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Welcome to digital product engineering
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Author
Lukas Anzengruber
Lukas Anzengruber
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Have you ever found yourself at a crossroads, trying to decide whether your project needs a minimum viable product (MVP), a prototype, or a proof of concept (PoC)?  

You’re not alone.  

Many IT leaders face this dilemma, often using these terms interchangeably. Unfortunately, this often leads to strategic missteps and misallocation of resources. In this article, I’ll demystify these critical tools and help you understand when and how to use each effectively. By recognizing the unique roles that MVPs, prototypes, and PoCs play in our daily business, you can better plan and more efficiently drive innovation across your portfolio.

To be able to understand the difference between these useful tools, we first need to demystify each term individually.

Why PoCs are all the rage in product development

A proof of concept is a small exercise to test a discrete design or implementation idea to verify that it has potential for real-world application. It’s often one of the earliest stages of the product development lifecycle, aimed at verifying whether a concept is workable before moving ahead to more detailed stages like prototyping or building an MVP. The true essence of a PoC lies in its focus on one core aspect or functionality of a product to assess its viability in a technical or business context.  

PoCs are a critical step, especially when discussing innovative technologies or methodologies with stakeholders. A PoC helps demonstrate that a concept can be successful in practical applications, making it a critical checkpoint before further investment and development.  

Even though a PoC is typically simpler and smaller in scope than an MVP or a prototype, it still serves an essential purpose. It includes the critical elements necessary to explore the feasibility of ideas. This exploration helps organizations and teams avoid significant missteps by revealing potential technical and operational challenges that could derail more extensive projects.

A PoC is a fundamental litmus test that helps to confirm the direction of a project, or product before committing substantial resources. It’s a first reality check that can save time, resources, and much potential frustration by proving (or disproving) foundational elements of a project.  

So, where is a PoC most effectively used? In scenarios where uncertainty about the practical application of a new or untested idea exists, and where validation is needed to ensure that a concept can be transformed into a practical product.  

In conclusion, a PoC is an invaluable preliminary assessment tool designed to prove the feasibility of a concept and pave the way for more comprehensive development phases such as MVP and prototyping. It’s about confirming potential, minimizing risk, and ensuring that innovation efforts are grounded in reality.

Demystifying prototypes: Why they cause so much excitement

A prototype is essentially an early sample, model, or release of a product built to test a concept or process. It is a tangible representation used to visualize and test various aspects of a product’s design before final production. The core purpose of a prototype is not to enter the market but to explore and confirm design choices, enhancing the precision of the final product specifications through iterative refinements. The true allure of a prototype lies in its ability to bring abstract concepts to life, enabling designers and stakeholders to interact with a physical or digital manifestation of the idea.

But why invest time in creating something that might never be released to the public, you might wonder? Here’s a clear perspective:  

Prototypes are not about market readiness; they’re about innovation and refinement. They incorporate enough features to allow designers and testers to explore distinct aspects of usability, functionality, and the overall user experience. Just think about the occasional pictures and videos you've probably seen on social media and video platforms, or even in magazines, showing super flashy and high-tech cars that look like they're from 50 years in the future. They are prototypes and critical as they collect essential feedback that find potential issues and user needs, which might not be visible in paper-based design stages.

A core argument for prototypes is their ability to minimize the risk associated with direct product development by allowing significant changes to be made early in the process. They are not just preliminary versions of a product but are instrumental in ensuring that developers can execute more informed and precise development cycles. Prototypes enable teams to experiment with creative solutions in a low-stakes environment, making them an invaluable asset in the product development toolkit.

So, where does prototyping fit into your development cycle? Well, it fits perfectly where the complexity or innovation of the product demands a deep understanding of its functionality and user interaction before full-scale development begins.

Overall, a prototype is a crucial development tool that embodies the initial vision of a product, crafted to test and refine its functionality, usability, and overall design before committing to the final version. It’s about making informed decisions and saving resources by getting it right the first time.  

Why is everyone talking about minimum viable products?

A Minimum Viable Product is a development strategy that involves building a new product with enough features to satisfy early adopters while minimizing development costs. The primary goal of an MVP is to launch quickly based on a defined hypothesis, gather and analyze user feedback, and iterate or pivot as necessary. The real magic of an MVP lies in its lean approach – launching quickly to test the waters.  

“But why would you release a product some would call unfinished?” you might ask yourself.

I totally get it. It's a pretty common misconception when talking about MVPs with our customers. Let's get this straight, shall we?

Even though an MVP might not be a fully-featured and flashy product, it still fulfills the product’s primary purpose. It includes the essential core features that allow the product to be deployed to early users. These users provide valuable feedback that confirms or refutes the core business hypotheses and helps decide whether further development is needed, and what value to expect from a more mature product down the line.

An MVP is nothing but a strategic starting point that helps to avoid over-engineering a product before confirming which features are truly necessary and valuable to users. It’s a complete product in the sense that it’s ready to be used and tested in the real world, but it’s still the starting line, not the finish line, for product development. It’s designed to learn what resonates well within the target market and to iteratively improve and expand upon that foundation based on actual user feedback.

So where would you best test your business hypothesis with an MVP? Obviously in environments where market conditions change rapidly, user feedback is critical for making quick pivots.

In summary, an MVP is a streamlined, yet functional version of a product equipped with just the essential features to engage early adopters and gather critical feedback for iterative development.

From MVP to global social network

Facebook’s journey began in January 2004 as “thefacebook”, a simple university directory exclusively for Harvard students. This initial version was Mark Zuckerberg’s MVP, designed to connect students and test the platform’s viability with minimal features.

Quickly gaining traction at Harvard, the service expanded to other top universities like Stanford and Yale, gathering critical user feedback and gradually adding features. By 2005, Thefacebook had gone international and included high schools, evolving into a more comprehensive social networking platform. In September 2006, the platform, now simply known as Facebook, opened to anyone over 113 with an email address, marking its transition from a university-focused MVP to a global social network.

A dating app's journey to video domination

Originally conceived as a dating site, YouTube’s first prototype allowed singles to upload video profiles in an innovative twist on online dating. However, the concept didn’t resonate with users for its intended purpose. Recognizing the potential of their video-sharing technology, the founders swiftly pivoted from a dating platform to a general video platform.  

This transformation from a nice dating service to a global video-sharing giant highlights the importance of flexibility and user feedback in product development. The early failure of its dating site prototype paved the way for YouTube to become a revolutionary tool in global communication and entertainment, showing how initial prototypes can evolve into something vastly different and immensely successful.  

Get the train rolling with modern DevOps practices

At a prominent Austrian railway company, we are collaboratively developing a Proof of Concept (PoC) aimed at introducing Continuous Integration (CI) and Continuous Delivery (CD) practices into the ABAP programming environment of SAP. This initiative is geared towards integrating automated software transport with external test automation tools. The goal is to shift the company closer to a Test-Driven Development (TDD) model and spearhead the DevOps transformation within the organization. This PoC not only tests the technical feasibility of merging SAP's traditional systems with modern DevOps practices but also serves as a strategic move to enhance operational efficiency and agility in software development processes at the company.

Bringing it all together: Harnessing MVPs, prototypes, and PoCs with Nagarro

In digital transformation and product development, effectively using Minimum Viable Products, prototypes, and Proofs of Concept is crucial. Each serves a distinct purpose in the innovation lifecycle, addressing diverse needs in product validation and development.

MVPs are about launching quickly with enough features to engage early adopters and confirm product-market fit, ensuring that resources are invested wisely based on actual user feedback and market demand. Prototypes allow teams to refine functionality, usability, and overall design through tangible models that bring concepts to life before full-scale production. Meanwhile, PoCs provide a foundational litmus test for verifying the feasibility of concepts under real-world conditions, helping to find any potential technical or operational hurdles early on.  

By integrating these methodologies effectively, organizations can dramatically enhance their capability to innovate responsibly and successfully. They allow for iterative learning and adaptation, which are crucial in today’s fast-paced market environments. MVPs, Prototypes, and PoCs not only help in minimizing risks and refining product visions but also ensure that the final products are well-aligned with user needs and market expectations.

At Nagarro, we specialize in guiding our clients through the intricate process of employing these methodologies to test, validate, and refine their business hypotheses or to co-create outstanding products. Our expertise ensures that your innovations not only meet but exceed the rigorous demands of modern markets.  

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Visionary ideas deserve explosive results. Don't settle for incremental change. We'll evaluate your current strategies and develop breakthrough adaptations based on our extensive experience with MVPs, prototypes and PoCs. Together, we’ll turn your ideas into tangible wins that dominate the competition. Let's create something truly extraordinary.