Minimum Viable Product and Minimum Marketable Product in the Media Industry
Andrew Mazur
Senior Business Development Manager @ DataArt | Driving Technology Transformation
As the media and entertainment industry continues its ever-evolving transformation, media companies face more uncertainty than ever before. But how can businesses effectively develop a new product in this dynamic environment? This article will explore the concepts of Minimum Viable Product (MVP) and Minimum Marketable Product (MMP) and how they can help media businesses speed up time to market, enhance product value, and cut risk.
In today's fast-paced digital era, businesses in the media industry need to focus on product development to stay ahead of the curve. Yet, meeting customer needs while remaining efficient and cost-effective is a challenging task. This is where the MVP and MMP concepts come into play.
Uncertainty and Risks at the Start of Product Development
At the beginning of the development of new products or solutions, businesses often lack a clear vision of the final result, which is perfectly normal. Working with the vendor’s development team to address and reduce uncertainty from the outset is essential. It enables all parties to ensure that the final product aligns with the business's needs and meets customer expectations.
“The Cone of Uncertainty”
The development process typically starts with the discovery and design phases and then moves on to solution development. As the team gains more knowledge about the product and its customers, the uncertainty and related risks gradually decrease. This process is called the “Cone of Uncertainty.”
The horizontal axis in the graph represents time. The vertical axis contains the degree of error found in estimates at various points in the product development process. The variability and risks decrease as time passes and more knowledge is gained.
Despite the uncertainty involved in the development process, businesses can achieve success by working closely with the development team and addressing risks at every stage.
Uncertainty-Related Risks
Skynova surveyed 492 startup founders and analyzed data to understand the most common causes of startup failure. The research showed that in 2022, six out of the top ten reasons for startups to fail had been related to uncertainty. Factors such as poor timing, disharmony among the team, legal challenges, lack of a business model, and economic uncertainty must be considered before embarking on custom software development.
Moreover, when asked what they wish they had done differently, 58% of startup founders said they wished they had done more research and created a stronger business plan before launching a new business.
To reduce risks and increase the probability of success, it is essential to test hypotheses. By thoroughly analyzing the problem, exploring potential solutions, and identifying target users, businesses can manage the risks associated with uncertainty.
Minimum Viable Product (MVP) - Validate and Learn
The traditional software development approach involved spending months, or even years, creating a detailed plan. However, this approach is no longer practical, as it is costly, time-consuming, and can result in a product that does not meet users' needs.
The concept of Minimum Viable Product (MVP) addresses these issues, focusing on developing a basic yet functional version of the product. For example, it can be a clickable prototype of the product that can be shown to a focus group, providing a cost-effective way to test hypotheses and gather feedback from early adopters and innovators. This allows the development team to refine the product vision and create a more effective product. Generally, it could be a sequence of MVPs before the product launch.
To build an MVP, it is essential to focus on the core features that provide the most value to users and have higher priority. This requires a deep understanding of the user's needs and pain points, which can be achieved through techniques like the Value Proposition Canvas and the Business Model Canvas (Lean Canvas).
It is important to keep in mind that an MVP is not the final product but rather the beginning of a product roadmap. In fact, this is the reason why sometimes the first version of the product is called MVP, but that is not always the case.
Minimum Marketable Product (MMP) - Ready to Launch
When developing a product, the sequence of MVPs can be followed by the Minimum Marketable Product (MMP). The MMP comes when enough hypotheses have been checked and a clear understanding of customer needs has been achieved. It is important to see priorities and dependencies for functionality to support users in their most critical “jobs” in the best way.
Businesses can also use techniques like the KANO model and SPIDR decomposition to define the minimal marketable features. The KANO model is a framework to prioritize features on a product roadmap based on the degree to which they are likely to satisfy customers. SPIDR is an alternative method for functionality decomposition. By splitting functionality into smaller pieces, it is much easier for the development team to prioritize tasks.
While the MMP approach requires a comprehensive analysis of the user experience, scalability, and performance, it also provides consistent customer feedback through frequent product releases. This feedback allows the product team to make adjustments that align with users’ evolving needs and expectations.
It is important to note that the Minimum Marketable Product approach must also consider the "inflation of user expectations" phenomenon, where customers expect high-quality products that surpass previous ones. The product team must monitor and improve the product to meet the market’s evolving needs and stay ahead of the competition.
There are several other terms close to MMP: Minimal Loveable Product (MLP), Minimal Delightful Product (MDP), and Minimal Awesome Product (MAP). They are based on the idea of MMP with the understanding that the user must desire to use the product. Otherwise, it would be hard for the product to find a way into users’ hearts among hundreds of other products.
Well-Known Examples
Netflix and Spotify are two great examples of companies that have effectively used MVP and MMP strategies to improve their platforms.
Netflix has always pioneered in utilizing new functionalities and technologies based on ever-changing user demands. The company has used AI and ML to enhance its recommendations resulting in a highly personalized user experience that keeps users on the platform. In addition, the company has experimented with new features, such as "Choose Your Own Adventure" style shows, to provide a unique and engaging user experience. Netflix has also utilized customer feedback by adding the "Skip Intro" button - a result of customer requests.
A less well-known fact is that Netflix built a microsite to boost social activity related to Netflix Originals content, engaging both current and potential customers. By experimenting with new features and listening to customer feedback, Netflix has been continuously improving its platform and providing a better experience for users.
On the other hand, Spotify has focused on creating innovative products that are prototyped quickly and relatively cheaply, allowing for tweaking after the initial release without major financial or resource losses. The company has developed features, such as Discover Weekly and Daily Mix, which offer personalized playlists to users based on their listening habits. Spotify has also allowed users to control the quality of their music streams, adding the feature of creating and sharing playlists with friends. This personalized approach has helped Spotify grow its user base and increase customer satisfaction.
Overall, both Netflix and Spotify have successfully utilized new product development strategies such as experimentation, personalization, and customer feedback to improve their platforms and stay ahead of the competition.
Using AI-Backed Tools for New Functionalities and Solutions
Many companies use AI-powered tools to improve their internal processes and use resources more effectively. When it comes to product development, adopting AI technology is another way to boost the process and ensure quicker hypothesis generation and check.
One example of such technology is the increasingly popular ChatGPT. Product developers can use ChatGPT’s API modeling to innovate new software and digital products. The technology enables developers to streamline the software product development and internal tool creation process. The AI can generate personalized conversations with customers and create virtual assistants that interact with users. Additionally, it can quickly generate code snippets to develop and test prototypes faster.
In fact, big names in the business are already using ChatGPT. Companies like Snapchat, Koo, and Shopify have already announced that they have implemented the chatbot or its generative AI in their products. Moreover, there are also attempts to start a new business, using only ChatGPT's directions on how to grow it. However, the tech still has a lot of rough edges, and there is still not a successful example of a business run entirely by it.
However, there are a lot of potential concerns and challenges associated with the ChatGPT technology that need to be considered. Its use raises some legal issues, from employment law to intellectual property law. Businesses should also be extra careful because using the technology may result in policy breaks, privacy issues, data accuracy, and ethical complications related to the exposure of sensitive or confidential information.
Nonetheless, AI-powered technologies are a powerful asset when you use them by ethical standards and regulations.
Conclusion
Media companies should utilize modern product development approaches to establish a strong market position and remain competitive in the long run. They can achieve this by closely collaborating with experienced teams with both domain expertise and software development skills.
Takeaways
Contact DataArt to learn how our experts can assist you with modern product development approaches to help you achieve your business goals.
Originally published here.