Have you ever had a brilliant software product concept but wondered what would happen if it didn’t turn out the way you had imagined? Spending time, money, and energy on something that may not even succeed is the last thing you want—right? A Proof of Concept (PoC) can help!
Before you start development, a Proof of Concept (PoC) helps you test the waters and determine whether your idea is worth pursuing. It works like a safety net for your idea. Consider it a means of identifying potential shortcomings at an early stage and making sure your project is taking the right path.
With time, many people now find it essential to run a PoC development before diving headfirst into development to save time, money, and resources.
In this article, we have explained what is Proof of Concept in software, the benefits of building it, and the essential steps for creation.
What is Proof of Concept in Software Development?
PoC in software development is the process of collecting data and evidence of a project’s success or failure. Project managers ensure the testing is run before they invest more time, energy, costs, and resources into the project.
The purpose of running the PoC software testing methodology beforehand is to determine the software’s possible feasibility and future applications. The results are then shared with the team, clients, and company stakeholders.
According to recent Forbes stats, 90% of startups fail because they are ignorant of PoC. With that said, running a proof of concept is extremely crucial for a great startup success rate of your business. That is the PoC meaning in software development.
Knowing the likelihood of a software can confirm whether or not to continue with the development process. We hope now you know what PoC is in software development.
Proof of Concept (PoC) vs. Other Methodologies
Other methodologies for determining the viability of your software, such as Minimum Viable Product (MVP), Prototype, Pilot Project, and Proof of Value (POV), exist in software development.
Let’s further explore what the other methods do exactly.
1. Minimum Viable Product (MVP)
An MVP is the first basic version of the product with core features. It is rolled out to users to understand their needs and implement changes to improve the MVP.
2. Prototype
A prototype is basically the skeleton of the final product. It is less comprehensive than an MVP. It only shows the basic functions and features to the audience and stakeholders.
3. Pilot Project
A pilot project is the mini version of the final project that is complete but not on a large scale.
4. Proof of Value (POV)
A Proof of Value is demonstrating the product’s features and functionalities to stakeholders to secure investment and resources for the project’s completion.
The Comparison
Unlike these methodologies, the Proof of Concept does not include a project skeleton, a prototype, or a product. Instead, it uses document-based testing to check the software’s viability.
Why Startups Fail Without a PoC Development?
There are various reasons why startups that ignore the need for PoC in software development fail soon after the launch.
1. Lack of Software Product Validation
Companies miss out on getting software product validation before the launch because businesses don’t assess the market needs. They don’t make sure the business model will be fruitful and don’t even bother to work around customer needs.
2. Insufficient Feedback
Startup success rate somehow depends on the feedback, and those who don’t gather feedback struggle to meet the customer’s needs. This happens when the product is not tested among users; they have limited feedback and take it as a whole, or the product is not refined based on the feedback.
3. Poor Resource Allocation
Due to the ignored PoC at the start of the development process, startups end up wasting their invested capital, wrongly allocating their resources, and wasting time in the product development lifecycle. If a PoC is performed at the start, all of this can be avoided.
4. Increased Risk
When a PoC is ignored, startups increase their risks of failure majorly. About 42% of startups fail due to lack of market need; they suffer major financial losses and lose the investor’s confidence in their business.
5. Missed Opportunities
Most startups are unsuccessful in adapting to the changing market, customer needs and wants, and other factors. Another missed opportunity is ignoring the competitive advantages that they can use in a better way but ignored eventually.
Lastly, another reason for missed opportunities is a delayed entry into the market. If the launch is delayed or prolonged, you can miss out on the target audience to another competitor.
Benefits of Creating a PoC in Software Development
Now that you know the importance of PoC software and why businesses fail due to ignoring it, let’s look at the benefits of creating a PoC for your startups.
Feasibility Testing: With a PoC, startups can assess if the project is viable and has the potential to grow and become successful.
Initial Market Validation: Before developing a product, startups should ensure that it will be well-received in the market.
Understanding Product Limitations: Proof-of-concept software also helps you identify the strengths, weaknesses, and risks of your new software. It indicates all the possible defects and potential before you invest extensively in it.
Making Budget Decisions: With a PoC, you can make effective budget decisions that ensure your investment doesn’t go to waste and gives a good return.
Getting Investor Pitches: A positive Proof of Concept is a great tool for attracting funding and support from external investors.
Accelerating Development and Release: The PoC also helps you streamline the development process and finalize the release date. If you get positive feedback, you can pick up the pace of software development to fill the market gap.
Key Steps to Creating a Proof of Concept
If you’re a startup business looking to create a software development PoC, then here are the steps on how to do so:
Step 1: Define the Need
Firstly, you need to find the gap in the market you wish to fill. Identify and document the problem, then start working on the software idea that best provides the solution.
Step 2: Ideate the Right Solution
Once you understand the market gap, you can start brainstorming solutions with the software development team to curate the software as per the customer’s needs.
Step 3: Create A Prototype
Now that the basics have been finalized, focus on building the prototype to roll out to the general public and show the investors. A functional representation will help you know the defects and improvements needed for the software.
Step 4: Test and Gather Feedback
After the prototype has launched, focus on getting feedback from stakeholders and potential users of your software. The feedback will help you pivot and adapt to the market changes and customer needs.
Step 5: Create A Roadmap
Document the PoC in the software process and create a development plan to help complete the software and launch it on time.
Examples of Successful Proof of Concepts
Here are some examples of successful Proof of Concepts, showing how a software PoC has helped businesses become successful in the long run.
· Walmart’s Blockchain PoC
Walmart conducted a PoC to implement blockchain technology to improve supply chain management and food safety. Their motive was to trace food-borne diseases better and save more lives.
The company’s choice of PoC tech was blockchain, which Walmart used to create a traceability system based on Hyperledger Fabric. They ran two different tests, and the Hyperledger Fabric blockchain-based system worked tremendously.
· Netflix’s Business Expansion
Netflix started as a DVD-by-mail service, but in 2000, it leveraged data analytics and studied user behavior to enter a new market—the online market!
Netflix expanded into its now-online version. With the Proof of Concept, they reached 4 million subscribers by 2005.
· Canva’s Digital Design
Melanie Perkins, an Australian entrepreneur, became eager in 2013 to digitalize design. She wanted to make digital designing more convenient and accessible to a larger audience.
Melanie started a PoC process by setting up a small online school yearbook design website. The hypothesis worked, and now Canva is what we know it to be today.
· Amazon Go’s Just Walk-Out
Before Amazon Go took the leap of faith, it created a PoC to determine whether the idea of checkout-less shopping was viable. The platform tested the services on its employees first.
The idea was to let customers walk out without waiting in line. Once the PoC was positive, Amazon launched Amazon Go Just Walk-Out stores, which are a big convenience for customers today.
Final Verdict!
Proof of Concept (PoC) in software development is a crucial step because it illuminates the potential or failure of your product in the market. Without a PoC, startups have a higher chance of failing as soon as the product is launched.
With all this talk about proof of concept, you’re probably thinking of ways you can go about your startup. However, if you’re not sure how to start PoC software development, then contact us.
At Codment, we provide software development support for programming, white box testing, and prototyping. We can help you come up with the best solutions to move in the right direction!
