What Is Proof of Concept (POC) in Software Development & Do You Need One?
The majority of software projects fail due to a lack of market demand. So that’s why it’s important to test and validate your idea before making a serious commitment. Here’s how a proof of concept (POC) can help you mitigate risk and identify opportunity.
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More chaptersA proof of concept (POC) is an effective way to determine if your idea has commercial viability. It can tell you whether or not your idea will appeal to your intended audience, be something they are willing to pay for, and help you stand out from the competition.
POCs are regularly used in software development to test the viability of a client’s vision – before investing significant time, money, and effort in developing the final product. Failure to do so could result in a product that, although functional, doesn’t appeal to your target audience, nor does it return a profit.
Read on to discover what POC in software development is, its importance and benefits, and use cases. You’ll also learn how a technology partner like Orient Software can help bring your POC to life.
Key Takeaways:
- A Proof of Concept (POC) is a minimal, early-stage version of a product designed to validate whether an idea is technically feasible and commercially viable before investing in full development.
- POCs help determine if a concept resonates with real users, solves the intended problem, and has market potential - significantly reducing the financial and operational risks of building a product that may fail.
- Three primary types of POCs: Proof of technology (POT), steel thread, and pilot projects, each serving different validation purposes.
- POCs are important because they enable teams to test core functionality, gather user feedback, validate technical requirements, and refine business assumptions early in the development process.
- Businesses use POCs to save time and money, improve investor confidence, confirm tech stack suitability, and identify potential issues long before the final product is built.
- A successful POC follows a structured process: understand user pain points, define success metrics, outline technical and business requirements, build and test a prototype, and then decide whether to proceed or pivot.
What Is a POC in Software Development?
A POC in software development is a bare-bones version of a software application. It represents the vision of an idea in its most minimal state, which usually means it has a basic user interface (UI) and the core features and functionalities that define the app. Most POCs are represented as either a mockup, a wireframe, or a sketch. Regardless of the type of POC, the idea behind it is to show how the app will work, how users will interact with it, and the type of outcomes that it will aim to achieve.
Most POCs are developed during the early stages of a software development project. This is usually the case when a new product is being built from scratch. However, some POCs are developed either midway through the software product development life cycle or after a product has been launched. This usually happens when a business wants to add a new feature or functionality to an existing product, or to a product that is already well into development.
What Are the Three Main Types of POCs?
The three main types of POCs in the software development industry are proof of technology, steel thread, and pilot projects.
- Proof of technology (POT) - A POT is designed to aid in the detection and resolution of any technical issues that occur during a software development project. It evaluates the various features that reside within a software product, determining whether they are compatible with one another.
- Steel thread - A steel thread is more comprehensive than a POT. It includes nearly all the properties that make up the product, including the layout and design, features, and business model.
- Pilot project - Also known as a beta version of a product, pilot projects typically include all the properties that define a product. Businesses deploy them to gather feedback from their focus groups, identifying their strengths and weaknesses. Pilot projects are also often made to present to potential investors.
Why Are POCs in Software Development Important?
POCs are important in software development for many reasons. They help software development teams and clients determine whether a software idea is worth pursuing beyond its initial test run. It enables them to test the basic functionality and commercial viability of a product before committing to its full-scale production.
35% of startups fail due to a lack of market need, while 19% fail due to a flawed business model, according to CBS Insights. Considering that the average cost of developing a minimum viable product (MVP) is between $40,000 and $120,000, it’s worth taking advantage of POCs as it’s a low-cost, low-risk way to test the waters first.
Furthermore, software development teams and clients can use POCs to gather valuable feedback from users. They may discover that the idea has commercial viability, but will also require some fine-tuning before its full release. This feedback gives all stakeholders the direction and confidence to proceed to the next stage of production.
What Are the Benefits of POC in Software Development?
The main benefits of POCs in software development are that they can help you save time, money, and effort on investing in a potentially fruitless idea. Likewise, if you plan on seeking investment in your idea, then a POC can help demonstrate that your idea has legs, that it can deliver on what you promise.
Save Time, Money, and Effort
Software development can be incredibly costly, time-consuming, and emotionally exhausting. And there is no guarantee that the effort you put into your ideal will result in a positive return on investment. There are, however, ways to mitigate risk, and developing a POC is one of them.
With a POC, you can determine the commercial viability of your idea with minimal time and money investment. You can test the core features and functionalities of your idea and present it to relevant stakeholders, whether it be potential users or investors. You can then gauge, in real time, whether the idea is worth pursuing.
Increase Investment Confidence
If you plan on presenting your idea to potential stakeholders, then a POC is an excellent way to state your case.
As opposed to just presenting your idea as a lofty promise, you can bring a real, tangible product to the table. Potential investors can then interact with the product, seeing how it feels to use and achieve the desired outcomes.
Even if the idea is just a wireframe or sketch, it being a POC will help “sell” the vision better than just words alone. In doing so, your potential investors will be more likely to believe in your idea and in your ability to deliver on what you promise.
Confirm Technical Requirements
Developing a good software application has a lot to do with choosing the right technical stack. That means choosing the right programming languages, front- and back-end frameworks, packages, design elements, databases, and more. The cost of choosing the wrong tech stack can be devastating, resulting in inefficient software development processes and extensive delays.
By developing a POC that closely resembles the technical specifications of the real thing, software development teams can test the functional viability of the idea, ensuring the front- and back-end components satisfy the project’s technical requirements. This ensures the final product will not only satisfy the functional requirements (the behaviors and functions of the system) but also the non-functional requirements (i.e., security, performance, usability).
POC Use Cases and Examples
There are many real-world examples of businesses using POCs to test the viability of their ideas. These case studies apply to some of the most well-known tech companies in the world, including the likes of Netflix. Let’s explore these success stories in greater detail.
Netflix
Initially launching as a video rental service in 1997, Netflix eventually transitioned to its now-familiar live streaming service format in 2007. To determine if this transition was viable, Netflix began reviewing data analytics and user behavior as early as 2000. They then soft-launched an early version of their idea, amassing over 4 million subscribers by 2005, before officially launching the full version in 2007.
Canva
Before Canva, there was Fusion Books. Launched by Australian entrepreneur Melanie Perkins in 2007, Fusion Books allowed schools to create online versions of their yearbooks, with an intuitive online-only drag-and-drop design interface. This served as a successful POC for the company, whose operations grew to New Zealand and France. She and co-founder Cliff Obrecht used this experience as inspiration for their next idea, Canva, which became a hugely successful broad design platform.
5 Steps to Implementing a POC
Now that you know what a POC is and how it works, let’s explore the steps necessary to develop your own POC.
Define Target Audience and Pain Points
What problem do you want your idea to help solve? Is it to help people be more efficient, more knowledgeable, healthier, or safer? By knowing what pain points your intended users are facing, you can devise a solution that will serve as the foundation of your idea.
You’ll also need to evaluate the competition. Does a solution for this pain point already exist? And if so, what can you bring to the table that hasn’t already been done? In the case of Canva, the idea was to make design more accessible to people who otherwise struggled with using more advanced image editing software, such as Adobe Photoshop.
Measure the Success of Your Project
What does success look like to you? Use the SMART formula to define the key metrics that spell out success for you. That could be to amass a certain number of customers, earn a certain amount of profit, or capture a certain percentage of the market share in your industry. Either way, ensure your goal is specific, measurable, achievable, realistic, and time-sensitive.
A good example of a SMART goal would be to acquire $100,000 of funding from a pool of investors within the first 6 months of developing your POC. This goal is specific, as it has an exact monetary value tied to the goal; it’s measurable, as the metric can be tracked; based on reasonable assumptions, the goal is achievable and realistic; and it’s time-sensitive, with a 6-month time limit attached to it.
Define the Technical and Business Requirements
Define the technical stack of your project. This is where the right technology partner can make all the difference. They can evaluate your existing tech stack and propose a solution that meets your requirements.
At Orient Software, we build technological solutions tailored to any tech stack. Our 350+ strong team of developers is highly skilled in various front- and back-end technologies, as well as mobile, database, cloud, DevOps, and AI/ML technologies.
We also take care of staff allocation for you, ensuring the right individuals are hand-picked for the right project.
Develop and Test Prototype
From there, your software development team will create the POC. This could be in the form of a sketch, wireframe, or mockup. A good team will keep you up to date on progress, notifying you when milestones are completed while adhering to a firm deadline and budget.
Once you’ve received your POC, the next step is to test it. This could be to present the idea to potential users, gathering valuable feedback about their experience with your product. It could also involve pitching your idea to investors, bolstered by the presence of a real product they can see and interact with.
Continue or Abandon the Idea
Once the testing phase is over, you should have enough feedback. You should know whether your idea is worth pursuing or whether you should head in a different direction.
If your idea has commercial viability, then your software development team can take the next step. They can develop an MVP that more closely resembles the final product. It will include a more comprehensive set of features, unique design elements, and a carefully considered UX, mapping the entire user journey.
What Are the Key Tools Used in POC Development?
There are many tools that software developers use to create POCs. These range from project management software like Slack to brainstorming platforms like Miro. Outside of collaborative software, tools like GitHub Issues help developers isolate and address issues without fear of compromising the entire project.
Slack
Slack is one of the most popular project management platforms, with an estimated 42 million daily active users as of 2023. It’s especially useful for developing POCs in software development. By creating dedicated channels for each POC project, developers can keep track of individual projects without any risk of overlapping communication. Developers can also use the Workflow Builder to automatically generate channels, facilitate project stakeholder management, and set up documentation templates, speeding up the onboarding process.
Jira
Jira is another excellent project management platform for a POC project. As part of the Atlassian family, Jira can be integrated with other Atlassian products, including Confluence and Jira Service Management. When paired with Confluence, developers can collaborate in real-time and maintain a single truth source, as well as use boards and timelines to monitor progress and meet deadlines.
GitHub Issues
Instead of being just another project management platform, GitHub Issues streamlines troubleshooting for developers. With the ability to break down issues into sub-issues, developers can isolate and address issues without compromising the entire workflow. Developers can also express ideas and receive feedback, react with emojis, and clarify issues with attachments, streamlining conversations.
Wrapping Up
Developing a POC for software is an effective way to test an idea before committing to the final build. But you need the right technology partner to help bring your vision to life. At Orient Software, our custom software development services are ideal for startups developing POCs and MVPs.
Contact us today. Discover how our software development services can help transform your idea into a project with project feasibility.
Shannon Jackson-Barnes
Writer
Shannon Jackson-Barnes
Writer
