The entire startup world owes Eric Ries a huge high five for everything he’s contributed to our understanding of how startups are created and grown. One term that he coined back in 2009, minimum viable product, has stood for the difference between shipping “error-free” shrink-wrapped software, and releasing something barebones that you can test and learn from. And while Corporate America and the Federal Government are just starting to adopt the ideas of lean startups, the term is starting to show its age.
The world has changed a lot since 2009, and I think we need a concept that goes beyond MVP. Many of the fastest growing startups right now – Instacart, Homejoy, Airbnb – they facilitate real-world transactions of goods, services, and money. Sometimes this is called online-to-offline: technology facilitates the transaction, but it is just the beginning.
Transactions are the New Products
When I was in DC, I met a woman working on an interesting app idea: a marketplace bringing together piano players and piano owners who rarely use their expensive instruments. The idea was that pianos could be listed on the marketplace and players, who often couldn’t afford a piano of their own, could play their instrument. When I asked this woman what her current plans were for the project, she said she was trying to wireframe the marketplace for a web and mobile application, figure out payment processors, etc. Continue reading…