A common idea in the business world that startup companies and entrepreneurs use in order to show that a new company or a product can reap financial benefits. Oftentimes, a proof of concept will entail a lot of research and review. The proof of concept is delivered as a single package to the parties involved. A proof of concept is not only limited to the world of business. Other fields that also use a proof of concept are the arts, research and development, among others. Even though there is a diverse field that uses this, the process of arriving at a proof of concept remains the same across these fields.
A proof of concept is usually required when a certain company is being enticed to give financial backing to another company. The proof of concept is meant to show that the company is “fiscally sound.” a good example would be a company that plans to develop a new software product. The company will usually look at the demand of a product like it in the market, the feasibility of coming out with such a product, the cost of developing the product, and other factors. Analysis of the data provided by these various factors will be used in developing the proof of concept.
Usually when making a proof of concept, a prototype of the product is also made. The purpose of this is to show that the idea or the device can actually work. The proof of concept prototype is also a great way of enticing prospective investors to come on board.