Proof of concept (POC) and proof of value (POV) are terms that keep popping up in product development circles. But what do they mean? And how do they differ? In this article, we’ll define these two concepts, share the key benefits and most typical strategies, compare POV vs POC meaning, and give advice on when to apply them.
Do you have a brilliant idea that you’re itching to bring to life but don’t know where to start? Luckily, there are two great tools that can help ensure your idea doesn’t vanish into thin air: proof of concept (POC) and proof of value (POV). Let’s break down the key differences between them and figure out when to use each one.
What Does Proof of Concept (POC) Imply? 💡
Imagine you have an idea for developing a smart kitchen appliance that can take home cooking to the next level. Your smart oven promises to cook meals perfectly using AI-driven recipes and personalized cooking techniques. But before bringing this product to life, you need confirm that your idea is feasible and can actually be built and function properly. This is when POC comes into play.
POC is a method utilized to validate a product idea’s feasibility and ascertain there’s demand for it. This approach allows startups to minimize financial and tech-related risks before hopping on the “development wagon”.
At this stage, you’ll need to answer the following questions:
🟨 What is the purpose of your product?
🟨 Who is the target audience?
🟨 Is there a need for such a product in the first place?
🟨 Is the market big enough?
🟨 Are there existing analogs?
🟨 What are the key functionalities and features required?
🟨 Will your product function properly?
Once you’ve conducted thorough research and gathered the required information to verify your idea’s viability, you can move on to the next vital step — proof of value (POV).
Proof of Value: Everything You Need to Know 📐
Now, you’ve confirmed that your smart oven can work and it’s technically sound. But do people actually need it in their kitchens? This is where POV walks in. It’s when you check if your idea is beneficial for your potential clients, much like how chefs seek feedback before adding a new dish to the menu.
POV refers to the process of evaluating the product’s financial value for stakeholders and checking whether it meets customer needs and expectations. This tool assists you in ensuring that your product will make your clients satisfied and bring revenue.
The key questions include:
🟨 What is the anticipated return on investment (ROI)?
🟨 Does the product meet customer expectations?
🟨 Does the solution address clients’ issues?
As a result, you can be positive about your product’s potential in the market once it’s released and start making calls regarding its development.
But how do you decide when to use each tool? Do you need both, or just one? Dive into this read to find out the prime benefits of POC and POV, their typical stages, and tips on when to use each method ⤵
