What is Proof of Concept (PoC) and how to apply it in the IT industry?

Proof of Concept, or PoC, is a crucial part of the initial phase of any project. It is often an overlooked aspect of a project, but one that can provide the answer to whether it makes sense to proceed with the project.

What exactly is PoC? And how should you approach this stage of product development? In this article, we will define Proof of Concept, answer the most important questions, and present some best practices, use cases, and examples of PoC in the IT industry.

The software development process consists of many essential stages that cannot be skipped. Each stage is critical from a business perspective. One of these stages is a comprehensive feasibility and rationale study at an early stage. This stage provides enough data to begin development work but is early enough to allow for the creation of a PoC before we start costly work related to technology implementation and later integration.

Just like any idea, a new idea for software development must be verified and prepared to address real problems and challenges. There are many ways in which entrepreneurs can confirm that a raw idea is viable for practical use. In one of our previous articles, we discussed MVP, but today we’ll talk about an approach that allows testing a raw idea without incurring significant costs.

We will focus on Proof of Concept (PoC), a common practice for those planning to develop an MVP or add new features to an existing product. Let’s define and explain this term, and discuss PoC in software development in detail.

Proof of Concept what does it mean?

Proof of Concept is not just a fancy term for a project development stage. It is a feasibility study of an early-stage idea at the initial phases of a project. Ultimately, it leads to obtaining confirmation of the idea’s credibility and the product’s readiness for market introduction.

Importantly, the Proof of Concept approach in software development allows verifying whether the product or feature idea is feasible and meets user expectations. It also checks whether users need the product and if it will address their needs. It is a way to confirm project assumptions and understand how it can function, as well as the technology required to create it. PoC involves conducting research, gathering early feedback, and eliminating risks and errors at later stages of the Software Development Life Cycle (SDLC) or product development.

Definition of Proof of Concept (PoC)

Proof of Concept (PoC) is typically an early, initial version of the entire project or a part of the project that introduces a new element for implementation, such as new features or requirements. Its purpose is to determine whether the implementation makes sense and is feasible, as well as to verify whether it meets user requirements and business goals. It is a quick and inexpensive way to test the feasibility of a project, regardless of its scale, form, or technology. PoC provides quick and reliable feedback on the potential of the project, which serves as the basis for stakeholders’ decisions to either launch or discontinue the project.

At what stage of the project should you create a Proof of Concept (PoC)?

While the importance of Proof of Concept (PoC) for the success of a project is clear, you may be asking at what stage of the project you should conduct a PoC. Let’s assume you want to find evidence that the new idea can stand the test of time, meet appropriate industry standards, and attract stakeholders and investors (e.g., through facts added to your pitch deck). In this case, PoC should follow the ideation phase of your project.

Therefore, PoC is usually carried out at an early stage, right before or at the beginning of the discovery phase. It will provide valuable feedback, guide you in the right direction, and help assess the idea from various and, in most cases, unexpected perspectives.

However, not every project requires a PoC for an IT product, as some are based on general or already proven ideas.

So, what is PoC useful for, who are the target users, and who is responsible for creating the Proof of Concept? Which projects can derive the most value from it?

Should you always create a Proof of Concept (PoC) or when should you use it?

Based on our experience, the main question to ask before deciding to add Proof of Concept to the project lifecycle is whether new requirements or use case changes are emerging. Are there doubts related to the digital product, how it functions, ensuring services for users, or stakeholders not understanding the product idea, etc.? If the answer is yes, then a PoC should be introduced into the project.

What do you gain by going through the Proof of Concept process?

By going through the Proof of Concept (PoC) process in software development, you gain many benefits that are crucial for the success of the project:

• Clear definition of project requirements: The PoC process allows for early formulation of requirements, providing a solid foundation for further work on the product.
• Setting clear goals and success metrics: By identifying goals and key performance indicators (KPIs), you can continuously assess progress and adjust actions to better align with business needs.
• Effective workflow: Properly planned stages help maintain control over the project’s progress, promoting smoother execution and minimizing the risk of errors.
• Documentation of the process: The PoC process creates detailed documentation describing each stage, which makes future implementations easier and allows for a thorough analysis of product development, from basic features to advanced solutions.

Thanks to these benefits, PoC helps not only in refining the project’s vision but also in building functional, efficient, and user-centered software.

What are the benefits of a Proof of Concept?

Now that we know what a PoC is in the IT industry, let’s quickly take a look at why this process is important and what benefits it can bring in the creation of digital products. Some of the main benefits of a Proof of Concept include:

• PoC provides an early-stage business feasibility assessment, helping to reduce risks such as failure to launch the product in the market. Going through the PoC process answers the key question: is this idea worth pursuing from a business perspective, and does it offer a minimum return on investment? You can examine preliminary data and ensure that there is a problem or need to solve or address, that there is demand for the feature, product, or service, customer interest, and that the market is ready for it. This allows you to use this evidence to decide whether to commit financially and business-wise to developing the digital product.
• PoC provides technical feasibility verification. A Proof of Concept helps ensure that it is technically possible to bring such a solution to the market. Verifying and identifying potential blockers will make iteration easier before starting full-scale development.
• PoC minimizes technology-related risks. It is a way to avoid risk before carrying out development tasks. It allows you to identify potential bottlenecks and issues at an early stage, as you can explore possible product development paths, focusing on optimal technology stacks, solution scalability, performance, integrations, and other factors influencing software development. At this stage, PoC will validate the sense of building software in selected technologies, answer questions regarding development costs in one technology versus another, availability of specialists, etc.
• PoC helps reduce financial risk. Importantly, going through the PoC process requires significantly fewer resources than developing a full-scale, complete product. This allows you to weigh the pros and cons of investing in the project, calculate a realistic assessment of the required expenditures and resources, and determine the potential return on investment.
• PoC refines the business strategy. With a clear understanding of all the points mentioned above, you can better shape your business strategy, choose the right model, refine the product scope, and gather logical requirements and specifications. This will certainly help in the smoother launch of the product or MVP.

What Happens After Proof of Concept in Software Development?

The correct meaning and purpose of a Proof of Concept (PoC) is to gather all the necessary information and lay the foundation for future product development. It should contribute to the achievement of the company’s or stakeholders’ goals. Once viable ideas for a tech startup are confirmed, it’s time to verify their feasibility.

What Steps Should Be Taken After the Proof of Concept?

First and foremost, the next steps include prototyping and solution design. After ensuring that the project is worth pursuing, from UX discovery to milestone marking, it’s time to implement business documents, case scenarios, requirements, etc.

Once you enter the project preparation phase, user interface mockups should be created. All features should be demonstrated, and the user flow defined. It’s best to do this by developing mockups, UX wireframes, or even simple sketches on paper. These are typically followed by creating clickable or interactive prototypes. Many MVP tools can make this process easier, with Figma and Miro being among the best options.

Next, it’s time to build the most basic version of the future solution. This refers to creating the software MVP, which forms the foundation of a full-fledged solution ready for market introduction. At this point, you can choose from different types of MVPs, which may vary in complexity and required resources. Typically, the product will only have the minimal set of core features that can solve the user’s problem. However, it must be free from bugs and errors, making the QA testing process critical. Once the early version of the solution is well-tested and ready for launch, you can proceed with its deployment.

Next, it is essential to gather real feedback by involving a small group of designated end users. Insightful feedback from all stakeholders will fully equip you with the knowledge of what needs to be improved. By collecting and analyzing user feedback—such as building a public version or reaching out to audiences to understand their point of view—you can create a truly polished product. The MVP testing process will highlight flaws and inefficiencies that might have been overlooked in the early stages. The ultimate goal is to ensure that the predicted solution aligns with the expectations of the end user and stakeholders.

After refining the product post-MVP release, the product begins to evolve and meet the expectations of users and stakeholders. This is the stage that requires a smooth and organized transition from MVP to a full product, moving on to the next phase of the product lifecycle. When creating a completely new digital product, stakeholders will likely expect it to scale over time. Thanks to Proof of Concept (PoC), this path has the minimum number of blockers and obstacles, as unnecessary or unfeasible features have already been defined, detected, and eliminated during the early IT project stages.

Summary

Proof of Concept (PoC) is the process of testing an idea in the early stages of a project to validate its business and technical feasibility. It helps assess whether the idea has a chance of success in the market while minimizing financial and technological risks. PoC provides insights into potential difficulties and opportunities, enabling better strategy planning, technology adjustment, and precise resource allocation. It is a crucial step in creating digital products, helping to make decisions on further development and investment with limited costs and time.