Mastering MVPs, MBIs, and MVRs: Delivering Value and Learning Through Iteration

Minimum Viable Product (MVP)

A Minimum Viable Product (MVP) is a scaled-down version of your product that delivers core value to users. The primary goal is to learn what to build or improve next, then iterate based on the feedback received.

• MVP Defined
  An MVP is the simplest functional product built to learn from early adopters. For example, Dropbox initially launched with just a video explaining its concept to gauge interest before fully developing the product.

• Quick Delivery of Key Features
  Focus on delivering the smallest, fastest-to-develop product features that will delight customers and allow you to collect valuable feedback. For instance, Instagram started as a simple photo-sharing app before expanding its features.

• Value Proposition
  An MVP should be good enough that users find it worth paying for, ensuring you earn while you learn. Airbnb began by offering a simple platform for renting air mattresses in a living room.

• Selective Release
  An MVP might not be released to everyone and may not be viable for existing customers who expect a fully-featured product.

• Commitment to Iteration
  Building an MVP requires a commitment to continuous iteration based on user feedback.

• Delivering Customer Value
  Despite its simplicity, an MVP must deliver real value to your customers.

Minimum Business Increment (MBI)

When working on an existing product with established users, the minimum product improvement is an MBI.

• Adding Customer Value
  A good MBI adds value to your customers and helps you validate new functionality. For example, adding a new feature to Slack that improves team collaboration.

• Improving Internal Processes
  MBIs can also enhance internal processes or tools, including everything that delivers value such as documentation, support, or marketing.

Minimum Viable Replacement (MVR)

An MVR is the minimum product that enables customers to migrate from a legacy product to a new one.

• Legacy Product Competition
  Allow your legacy product to compete with your MVR. For example, Microsoft transitioned users from Office 2010 to Office 365 by introducing key features incrementally.

• Avoiding Feature Parity Trap
  Don’t fall into the trap of ensuring your new product has all the functionality of the product you’re replacing. Instead, ensure your MVR delivers value beyond what the legacy product could.

MVP Pitfalls

• Sales Pressure
  Sales teams may want the product now, pushing for an early release.

• Premature Marketing
  Marketing teams might promote the MVP to customers before it’s ready for the market.

• Scope Creep
  Expanding the scope beyond the MVP’s initial focus can dilute its effectiveness.

• Customer Disappointment
  Customers may feel deceived if the MVP lacks features they’ve been requesting.

Mitigation Strategies

• Early Validation
  Ask customers to validate concepts early in the product development cycle. Show them pretotypes or prototypes to test the MVP’s value.

• Setting Expectations
  Label the MVP as a "Beta" or "Tech Preview" to set realistic expectations for users.

• Prioritization
  Prioritize the most important features to ensure the MVP delivers key value.

• Early-Adopter Program
  Set up an early-adopter program to gather feedback from a dedicated user group.

• Transparent Communication
  Communicate clearly with stakeholders and customers about the MVP’s purpose and progress.

By understanding and applying these principles, you can effectively use MVPs, MBIs, and MVRs to iterate, learn, and deliver continuous value to your users.