How MVP Reduces the Risks and Costs of Software Product Development

Whether your software development will be successful depends on several factors, but the strategy you choose will undoubtedly put you on the right or wrong track. The MVP is a useful strategy for software development, as it helps to greatly increase the chances of product success, in addition to reducing investment costs.

The MVP or Minimum Viable Product is a strategy designed for startups that has become popular in the world of software development, as its application has had great success stories such as Dropbox, Amazon, Airbnb, and many more. 

Here’s what it means, how it works, how this approach can help you save time and money, and what you need to start building your MVP.

What is the MVP

The Minimum Viable Product (MVP) is the creation of a simple version of the product you want to launch to the market. The intention is to have a pilot product that has the minimum functionalities to satisfy your customers’ needs and to communicate your value proposition, without developing your software in detail. 

The idea is to avoid the risks of classic business strategies, in which a lot of time and money is spent in developing the perfect product, trying to guess market reaction. On the contrary, an MVP seeks to shorten development cycles and focus on customer needs and development rather than on the product. 

How This Approach Works

Launching your product or software to the market in a Minimum Viable Product version allows you to test your concept, see how users react to it, and get their feedback to know what you can improve. This will allow you to implement a much more effective business model, investing less time and resources. 

The main objective of the MVP is to get the product to market as quickly as possible to gain position and recognition, while your product and marketing strategy are still under development. To say it simply, is like merging market research with the final product launch to save time and money. 

This strategy views the completion of a product as a continuous process, so you can know in advance if your product is of interest in the market, and what you could change in it to increase its acceptance. 

Benefits of MVP in Product Development

• Test the effectiveness and demand for your product
• Reduce implementation costs
• Obtain feedback from customers to improve your product by analyzing their behaviors and preferences.
• Optimize and grow your customer base
• Improve your product and its market position

3 Key Steps to Make a Succesful Minimum Viable Product 

1. Determine if the product you are going to launch is both minimal and viable

The first thing to do is to determine what is the minimum your product needs without losing the ability to help your potential customers. If your MVP does not solve your target audience’s problem, you will not be able to measure its performance and, therefore, you will not be able to test its market acceptance or improve it. 

2. Define your metrics 

Before launching your MVP, you have to establish which metrics you will use to measure your product in the market and its results: conversion, affiliation, transactions, commission, downloads, score on download sites, user analytics, traffic, etc. 

The metrics you choose have to be according to your product and your area of opportunity. Choose those that will provide you with the most information possible about your customer’s relationship with your product.  

3. Find your Early Adopters

The term early adopters refers to those first customers who will try your product, and who will help you make the necessary adjustments before expanding your market. These customers are people who have a problem or need that your product can solve immediately, which makes the consumer overlook your product’s flaws and be willing to help you improve it.

Remember that…

Your product must always be open to change. Customers do not have fixed needs, they are constantly changing and therefore a successful product adapts better and faster to those needs. In the world of software development, this happens even faster, which is why MVP is a great strategy for this market. 

Successful software development is a continuous process of adaptation and improvement, but an MVP will certainly point your strategy in the right direction.

If you need help developing your MVP, contact us! We can help you get the most out of this strategy.

Andrii Sydoruk CEO, Managing Partner at SmartTek Solutions