MVP development for enterprises: in-depth guide

When you think of MVP development, startups are the first thing that comes to mind.

And yes, MVPs and startups go together like bread and butter, no doubt about that.

But that doesn’t mean large-scale businesses can’t use this approach when building their products – far from it.

In fact, building an MVP comes with a lot of benefits for enterprises, whether you’re building a product for internal use or for the wider market.

Here, we’ll give you an in-depth overview of MVP development for enterprises – the benefits, the challenges, how much it costs, and a step-by-step breakdown of the process.

Let’s dive in!

What is an MVP?

Let’s start at the beginning – what exactly is an MVP?

A minimum viable product (MVP) is the first, bare-bones version of your software product that only includes its most essential features.

MVPs are the best idea validation tool out there that will show you if there’s genuine market demand for your product.

And if you’re building enterprise software for internal use, the MVP will show you if it meets your organization’s needs without breaking the bank.

Also, keep this in mind – building an MVP isn’t just about building a working product.

source: Voypost

Your MVP needs to be usable and appealing, too, so that it can effectively meet the needs of its end-users.

And that’s what MVP development is all about.

MVP development for enterprises vs. startups: key differences

So, we’ve already mentioned that MVPs are usually associated with startups.

But, what exactly is the difference between building an MVP for enterprises and for startups?

Here’s a detailed overview of the key differences:

MVP development for enterprises vs. startups: overview

In a nutshell, enterprise MVPs tend to be more complex and take longer to build than startup MVPs.

Still, they’re much less complex to build than building a fully-featured enterprise-grade product from scratch.

And building one comes with a lot of benefits for enterprises – we’ll discuss those next.

Benefits of MVP development for enterprises

Now, we’ll cover the top benefits of adopting MVP development for enterprises.

Cost-efficient development

One of the main benefits of MVP development in general is that it’s a much more cost-efficient approach to software product development.

This applies to big enterprise projects, too.

And in a challenging (to put it mildly) economic climate where budgets are getting squeezed left and right, cost-efficient development is a necessity for every business.

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That’s where MVP development truly shines.

When you build an MVP, you only focus on building your product’s core features and nothing else – that’s one of the best ways to keep development costs down.

You’ll keep your development focused and costs under control.

And that’s exactly what you should be aiming for.

Risk reduction

Enterprises have more at stake when launching software products.

While startups can quickly pivot if they’ve missed the mark, big businesses don’t have that luxury.

And that’s where MVP development comes in.

When you start small and iterate on user feedback, you’ll minimize the chance of large-scale failure.

And you can apply the same approach to your internal pilot projects, too.

Here are some specific ways MVP development reduces risks for enterprises:

• Early concept validation – MVPs allow enterprises to test new ideas in real-world settings without fully committing resources, which avoids the risk of investing heavily in unproven ideas.
• Reduced financial risk – Since MVPs are cheaper to build, even if they don’t work out, you won’t be at risk of large-scale financial losses.
• Faster detection of issues – Rapid feedback loops are a key part of MVP development, so you’ll be able to find issues quickly and early in the development process.
• Minimized risk of over-engineering – Since you’ll only focus on building core features, you’ll avoid wasting resources on unnecessary features and having a bloated product that doesn’t meet user needs.

In short, your MVP will confirm if you’re on the right track and minimize the risk of failure.

If you’re not and your idea isn’t viable, it won’t cost you nearly as much as building a fully-featured product.

And if you are, you’ll have a working product you can easily grow and iterate on – a win-win situation.

Shorter time-to-market

Another major benefit you get for building an MVP as an enterprise is that you’ll get your new product to market faster.

This means beating your competitors to the punch – and the first-mover advantage is very much real.

It’s especially important if you’re targeting a competitive niche in your market.

And the best part?

A shorter time-to-market means higher revenues and profits at a similar cost to a longer time-to-market:

source: TCGen

Or in simple terms, the faster you get your product in users’ hands, the more money you’ll earn.

Of course, this isn’t a guarantee by any means – after all, the only thing that’s certain in business is uncertainty.

But, building an MVP is one of the best ways to shorten time-to-market.

And that’s why it’s a good idea.

How much does an MVP for enterprises cost?

There’s no simple answer on how much an MVP will cost you, unfortunately.

That’s because the cost of MVP development depends on a number of factors, like:

• Your target platform(s)
• The complexity of your design
• The features you include
• The tech stack you use
• The size and experience of the development team

Let’s say you’re a clothing brand.

An MVP for a supply chain management system will cost you a lot more than a simple e-commerce app for your product line.

So, costs can vary wildly.

But, depending on complexity, on average an MVP will cost you:

• A simple MVP – $60,000-90,000$
• A medium complexity MVP – $120,000-250,000$
• A complex MVP – $250,000+

Also, there’s another major factor that will influence the cost of your MVP – quality.

This is especially important if you’re outsourcing development.

Just choosing the cheapest option will end up costing you a lot more in the long run due to quality issues.

And while an experienced software product development company might quote you a higher initial price, they’ll get it right from the start.

And that’s exactly what you need when building an MVP.

MVP development for enterprises: step-by-step guide

Next, we’ll give you a step-by-step guide on how to build an MVP.

Start with user research to validate your idea

If you don’t understand your users, you can’t build a product that meets your needs.

And that’s why you should start with user research.

Now, we usually recommend starting with market research – but, as an established business, you already know your market. And if you’re building an internal software solution, it’s completely unnecessary.

But, user research is non-negotiable, even for internal projects – your MVP needs to resonate with its end users and effectively solve their pain points.

So, how do you get it right?

First, you need to set clear research goals – this will keep your research focused and yield the best results.

Then, you need to choose which user research methods to use. Luckily, you’re spoiled for choice here:

source: Nielsen Norman Group

Now, you don’t need to use every method listed here, of course – just the ones that will help you achieve your research goals.

But, a good tip is to use a mix of qualitative and quantitative methods, like:

• User interviews
• Stakeholder interviews
• A/B testing
• Usability testing
• Surveys

Also, keep in mind that your research doesn’t need to be huge in scope, especially if you’re doing usability tests.

In fact, you’ll get the best results from testing a maximum of 5 users and running a larger number of smaller tests:

source: Nielsen Norman Group

Once you’ve done the research, you’ll know if your idea is worth pursuing or you need to go back to the drawing board to refine it.

And that’s why user research is so important.

Determine your MVP’s core features

Once you’ve gotten an idea of what your users want, you need to determine your MVP’s core features.

This is a critical step that will make or break your MVP’s development.

Here’s some food for thought – according to Pendo, 80% of features in a typical software product are rarely or never used.

source: Pendo

Or in other words, 80% of features don’t meet user needs and are a waste of resources to build.

So, getting your MVP’s core features right is an absolute must – but, how do you do it?

The first step is simple – write a list of all features you think your product needs. Then, to narrow down the initial list, you should ask questions like:

• Is this feature technically feasible?
• Does it solve the end-user’s problems?
• Is it aligned with our goals for the MVP?
• Is it aligned with our broader business goals?

While this is a good way to narrow down your feature list, you’re not done yet.

To really nail your MVP’s essential features, you should use feature prioritization methods like:

• MoSCoW (Must have/Should have/Could have/Won’t have)
• RICE (Reach/Impact/Confidence/Effort)
• Value vs. effort
• Kano

For example, here’s how the RICE method works:

source: LinkedIn

These prioritization frameworks will help you objectively evaluate which features your MVP needs to have.

And that’s key to a successful MVP.

Design and prototype your MVP

Once you decide on its core features, the next step is designing and prototyping the MVP.

Your MVP’s design and user experience (UX) might just be its most important elements. Like Steve Jobs once said:

Design is not just what it looks like and feels like. Design is how it works.

Steve Jobs, Apple co-founder and CEO

A great design pays for itself. The stats back that up, too – for each $1 you invest in UX, you get up to $100 in return.

So, nailing this step is crucial – but, what does the process look like?

Usually, it’s done in 5 steps:

• User research
• Wireframing
• Making a mockup
• Prototyping
• Usability testing

We’ve covered user research in detail already, so we won’t repeat ourselves.

Just keep in mind that your research results should guide all of your design decisions.

The next step is creating a wireframe.

This can be as simple as a rough, hand-drawn paper sketch.

Wireframes are a very quick, low-cost way to flesh out design ideas and concepts before committing to any one choice.

They’ll be the basis for your mockup and prototype.

Here’s what going from a low-fidelity wireframe to a high-fidelity prototype looks like:

You’ll need a high-fidelity prototype for the final step – usability testing.

This is where users test out your MVP’s design and UX, so you can catch any flaws and issues that slipped through the cracks.

And once you’ve fixed them, you’ll have a final design you can hand off to your software development team.

Build your MVP

Now, we get to the good stuff – actually building the MVP.

And the key to successful MVP development is good preparation.

Your first step should be writing a detailed software requirement specification (SRS) document.

The SRS is like a blueprint for your MVP that will guide the entire development process.

Here’s everything your SRS document should cover:

But, the 2 most important elements are your MVP’s functional and non-functional requirements.

In simple terms, the functional requirements cover what your MVP does and non-functional requirements cover how it does it.

Once you’ve got your requirements down, you need to pick the tech stack you’ll use to build your MVP.

source: GetApp

Unlike a startup you likely already have an established tech stack, so this step should be a breeze.

Finally, before you start development, you need to choose the right development methodology.

And when building an MVP, Agile methodologies like Scrum and Kanban are by far the best choice.

Scrum in particular stands out – 81% of Agile teams use Scrum or a Scrum hybrid.

With Scrum, development is broken down into mini development cycles called sprints – and it fits perfectly with the iterative nature of MVP development.

It will help your team work more efficiently, iterate quickly, and stay flexible in case things change mid-development.

And that’s exactly what you need when building an MVP.

Set up a feedback loop and release your MVP

Now, we come to the final step – releasing your MVP.

As a large business, you likely already know all about launching a product, so we won’t get into that.

But, before you release your MVP, you should set up a feedback loop.

A feedback loop is the process of continuously collecting, analyzing, and acting on feedback you receive from users.

So, why is it important?

Setting it up will help you effectively iterate on your MVP and make the most out of the feedback you receive from users.

The sooner you get to the feedback loop, the sooner you can give users what they actually want.

Marko Strizic, DECODE co-founder and CEO

The feedback will help you iron out any teething issues with your product, highlight areas for improvement, and identify features you should add.

And this will help you better plan your development roadmap and your MVP’s future growth.

Challenges of MVP development for enterprises

Finally, we’ll discuss the main challenges of MVP development for enterprises.

Managing stakeholder expectations

The biggest challenge you’ll face in enterprise MVP development is managing stakeholder expectations.

Enterprise leaders often expect a feature-rich product that once launched, won’t need to be constantly updated.

And an MVP is the exact opposite of that.

So, how do you overcome this disconnect?

Here’s what you should do:

• Communicate the purpose of an MVP upfront
• Highlight how validating the idea first reduces risk
• Emphasize the cost-effectiveness of MVP development
• Schedule regular updates during development
• Create a clear roadmap for future updates

This way, you’ll involve key stakeholders from the start and get them to buy-in.

And that’s key to successful MVP development.

Scalability

Scalability is another major challenge you’ll face when building your MVP.

Your MVP needs to be scalable and built with future growth in mind from the start.

And it doesn’t matter if it’s customer-facing or meant for internal use, both will need to handle large data volumes without drops in performance.

So, how do you make sure your MVP is scalable from the start?

First, you need to make sure it’s built with a modular architecture.

source: Medium

This way, you’ll be able to easily add new features or upgrade existing ones without affecting your product’s performance.

Also, you should use cloud computing services, because they’re key to a scalable product. Some of the top ones you should consider are:

• AWS
• Google Cloud
• IBM Cloud
• Microsoft Azure
• Oracle Cloud

With them, you won’t have to invest in expensive hardware infrastructure and since they operate on a pay-as-you-go model, you’ll only pay for the resources you actually use.

And that’s why you should go with them.

Integration with existing systems

Your enterprise MVP will almost certainly need to integrate with complex, legacy systems you use on a daily basis.

And that’s a significant challenge.

Your older software might not have APIs or data access layers (DALS) that enable integration – you’ll need to build them from scratch.

And that’s just your internal software – your MVP might need to integrate with different third-party software, like ERP systems, too.

source: ModLogix

So, how do you ensure your MVP’s integration is as seamless as possible?

First, before you build it, you need to do a thorough audit of the existing systems it will integrate with.

You need to identify key points of integration and potential compatibility challenges.

Then, you need to build APIs to bridge the gap between your legacy systems and your MVP – you’ll need to thoroughly test them, too.

And that’s how you integrate your MVP with legacy systems.

MVP development for enterprises: FAQs

Need an enterprise-grade MVP?

Are you thinking about building an MVP, but haven’t taken the plunge yet?

Luckily, you’re in the right place.

We can help you build your MVP from the ground up, from validating your idea all the way to launch – all in under 6 months.

And with our years of experience working on enterprise-grade projects, your product’s development will be in safe hands.

If you want to learn more, feel free to reach out and our team will be happy to set up a call to discuss your needs in more detail.