Quick tests, real data.

 
 

Minimum viable, not minimum functional.

 

The Minimum Viable Product (MVP) is a concept made famous by Eric Reis’ book The Lean Startup which has become somewhat of a startup bible. The idea is a simple one yet commonly misunderstood or overly simplified as a poor performing early version of what you hope to sell. An untested early software (alpha or beta) release where the customers discover all the bugs for you is a common misconception of an MVP. The result is predictably disappointing and often disregarded as not being a true reflection of your ide'a’s potential due to the obvious flaws in what was shown.

This is not an MVP, this is just bad delivery of your finished idea.

An MVP is a test, an experiment, a way of finding out if your market research guesses were right. A way of turning that dodgy data you found into hard facts, relevant and tailored to your business model canvas. It should be made as soon as possible, at the start of your process, not after you’ve spent months or years developing a solution.

The important word is “viable”, you’re trying to test something, to conduct an experiment. In order for the results of that experiment to be valid, believable and to steer your development. Whatever you’re doing needs to work in some way, or at least appear to, enough to get interesting results. But it doesn’t have to work like you intend it to.

The goal is to test the idea, not to make it cheaply or rush its release.

Whilst the term MVP is a new one, the concept is not. A famous example of an MVP comes from IBM in the 1980s. The story goes something like this…

IBM were keen to develop a new software product for busy working people who would spend much of their time dictating messages to typists who would type them out. It was the early days of computing and secretaries and typists did the bulk of data entry because most people could still not use a keyboard or typewriter very well.

So IBM saw a big opportunity to build some Speech-to-Text software, removing the need for a typist altogether.

Now this was the early days of computing remember, so to build such a thing would have been an enormous undertaking. The market seemed obvious, big time savings, lower employment costs, wealthy customer base, tick tick tick. But IBM needed a way to validate if this market was genuine before investing a huge amount in the cutting edge R&D needed to create such a thing.

So they faked it.

Customers were invited in to use their “new” wonder software. They were given a microphone and sat in front of a computer and a screen. As they spoke to the microphone the words would appear perfectly on the screen in front of them, regardless of accent or other quirks in their speech. Magic.

The customers were understandably blown away, this was like playing with the future of technology. But after a while they didn’t like it. The process was tiring and hard work. Mistakes were hard to correct and the potential of the idea was deemed to not be worth the R&D effort. The results were clear, it was not going to be the big success they thought it might be.

So how did they achieve this miracle of R&D in a matter of days?

A little bit of trickery, instead of the microphone being connected to the computer in front of them, it was in fact linked to the headphones of a professional typist in the next room. As the customer spoke, they would type the words onto the screen.

The illusion was perfect.

Quick, believable, valid. No one could argue with the results of this experiment. Here was something that would function far better than the computer software ever could and still customers didn’t want it.

Rapid Idea Validation

Some tools, techniques and inspiration to creating Minimum Viable Products

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Mechanical Turks

The previous IBM example is a great one, the user is tricked into thinking it actually works as intended and so you get genuine and valuable data from them.

I performed a similar experiment recently when trying to test the concept of using autonomous robots on farms. At the moment fruit pickers pick the fruit and then once they have as much as they can carry they move it to the store, perhaps hundreds of meters away. This is hard work and wastes time so using a robot makes sense to do this job. Or does it? We won’t know till we try.

So I decided to be the ‘robot’. What if I pretended to be the robot and moved the fruit for the picker, what savings might we see? The experiment took no time to setup and cost nothing to achieve. Very quickly we could see the impact this was having on the pickers and productivity.

It doesn’t answer all our questions but does give us very quick actionable information.

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Facades

In 1998 Scott Painter and Bill Gross’ famous technology incubator IdeaLab wanted to know if an idea they had to sell cars on the internet was feasible. Back then the internet was new and people were very nervous about buying things online. Especially something as expensive as a new car.

So rather than spend ages sourcing dealership deals with manufacturers, setting everything up etc… they put up a very quick website (carsdirect.com) and tried to advertise a car. 1998 was also the time when web addresses like that were easily available, remember lots of people thought this internet thing was a fad that wouldn’t amount to much! Surprisingly it didn’t take them long before they made a sale!

What did they do then? Shut everything down, it was basically all fake remember, went to a real dealership, bought the car the customer had ordered (even if it cost more than their customer had paid) and delivered it personally to the customer.

It cost them some money to do this of course, but far less than the cost of setting everything up and then discovering no one wanted it (like many other 1998 internet companies did).

In 2014 carsdirect.com was sold for $1.1 billion.

The idea is similar to a Mechanical Turk, above, but there is more illusion and less substance behind the scenes with this one. Use a facade to see if users will make a choice and a Mechanical Turk to simulate a whole process.

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Pinocchio Models

Pinocchio is a fairy-tale story about a puppet that comes to life. The idea here is different to faking it models of earlier, largely because the MVP will not convince anyone not involved with the project. The purpose is to simulate a process or a product in order to discover issues and refine the idea before customer facing.

A famous, often cited example, is that of Jeff Hawkins and his wooden PalmPilot prototype. Jeff was the founder of PalmPilot which went on to play a critical role in the development of personal digital assistants (PDAs) and then lay the ground for smartphones.

It’s the 1990’s and Jeff had already had some commercial experience in developing PDAs. He wanted this new one to be smaller and easier to use. But he had unresolved questions around how easy it would be use and how useful it would be? So he made one, out of wood. Sticking a printed piece of paper onto the front and simulating a user-interface. With a chopstick as a screen stylus.

For months he would then painstakingly pretend to use it. His colleagues and friends looking on in amazement as he would bring it from his pocket and pretend to click through different screens and add or retrieve information. Changing the paper front if he had a better idea for the interface.

When launched it went on to be a groundbreaking new product.

Image courtesy of Wired Magazine