Enterprise MVP Development Approach Explained In Details

While MVPs are often associated with startups, they are equally valuable in other contexts, including enterprise organizations.

Essentially the main purpose of MVP is to validate new ideas.

In case an enterprise organization wants to introduce a new product or even a new feature to their existing product one of the best ways to go about it is by adopting the MVP approach, like the following:

Adopting the MVP development approach as an enterprise can yield huge benefits, especially faster and more user-centric product development.

Below, we’ll answer the two big questions. 

"Why?" And “How?” should enterprises adopt MVP development philosophy?

But first, let’s start with the basics. 

What is an MVP?

The minimum valuable product (MVP) represents the minimum that you can build that adds value to your potential customers and that they are willing to buy.

The goal of building an MVP is to launch quickly, learn from real feedback, and improve over time.

Let’s say your company would like to release a new product.

Instead of spending years building a full version of a product that will cost millions of dollars, it would be much more efficient to create a bare-bones version that includes only the most necessary features and bring it to your customers fast.

This way you can test the idea before pouring too many resources into it.  

It will also give you an opportunity to improve the product based on how your customers interact with it.

In other words, the best way of turning an idea into a product is by developing an MVP first. Then make improvements based on customer feedback and data.

Why should enterprises adopt an MVP development approach?

Validate an idea

Building an MVP as an enterprise is one of the best ways you can validate your idea.

It shows if your product can succeed in the market or if you need to pivot to another idea.

Instead of guessing if an idea will work, an MVP lets you quickly launch a simplified version of it and get genuine feedback from users.

Early feedback helps you refine the product’s features, and verify if your product truly addresses users’ problems.

Outside of new product intorduction, this approach can be applied to adding new features to your existing product.

Faster time to market

Rather than spending months developing a new product or feature before presenting it to users, an MVP lets you quickly launch a simplified version.

It can help you bring your product to market faster.

This gives you a competitive edge, allowing you to outpace competitors and capitalize on the first-mover advantage. This is a critical factor, especially in highly competitive niches.

A faster time-to-market often translates into increased revenue and profits without significantly raising costs compared to a slower launch.
 

source: TCGen

Simply put, the sooner your product reaches users, the greater your potential to generate income.

Of course, there are no guarantees—uncertainty is a constant in business.

However, building an MVP remains one of the most effective strategies to accelerate your time-to-market, making it a smart move.

An MVP doesn’t have to be perfect, it just needs to function well enough to deliver value.

This approach enables you to launch quickly and answer the most critical question for any product:

Are people willing to pay for it?

Cost-efficient development

Starting by developing an MVP allows you to maximize value while minimizing expenses.

Since MVP should be just a bare-bone version of a final product.

In the beginning, your focus should be only on the essential features necessary to test an idea.

Developing only essential features will reduce time and costs.

Allowing you to avoid overinvestment, without providing that the idea has potential.

MVP approach allows enterprises to optimize their internal resources.

Instead of allocating large teams and budgets to a single project, businesses can distribute resources across multiple initiatives, increasing the chances of discovering a successful product.

Reduces the Risk of Failure

There’s no guarantee that any product idea will succeed.

In the competitive industry launching a new product is often a risky and expensive undertaking.

According to a report by NMG, 80% of apps fail to survive beyond 12 months.

Enterprises face even greater risks when launching software products compared to startups.

While startups can pivot quickly when a product misses the mark, large businesses often lack that flexibility, making it critical to get things right the first time.

This is where MVP development becomes invaluable.

By starting with an MVP and iterating based on user feedback, enterprises can significantly reduce the likelihood of large-scale failures. 

This approach isn’t just limited to external launches, it works equally well for internal pilot projects.

An MVP confirms whether your product is on the right path while minimizing risks. 

If the idea doesn’t work out, the costs are significantly lower than developing a fully-featured product. 

If it does succeed, you’ll have a solid foundation upon which to grow and iterate.

Enterprises vs. Startups MVP development key differences

In summary, enterprise MVPs are generally more complex and take longer to develop compared to startup MVPs.

However, they are significantly simpler and faster to create than a fully-featured, enterprise-grade product built from scratch.

Moreover, developing an enterprise MVP offers numerous advantages for organizations — we'll explore those next.

6 steps to an enterprise MVP

An MVP Begins with a Problem

The foundation of any MVP is the problem you’re trying to solve. 

If the problem isn’t clear, your MVP risks missing the mark and becoming something no one truly needs.

However, when you focus on a specific, real problem, your MVP becomes a handy solution that people are happy to pay for.

Step 1: Define Your Ideal Customer Profile

Creating an MVP isn’t just about the product. 

It’s about knowing exactly who you’re building it for. 

If you don’t understand your ideal customer, you might end up with a product that appeals to no one.

Try literally imagining the specific type of person who faces the problem your MVP solves. 

Go to the extra as far as having a full picture of a person who will be using your product. 

Start by going through the following points in detail. 

• Industry: Which sector are they in?
• Demographics: Age, gender, income, education, and location.
• Psychographics: Interests, values, and lifestyle choices.
• Pain Points: What challenges does your product address?
• Buying Behavior: How do they make purchasing decisions?
• Usage Scenarios: When and how would they use your product?

Once you’ve clearly defined the problem and target audience, the development process becomes much smoother.

source: cognism

Step 2. Define MVP key features

Defining the “must-have” tools, features, and capabilities is crucial for a swift and impactful MVP development.

So, you need to differentiate between the must-haves and leave the nice-to-haves for later. 

The Pareto principle:

“20% of the causes produce 80% of the consequences, and the remaining 80% of the causes produce only 20% of the consequences.”

Applying the Pareto principle to the MVP feature list would mean that 20% of the features will bring 80% of the benefits to your customers. 

MVP = Essential + Simple

Deciding what features to leave for later can be quite a daunting task.

Luckily there are different prioritization techniques. 

The priority Matrix

The priority Matrix is a technique that ranks features on scales of “essential” and “simple”.

Imagine drawing two axes.

The horizontal axis represents the complexity of implementing a feature.

The vertical axis measures its importance, ranging from desirable to essential.

Simply apply the priority Matrix by placing each feature on the grid by answering these two key questions:

• Is its implementation difficult or simple? 
• Is it essential or merely desirable for the user?

The RICE score formula

The RICE formula involves evaluating each feature based on four key factors and applying a simple formula to calculate its value.

• Reach – How many users will benefit from this feature? (Ideally, this metric would be based on real data over a specific time period.)
• Impact – How much will this feature improve users’ lives?
      Vastly = 3x
      Significantly = 2x
      Adequately = 1x
      Not much = 0.5x
      Only a little = 0.25x
• Confidence – How certain are you about your hypothesis and the feature's potential success?
      100% = High confidence (supported by research or polls)
      80% = Moderate confidence
      50% = Low confidence
      Below 50% = Significant doubt
• Effort – How much time and work will this feature take to implement? (Estimate in terms of man-days)

Next, use the following formula to calculate and prioritize effectively.

Once each feature has a RICE score, simply order by highest, and voilà the prioritization list is done

The MoSCoW Matrix

MoSCoW stands for Must-have, Should-have, Could-have, and Won’t-have (at least, not for now).

It’s a way to prioritize features so you can focus on what matters to your users the most.

Here’s how it works:

• Must-have – These are the essential features. The ones that solve the core problem. If you don’t have these, the MVP just won’t work. Think of it as the heart of your product.
• Should-have – Important, but not deal-breakers. These add value but aren’t crucial for the MVP version.
• Could-have – These are nice to include but aren’t necessary. They’re like the frosting on the cake, they’re not essential, but they’d make the product a little better.
• Won’t-have – These are the features you’re parking for later. They might be great ideas, but they can wait until you’ve validated the MVP and learned from real user feedback.

source: Visual Paradigm

Step 3. Wireframing, prototyping, and designing your MVP

The design can literally make or break your MVP.

Let's take a look at an example.

You’ve worked through all the previous steps:

• You’ve clearly identified the problem you want to solve.
• You know exactly who your ideal customer is.
• You’ve selected the essential must-have features for your MVP.

But your MVP is not user-friendly and users struggle to find their way about it. 

Sooner or later they stop using the app.

It’s believed that for every $1 you invest in UX, you’ll get $100 in return.

The ROI of UX Design, source: https://s3.amazonaws.com/coach-courses-us/public/theuxschool/uploads/The_Trillion_Dollar_UX_Problem.pdf

“Happy users are ultimately happy and returning customers.”

Clive K. Lavery, senior UX person and co-organizer, UX Camp Europe

No worries, let's dive deeper into the MVP app design. 

4 steps of MVP design

Step 1 in MVP design: User research

The first step in MVP design is to get to know your users, and what they want.

The goal of this step is to create a visual hierarchy. 

It’s where you step into the shoes of your potential customers, and try to truly understand their needs, frustrations, and expectations.

Without this step, you’re essentially building your product in the dark.

While keeping in mind a problem you’re trying you should:

• Conduct interviews with your ideal customers: Ask open-ended questions to uncover insights about their behaviors and needs. 
• Conduct surveys: Gather data from a larger group. Ask about their preferences, pain points, and willingness to try new solutions.
• Rely on observation: Watch how people interact with existing products or systems. This can reveal unmet needs or areas for improvement. 
• Analyze the Competition: Look at similar products on the market. What are they doing well? Where are they falling short? Understanding the competition can help you identify gaps your MVP can fill.

Great products aren’t built on assumptions. 

User research will minimize the risk of creating something nobody wants. 

Step 2 in MVP design: Wireframing

The first step in the actual design process is creating wireframes.

Wireframes are an initial sketch of your MVP’s UI.

They can be done on paper with a pen as long as they satisfy the need.

The goal of wireframing is to get a general idea of MVP's main elements, functionality, and flow. 

Wireframes are going to be a be foundation of all your future design work, but don't overthink them, the simpler the better. 

Step 3 in MVP design: Creating prototypes

Next on the list is transferring wireframes into prototypes. 

Prototypes are a basic static version of your app.

Meaning, that you shouldn’t spend too much time designing every little detail since there might be some changes later in the process.

The goal of creating prototypes is to get a look and feel of your MVP and gather feedback based on how the product looks. 

Mockups vs Lo-Fi prototyping vs Hi-Fi prototyping

Source: Justinmind

Lo-Fi prototyping

Lo-Fi prototypes are basically digital wireframes, they are very basic, often black-and-white clickable models of your MVP.

The goal of creating Lo-Fi prototypes is to prioritize structure and flow over design.

It's a great way to create an informational hierarchy.

Lo-Fi prototyping will help you collect early feedback. Allowing you to refine user flow quickly without spending too many resources. 

Hi-Fi prototyping

While Lo-Fi prototypes are an early rough version, Hi-Fi prototypes are interactive and polished of your MVP.

In this step, you should dive into little details. Polishing them to the point that the design resembles the final product. 

Hi-Fi prototypes should include detailed visuals, animations, and full functionality.

Interactive tools like Figma prototyping enable you to design a fully clickable app that users can actively engage with. Making it ideal for usability testing and stakeholder presentations.

Step 4 in MVP design: Usability testing

Before an MVP design is fully ready for the coding phase you should conduct extensive usability testing.

Keeping your MVP design in a tight circle can lead to confirmation bias. 

So, you should include ideal customers in this process. 

The goal is to find an answer to one question:

How easy is a design to use?

Usually usability testing should be performed in a controlled environment where the UX researcher acts as a moderator in an interview like with a single user or group of users.

The moderator will then assign tasks to the users and monitor their behavior as well as ask for feedback.

This can be done as a live session or by using screen recording tools like Microsoft Claritly or HotJar.

Step 4. Develop a Minimum Viable Product

This is where all your planning, designing, and strategizing starts to come to life.

During the development phase communication with developers is the key. 

You need to make sure that the development team fully understands your vision. 

So, the preparation of all the blueprint documents is absolutely crucial. 

Software development blueprints

Creating software development blueprints involves crafting a comprehensive plan that outlines the structure, functionality, and process of building a software application. 

These blueprints ensure that development stays on track, aligns with business goals, and meets user needs.

Choosing the right tech stack for your MVP

Picking the right tech stack can be a daunting task for non-tech founders. It should align with your goals, timeline, and budget.

Often times founders start chasing the latest and shiniest technology while overlooking some well-established and mature technologies. 

Our tip: Focus on user experience rather than what's behind the curtain - it will pay off more in the long run. 

Utilize third-party solutions

Instead of building every feature from scratch, you can integrate existing solutions for functionalities like payment processing (e.g., Stripe), email notifications (e.g., SendGrid), or authentication (e.g., Firebase), etc.

Utilize third-party solutions can help you save resources significantly. 

Third-party tools are mature and reliable.

Step 5. Testing and QA

Before launching your MVP, thorough testing is absolutely essential. 

Here are three key types of testing to focus on:

#1 Functional Testing

Ensure that every feature operates as expected.

Test critical functionalities, like the login process and the ability for users to complete essential tasks without errors.

Repeat these tests multiple times, and share the app with others, friends, family, or colleagues to gather diverse feedback.

The goal is to make sure your app runs seamlessly for all users.

#2 Test Across Devices and Platforms

If your MVP is accessible on multiple platforms, such as web and mobile, test its performance and compatibility across different devices and operating systems.

If something works in your web app, that doesn’t mean it going to work on mobile devices. 

Tip: Check all devices thoroughly, and make sure everything works fine, especially after bigger updates. 

#3 Gather Feedback from Early Testers

Engage real users or beta testers during the quality assurance phase.

Their hands-on experience can uncover usability issues or areas needing improvement that might have been overlooked.

Incorporate their insights to refine and enhance your product.

Step 6. Launch, monitor, and iterate, iterate, iterate…

Once your MVP has been tested and polished, it’s time to launch! Woohoo!

But remember, this is just the beginning of your product’s journey.

Now it’s time to collect feedback from your initial users and create new versions of your app. 

MVP iteration process

Source: RubyGarage 

The core of the MVP iteration process is the build-measure-learn loop.

The goal of each iteration is to maximize learning while minimizing time and cost.

Start by setting up a hypothesis.

Build a feature and then measure success by collecting and analyzing user feedback through surveys, interviews, or analytics to determine if your hypothesis was successful.

Based on the results, decide whether to continue with the current approach, pivot to a new direction, or stop the iteration.

Pivoting a failing MVP product

In case your MVP product had a rough start the first thing that you need to do is understand “Why?” your MVP failed.

You can use various methods and tools to collect and evaluate feedback, such as surveys, interviews, analytics, user testing, and customer reviews.

After you analyze the feedback then you’ll have to define the new hypothesis.

Make the changes and test again.

How can you recognize the need for a pivot?

If your MVP is facing the following issues that might be a good sign that it needs to pivot:

• Low engagement
• Poor acquisition
• Underutilization
• Poor retention
• High churn rates

Challenges of MVP development for enterprises

Managing stakeholder expectations

The greatest challenge in enterprise MVP development is aligning stakeholder expectations.

Enterprise leaders often anticipate a feature-packed product that, once launched, requires minimal updates.

However, an MVP is the complete opposite — it’s lean, iterative, and built to evolve based on feedback.

So, how can you bridge this gap?

Here’s how:

• Clearly communicate the purpose of an MVP from the outset.
• Highlight how early idea validation significantly reduces risk.
• Stress the cost-effectiveness of the MVP approach.
• Plan regular updates to keep stakeholders informed during development.
• Outline a clear roadmap for future updates and improvements.

By involving key stakeholders from the very beginning and securing their buy-in, you set the stage for successful MVP development.

Integration with existing systems

Source: LANSA 

Enterprise companies often use the MVP development approach to launch new products or extend existing ones, which typically involves integrating with their current systems.

This can be particularly challenging when dealing with legacy software solutions.

Older software may lack APIs necessary for integration, requiring you to develop them from the ground up.

How can you ensure a seamless integration of your MVP?

Start by conducting a comprehensive audit of the existing systems it needs to integrate with. Identify the key integration points and any potential compatibility issues.

If you need help, globalsoft offers free product discovery, allowing you to consult with MVP development experts and pinpoint potential integration challenges.

Next, develop APIs to connect your MVP with the legacy systems, ensuring these bridges effectively close the gap. Be sure to rigorously test the APIs to confirm their reliability.

Following this approach will help you successfully integrate your MVP with legacy systems.

Scalability

Lunching an MVP is just a start. 

Next, comes the phase of constant feedback collection and improvements.

You want to make sure that your app is scalable and built with future growth in mind from the start.

Your MVP needs to be ready to handle large quantities of data without a drop in performance.

One of the best ways to achieve scalability is to utilize microservices architecture. 

Microservices architecture

A microservices architecture is a design approach where an application is built as a collection of independent services. 

This makes scaling easier because each feature is kept separate. 

Each microservice is a standalone unit designed to manage a specific application feature or perform a distinct task. 

These microservices interact with one another via straightforward interfaces to collaboratively address business challenges. 

Advantages of microservices architecture

• Accelerate scalability
• Improve fault isolation
• Enhance team productivity
• Quicker deployment time
• Increase cost-efficiency

Although microservices architecture can bring additional complexity, it is highly suitable for MVPs due to its scalability-focused design.

How much does it cost to build an MVP?

It depends. Generally speaking, enterprise MVP development is typically somewhat costlier than startup MVP development, primarily due to the need for integration with existing systems and compliance with legal requirements.

Many factors can influence the price of MVP development.

Depending on the complexity, you could expect to pay flowing amounts for MVP development:

• Simple MVP – $20,000-90,000$
• Medium complexity MVP – $120,000-250,000$
• Complex MVP – $250,000+

Compared to startups that are starting to build a name for themselves, enterprises have an established reputation to uphold, making quality a critical priority.

Opting for the cheapest option may lead to higher costs down the road due to quality problems.

An experienced software development company might offer a higher initial price, but they’ll deliver the right product from the get-go. 

How long does it take to build an MVP?

The timeline varies based on complexity, but a typical goal is to complete it within two to four months.

The primary objective of an MVP is to launch quickly, gather feedback, and iterate.

When choosing an MVP development partner, keep this in mind. It’s not just about delivering the first version but about finding a dependable partner to support your MVP’s growth throughout its journey.