In today’s market, launching a product or software is a common aspiration for many entrepreneurs. The desire to achieve success similar to giants like Facebook, Amazon, and Instagram is widespread. However, the reality is not as straightforward.
With countless unique and compelling ideas, the competition is fierce, pressuring entrepreneurs to bring their ideas to market quickly. While competitive analysis and market research can address current market needs, predicting future changes is challenging. The question then arises: How can you ensure that your product development efforts, time, and funds won’t go to waste?
Two effective methods for addressing this uncertainty are Minimal Viable Product (MVP) and Exceptional Viable Product (EVP). In this article, we’ll delve into both concepts and explore which option is the right fit for your startup: MVP vs EVP.
The Value Proposition: MVP vs EVP
Launching an Exceptional Product vs. a Minimal Viable Product
To navigate this decision, we’ll explore various facets to provide clarity on which approach aligns with your startup’s needs. Let’s begin by defining these concepts, starting with the more established one: MVP.
The terms MVP and EVP refer to two different concepts in the business world, each with its own distinct value proposition.
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MVP (Minimum Viable Product):
- Definition: MVP is a strategy in product development where a new product is introduced to the market with the minimum features necessary to satisfy early adopters. It allows a company to gather feedback and learn from real users with minimal investment.
- Value Proposition: The primary value of an MVP lies in its efficiency. By focusing on essential features, companies can bring a product to market quickly, reduce development costs, and assess market demand. This approach helps in validating ideas, identifying improvements, and adjusting the product based on real user feedback, ultimately leading to a more refined and market-ready product.
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EVP (Employee Value Proposition):
- Definition: EVP is the unique set of benefits and rewards that an employee receives in return for their skills, capabilities, and contributions to the organization. It encompasses the overall employee experience, including compensation, work culture, professional development, and other factors that influence an individual’s decision to work for a particular company.
- Value Proposition: EVP is crucial for attracting and retaining top talent. Companies with a strong EVP communicate why they are a desirable employer, emphasizing not only competitive salary but also a positive work environment, opportunities for growth, work-life balance, and other intangible benefits. A compelling EVP helps in building a motivated and engaged workforce, contributing to increased employee satisfaction and productivity.
In summary, MVP is a product development strategy focused on delivering a basic version of a product to gather user feedback efficiently, while EVP is a broader concept related to the overall value that employees receive from their association with a company. Both MVP and EVP contribute to the success of a business, with MVP streamlining product development and EVP enhancing the recruitment and retention of valuable talent.
MVP – Minimal Viable Product
MVP, popularized by Eric Ries, involves launching the smallest workable version of a product. Iterations are then made based on consistent customer feedback and insights. Essentially, it entails releasing a basic version of the product to test the idea and gauge customer reactions.
Now, let’s turn our attention to the EVP development approach.
EVP – Exceptional Viable Product
Coined by Rand Fishkin, EVP entails launching the finest version of a product after extensive iterations and consideration of customer feedback. The initial product is designed, tested using Agile development with a group of loyal customers, and refined to the best version before its market debut.
The Cake Model: MVP and EVP
To further understand these concepts, we can employ Brandon Schauer’s cake model of product strategies. Two models emerge: the Dry Cake Model (representing MVP) and the Cupcake Model (representing EVP).
Dry Cake Model (MVP)
The Dry Cake Model, suitable for companies with limited budgets, involves launching a plain, minimal version of the product. Subsequent updates, akin to adding icing or filling, occur based on customer feedback, funds, and resources, continuing until the final product is delivered. While operationally sensible, this model may yield a lower positive response, akin to the challenges often associated with MVP in software development.
Cupcake Model (EVP)
In the Cupcake Model, reflecting Fishkin’s EVP approach, a small yet complete product, including icing or filling, is delivered to the market. This approach garners a better response from customers seeking a more complete product. Later, the same process is applied to launch expanded versions, keeping users engaged throughout the product’s evolution.
Comparing MVP and EVP
Distinguishing Features and When to Choose Each Approach
Having explored the foundational aspects of both MVP and EVP, let’s delve into a comparative analysis to determine when each approach is most suitable.
MVP:
- Aim: Early market entry, validating app idea.
- Niche: Low competition.
- Development: Limited timeline and cost.
- Goal: Short-term objectives.
- Visibility: New startup with lower market visibility.
EVP:
- Aim: Making a lasting impression on customers from the start.
- Niche: Intense competition, no room for gradual growth.
- Development: Higher investment in time and cost.
- Goal: Long-term objectives.
- Visibility: Established brand presence in the market.
Certainly, let’s compare MVP (Minimum Viable Product) and EVP (Employee Value Proposition) in various aspects:
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Purpose:
- MVP: Developed to quickly launch a product with minimum features to test its viability in the market and gather user feedback for iterative improvements.
- EVP: Crafted to communicate the overall value and benefits that employees receive from working with a particular company, influencing recruitment, retention, and employee satisfaction.
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Focus:
- MVP: Concentrates on product development and market validation by delivering a functional but minimal set of features.
- EVP: Centers on creating a positive and attractive work environment, highlighting both tangible (compensation, benefits) and intangible (company culture, career growth) aspects.
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Audience:
- MVP: Targets potential users and early adopters of a product or service.
- EVP: Targets current and potential employees, aiming to attract, engage, and retain top talent.
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Components:
- MVP: Involves the core features necessary for the product to function, excluding non-essential elements.
- EVP: Encompasses a wide range of factors, including compensation, work-life balance, professional development opportunities, company values, and the overall employee experience.
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Timeline:
- MVP: Developed and released quickly to minimize time-to-market and gather feedback promptly.
- EVP: Developed and communicated consistently over the long term to build and maintain a positive employer brand.
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Feedback Loop:
- MVP: Relies on user feedback to make iterative improvements and refine the product.
- EVP: May incorporate feedback from employee surveys, reviews, and engagement metrics to enhance the overall employee experience.
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Impact on Business:
- MVP: A successful MVP can lead to a more market-ready product, cost savings, and improved chances of product-market fit.
- EVP: A strong EVP contributes to attracting and retaining top talent, fostering a positive workplace culture, and enhancing the overall reputation of the company.
In summary, while MVP and EVP serve different purposes within a business context, they both play vital roles in achieving success. MVP is crucial for product development and market validation, whereas EVP is essential for creating a compelling employer brand and maintaining a motivated and satisfied workforce.
Conclusion: MVP vs EVP
While the decision between MVP and EVP depends on the unique circumstances of your startup, it’s crucial to recognize that both are distinct strategies. MVP is beneficial for those with budget constraints aiming for progressive market presence. Conversely, EVP is the ideal solution for those prioritizing an exceptional user impression without budget concerns.
In conclusion, opting for one approach over the other may not be the best strategy. Combining the strengths of both—starting with MVP, iterating based on feedback, transitioning to EVP principles, and iterating again—offers a comprehensive approach. For personalized guidance on your app development approach, consult our mobile app experts.
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