Minimum Viable Product
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Transcript of Minimum Viable Product
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Minimum Viable Product
Ideas
Products
‟A startup [...] transforms ideas into products [...] those products are really experiments; the learning about how to
build a sustainable business is the outcome of those experiments„
• we figure out what we need to learn
• use innovation accounting to figure out what we need to measure to know if we are gaining validated learning
• and then we figure out what product we need to build to run that experiment and get that measurement
‟Although we write the loop as Build-Measure-Learn because the activities happen in that order, our
planning works in reverse order„
‟We need to identify hypotheses to test [... we need to find] the leap-of-faith assumptions(value hyphothesis and growth hypothesis)„
‟The MVP helps entrepreneurs start the process of learning as
quickly as possibile. It is not necessarily the smallest product [...] it is simply the fastest way to get through
the Build-Misure-Learn feedback loop with the
minimum amount of effort„
genchigembutsu
‟First hand understandingof customers„
‟go and see for yourself„
‟If we do not know who the customer is, we do not know what quality is [...] sometimes MVPs
are perceived as low-quality, if so, we should use this as an opportunity to learn what customers
care about„
‟remove any feature, process or effort that does not contribute directly to the learning you seek„
‟Innovation Accounting: a disciplined, systematic approach to figuring out if we’re
making progress and discovering if we’re actually achieving validated learning.
It works in three steps„
VISION1. use an MVP to enstablish real data on where the company is right now
2. startups must attempt to tune the engine from baseline toward the ideal
3. pivot or persevere
Pivot: starts the process al over again,
reestablishing a new baseline and the tuning
the engine from there
problem/solutionFIT
product/marketFIT
SCALE
‟While ideas are cheap, acting on them is quite
expensive„
‟Do I have a problem worth solving?„
• Is it something customers want? (must-have)
• Will they pay for it? If not, who will? (viable)
• Can it be solved? (feasible)
‟A problem worth solving boils down to three
questions„
problem/solutionFIT
product/marketFIT
SCALE
‟From there you derive the minimum feature set to address the right set of problems, which is also known as the Minimum Viable Product (MVP)„
‟Your MVP should address not only the top problems customers have identified as being important to them, but also the problems that are worth solving. By that definition, you should plan to deliver enough value to justify charging„
• Price is part of the product.• Price defines your customers.• Getting paid is the first form of validation.
Effective Experiments
• maximize for Speed, Learning,
and Focus
• Identify a Single key metric
or Goal
• Do the Smallest thing
Possible to Learn
• Formulate a Falsifiable
Hypothesis(A falsifiable hypothesis is a statement that can be clearly
proven wrong)
Effective Experiments
• Validate Qualitatively,
Verify Quantitatively (If you have a lot of uncertainty now, you don’t need much
data to reduce uncertainty significantly. When you have a lot
of certainty already, then you need a lot of data to reduce
uncertainty significantly)
• make Sure you Can Correlate
Results Back to Specific
actions
• Create accessible Dashboards
• Communicate Learning Early and
often
examples