What is Proof of Concept?

Proof of Concept (POC) is a validation test conducted with the objective that the product or idea is feasible and potentially viable to take to the commercialization stage. POCs explains the idea and proposed functionality and structure of the product, including its general design or specific features, and how achievable they are. A POC is crucial for entrepreneurs, managers and teams who are working on a new project and developing their business ideas into real-life solutions.

A POC can be in a presentation form. The presentation serves as a prerequisite before companies develop a MVP or the final version and release it for wide-scale implementation or sales. The object of a POC is to demonstrate a small-scale visualization exercise to verify the potential feasibility of the project in the real-life application.

Difference between POC and Prototype?

There is often a misinterpretation of the terms POC and Prototype. These two ideas, however, are not the same. The goal of POC is to show whether a product can be built or not, while a prototype physically demonstrates its basic functions and how it will be developed.

A POC addresses the question: Can the product be built or not?, whereas a prototype addresses the question: How can a product be developed?

Why is Proof of Concept important for businesses?

• Pinpoint potential risks and obstacles: Having a POC can help managers identify risks and obstacles they may face in implementing the proposed product. You can foresee those obstacles and make changes to the product accordingly. The benefit is that we can tackle the risks before launching - while we are still in the development phase.
• Determine the chances for scalability: POC is prepared at the early stage of the project. Through POCs, project leaders can verify not only the feasibility of the idea but also its scalability, whether immediately or over time.
• Stakeholders need proof before investing: Before you approach potential investors for raising funds for your venture, you need to show the stakeholders that the investment will be worth it. POC provides that opportunity. Through POCs, you can illustrate the usability and profitability of the idea. They can show the product idea in detail with illustrations and visuals to provide the presentation with sufficient data.