In the industrial world, innovation and adoption of new technologies are essential to remain competitive. Proofs of Concept (POC) are a valuable tool that industrial companies use to assess the feasibility of new ideas, processes or technologies before committing significant resources to their full implementation. While POCs offer a number of benefits, they also come with their disadvantages and considerations. In this article, we will explore both the benefits and disadvantages of POCs for industrial companies.
Benefits of POCs
- Technical Feasibility Assessment: A POC allows companies to determine whether an idea or concept is technically feasible. This helps to avoid costly investments in projects that may not work in practice.
- Risk Reduction: Conducting a POC helps to identify and address potential problems or challenges before committing significant resources. This minimises the risk of failure at later stages of development.
- Investment Validation: The results of a POC provide a sound basis for making informed investment decisions. If the results are positive, the company will feel more confident in investing in the full development of the project.
- Cost Savings: Identifying problems at an early stage through a POC can avoid significant costs associated with correcting errors on large-scale projects.
- Accelerated Time to Market: A successful POC accelerates time to market by allowing the company to move quickly to full implementation of a proven idea.
Disadvantages of POCs
- Misrepresentation of Feasibility: A successful POC can lead to an overestimation of the feasibility of the large-scale project. POC results may not fully reflect the real complexity or challenges.
- Confirmation Bias: There is a risk that stakeholders will look for evidence to support their expectations and discard data that contradicts those expectations.
- Limitation in Strategic Decision Making: If POC results are not representative, they could lead to strategic decisions being made based on incomplete or inaccurate information.