PoC (Proof of Concept) is the name given to the methodology and process, to measure the value a startup can create with an enterprise.

Startups are flexible structures. They are built to take the risky road to quickly test new technologies and business models in a sprint runner mindset.

Enterprises on the other hand are built to scale credible and well-tested stable solutions for their customers.

Methodologically designed and executed PoCs, enable the collaboration between these two different risk perceptions and structures. And help measure the outcomes objectively.

Preliminary actions - Set-up Stage

There are many local and global startup listing sites or startup scouting services. ( Startupswatch, StartupCentrum, Startupmarket, Crunchbase )

But how can you identify a startup that solves your unique corporate demand and is compatible to work with your business units?

Conducting a PoC process allows you to manage this problem and attain objective data-based outputs.

Before going any further, it is necessary to complete the preliminary preparations and setup for the corporate PoC structure:

• On which focus areas are we seeking solution providers? Scope definition

• Through which channels will we scout and communicate with startups ? Communication channels and strategy

• Do we have filtering criteria to shorten the long list coming from the scouting channels & service? Design and collaboration criteria

• Do we have a swift NDA to present to the startups that we will deep-dive with? Legal and procedural infrastructure

• What are our criteria to determine the final list of startups that will proceed to the PoC interview stage? Will we get insight from internal or external subject matter experts? 

• If there will be a scenario where you need to share data during PoC, can you create a test environment? Technical set-up

We usually end up with 2 to 5 startups in the preliminary stage. This number may vary depending on the focus area and corporate body. The preparation criteria are generally valid for all.

Having thought of all these set-up actions will have a positive and structural effect on the PoC design process and help us measure the outputs for better learning.

PoC Design Stage

By giving the selected startups a specific PoC scenario to solve, the PoC design is initiated collaboratively.

The startup with a specific demand scenario, should not make a generic marketing presentation.

Now we can demand a direct and clear presentation from the startup. One that addresses clearly, how to develop a solution to meet our needs and the road map ahead if we collaborate.

Since the startup has received the real corporate need, it can now address a very specific solution.

At this stage, we recommend an open communication channel that can ensure that the startup understands the need correctly. In the corporate projects we carry out, we undertake this communication channel and continue to work with startups so that they can develop solutions compatible with the expectations and needs of the corporation.

Did they understand the corporate need correctly? Are the corporate expectations clear for the startup? Can a cooperation roadmap be designed that complies with design and management criteria?

These are the issues we recommend you check frequently during this process.

After the PoC solution presentations, we have sufficient information to choose the suitable one amongst the startups.

The next step, come to terms with a mutual and measurable success definition for the specific PoC proposed.

Achieving a mutual agreement to determine the scenario and success metrics might take several meetings and deliberations. Don't assume success is easily defined and mutualized.

PoC Management Stage

PoCs are quick and low-budget learning tools.

That's why we recommend an agile process that you can repeat often to get the right learnings.

The startup and the corporation may have to change terms due to the new findings or learnings throughout the actual PoC process.

To manage new learnings, a process that can be followed up properly but also does not create meaningless additional workload is required.

During PoC management, it may be necessary to seek subject matter expert opinions on foreseen or previously unforeseen issues.

You can often find these experts within the business units, and sometimes among ecosystem entrepreneurs or academics.

PoC Assessment Stage

When the PoC is completed, the first criterion is whether it complies with the PoC success criteria determined at the beginning.

While making this evaluation, you can also evaluate the new learnings acquired during the PoC management stage.

The assessment stage aims to determine what kind of cooperation is meaningful after a successful PoC process.

• Should we become a strategic and financial stakeholder in the startup by investing?

• Should co-create new products & services?

• Under what conditions can we become a customer of the startup?

Conclusion

Another important gain of PoC processes for companies is the ability to update corporate memory and vision.

• If the PoC was unsuccessful, understanding why it failed and adding it to the corporate memory will help avoid making the same mistakes in the future and discover new methods.

• Although PoCs are carried out with certain goals and focuses, as we mentioned at the beginning, it is a learning process. It provides the opportunity to recognize new unforeseen opportunities and develop a new vision together with the startup.

At Workinlot we design process frameworks that enable companies to collaborate with technology firms and startups. To ensure these designs are optimally developed, we provide iterative project management support in partnership with the organization.

 

Through this collaborative and iterative knowledge transfer, we have helped establish corporate venture capital funds, open innovation platforms, and venture builder structures.

Let's connect and collaborate to identify and validate new opportunities.