The concept of a minimum viable product (MVP) in software development was created and popularized over two decades ago. Nonetheless, many technopreneurs ignore this highly effective approach to IT product design and implementation. The outcomes? 63% of technology startups go belly up, with a quarter failing within the first year of operation.
Among the key reasons for tech companies’ failures are a lack of product-market fit, limited funding, weak marketing, and technology roadblocks manifesting themselves late in the development process, to name a few. MVP software development significantly reduces the risks associated with a new product launch, especially in terms of budgeting and assessing market demand.
MVP software development significantly reduces the risks associated with a new product launch, especially in terms of budgeting and assessing market demand
With MVP software development services, you can quickly determine whether there is a market for your product, adjust its functionality in response to user feedback, and gain traction before approaching investors. Going MVP-first is especially important when developing an innovative product, such as a custom IoT solution, because of the multiple software and hardware integrations, inherent complexity, and rapid evolution of the Internet of Things ecosystem.
So, what is an MVP in software development, and what is it not? How do MVPs differ from a proof of concept (PoC) and prototypes? What are the benefits of an MVP? And how do you create a minimum viable product version of your product in a risk-free way?
This guide from Expanice has got you covered!
Table of Contents
- MVP in Software Development: Cutting Through the Fog
- MVP vs. Proof of Concept vs. Prototype vs. Market-Ready Product
- Why Create an MVP?
- How to Create an MVP: Tips from Expanice
- Sail Through MVP Software Development with Expanice
MVP in Software Development: Cutting Through the Fog
An MVP is an early version of a technology solution that only includes the features required to solve a core problem. It is released into the market to see if the product meets a specific need and gather feedback for future improvements.
An MVP is an early version of a technology solution that only includes the features required to solve a core problem. It is released into the market to see if the product meets a specific need and gather feedback for future improvements.
Consider a smart home solution that enables users to control lighting via a mobile app. Its MVP could focus on basic functionality, such as turning lights on and off remotely with a mobile app. Once validated, more advanced features like dimming, voice control, and integration with other smart home devices can be added in subsequent iterations.
Using this MVP example, we could define the key characteristics of a minimum viable product in software development:
- Limited functionality. An MVP only includes the most critical features that users require. For example, early versions of Tinder lacked the now-famous swipe functionality. Instead, the application asked the single and looking people to click on a "heart" or "x" to indicate their interest or lack thereof. Similarly, Snapchat initially only allowed users to send photos that vanished after viewing—an innovative but limited feature set that paved the way for future product improvements.
- Practicality. An MVP must be able to solve a problem or fulfill a specific task. For instance, Tinder simplified the dating app signup process when other platforms required users to fill out long questionnaires. Tinder's signature swipe feature, albeit in limited form, was also a game changer, allowing users to quickly express interest (heart) or disinterest (x) with little effort. This gamified approach to dating was not something other apps offered at the time, making Tinder’s user experience faster, more intuitive, and appealing, especially to a younger, mobile-centric audience.
- Market readiness. MVP software development efforts result in a fully operational yet simple version of the product. Think of it as a plain donut without icing and decorations—it’s still enjoyable and serves its core purpose but can be enhanced in future iterations.
The infamous donut chart above perfectly demonstrates the difference between a prototype, MVP, and final product
MVP vs. Proof of Concept vs. Prototype vs. Market-Ready Product
Let us find out what distinguishes a proof of concept, prototype, MVP, and market-ready product.
Proof of Concept
A proof of concept is an internal project that evaluates whether an idea is technically feasible. It answers the question, "Can this concept be realized using the available technologies?" Returning to the smart lighting system MVP example from the previous section, a PoC for such a product could be created using readily available IoT development solutions like Arduino and Raspberry Pi. During the proof-of-concept phase, you would need to validate that a connected lighting fixture could interact with a mobile application and cloud infrastructure, as well as choose the most effective technologies for the task.
Prototype
A prototype is a visual, interactive model that depicts how users will interact with the product interface. It focuses on user experience and design rather than back-end logic. Prototypes created with tools such as Figma or Adobe XD are frequently used to collect user feedback and pitch concepts to investors. In the IoT realm, prototypes can also be functional, meaning beta users will actually be able to control the lights remotely with our fictional smart home product. To build the hardware prototype, you’ll use the same off-the-shelf IoT-enabling technologies as in the PoC stage.
MVP
An MVP is a fully functional product that helps assess market fit and clarify fundamental assumptions. Unlike prototypes, an MVP adds real value to users and generates feedback to help guide future development. MVP software development projects can employ both low-code and traditional software engineering tools. An MVP version of a smart lighting system, for example, could be built with Firebase, AWS IoT Core, Bubble.io, IoT development boards, and other tools that include preconfigured components. This way, you could accelerate your development activities while lowering project costs by up to 30%.
Finalized Product
A finalized product is a fully developed, polished version of a software solution or cyber-physical system that includes all of the intended features and optimizations. It has been thoroughly tested, refined based on user feedback, and scaled to accommodate the anticipated user base. As a result, the finished product is ready for widespread use and market expansion. Unlike MVP software development, which frequently relies on commercially available engineering tools, final product versions typically incorporate custom-built components; in the case of a smart lighting solution, these could include bespoke mobile applications written in Swift and Kotlin, a Go-powered back end, a properly configured cloud infrastructure, and custom hardware. The system’s feature set may be expanded to support integrations with third-party smart home devices, voice control, and the possibility to create schedules and scenes.
Why Create an MVP?
MVP software development is a sure-fire way to avoid scope creep, reduce initial product engineering costs, and create a product your target audience will love
We’ve already briefly discussed the benefits of building an MVP, such as reduced risks, the ability to test your assumptions early on, and weighing your product monetization options. Now, let’s discuss these and other MVP benefits in greater detail.
MVP Reduces Scope Creep
Scope creep, also known as feature creep, occurs when new product features and changes are added during the development process. This frequently leads to delays and higher costs. By focusing on essential features for the MVP, you avoid adding functionality that is not relevant to your product's core value proposition. Going back to the smart lighting system MVP example, such core value would be managing lighting remotely. Extra functionality, such as integration with voice assistants, is desirable but optional for the pilot version. By saving the fluff for later stages, your company can keep the project on track and within budget. For more information about scope creep in IoT projects, check out our guide on custom IoT product development.
MVP Helps Select the Right Monetization Approach
One of the most compelling reasons to create an MVP first is the ability to test various monetization strategies early on and select the one(s) that best align with user expectations and behavior. Whether you are considering one-time payments, subscriptions, freemium, or a pay-per-use model, an MVP will provide invaluable information about how users interact with your product and what they are willing to pay for. For our smart lighting system, the MVP could include basic control features for free, while premium features such as advanced scheduling and scene creation would require a paid plan. For more ideas, check out our IoT monetization article.
MVP Lowers Initial Product Engineering Costs
One of the primary benefits of an MVP is cost reduction. Instead of building a full-featured product from the outset, an MVP allows you to invest only in essential features. This way, you won’t spend money on functionality that users may not want or need. In IoT, going MVP first is vital because the implementation of new features may trigger changes in hardware design, and hardware is a lot more expensive to tweak than software components.
MVP Shortens Time to Market
Launching an MVP allows you to get your product in front of customers faster than developing a full version. Early market entry can provide a competitive advantage by allowing you to gather feedback, make changes, and build a user base before competitors release similar products. Depending on the complexity of your technology solution and the project management approach you use, MVP software development can reduce time to market by 30–50%.
MVP Contributes to a Better Final Product
If you want to make data-driven decisions about your product's future capabilities, create an MVP and collect usage data from your target audience. This iterative approach to product development ensures that you build a solution that users genuinely need instead of relying on assumptions, even if they’re based on market analytics and focus group research. For example, feedback from the smart lighting MVP could indicate that users prefer a scheduling feature over voice control. You can then prioritize this in the next development phase, ensuring that future updates are consistent with user preferences, ultimately leading to a better final product.
It is worth noting that MVP software development is frequently the best go-to-market strategy for startups because it allows you to demonstrate traction and generate revenue before seeking additional funding.
How to Create an MVP: Tips from Expanice
Now that you understand the role of MVP in software development, it’s time to wrap your head around MVP development best practices and start building your product
Expanice, a startup-focused software engineering firm, has assisted clients in launching a variety of technology solutions, ranging from a smart curtain system to a cutting-edge software suite for cryotherapy unit management. Frequently, we created those solutions as MVPs and helped our customers improve and scale the products as their business needs changed.
Drawing on our hands-on experience, we have created this step-by-step MVP software development strategy.
Step 1: Define the Problem You’re Aiming to Solve
Your MVP should address a specific problem that your target audience wants to solve. Consider the following when defining your product's value proposition:
- Who are your users, and what are their needs?
- How does your product address these needs?
- What value does your product deliver to users?
Conducting research is key to defining the problem your MVP will address. Use market research, customer interviews, focus groups, and online polls to gather insights into your users' pain points and preferences.
Step 2: Study the Competition
Before developing your MVP, analyze what your competitors are offering and how your solution can stand out. You should identify both direct competitors and substitute products and evaluate their strengths and weaknesses; for this, you could use the VRIO framework.
It is also a good idea to look into technology startup post-mortems or contact founders of failed startups to learn from their experiences. Many are willing to share what went wrong.
Step 3: Select Core Product Features
The fundamental principle of MVP in software development is to prioritize the critical features that provide your product's core value. For this, consider using methods such as MoSCoW or Kano. For example, if you are building a connected lighting system, the must-have features for your product could be:
- On/off control
- An intuitive mobile app interface
- Bluetooth and Wi-Fi connectivity
- Real-time status monitoring
- Brightness adjustments
Once you have defined the solution scope, it must remain consistent throughout the project. Any fluctuations, large or small, will inevitably extend the MVP software development deadlines and budget, both of which are critical for time- and cost-sensitive projects. Remember that all fancier features, such as integration with room occupancy sensors or self-learning schedule management capabilities, can be deferred until your company has established an initial audience and generated revenue.
Step 4: Prototype the Solution
Before beginning product development, create a prototype to map out the user flow and gather early feedback. You can use tools like Figma, Marvel App, or Adobe XD to create interactive, clickable prototypes that help you visualize how users will interact with the MVP. Hardware prototyping options include off-the-shelf sensors and IoT development boards.
Step 5: Create an MVP
Now it’s time to develop your MVP. There are two ways to handle the task:
- Low-code/no-code development: This method enables you to create an MVP from pre-built components and visual interfaces. Instruments like Retool, Bubble.io, and FlutterFlow enable you to create web or mobile apps quickly and affordably. However, keep in mind that even such intuitive platforms require some business analysis and basic technical skills to ensure the product works as intended, so we recommend that you seek professional low-code development services.
- Custom development: If your MVP requires more complex functionality and scalability, consider custom development. You can hire freelance developers or collaborate with an experienced software engineering firm that provides comprehensive services such as business analysis, design, and development. Platforms such as Clutch and GoodFirms can assist you in finding the ideal technical partner. For some projects, such as IoT development initiatives, you might end up contracting several vendors simultaneously. To make this arrangement work, check out our tips for distributed team management.
Step 6: Collect User Feedback and Iterate
After your MVP goes live, collect user feedback to identify areas for improvement and prioritize new features for future updates. You can collect feedback through in-app surveys, social media polls, and direct emails. Analytics tools like Google Analytics and Hotjar can also provide quantitative data on user behavior. Building effective feedback loops is critical for improving your product and building trust and loyalty among early adopters.
Sail Through MVP Software Development with Expanice
Building an MVP is an effective way to validate your idea in the real world, cut development costs, and get to market faster. Whether you are a startup looking for early traction or an enterprise undergoing digital transformation, MVP software development offers a flexible and cost-effective way to create a successful product.
If you are ready to embark on your MVP journey, consider working with an experienced development team like Expanice. We are a Polish-based company that specializes in MVP software development and IoT solutions. We use a healthy mix of low-code and custom software engineering tools to help our clients ideate, prototype, develop, and release technology products faster and at a lower cost. Once your product hits the shelves, we will continue monitoring its performance, assist you with feedback analysis, and implement new features, adjusting the scope as your business needs evolve.
Contact us to create an MVP that is destined to succeed! If you are not yet ready to move forward with minimum viable product development, check out this MVP cost guide.
