Building an MVP (the lower example) will let you get the product to the users quicker for feeback. For a product to actually be viable, it needs to be usable!
One of the common reason MVP projects in large organizations fail is that the organzation isn't ready for a new way of working. Not only do they forget to involve/focus on the users, but the MVP can't be done because it is being built in a waterfall organization. Because of this you need a clear enforcement from the top. Then you start building it from the bottom up. Involving people from different parts of the organization to ensure buy-in.
If you look at image to the right you see the common mistake companies do when building an MVP. They try to fit in as many functionalities as possible and ignore the usability and the differentiation.