjust it to users’ needs at its early stage.