Proof of Concept (PoC) in Tech: A Comprehensive Guide

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When you face a new problem or try something new, how do you approach it?

There are times when you go straight to the goal without thinking about the detailed process, and there are times when you face the issues that need to be addressed by setting small goals, identifying areas for improvement one by one, and repeating trials in small units. The latter method may seem like a long shot, but don't you find that you can reach your goal faster than you expected?

In fact, the same can be said for product development. When you want to create a product, if you suddenly start developing it without setting a goal, it may end up costing you a huge amount of time and money. Therefore, a method called PoC (Proof of Concept) is extremely useful, in which a simplified version of the idea is created and verified in the same environment as the actual operation, identifying points for improvement and repeating trials . By using this method, you may be able to quickly arrive at the optimal solution for development. In this way, PoC has become an essential process in business.

This time, I would like to explain about such PoC, from basic knowledge to its merits, how it is carried out, and the key points for success. I think this way of thinking will be useful not only in product development, but also in your personal life, so please read until the end.

What is Proof of Concept?

As someone deeply involved in system development, app development, and digital transformation, I've often encountered the term "proof of concept." So, what is proof of concept? Let me share my understanding and experiences with it.

Proof of Concept, or PoC, is a term we frequently use in our field. In Japanese, it's known as "proof of concept." Essentially, a proof of concept is a practical demonstration designed to establish the feasibility of a new idea, plan, theory, etc. When we talk about PoC, we're referring to creating a simplified version of an idea or project, which we then test in an environment similar to an actual production setting.

As I've personally observed in our projects, PoC serves as an invaluable platform for addressing questions like "Will I achieve my intended outcome?", "Is my goal attainable?", "Can this idea be viable in a business context?", and "What data do we need for this development?" Through PoC, we've been able to pinpoint challenges and improvement areas, refining our approach to bridge the gap between theory and practice.

Historically, PoC was primarily used in industries like manufacturing and pharmaceuticals, where the stakes and costs of project development are high. However, in my journey through the IT sector, I've seen an increasing adoption of PoC. This shift is partly due to the evolving role of IT in businesses, moving from a focus on operational efficiency ("Corporate IT") to having a direct impact on sales and growth ("Business IT").

What is proof of concept's role in the rapidly evolving IT industry, you might ask? Given the substantial investments often poured into development, minimizing losses through careful market and competitor research, along with feasibility studies, is crucial. PoC allows us to engage with projects while staying attuned to market responses, effectively reducing unnecessary costs, processes, and risks. I've personally found that PoC not only enhances work efficiency but also significantly boosts revenue potential.

Factors that have made the importance of PoC widespread

In recent years, "DX" has been promoted in various fields. DX is an abbreviation for "Digital Transformation" and is an initiative that attempts to transform business by using digital technology to improve operational efficiency and develop technology. When proceeding with this DX, it is important to verify ideas through PoC. I'll explain why below.

・Respond to diverse needs and daily changing markets

DX can be costly and time consuming when converting ideas into concrete plans. A PoC helps you reduce project risk and develop the best strategy for success. It is also a good way to determine the effectiveness of new services and how to decide on strategies to respond to uncertain markets.

・Reducing technical/development cost risks

PoC can reduce technical and economic risks. If you don't flesh out your ideas in the first stage, you may end up having to make many revisions, such as not being able to summarize the requirements in subsequent prototype development and design, not being able to translate them into visuals, or progressing without a common understanding of the ideas. Doing so will waste your time and money. Through a PoC, problems and challenges are highlighted and corrections and improvements can be made before going into full-scale implementation.

・Market suitability

While there are many competitors for products and services, it is possible to verify at an early stage whether the product or service will be accepted by the market. Market needs change rapidly, and in recent years, needs have become difficult to see and discover, so it is necessary to carefully verify ideas and eliminate the risk of failure or waste at an early stage.

Differences from related terms

We will explain the overview and differences between related terms that may be confused with PoC, such as "demonstration experiment," "prototype," and "MVP (Minimum Viable Product)."

・Demonstration experiment

When developing a new product or technology, we conduct experiments in an actual setting to identify problems and put them into practical use. PoC is a test to verify the feasibility and materialization of concepts and ideas that cannot be visualized yet, but proof-of-concept tests are different in concept because they are used to test an actually completed system or product .

・Prototype

A prototype of a product or service, mainly created to confirm the actual function and design . It embodies the concepts and requirements created during PoC and reflects them visually. The team can have a common understanding of the product and work towards developing the final form. It serves as a design for engineering teams to develop. Although it is verification of parts that cannot be visualized like PoC, the main purpose of a prototype is design verification.

・MVP (Minimum Viable Product)

This is a method of releasing a product or service with minimal functionality and making modifications and improvements while observing market and customer reactions. It is possible to develop additional functions in response to market reactions and needs while minimizing risk, allowing for efficient development. Unlike PoC, which is still in the concept stage, it is a much more advanced step, as it aims to verify market acceptability and obtain actual customer responses .

Contents to be verified in PoC

"Prototype" is said to be easy to mix with PoC. A prototype is filled with the details of a business or product and is created in a ``state that envisions realization'' , but a PoC is a stage before such ideas and plans begin, and is verified with the theme of ``whether it is possible to realize it.'' . The main items to be verified are as follows.

・Possibility

The big question is whether or not it is technically possible to implement cameras, IoT sensors, location information, etc., so we borrow the knowledge of the engineering team to confirm whether the development is really feasible and to clear up any technical issues.

・Cost-effectiveness

Even if you have an excellent development plan, if it costs a huge amount of money, the merits and feasibility of the development will disappear, and the development may become meaningless. It is important to clarify the balance between costs and benefits after realization, including personnel costs and profits from development, at an early stage.

・Concreteness

After verifying feasibility and cost-effectiveness, we will verify key points that are important in the development content. For example, in the case of software development, we verify what kind of buttons are placed on the main screen and whether it is possible.

PoC Structure / Flow

As mentioned above, PoC is a method of verifying whether an idea is feasible. By actually testing your idea as a preliminary step to creating a prototype, you can reduce risks and troubles, and make corrections and improvements before full-scale development and implementation. The basic flow of PoC is as follows.

Setting goals for PoC
Clarify why you are conducting PoC, what you want to uncover, what issues you are currently facing, what data you need, and your goals after conducting PoC.

We will think about how to verify the PoC based on the planning
schedule, specific implementation method, required human resources, necessary data, etc.


We will create a PoC prototype for the purpose of prototype design verification. Since it is created to clarify whether it is achievable or not, detailed designs and functions are omitted, and it is made clear whether it is achievable with only the minimum functionality.


Once the prototype for verification PoC is completed, we will actually verify it. We verify the feasibility, problems, and areas for improvement, have as many people as possible use the product, and collect feedback.


Evaluate the results Evaluate based on the verification results. Thoroughly evaluate the results so as not to affect subsequent processes, and identify problems and areas for improvement. Then devise a strategy for the next step.

Pros and Cons of PoC

Pros

・Confirmation of feasibility

No matter how attractive a new idea is, if it costs too much to operate or is technically unfeasible, it is not realistic. By confirming the feasibility of a new idea, it becomes easier to understand later prototype development and reduce revisions.

・Reduction of unnecessary costs

Running a business or developing a business requires a lot of money, time, and personnel. You can evaluate the cost-effectiveness of actual operations and implementation and reduce unnecessary costs.

・Discovering issues

PoC provides concrete experimental results, making it easier for the team to understand what is being developed. This allows you to identify issues and exchange opinions, allowing you to make revisions and move forward with the project more efficiently.

Cons

・Differences from actual operation

Because PoC often evaluates only some functions and environments, unexpected problems or differences may occur during actual operation. It should be noted that there are limits to verifying the behaviour of a complete system.

・Goal is not clear and verification is repeated

If the purpose and goals of the PoC are not clear, there is a possibility that the verification phase will be repeated and many unnecessary steps will be taken, resulting in unnecessary costs and time. Be sure to clearly define the purpose of PoC verification, the data you want to collect, and the goals, and share them.

Points to get closer to success

PoC is an important method that helps verify new ideas and technologies, and by clarifying the goal, verification can be carried out efficiently and without waste, leading to successful development. Here are some points to help you get closer to success.

・Clarify goal setting

Before conducting a PoC, it is important to clearly set specific objectives and goals. If the purpose and goals of conducting PoC are not clear, you will proceed without knowing what you want to verify or what kind of results you want to obtain, and you will end up wasting the data obtained through verification.

・Have a sense of speed

PoC requires rapid results. It's a small part of the development process, so don't spend too much time on it. Rather than large-scale, long-term projects, small-scale and speedy projects allow us to quickly grasp the feasibility of ideas and technologies and make efficient decisions. Speedy implementation allows you to quickly respond to changes in the market, leading to improved competitiveness.

・Verify under the same conditions as actual operation

PoC is the purpose of testing an idea or technology in a situation similar to a real product or service to demonstrate whether the idea is feasible. Based on a clear goal image, purpose, and data to be collected, we conduct verification as close to actual operational conditions as possible. By doing so, you can reduce the risk of unexpected problems when starting the actual development, obtain realistic results, and reduce the gap between verification and actual operation.

Summary

So far, what is PoC? We have explained everything from basic knowledge to key points for success. In product development, products that reflect user needs are required, but those needs can change quickly. When developing a product, how quickly you can develop it is one of the major factors in winning in market competition, and PoC is useful for this.

By thoroughly understanding the meaning of PoC and clarifying the purpose, data you want to collect, and goals, you will increase the possibility of obtaining effective verification results. However, PoC often verifies some functions and environments, so if the results are taken at face value, there may be a difference between actual operation and operation. In order to make more effective use of the data obtained from PoC, there are some points to keep in mind.

At JIITAK, we also use PoC to develop products that are speedy and fully reflect user needs. If any of you reading this blog are considering product development, please feel free to contact JIITAK!

References

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Written By

Stalin Pereira

Stalin Pereira, with 14 years as a solution architect, excels in developing innovative proof of concept solutions. He plays a pivotal role in conceptualizing, designing, and demonstrating the feasibility of new technologies.

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