What Is A Proof Of Concept (POC) And Why Does It Matter?

Every product begins with an idea, but not every idea will turn out to be a success. Each one needs to be tested to determine its viability and potential. That’s where the Proof of Concept comes in to help us understand if the plan we have can become a profitable reality. 

But what is POC? Below, we explain the significance of designing a proof of concept, address its limitations, and offer practical guidance on creating one.

What Is A Proof Of Concept (POC) And Why Does It Matter?

Proof of concept: definition

A proof of concept is a basic version of a product that shows how your product idea is supposed to work and look like. It’s best used when testing if a new product is practical, especially in the early development stages. POCs are used across various industries and fields, including technology, engineering, healthcare, and more. The main aim is to provide evidence that the idea is valid before making substantial investments in time, resources, and finances. This often involves creating a small-scale version or a prototype to see if the concept could succeed in the real world.

A proof of concept is particularly useful for:

  • Testing technical feasibility. POCs are important for testing the technical feasibility of an idea and for evaluating if the proposed solution can be developed using existing technologies. This helps identify technical limitations early, thus enabling informed decisions about resource allocation, timelines, and necessary modifications.
  • Validating ideas and reducing risks. The primary goal of a proof of concept is to validate ideas or concepts before committing significant resources. Through small-scale prototypes or controlled experiments, businesses can assess viability and minimize risks associated with launching a full-scale product that may not meet market demands or encounter unforeseen challenges.
  • Attracting investors and stakeholders. Serving as tangible evidence, POCs make it easier to attract investor and stakeholder support. By showing working prototypes and requested results, businesses can effectively communicate the idea’s value and increase the chances of getting financial backing.

A proof of concept is typically shared through a document or presentation and should contain:

  • Defined purpose. Helps obtain a clear understanding of why the product exists and assess its capability to address a specific problem or need.
  • Product overview. The functionality that has to be tested, provides a roadmap for the POC process.
  • Success criteria. Defines the criteria for success and outlines the data that will be collected throughout the testing process.
  • Implementation steps. Details the necessary steps for translating the concept into real-world implementation, provides a practical guide for execution.

POC vs MVP vs Prototype: what’s the difference?

During the development phase, the product goes through various stages, such as prototype, MVP, and POC. While these terms may appear similar, each serves a unique purpose. We have already explained what is a POC, so now let’s look into prototype and MVPs specifics and uncover their individual roles in product development.


Let’s start with the prototype. It is a preliminary version of a product that is built to test and validate its design and functionality. Prototypes are not meant to be fully functional or market-ready, but rather serve as a visual representation of the concept. They are often designed using low-fidelity materials, such as sketches, wireframes, or 3D models. Prototypes enable designers and developers to test different design choices, gather user insights, and iterate on the product’s functionality. In other words, prototyping helps stakeholders understand how the final product will look and perform and align their expectations with the development team.

For instance, in the case of a mobile app, a prototype might involve creating screens that simulate user interactions, thus allowing stakeholders to experience the flow of the app and provide relevant feedback.

Minimum viable product (MVP)

An MVP is a working version of a product with a minimal set of features and is required to solve the targeted problem or meet the intended user needs. It is developed with the goal of collecting valuable feedback from early users and validating the product-market fit.

Unlike a POC, an MVP is a functional product that can be released to a limited user base. It helps in identifying and prioritizing the most critical features and validates the market demand before investing further resources.

In the table below, we compare three terms:

Proof of Concept PrototypeMVP
PurposeDemonstrates the feasibility of a concept or idea before its development.A preliminary model of the proposed product or systemA scaled-down version of the final product released to the market for feedback and validation.
FocusThe main focus is to test and validate the feasibility of an idea or technology.Focused on demonstrating the functionality of the intended product.Centered on assessing market viability and collecting early user feedback.
User involvementTypically, doesn’t involve direct user feedback and is primarily evaluated by the development team.Designed to gather feedback from stakeholders.Released to early users to collect market feedback.
Development stageDesigned at early stages of project development to test a concept’s feasibility.Built after the POC to illustrate the intended working model.Developed after the prototype to introduce the product to the market for user validation.

It’s important to note that these stages are not mutually exclusive, and a product can go through multiple iterations of POCs, MVPs, and prototypes before reaching the final version. The key is to use these stages strategically, based on the specific needs and goals of the project.

The process of creating a Proof of Concept

The process of creating a POC involves several key steps to ensure a comprehensive and effective exploration of an idea or project. Here is a breakdown of the typical stages:

Identify the idea 

The first step in creating a POC is to clearly define the objective of the product. What problem does the concept aim to solve? What are the desired outcomes? And what user needs will the product fulfill? By identifying the objective, you can establish a clear direction for the POC and ensure that it aligns with the overall goals and vision. 

Set objectives

Establish specific goals and KPIs (success criteria) for the proof of concept. They could include technical feasibility, user acceptance, cost-effectiveness, or scalability.

Research and analysis

Once the objective is defined, thorough research and analysis are essential. This involves studying existing solutions, market trends, and potential competitors. By understanding the landscape, you can identify gaps, unique selling points, and areas for improvement. Research also helps to determine the feasibility of the concept and estimate the required resources.

Design and development

Based on the research and analysis, the next step is to design and develop the POC. This involves creating a prototype or a scaled-down version of the concept. The design should focus on showcasing the core functionalities and key features of the product or solution. It is important to strike a balance between simplicity and complexity, ensuring that the POC effectively communicates the concept’s potential.

Testing and evaluation

Once the POC is developed, it needs to undergo rigorous testing and evaluation. This involves identifying key performance indicators (KPIs) and conducting tests to measure the POC’s effectiveness in meeting the defined objectives. Feedback from users, stakeholders, and subject matter experts is important during this stage. 

Analyze results

Analyze the data collected during the POC to evaluate the concept’s feasibility. Compare the results against predefined success criteria and identify strengths, weaknesses, and potential areas of improvement.

Documentation and presentation

A well-documented POC is crucial for stakeholders to understand the concept’s value and potential. This includes documenting the research, design, development process, and testing results. Additionally, preparing a compelling presentation that effectively communicates the concept’s strengths, benefits, and market potential is essential for gaining support and buy-in from decision-makers.

Iteration and improvement

Creating a POC is not a one-time event. It is an iterative process that involves continuous improvement and refinement. Feedback from stakeholders and users is invaluable in identifying areas for enhancement. By incorporating feedback and iterating on the concept, you can create a more robust and compelling POC that addresses potential concerns and maximizes its potential.

Tools that you can use when creating your POC

Choosing the appropriate tools is paramount for a smooth and effective process. Here are some tools that can enhance your POC development:

  • Collaboration platforms: Platforms like Slack or Microsoft Teams facilitate seamless communication among team members, fostering collaboration and information sharing.
  • Project management software: Tools such as Trello, Asana, or Jira can help in organizing tasks, setting timelines, and tracking progress throughout the POC.
  • Prototyping tools: Employ tools like Figma, Sketch, or InVision to create interactive prototypes that showcase the envisioned product or service.
  • Data analytics tools: For POCs involving data analysis, tools like Tableau, Power BI, or Google Analytics can assist in drawing insights and conclusions.
  • Cloud services: Platforms like AWS, Azure, or Google Cloud can provide the necessary infrastructure for testing and deploying your POC.
  • Survey and feedback tools: Utilize tools like SurveyMonkey, Typeform, or Google Forms to gather user feedback and insights during the POC process.
  • Documentation platforms: Efficient documentation is crucial. Tools like Confluence, Google Docs, or Notion can aid in creating and organizing project documentation.

Selecting the right combination of these tools based on the specific requirements of your POC will contribute to a well-managed and successful proof of concept.

Challenges and limitations 

Despite all the benefits, POC also has its limitations. While it provides valuable insights and proof of feasibility, it does not guarantee the success or market acceptance of the final product or solution. External factors, such as competition, market dynamics, or changing customer preferences, can still influence the outcome. Therefore, POC should be seen as an iterative process that requires continuous learning, adaptation, and validation throughout the development journey.

Some of the other limitations and challenges include:

  • Limited scale. POCs are typically conducted on a small scale, focusing on specific aspects of an idea. This limited scope may not capture the full complexities that could arise in a larger implementation.
  • Limited real-world variables. POCs often operate in controlled environments, which may not accurately simulate the real-world conditions and challenges the project might face during widespread implementation.
  • User feedback challenges. Gathering meaningful user feedback can be challenging in a POC, as users may not fully engage or provide insights that accurately reflect real-world usage.
  • Risk of misinterpretation. Stakeholders may misinterpret the purpose of a POC, expecting a fully functional product rather than a demonstration of feasibility. Managing expectations is important.
  • Incomplete technical picture. While POCs address certain technical aspects, they may not encompass the entire technological landscape, leading to potential oversights in the broader technical requirements.
  • Lack of market dynamics. POCs may not fully capture the dynamics of the market or user behavior, making it challenging to predict the product’s success beyond the controlled POC environment.

Additionally, conducting a proof of concept requires time, resources, and expertise. It may not always be feasible for individuals or organizations with limited budgets or capabilities. In such cases, seeking partnerships or collaborations can help overcome these challenges.

Understanding these limitations is essential if you want to effectively leverage POCs and make informed decisions about the viability and future development of a project.

In conclusion

Overall, we can define POC as the ‘beta test’ of a new concept, where you show it’s doable and has potential. This can help businesses attract investors, gain regulatory approvals, and refine the concept. While it has limitations, when conducted effectively, a proof of concept can significantly increase the chances of success and mitigate risks in the innovation process.

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