In the evolving landscape of business and tech, terms like proof of concept (PoC) and proof of value (PoV) get thrown around a lot, especially when new solutions or innovations are on the table.
Yet, they’re often misunderstood—or worse, used interchangeably, which can lead to some confusion. While they share a common goal of demonstrating potential success, PoC and PoV approach this goal from very different angles.
Think of PoC as the stage where a GTM team proves that something can technically work. Meanwhile, PoV is about proving that the product not only works, but also delivers the value buyers are after.
In business, getting these distinctions right can be pivotal for both internal decision-makers and prospective clients alike.
What is a proof of concept (PoC)?
Proof of concept, or PoC, is essentially a small-scale experiment designed to test whether an idea, product, or solution is technically feasible.
In the business context, a PoC helps answer a fundamental question: “Can we make this work?”
It’s an initial step taken by companies to validate the technical functionality of a product, often in partnership with a prospective customer who is keen to see if the solution will integrate smoothly into their existing operations.
A PoC doesn’t necessarily have to prove the business value—that’s the job of the proof of value (PoV) stage—but it does need to show that the concept is technically sound.
At this point, the focus is on whether the technical nuts and bolts fit together, rather than on the potential return on investment (ROI). When done right, a PoC can build trust with potential clients by demonstrating that the technology works as intended and is a viable fit for their infrastructure.
Benefits of a PoC
Reduced technical risk
One of the primary benefits of a PoC is reducing technical risk by revealing potential compatibility issues early on.
For example, if a healthcare provider wants to adopt new patient management software, the PoC would reveal any integration hurdles with their existing systems.
By identifying these technical issues upfront, teams save valuable time and avoid the costly pitfalls of discovering problems further down the line.
Early problem identification
With PoCs, companies can uncover potential obstacles long before full-scale implementation.
During this stage, technical teams often identify unforeseen challenges, such as performance issues or connectivity problems, that could otherwise jeopardize the product’s long-term success.
Catching these problems early means they can be tackled efficiently, resulting in a smoother, more reliable rollout later.
Increased customer confidence
A successful PoC helps build customer confidence by providing concrete evidence that the solution can meet their technical requirements.
For example, a data storage provider might offer a PoC to a client in a regulated industry to demonstrate security and compliance features. Knowing that the technology can fulfill necessary technical and regulatory standards can reassure clients and increase their likelihood of moving forward with a full implementation.
Stages of a PoC
Planning and scoping
The PoC process begins with planning and scoping, where sales engineers and the client define specific objectives.
Clear goals are essential at this stage to avoid vague results that don’t offer real insights.
For instance, a customer considering a new customer relationship management (CRM) system might set success criteria around improving response times. By setting these KPIs upfront, everyone involved has a clear idea of what success will look like.
Execution and monitoring
Next is the execution phase, where the PoC is tested in a live or simulated environment.
During this phase, both the vendor and customer monitor performance to ensure the solution aligns with expectations. Regular check-ins help keep the project on track, and feedback from these sessions allows for prompt adjustments if needed.
For instance, if issues arise with data flow in a test run, the team can make tweaks to stabilize the performance.
Reporting and analysis
Finally, the reporting and analysis phase evaluates the PoC’s results.
Key performance metrics are collected, analyzed, and presented to the client. This stage is like the final recap after a trial run in sports—what worked, what didn’t, and what lessons can be learned.
At the end of this stage, stakeholders have a clear understanding of the product’s technical viability and any improvements that might still be needed.
What is a proof of value (PoV)?
Proof of value, or PoV, moves beyond mere functionality to demonstrate tangible business value.
While a PoC focuses on “Can we make this work?”, a PoV addresses the question, “Is this worth it?” The PoV phase aims to show that a solution not only functions, but also generates measurable results and aligns with the client’s broader business goals.
Think of PoV as the step where a chef presents their signature dish at a tasting event—it’s less about proving it can be cooked and more about proving it’s a crowd-pleaser.
Benefits of a PoV
Justified investment decisions
A well-executed PoV highlights ROI potential, offering stakeholders a compelling case for investing in the solution.
For instance, if a cybersecurity company conducts a PoV for its threat detection tool, showing how the tool can prevent potential security breaches and save costs on incident response, this demonstrates the value of the solution in terms that are relevant to financial decision-makers.
Alignment with business goals
A key advantage of a PoV is that it ties the solution directly to the client’s strategic goals.
By addressing specific pain points, PoV builds a connection between the product’s features and the client’s objectives.
For example, a company implementing a marketing automation tool could use the PoV to show how the solution increases lead conversion rates, which is directly tied to their revenue goals.
Enhanced customer confidence
By providing a clear demonstration of business value, PoV instills confidence that the solution is the right choice.
A robust PoV often includes case studies, testimonials, or ROI calculators tailored to the client’s situation.
For example, a SaaS company might present a case study showing how a similar business improved their efficiency using the software, adding real-world credibility to the product’s benefits.
Key elements of a PoV
Customer pain points
Identifying the customer’s specific challenges is critical for a compelling PoV.
By pinpointing issues that resonate with the client, PoV creates a sense of alignment and relevance.
A project management software provider, for example, could target common issues like project delays or communication gaps, framing the solution as the answer to these persistent obstacles.
Quantifiable benefits
Numbers often speak louder than words, and quantifiable benefits are a cornerstone of an effective PoV.
Using measurable data, such as potential cost savings or efficiency gains, PoV highlights how the solution adds value.
For instance, a marketing platform might show a client how it can improve lead generation rates by 30%, providing a clear, data-backed benefit.
Compelling storytelling
Storytelling gives a PoV depth and relatability.
By using success stories and testimonials, vendors can make the PoV come alive for potential customers.
Who creates PoCs and PoVs?
Proof of concept (PoC) and proof of value (PoV) initiatives are typically developed through a collaborative effort between solution engineers, sales engineers, product specialists, and other technical and sales experts.
Solution engineers take on a key role here. Often described as the bridge between technical know-how and customer needs, these pros understand both the product’s potential and the specific requirements of each customer, helping to tailor the demonstration accordingly.
The process starts with the sales team, who identify the customer’s needs and communicate these to the technical team. Solution engineers work closely with sales engineers, whose role is to assess feasibility and potential obstacles based on technical specifications and existing infrastructure.
Meanwhile, product developers or tech experts bring expertise about the product’s capabilities, crafting a demo that highlights its potential benefits and resolving any challenges that might arise during integration.
Afterward, they’ll work with the sales team to frame a PoV, showcasing how the solution doesn’t just work, but also adds value.
This cross-functional teamwork ensures that PoCs and PoVs meet both technical requirements and business objectives.
The differences between PoCs and PoVs
Objective
The primary difference between PoCs and PoVs lies in their objectives.
For PoCs, the focus is on feasibility. Can this solution work as envisioned? Meanwhile, a PoV moves beyond functionality to ask, “Is this solution worth implementing?”
Outcome
Each process also aims for distinct outcomes.
A successful PoC demonstrates technical feasibility and clears the path for development. In contrast, a PoV’s outcome centers on business value, guiding stakeholders on whether to proceed.
Scope
PoCs and PoVs also differ in scope.
A PoC is often narrow, focused on one or a few aspects of the solution to test if it can be done.
In a PoV, however, the scope widens to cover the solution’s full impact, assessing how the entire product functions and whether it provides value across use cases.
Metrics
PoC success is typically measured by technical benchmarks, like performance speed or compatibility with existing systems.
For instance, a PoC for an analytics tool might track if it can handle large data sets without crashing.
By contrast, a PoV relies on business metrics, such as cost savings, revenue growth, or operational efficiency improvements. A successful PoV for that analytics tool might show it cuts analysis time by 50%, proving its value to the organization.
Timeline
Finally, a PoC usually occurs first, testing feasibility before full-scale development. Once the PoC confirms viability, PoV follows to establish business worth.
While PoCs and PoVs share a goal of validating new solutions, their differing focuses and measurements provide unique insights at various stages of product evaluation.
When to use a proof of concept (PoC)
A proof of concept (PoC) is best utilized in the early stages of product development, right after the initial idea has been formed but before any extensive development begins.
Think of the PoC as a reality check to see if your big idea can be transformed into a working solution.
During a PoC, you’ll explore questions like: What specific problem will this product solve? Who’s the target audience? What functionalities and technology stack are required?
By answering these questions, a PoC helps clarify whether your idea is feasible and pinpoints potential technical obstacles. It’s an efficient way to “test the waters” before committing too many resources.
With a clear PoC, you can address technical challenges upfront, gauge user interest, and lay a foundation for further product development, ensuring a smoother transition into full development.
When to use a proof of value (PoV)
Once the technical feasibility of your product is confirmed through a PoC, it’s time to determine if it’s worth the investment. This is where a proof of value (PoV) comes in.
A PoV is particularly valuable when you need to demonstrate ROI to stakeholders or gauge if the solution will achieve the business goals. Through your PoV, you should address questions like: Will the product drive revenue? How will it improve user satisfaction or enhance the experience? What’s the estimated ROI?
By crafting a PoV, you can provide stakeholders with a clear picture of the product’s value potential. If the PoV demonstrates that the product reduces customer service costs or significantly improves user engagement, you gain solid evidence to justify continued development and launch.
How to choose between a PoC or PoV
When deciding between a proof of concept (PoC) and proof of value (PoV), it’s essential to align your choice with your business’s current needs and stage of product development.
Consider these factors to guide your decision:
Stage of development
One of the most important factors is where your product or service is in its development cycle.
If you’re still in the ideation phase and need to test if the technology or concept will work, then a PoC is typically the better route. A PoC lets you validate the feasibility and functionality of your idea on a small scale, ensuring it can move to the next stage without technical issues.
If the product is already developed or nearing completion, however, a PoV may be more appropriate. A PoV is suited to products that have proven functionality but need to show they’re worth the investment. It’s particularly useful when presenting to stakeholders who need evidence that the product will generate returns, streamline operations, or otherwise add value.
Type of challenge
The type of challenge you’re facing—technical or business-related—also influences your choice.
If your main concern is technical feasibility, like determining whether a software tool integrates with legacy systems, a PoC should be your focus. It allows you to address technical questions before committing resources to full-scale development.
However, if the challenge lies in demonstrating the ROI or tangible benefits of your solution, then a PoV is the ideal option. A PoV provides insights into how the solution will improve processes, increase revenue, or reduce costs, helping you justify the investment to key stakeholders.
Target audience and purpose
Lastly, consider who you’re trying to convince and what you hope to achieve.
For internal development teams or technical evaluators, a PoC may be enough to validate an idea’s feasibility.
But for investors, clients, or executives focused on the bottom line, a PoV offers a more persuasive case for value and returns. By tailoring your approach, you can ensure the best fit for your project’s current phase and objectives.
Can you do both a PoC and PoV?
Yes, it’s not only possible but often advantageous to conduct both a proof of concept (PoC) and a proof of value (PoV).
While PoCs and PoVs serve different purposes, they complement each other well, providing a comprehensive understanding of a product’s feasibility and potential value.
Starting with a PoC helps you address technical uncertainties and identify any possible roadblocks early on.
Once technical feasibility is confirmed, transitioning to a PoV lets you evaluate the tool’s value in a real-world setting, answering questions like, “Will this improve decision-making or reduce operational costs?”
By running both PoC and PoV sequentially, you gain confidence in both the product’s viability and its business impact. This dual approach ensures that by the time you’re ready for a full-scale launch, you have evidence of both functionality and value, making it easier to gain stakeholder support and confidently invest in the product’s future.
Using interactive demos to upgrade your PoCs and PoVs
When it comes to validating a new solution, a proof of concept and a proof of value each serve essential roles in the journey from idea to market.
While a PoC focuses on feasibility, a PoV demonstrates potential business value, and together they create a strong foundation for decision-making.
For companies looking to streamline this process, Walnut offers a user-friendly way to create compelling demos and build interactive PoCs and PoVs, making it easier to convey both function and value effectively.
