Proof of Concept (PoC)
A feasibility demonstration showing that a technical idea or approach works in practice before larger investment is made.
A Proof of Concept (PoC) is the fastest way to remove technical risk before a company commits larger budgets. Instead of building a full product for months and then finding the technical approach does not work, a PoC validates the core hypothesis in a few weeks. In IT, PoCs are especially important for new technologies, complex integrations and innovative business ideas.
What is Proof of Concept (PoC)?
A Proof of Concept (PoC) is a feasibility demonstration that a given concept, technology or approach works in practice. Unlike a prototype (which shows user experience) or an MVP (which tests market value), a PoC focuses purely on technical feasibility. It answers: Is it technically possible? It is typically not intended for production and is either discarded or used as a basis for real development after validation. PoCs are usually time-boxed (2–6 weeks) with clear success criteria.
How does Proof of Concept (PoC) work?
A PoC follows a structured process: First the hypothesis to validate is stated (e.g. The OCR engine recognises invoice data with at least 95% accuracy). Then success criteria and measurement are defined. The PoC team implements the minimal technical approach, tests it with real or realistic data and documents results. Finally a go/no-go decision is made. PoC code is deliberately not production-ready but focuses on the core question.
Practical Examples
AI document recognition: An insurer tests in 3 weeks whether an ML model can classify claims automatically before starting a 6-month project.
ERP integration: A mid-size company validates whether Odoo can be connected to the existing inventory system via REST API before planning full migration.
IoT sensor integration: A manufacturer tests whether 5G sensors can reliably send machine data to the cloud before retrofitting the whole production.
Blockchain for supply chain: A logistics company checks whether a blockchain-based shipment tracking meets required performance and transparency.
Typical Use Cases
New technology evaluation: Test whether a new technology (AI, blockchain, IoT) meets the business case
Complex integrations: Validate whether two systems can be connected technically
Performance tests: Prove that a system can handle required load
Migration: Check whether a legacy application can be migrated to new technology
Investment decision: Technical basis for releasing larger budgets
Advantages and Disadvantages
Advantages
- Risk reduction: Technical dead ends are found early before big spend
- Fast decision: In 2–6 weeks you have a solid result for go/no-go
- Cost efficiency: A PoC costs a fraction of a full project
- Stakeholder buy-in: Tangible results convince management and investors
- Learning: Even a failed PoC yields useful insights for alternatives
Disadvantages
- Over-optimism: A successful PoC does not guarantee success of the full project
- Throwaway code: PoC code is not production-ready and often has to be rewritten
- Scope creep: Temptation to turn the PoC into a prototype or MVP is high
- Ideal conditions: PoCs often test ideal conditions that differ from reality
Frequently Asked Questions about Proof of Concept (PoC)
What is the difference between PoC, prototype and MVP?
How long does a PoC take?
What happens after a successful PoC?
Related Terms
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