Before buying a prototype or MVP, decide which uncertainty the work must reduce. If the problem, users or constraints are still unclear, buy learning about the opportunity. If the opportunity is understood but the proposed solution is uncertain, buy evidence that tests the riskiest assumptions. Commit to a build only when the evidence supports the case to do so.

You are buying evidence, not simply screens or software

The labels are often used loosely in commercial conversations. A prototype may mean anything from an early concept to a testable representation of a service. “MVP” can also mean different things to different suppliers and organisations. Neither term, by itself, tells a buyer what question will be answered or what decision can be made afterwards.

A better buying brief states the decision at stake. For example: whether the organisation has identified the right problem; whether users would understand or use a proposed approach; whether a critical constraint makes the idea impractical; or whether the business has enough confidence to fund a fuller product commitment.

Three distinct investment decisions

  • Problem-understanding work: appropriate when the organisation needs a clearer view of user needs, the wider journey, existing processes, constraints and the value of addressing the problem.
  • Prototype-led validation: appropriate when there are plausible solutions, but important assumptions about desirability, feasibility or fit with the operating context remain untested. The work should focus on the assumptions most capable of changing the decision.
  • Build-ready product commitment: appropriate when there is sufficient confidence that the service can meet user needs, represents a cost-effective proposition and has the people and budget needed to proceed.

What good decision evidence looks like

The exact artefacts will vary, but decision-makers should expect a clear account of the problem being addressed, whose needs matter, the context in which the service would operate, significant constraints and how success would be judged. Constraints can include existing technology, contracts, legislation and established operational processes. Accessibility and inclusion should also be considered as part of understanding whether a service can work for its intended users.

For solution exploration, the important evidence is not polish. It is what has been learned about the assumptions that could invalidate the proposal. A prototype need only be substantial enough to inform that judgement; it is not automatically a production asset or a commitment to build every part of a journey.

The cost of buying the wrong kind of work

  • A polished concept answers whether stakeholders like an idea, while leaving the actual user problem unresolved.
  • A proposed MVP becomes a small build before the organisation understands constraints that could materially alter its cost, scope or value.
  • A discovery produces observations but no decision criteria, leaving leaders unable to judge whether to proceed, reshape the proposition or stop.

Stopping can be a valuable result. Government service guidance treats a decision not to continue after discovery or prototype work as appropriate where the evidence does not support further investment. The same principle is useful in commercial product decisions: the purpose of early work is to improve the quality of the next commitment, not to make continuation inevitable.

Questions to resolve before approving a proposal

  • What decision will this engagement enable us to make?
  • What problem, user need or business outcome is being investigated?
  • Which assumptions could most change the investment case?
  • What known constraints may affect the proposition or its viability?
  • What will count as sufficiently strong evidence to proceed, revise the direction or stop?
  • Which parts of the proposed output are exploratory, and which—if any—are intended for use beyond the engagement?
  • How does this work relate to the wider customer journey and the organisation’s existing operations?

Use the language, but buy the outcome

There is no universally fixed commercial definition of an MVP, so it should not be treated as a guarantee of scope, readiness or market validation. Ask suppliers to define the intended outcome in plain terms and connect it to a decision. A prototype may be the right purchase when uncertainty is concentrated in a small part of the proposition. A broader discovery may be more valuable when the organisation is still solving for the right problem. A build commitment is stronger when the evidence and delivery conditions are sufficiently clear.

OUROPT can help organisations frame digital product investments around the evidence needed for a sound decision, from product strategy and prototyping through to delivery.

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Sources and references

  1. How the alpha phase workswww.gov.uk
  2. How the discovery phase workswww.gov.uk