What is Proof of Concept and what is it useful for? → Example

Ensuring the viability of a project, the potential of a startup or the success of a product development is something that can be achieved through Proof of Concept (PoC).

This process, which requires a series of considerations to be carried out, consists of validating the minimum aspects that ensure the success of a business project or a product or service idea.

In marketing, for example, PoC is used to check the legitimacy of a niche or that an offer will generate profits. However, there are many other applications that this instrument offers to the strengthening of a value proposition and to Project Management. Let's take a closer look at what it is all about.

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What is a Proof of Concept?

In the world of software development, the Proof of Concept (or Proof of Concept in English), consists of checking the technical feasibility of an idea, through the evidence of its functionality and potential. In other words, it is your way of proving to the customer that your solution works by demonstrating some key functionalities.

The implementation of a Proof of Concept involves testing some of the features of the future product in order to reduce the risk of failure. It also seeks to verify that:

1. The technology responds to the needs of its target audience or established niche.
2. The product behaves as expected.
3. The project or product is viable from a commercial point of view.

Development and proof of concept: how to do it?

In the process of product creation and development, PoC seeks to answer the question of how to build or realise a product.

For customers and investors to accept and support a development proposal, it must be proven to be practical, functional and commercially viable.

The procedural steps to ensure this are detailed below.

1. Defining the starting and finishing point

The first step, as in any project, is to be clear about the objective being pursued. For this, it is necessary to define as clearly as possible what the expected results are, according to a series of criteria of excellence to be achieved.

This stage includes:

• The process of projecting the feasibility of the project, in order to prove that it has the potential to arouse the interest of customers, users, investors and other interested parties.
• Ensuring that you have the capabilities to develop the project or new product.
• Verification that there is a target market willing to buy your solution.

2. Conduct testing

Once you have defined the end point, you need to make sure that the product or service you offer actually delivers what it promises.

To do this, you need to design the workflow from the input data and make the decisions that need to be implemented during the design process. From there, the test plan for design integration is created.

In the case of the development of a software solution, for example, it will be essential to demonstrate that the tool can be correctly integrated with the company's processes and with other tools of your client such as their CRM or accounting software.

3. Collect feedback

Every proof of concept should consider a review of the feedback received from the customer or user. The goal is to document the overall experience and any other information that may be valuable in improving the product, such as:

• assessment of ease of use,
• features to be preserved,
• feedback on possible improvements.

4. You make corrections

Based on the feedback and comments, you analyse the need for corrections and improvements, what they consist of and what will be the plan of action to follow.

With the concept optimised on the basis of the feedback received, it is now possible to prepare the development of the product, with emphasis on:

• the features that provide a timely response to the new needs identified,
• the technology or methods that support the project.

5. Presenting the product

The presentation of the product or project should detail all the components of the development, as well as the achievement of the criteria of excellence that had been defined at the beginning. For this, it is advisable to use metrics and indicators to facilitate this verification.

The inclusion of other detailed information such as the amount of resources needed and the operational efforts required can be useful to give a more global idea of the project.

Details of the benefits generated, beyond the features of the product or project, facilitate its validation by users or, if funding is required, by investors.

Example of proof of concept of a product: the LEGO case

There are many examples of companies that have resorted to this validation stage to ensure the success of their developments, and taking into account the benefits of implementing it, we present the success story of the Danish toy company LEGO.

LEGO is one of the brands that has made the greatest commitment to adapting its offer, based on the analysis of different niches and the validation of its products. In addition to offering different ranges of products (children, adults, etc.), it has also committed to digital development. This is the case of its LEGO Ideas platform, a space in which users' ideas are put to a vote to eventually become real products.

The success of the development of toys that were better received by the female public consisted in projecting what their interests and habits were at the time of playing. Thus, it devised universes that attracted their attention, which had been validated through concept tests and whose effectiveness was proven by the success of sales.

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Why conduct a Proof of Concept?

The Proof of Concept allows to explore details of a project, as well as components and functionalities of a development, from which a better evaluation of its relevance can be made.

In this sense, PoC is useful in:

• The development of a product, as a way of testing its functionality.
• The launch of an emerging company or start-up, to validate its financial capacity and potential.
• Large-scale projects to reduce the risks associated with the viability of the project and the availability of financial and operational resources.

For this to happen, it is necessary to

• be clear about the what (the raison d'être of the business, idea or product);
• set a time or deadline to test its viability, being aware that the sales cycle will necessarily be extended;
• determine the criteria of excellence to be met and adjust to them.

In relation to the MVP, the PoC is a stage that takes place before, as a way of validating the relevance of an idea or assumption. The PoC may even be followed by the development of a prototype, before reaching a first functional version of the product.

Generally speaking, this stage facilitates the decision to approve an idea and to invest in its implementation on a larger scale. Now that you know that PoC is the effective way to turn your ideas into real-life solutions, what are you waiting for to implement it?