Minimum Viable Product is a clever concept aiming to minimize product development. What I thought was interesting was the ways the some companies are implementing this.
TPGTEX Label Solutions
“But instead of spending the time and money to develop products on spec, TPGTEX creates mocked-up webpages that list the features of a potential new product — such as a system for making radio-frequency identification, or RFID, labels — along with its price. Then, the company spends no more than a few hundred dollars marketing the product through search engines and to the contacts in its sales database and LinkedIn. It isn’t until a customer actually clicks or calls to place an order that TPGTEX’s developers will build the software.”
Its a good sign when people sign up to be notified.
“We made a few pencil drawings of what the app would look like which we then gave to a graphic designer….Now armed, with 4 “screenshots” and a story we approached our target market….Once we secured a meeting, we told our potential customers that we were actively developing our web app…We walked them through what we thought would be the major application of our product….we pressed those who saw merit in the idea to sign a legally non-binding Letter of Intent…. that they intend to purchase if by Y date at X price.”
The process is sound although a letter of intent is not he same as laying down cash.
For full article see: http://leanstartup.pbworks.com/w/page/15765212/Case%20Study%20One