If the MVP finds product market fit and the market is large enough, then the economic incentive to finish the remaining 20% will exist.
If the market isn’t large enough, then the customer still got 80% of the value whereas in the authors idealised world, they likely wouldn’t have gotten anything at all, since the minimum cost to develop it was 5x higher (assuming 80/20 holds).
Overall it seems we’re better off with startups following the Pareto principal than not following it, and the authors real issue is just with bad product management decisions afterwards.
Comments
If the MVP finds product market fit and the market is large enough, then the economic incentive to finish the remaining 20% will exist.
If the market isn’t large enough, then the customer still got 80% of the value whereas in the authors idealised world, they likely wouldn’t have gotten anything at all, since the minimum cost to develop it was 5x higher (assuming 80/20 holds).
Overall it seems we’re better off with startups following the Pareto principal than not following it, and the authors real issue is just with bad product management decisions afterwards.