MVP, MBI, MMF and MMR - What is the Difference
You came up with an idea where you see the potential to create your own app. I assume that you are looking for information on the Internet or groups of business environments, how to check if your investment will find users and have sales potential.
I suppose you are wondering how to test your idea in the market. You research with friends, potential audiences, or other start-up wizards to make sure your idea is right. However, from the idea and its implementation, it can bring different results.
In this article, I will introduce you to the topic of Agile software development based on appropriate methodologies - MVP, MBI, MMF, MMR, MMP.
Let's get started!
Minimum Viable Product - MVP
Minimum Viable Product (MVP) is the basic version of the application fulfilling its basic functions. The definition of MVP is derived from Steve Blank's lean startup concept, popularized by one of his students, Eric Ries. It allows you to define the needs and preferences of the target group with the least amount of work.
The premise is that developing an MVP application provides your audience with a core product based on your concept with minimal effort. Once the MVP business idea is verified, it can be explored by delivering the actual product to your target audience.
Minimum Viable Products should take into account the most important functions, therefore everything, except the main functionality should be limited in the basic version to exclude variables in the process of analyzing the needs of users.
One of the most important features of MVP design is the ability to develop the application into a final, total product through the successive stages of the Agile process. Therefore, at the MVP stage, it is worth paying attention to the programming language - for instance, the creators of web applications willingly use the Elixir language to build MVPs - it is one of the most scalable languages and does not require changing the technology during product development.
The best-known example of a Minimum Viable Product turned into a complete product is Facebook. Facemash - because that was the name of Mark Zuckerberg's early age app, was a sort of Harvard student collection that collected likes based on Hot or Not.
Facemash allowed users to rate two female students and indicate which of them was more attractive.
Due to illegal use of the photos and morally questionable incentives for evaluation, the domain was swiftly shut down by the Harvard administration and Zuckenberg was threatened with expulsion.
Nevertheless, it made him think that the concept of expressing your feelings is needed and should be delivered to satisfy users. The "like" functionality is now at the core of Facebook operations, but it all started with simple MVP.
Read more: MVP Builders guide
Minimum Business Increment - MBI
The Minimum Business Increment (MBI) focuses carefully on delivering business value. This is the smallest functionality that we can provide customers with value for the company.
Some MBI features overlap with MVP:
- adds value to customers,
- provides feedback necessary in the testing process,
- provides new functionality that can be verified as an application increment.
MBI is created by defining the target group and building scenarios for a given market, taking into account business goals.
Focusing on minimal business growth for the scenarios you define - that's what MBI is all about.
What is MBI Value?
MBI should have a defined value for the business that we want to get in a specific iteration. Such value for the company can be the repayment of technical debt, product improvement, or Lean-Agile transformation. It all depends on the needs you define as a project manager or originator.
Minimum Business Increment - an example
Let's go back to the example from Facebook. The creation of TheFacebook.com was already more thoughtful thanks to the earlier lesson and more or less conscious analysis - instead of assessing students, the portal proposed creating a community around the University.
Over time, through the analysis and research of user behavior, Facebook began to expand its reach, and its users began to be not only Harvard students but also other universities, high school students, and company employees.
The key for Facebook in terms of MBI was the addition of the Like button on February 9, 2009. TThe possibility of liking a post, photo, or comment increased was to increase interactions between users, influencing the algorithm of the posts displayed on the Facebook wall.
In addition, the Facebook social plug-in made it possible to add Like under the blog with posts on third-party domains, which additionally increased the popularity of Facebook and its advertising potential.
Thanks to systematic observations and responses to customer needs, Facebook is developing year by year, expanding its functions thoughtfully. Such development results from the relevant analysis contained in the Agile methodology.
Difference of MVP and MBI
The basic value of MVP, as we have already defined, is to provide a minimum product with the least amount of work and to discover its potential on the market. In turn, MBI determines the specific increase in value that a product can bring to a company.
While the MVP is created by small teams - all you need is an idea and a basic version of the application, MBI is related to managing multiple teams and product functions such as marketing department, analysts, UX designers, etc.
Minimum Marketable Feature - MMF
Another term you may come across is the Minimum Marketable Feature (MMF). The term was first used by Mark Denne and Jane Cleland-Huang, authors of Software by The Numbers. By definition, MMF is the smallest set of functionalities with market value.
MMF responds to the defined need of the early adopters and aims to solve their specific problem.
MVP vs MMF
As you already know, MVP is the basic version of the product that you can deliver to potential clients to complete the Build-Measure-Learn cycle. MMF can be considered as a building block of your MVP.
Depending on the MVP scope, it can consist of one or more MMFs. This doesn't mean however that MMF only relates to MVP, as you may use it with success with existing products or services.
MMF is the kind of value that should be delivered in MVP.
Minimum Marketable Release - MMR
Once a product is well-adopted after the MVP is released, any change that the user sees is called a release. MMR is a product release that responds to the next needs of users with the smallest possible sets of functions.
MMR reporting is extremely important for the value of the application, which is used to reduce the time we spend on introducing updates to the market. By reducing the feature set of the version to the smallest increment of the application gives customers new value.
In practice, MMR is the next and current step in the organization of building a fully-fledged application, which is gradually influenced by new customer needs.
MMR based on Facebook example
By examining user activity and data analysis, Facebook gradually increased the reach of the application, released another update of the application for the needs of users who started recommending places, commenting posts and participating in events, which is why it allowed companies to create fanpages and advertise products in 2007.
As you can see, the application responded to the user's next needs but also increased the earning potential of Facebook owners through the possibility of creating ads, but actually creating a completely new place with marketing and advertising potential, which led the website to one of the largest social platforms in the world.
Minimum Marketable Product - MMP
MMP - Minimum Marketable Product is one of the definitions that you can meet when creating a digital product based on lean startup and Agile methodology. This is one of the most important steps in a successful product launch.
What is MMP? This is the minimum product version ready to run.
The MMP should represent the most important set of functions that can be valuable to the user and investor.
Hey, but doesn't that sounds like an MVP? Not exactly.
Let me explain - MVP is the basic version of the application, which, thanks to its technological capabilities, allows you to test the product on the target group. To create an MMP, consider all the previous steps in building an Agile application.
MMP already has business potential. So it has a way to generate revenue based on a certain value for the user. However, which can be problematic with the MMP is that the application release is delayed for too long and thus it is always in the MVP phase.
As an entrepreneur or product manager, you must remember that creating an application "prototype" is not enough. To successfully introduce it to the market, you need to define the goals and values that the application offer you and above all, the user.
Agile in the application development process
The discussed ways of introducing your idea to the market fit perfectly with the Agile methodology. This approach is characteristic of IT projects, thanks to which the application development process is Agile and efficient, with an emphasis on adapting to the user's needs.