Minimum Viable Product is the MVP
How the use of a ‘Minimum Viable Product’ acted as the ‘Most Valuable Player’ for many successful companies.
What is a Minimum Viable Product?
Prior to this week I had no idea what a ‘Minimum Viable Product’ was, I thought MVP stood for ‘Most Valuable Player’ (hence the title) and that was pretty much it. Turns out, a Minimum Viable Product is a major strategy new companies take as it is a means to release the bare minimum concept of a computer software or other tech product into potential consumers sights. This way, companies save both time and money on developing something that people may not be interested in purchasing. An MVP gives customers a taste of what the product could be and the developers use that data to either bring their idea to life or shut it down.
I may not have known what a Minimum Viable Product was but I’ve definitely known of some successful companies that started out as one.
MVP Case Study 1: Spotify
Spotify is arguably the most successful music streaming platform out there. Founded in Sweden and now loved globally, Spotify flourished after releasing their MVP. I personally have been using Spotify to listen to music since 2014, that’s nearly every single day for 9 years so, it’s safe for me to say I cannot imagine my life without it.
But it’s even harder to imagine how Spotify began, back in 2006 Daniel Ek and Martin Lorentzon had the idea to create a music streaming platform that was convenient to everyone. People love listening to music but at the time it wasn’t as accessible, the only option was to dish out loads of money on CDs, pay up to $2 per song on iTunes, or illegally download tracks through Napster.
“Music itself is going to become like running water or electricity” — David Bowie, 2002
In 2006, Ek and Lorentzon launched their startup as Spotify AB, the first prototype of Spotify which lasted only four months; The official betatype was released later in 2007. The beta testers consisted of influential Swedish music bloggers who would help in spreading word of the new service.
Spotify gained 1 million users in 5 months after its 2008 official launch. Overtime, Spotify expanded its market worldwide, added on several new features (freemium, premium, playlist creation, podcasts, etc.) and eventually had it’s mobile app developed to ensure it catered to future needs. As of today Spotify has over 489 million active users.
Case Study 2: Twitter
Twitter as we all know, is one of the most popular social networking platforms in the world. As of 2022 there were over 368 million active users who log-on worldwide to stay up-to-date on the latest news and gossip.
Although I don’t personally use Twitter, I don’t live under a rock… I have known about it since 2009, I just never found it necessary for me (but this isn’t the point).
In 2006, four board members of podcasting company, Odeo (Jack Dorsey, Evan Williams, Biz Stone, and Noah Glass) came up with the idea for an SMS service that’d allow people to communicate amongst small groups. The original prototype was designed for Odeos internal use and tested by them; due to that inner success Twttr was then released to the public.
The key to Twitter's success is attributed to starting as that Minimum Viable Product within the company. Through releasing to small groups of people for testing and gaining feedback, the founders were able to focus on their initial goal and perfect it. Many of the current features Twitter encompasses (including the globally recognized #hashtag) were added way later down the line.
Case Study 3: Dropbox
The popular cloud-storage software, DropBox probably has one of the most interesting MVP success stories out there (which is why I saved it for last).
In 2006, MIT student Drew Houston conceptualized the idea of DropBox after repeatedly forgetting his USB drive for class. Rather than wasting time on developing a complicated physical product, Houston made a short video. He knew this idea solved for a problem people didn’t know they had (and investors didn’t want) so it needed a creative demonstration.
The 3 minute long video demoing the products first build:
The video was initially published through Digg, a former tech platform (similar to todays Reddit), and referenced several hidden jokes and Easter eggs that would attract the target audience. Following the videos release, the DropBox beta sign-up list skyrocketed from 5,000 to 75,000 signatures overnight.
Within 7 months after its launch, DropBox acquired 1 million users. Further development and improvements were constantly made including integration with Microsoft Office and DropBox for Business. As of 2023, DropBox has a net worth of $7.62 billion and serves over 700 million registered users.
So, Can a Minimum Viable Product be your MVP?
As you can see from the examples, all three had a unique concept, put it together nicely, and tested it out in niche sectors that reached their target consumers. The MVP is a process, and if your concept is new, unique, and is something people will spend money on, then hey, give it a shot.
You may end up becoming the MVP.
