SaaS product development has three main stages: Ideation, development, and iteration.
The third stage is crucial for success. Here’s why!
No product idea is workable unless approved by end users. Customers tell whether they like the idea or not. SaaS companies, therefore, always start with a minimum viable product (MVP) or prototype. These two are the easiest and cheapest ways to validate new product ideas with fewer risks.
However, some people stay confused between a prototype and an MVP. These two terms might look similar, but in reality, they have different objectives.
So, what’s the difference between MVP and prototype? Most importantly, what to choose between prototype vs. MVP in SaaS development. This article answers these two questions to address this confusion.
Let’s get started!
Prototype vs MVP: The Definition
Starting with the basics first. Refer to the below definitions of prototype and minimum viable product (MVP) to better understand these two concepts:
What is a Prototype?
A prototype represents the initial version of the proposed product or software. The idea is to present the initial concept in some tangible form and showcase its inherent value.
However, this mockup is not fully operational. It can be a simple paper sketch, a workflow, or a simple application infrastructure.
The rationale behind developing prototypes is very simple. The innovators use this approach to convince potential audiences about the upcoming idea, product, or solution. Prototyping makes it easy to understand how the final product would look like.
Most importantly, the prototype showcases the potential of software under development. Users can visualize the concept and learn the value they can get from its utilization.
In simple words, a prototype addresses three main questions:
- What is the initial look of the proposed product idea?
- Which core features would be included?
- How will this product address users’ problems?
What is a Minimum Viable Product?
MVP is an acronym for a minimum viable product. It is the simplest, yet functional, version of the proposed product. An MVP has basic features that can be tested to identify areas for further improvement.
The scope differentiates an MVP from a prototype. As discussed earlier, MVPs lack functionalities. It is a rough sketch that gives a look a feel or original product.
An MVP, on the other hand, is a product version that has some functionality. Customers use an MVP, explore different features, and share their feedback. The users’ opinion is later analyzed by developers so that necessary changes can be made before moving toward full-scale development.
Hence, the minimum viable product helps SaaS companies:
- Test the validity of new products or innovative ideas
- Make changes based on users’ feedback
- Build high-performing solutions with minimal risks
Prototype vs MVP: Key Differences
The table below gives a side-by-side comparison of prototype vs MVP highlighting ten major differences:
| Criteria | Prototype | MVP |
| Goal | A preliminary model is built to visualize the design concepts, explore product functionality, and evaluate its usability at an early stage. | The first functional version of a product that is used to test the core hypotheses, validate product ideas, and gather user feedback to make further improvements. |
| Functionality | Has limited or no functionality. A prototype aims to visualize a concept, not to assess the performance. | Has basic functionality that allows customers to use different features and share their user experience. |
| Target Audience | Development team, client (optional), stakeholders, and potential end users | Early product adopters who try a new product and identify flaws that need to be fixed. |
| Time | Involves a rapid and iterative development cycle that takes less time to complete. | Requires detailed planning, development, and feedback collection which is time-taking. |
| Expenses | Has fewer expenses because it focuses more on visual representation than a fully functional solution. | Take more time, resources, and effort to develop a product draft and build a viable solution based on users’ feedback. |
| Scalability | Build consider scalability into a feature-rich SaaS product after subsequent iterations. | Not scalable because the product does not offer any functionality |
| Focus | Overcome potential risks by identifying design and usability issues. | Identify and fix bugs and errors and validate assumptions in the early stages. |
Prototype vs MVP: Which one is a Preferred Option?
Understand the basic difference first.
A prototype defines how a product looks like, while the MVP focus more on its performance and functionality.
Now, if you are clear about this difference, move to the next stage regarding their adoption. Both prototypes and MVPs play an important role in the success of a SaaS product. Their application, however, depends on which stage of development you currently are.
Let’s understand it with an example.
Suppose you are thinking of developing a cloud application for the educational sector. Your target audience is teachers and students. The interface should be simple, interactive, and easy to use.
So, sketch your product vision on the paper. Draw how the dashboard should look like. Include buttons, menu bar, and other aesthetic elements. Choose the color scheme relevant to your niche. You have built a prototype.
When the sketch is ready, ask UI/UX designers if there is any room for improvement. Give utmost importance to the feedback of end users.
After the initial design, move to the next stage – MVP development. Build a simple product version and include basic features. Again, go to potential users, see how they respond, and iterate before going for full-scale product development.
Final Thoughts
A prototype is a visual representation of a software, product, or SaaS application. You can sketch it on paper or make a digital sample. The purpose is just to show the initial look and feel of your proposed product.
On the other hand, an MVP is an extended version of a prototype or initial product design. The MVP mainly focuses on product functionality. It tells users what features will be included and how will they solve problems.
The collective goal of both prototype and MVP is the same; to collect users’ feedback for further improvement.
This prototype vs MVP comparison shows key differences between these two concepts. We have also discussed their importance in the SaaS development lifecycle.