The third part. It is necessary to build the fast producer. (MVP)
Dont Forget the Revenue Streams
Revenue Streams The big idea that made you decide to start a business in the first place, will be your main source of revenue. However, you should also consider what other possibilities there are to add multiple revenue streams.
The importance of knowing your client and his problem
This concept of minimum product is nothing new. At that moment, the importance of getting to know the customer and his problem is crucial. You will have to understand very well what the problem is and what is the minimum solution that will solve this customer's problem.
What is minimum viable product mean?
A minimum viable product (MVP) is a product with just enough features to satisfy early customers and provide feedback for future product development.
MVP is a mindset of the management and development-team. It says, think big for the long term but small for the short term. Think big enough that the first product is a sound launching pad for it and its next generation and the roadmap that follows, but not so small that you leave room for a competitor to get the jump on you. – Frank Robinson
A key premise behind the idea of MVP is that you produce an actual product (which may be no more than a landing page, or a service with an appearance of automation, but which is fully manual behind the scenes) that you can offer to customers and observe their actual behavior with the product or service.
in other words, always try to develop software with minimal importance to get it to the market as quickly as possible.
The primary benefit of an MVP is you can gain understanding about your customers’ interest in your product without fully developing the product. The sooner you can find out whether your product will appeal to customers, the less effort and expense you spend on a product that will not succeed in the market.
This concept of a minimum product is very important because, as with software you can do many cool things, it is very easy for us to fall into the temptation of wanting to add “just this feature” before launching the product. Think hard if this functionality will not have a very high development cost in terms of time, energy and money for the benefit it can bring to the solution of the customer's problem. Remember investment return curves.
2009: The concept of MVP gained popularity after Eric Ries described it in his book the Lean Startup
Signs of Use
A team effectively uses MVP as the core piece of a strategy of experimentation. They hypothesize that their customers have a need and that the product the team is working on satisfies that need. The team then delivers something to those customers in order to find out if in fact the customers will use the product to satisfy those needs. Based on the information gained from this experiment, the team continues, changes, or cancels work on the product.
What about services and MVP?
Anticipating future changes in business environments and understanding customers’ needs and desires in their contexts are extremely essential in service design. The methods of service design bring empathy to allow deep understanding of customers’ and other stakeholders’ perspectives (Polaine, Lovlie and Reason,2013). The findings from the mapping and understanding phase inspire ideation and forecasting alternative futures. Open-minded collaboration and co-designing with different stakeholders through forming heterogeneous teams is essential in providing divergent thinking for innovation.
Modelling a new service shifts the service design process from sensing to seizing new opportunities. The intangible nature of customer experience and uncertain nature of the future require narrative and visual means to communicate and test the new service and to concretize the customer experience. Service design and foresight create, for example,highly visual and anticipatory stories by means of scenarios, prototypes and preliminary concepts. Modelling new service offerings early helps in assessing their true value for the customer and for the company before a lot of resources are used for actual implementation. One popular and useful tool for conceptualizing a new service and communicating it with stakeholders is Osterwalder and Pigneur’s (2010) business model canvas (BMC).