The Minimum Viable ProductThe minimum viable product (MVP), as originally defined by Eric Ries, is a learning vehicle. It allows you to test an idea by exposing an early version of your product to the target users and customers, to collect the relevant data, and to learn from it. For instance, to test the viability of using ads as the major revenue source, you could release an early product increment with fake ads, and measure if and how often people click on them. As lack of knowledge, uncertainty, and risk are closely related, you can view the MVP as a risk reduction tool. In the example above, the MVP addresses the risk of developing a product that is not economically viable. Since the MVP is about learning, it’s no surprise that it plays a key part in Lean Startup’s build-measure-learn cycle, as the following picture shows: The MVP is called minimum, as you should spend as little time and effort to create it. But this does not mean that it has to be quick and dirty. How long it takes to create an MVP and how feature-rich it should be depends on your product and market. But try to keep the feature set as small as possible to accelerate learning, and to avoid wasting time and money–your idea may turn out to be wrong! While the MVP should facilitate validated learning, I find it perfectly OK to work with MVPs such as paper prototypes that do not generate quantitative data, as long as they help to test the idea and to acquire the relevant knowledge.
The Minimal Marketable ProductThe minimal marketable product (MMP) is a different type of product. It is based on the idea that less is more. The MMP describes the product with the smallest possible feature set that addresses the user needs, creates the desired user experience, and can hence be marketed and sold successfully. The MMP is a tool to reduce time-to-market: It can be launched more quickly than a fat, feature-rich one. Creating a product with just the right amount of features sounds like common sense. Why would we create more features than necessary? Sadly, I have seen many projects develop over-engineered products with lots of shiny features that provided little value to the users, but cluttered the product and increased the maintenance cost. And it’s not just the others: I am constantly tempted to add just another cool feature to a product, or to write a few extra lines in a blog post. Using the concept of an MMP helps me focus on what really matters, and remove unnecessary features (and lines). A great example of an MMP is Apple’s original iPhone launched in 2007. I know that the first iPhone was a complex product, and that many people worked incredibly hard on it. But I find it amazing how many features the phone did not provide compared to its competitors: no copy-and-paste, no Outlook integration, and no voice recognition, to name just a few. Nevertheless the phone was still a staggering success. How come? The key to creating a successful MMP is to "develop the product for the few, not the many," as Steve Blank puts it, and to focus on those features that make a real difference to the users. To discover the right features, the MVP is a fantastic tool.
Combining the Two ConceptsTo combine the two concepts, develop one or more MVPs to test your ideas and to acquire the relevant knowledge. Then use your new insights to create and launch the MMP – a product with just the right features and a great user experience, as the following picture shows: Note that a minimal marketable product differs from a viable one: It is complete enough to be ready for general release, as indicated by the gift wrapping in the picture above. What's more, launch preparation activities have to take place for an MMP, for instance, creating advertising campaigns, or gaining certification. Some of your MVPs are likely to be throwaway prototypes that only serve to acquire the necessary knowledge; others are reusable product increments that morph into a marketable product.
You can learn more about minimum viable and minimal marketable products with the following: