In a world driven by consumers and reliant on technology, there is no shortage of businesses attempting to turn brilliant ideas into money-making goods; however, doing so successfully is an entirely different thing.
Roughly 90 percent of new businesses never get off the ground, and 95 percent of new goods need help finding a customer base and ultimately fail.
Let's put the concept that underlies it to the test first so that we can make sure you finish up with the product you were hoping for. Is there significance to the idea?
Yes, but it's essential to validate ideas in the real world. To do this is one of the primary goals of PoC technology. In addition, Proof of Concept initiatives allows you to delve deeper and identify potential roadblocks before developing your program.
This article will explain the Proof of Concept meaning and how to do it right. Let's get to reading!
Proof of Concept Definition
The Proof of Concept (PoC) method is a technique for confirming assumptions with the consumers you are targeting and determining whether or not your idea is technically possible. It entails creating a minimally working state of your ultimate product.
What is PoC (Proof of Concept), and how to do it right?
The Proof of Concept (often abbreviated as PoC) is an experiment to demonstrate that it is possible to proceed with the process of commercializing a product or an idea.
Documentation, presentations, and live demonstrations are all acceptable formats for a Proof of Concept. It is distributed to potential investors, managers, and other stakeholders in the project to demonstrate the feasibility necessary to obtain approval and finance.
You may also like: How to create a mobile app pitch deck?
A Proof of Concept template will include a variety of information and data gleaned throughout the process of testing, including the following items:
- Responses from Customers
- Research on one's competitors
- Analyses of the business
- Forecasted costs and revenues
- Go-to-market strategy
- And much more
An initial point of contact (PoC) could be more or less extensive and thorough, depending on how complicated the idea is. On the other hand, it should take a maximum of a few weeks or months at the very most to finish.
A PoC is much more than just a pitch, even though it is structured similarly. It is not only an exercise in using marketing hype to attract potential investors.
Instead, it involves demonstrating to all relevant parties that there is a demand in the market and that the idea will result in a favorable return on investment.
The PoC procedure might look very different depending on the product's development, the development phase's complexity, the intended audience, and many other factors.
For instance, the Proof of Concept (PoC) for a business-to-business (B2B) software solution must demonstrate the technology's capabilities and features and how it is compatible with the particular client's systems and requirements. On the other hand, a Proof of Concept for a new toy or other B2C product is obviously not comparable to this in any way.
Proof of Concept steps
Every possible business idea, no matter how specific or broad its market, must adhere to the fundamental principles for a comprehensive Proof of Concept steps:
Demonstrate that there is a demand or a Void in the market
The first step in developing a Proof of Concept is to demonstrate that the idea addresses a demand or void in the market. If it does, there is a better chance of finding a client base and success. Finding potential clients and gaining knowledge of their challenges is the most effective way to accomplish this goal.
In what ways does the company's idea or product solve the problems faced by the customer? What specific characteristics of the product make it appealing to potential customers? By engaging directly with customers and soliciting their opinion, it is possible to discover the answers to these questions and many others.
It may be accomplished using several internet platforms for market research, such as Survey Monkey and Recollective. However, conducting one-on-one interviews with customers and participating in focus groups are valuable methods for correctly gauging customers' opinions.
Create a Demo and Perform a Test
Now is the time to design a basic version of the product and test it on a focus group of possible clients before diving headfirst into the process of developing a fully-fledged prototype of the product.
It is possible to further enhance the product demo in accordance with the market's requirements by drawing on the feedback gleaned from the experience of the test group. This iterative technique saves a lot of time and work and enables only the minimal amount of resources to be used while providing the most helpful input.
The demonstration might continue through several iterations based on repeated tweaks and testing until a Minimum Viable Product (MVP) is achieved. An MVP is a product with a greater chance of success when it is taken to the commercialization stage. Consider using social media to evaluate your product idea, mainly if you are limited in terms of both price and time.
Build a Roadmap
After it has been determined that there is a need for the idea in the market and the demonstration has been completed, the next phase is to outline in detail the step-by-step approach that will be used to bring the concept to market.
This will demand research and planning of the technicalities, like manufacturing, logistics, distribution, advertising, and sales, that are involved in the process. The road map needs to show that the commercialization process is efficient, well-optimized, and worth the investment being made.
Instead of Trying to Sell, Share a Story
On the other hand, a proof of concept is not the same thing as a sales proposal. It is a feasibility study that gives investors the assurance they require to feel confident and agree to the required financing to move forward with the project.
However, investors are human beings just like everyone else. The best approach to attract their attention (and investment) is to go far beyond the dry financials and technical proof and instead weave all of that information into a tale that is captivating and engaging.
Whether it's a report, a presentation, or a paper, the proof-of-concept (PoC) should use tried-and-true narrative tactics to keep investors from becoming uninterested and bored. This can be accomplished by using personas, which offer a human dimension to the process.
However, it is crucial to keep your attention on the bigger question: how does the product or idea affect the world? How does it enhance humanity? How does it make the customer's life better? It is an essential aspect of an effective PoC.
Perks of Using Proof of Concept
Prototype and Proof of Concept (PoC) methods provide many advantages that are worth considering at the beginning of a project's development process:
- PoC provides potential investors and decision-makers with crucial data that enables them to decide whether the idea for the project or product will be feasible and, if so, how beneficial it will be for the target audience.
- PoC provides development teams with crucial user feedback and knowledge about market demand, the population they are targeting, and major pain areas.
- The production of a proof of concept is an important stage in the development process of a product since it serves as the foundation for both the product prototype and the minimum viable product.
Why Do We Need a Proof of Concept?
In their eagerness to bring their products to market, many companies speed through the PoC stage or even skip it entirely. Doing so would be a terrible error. Investing in a Proof of Concept (PoC) is a crucial step in the product development process that can save a project from the trash bin.
Here is the Proof of Concept examples:
It confirms a concept
The fundamental objective of a Proof of Concept is to see if an idea can be developed into a marketable, lucrative product. Exists a necessity or void on the market? Who are the prospective customers? Is it a worthwhile expenditure? Will there be a positive ROI? Before spending money, personnel, or time, the PoC answers these issues and confirms the idea.
It helps attract financiers
Every shareholder wants to know they are financing a winning investment. Nevertheless, no real investor will fund an idea. A proof-of-concept gives evidence that the proposal is financially viable and is essential for attracting investors, top managers, and other decision-makers.
It takes care of problems and hurdles before deciding to commit fully.
A Proof of Concept (PoC) paints a detailed picture of the challenges that may arise throughout the development and marketing phase. A PoC may reveal, for instance, that the intended audience isn't experiencing the pain point that's being addressed.
Focus groups and customer input can be used to spot this kind of issue during the surveying phase, allowing you to adjust your concept to meet the needs of your target audience better.
Worth checking: No-code SaaS – guide on how to build products without coding
In the end, it ends up saving you money.
Extensive tweaking of the MVP may be required to satisfy the requirements and expectations of the target audience, as revealed during the testing phase.
However, as opposed to the high expenditures of developing a prototype or re-issuing a new, updated product, fixing these problems during the PoC process is relatively inexpensive.
What is Proof of Concept? Conclusion
No doubt, PoC testing in software development process is critical for startups and large corporations since it allows them to validate their business assumptions. In addition, it's an excellent method for determining if the idea can be realized using already accessible technologies.
It is why developing a successful Proof of Concept is a significant first step on the road to creating a prototype, a minimum viable product, and eventually a full-fledged product.
At Apptension, we deliver a Proof of Concept (PoC) approach to incorporate a successful business idea and assist you from collecting business demands to a successful product. So get in touch with our Technical Experts!