PoC, Pilot, MVP: What They Really Mean and Why You Need to Know the Difference

In the world of innovation and digital transformation, a few key terms tend to circulate regularly: Proof of Concept (PoC), Pilot, Minimum Viable Product (MVP), and many more. While they are often used interchangeably, each serves a very distinct purpose. Understanding each and having a clear ‘definition of done’ is critical for any organisation looking to manage risk, allocate resources wisely and bring new ideas to life with confidence.

In our latest blog post, Managing Director Colin Dawson, discusses the importance of clearly defining ‘what success looks like’ when starting any digital initiative.

Proof of Concept​

A Proof of Concept is exactly as it sounds: a focused exercise to demonstrate that a concept or technology is technically feasible. It is usually small in scale, tightly controlled, and designed to answer a simple question – can this work?

Organisations typically turn to a PoC when exploring a new technology or capability they have never implemented before. The aim is to validate whether the proposed solution can technically address the problem before committing further investment. In many ways, it is about de-risking innovation early.

A PoC is not about impressing end users or creating a polished product. It is often rudimentary, put together quickly to test feasibility. While it may be short in duration, it provides invaluable clarity before larger commitments are made.

Pilot

A pilot moves beyond proving technical feasibility and steps into the realm of operational reality. Here, the focus shifts from “Can we do this?” to “Can we do this effectively in a real-world environment?”

A pilot involves deploying a working version of your solution in a limited, controlled setting with real users. It is the stage where you gather feedback on usability, processes, and potential adoption challenges. You test operational workflows, assess training needs, and evaluate how the solution integrates with existing systems.

Pilots generally run for several months and require a larger budget than a PoC. You are no longer experimenting behind closed doors but engaging with actual operational dynamics. A common misconception is that pilots are about proving technology; in fact, they are about proving business and operational viability on a smaller scale.

Minimum Viable Product

An MVP represents the simplest version of your product that can be released to the market. The aim is to deliver enough value that early adopters are willing to use it, buy in to the journey whilst allowing you to gather feedback and iterate quickly, adding valuable features.

An MVP is not a half-finished product or a shortcut. It must solve a core problem effectively, even if it does not include every feature or refinement.

Developing an MVP typically takes several months, depending on complexity, and involves a significant commitment. Unlike a PoC or a pilot, an MVP is a market-ready product, requiring careful consideration of scalability, user experience and support.

Choosing the right approach

Think of these stages as a strategic funnel that you work through:

  • PoC: Can we do this?
  • Pilot: Can we do this in the real world?
  • MVP: Can we do this at scale, and will customers actually want it?

While it can be tempting to skip steps in the race to market, each stage plays a critical role in reducing risk and building confidence. A PoC saves you from investing in an idea that will not work technically. A pilot highlights operational and adoption challenges before a full rollout. An MVP enables real market feedback while avoiding overinvestment in untested assumptions.

How much to invest?

  • A PoC requires a small budget as it is essentially an experiment.
  • A pilot demands a moderate investment, as you simulate real-world use and cover operational costs.
  • An MVP requires a more substantial budget; it is, after all, the foundation of your actual product or service.

Whilst implementing any project, consider scalability early. Our recommendation is to engage solutions architects and data scientists early, ensuring that anything that is built can move forwards with limited re-write required. We often see pilot projects scrapped, and entirely re-built. It’s great to develop rapid prototypes and test user adoption, but a re-build will take time (and cost). After all, what’s stopping you building for success from the beginning?

Start with why, build with purpose

PoC, Pilot, and MVP are far more than buzzwords. They are essential for framing project success, managing uncertainty and guiding innovation. By understanding what each represents, organisations can make smarter decisions, avoid costly missteps, and ultimately deliver solutions that resonate with the market.

There are many more ways of framing projects out there;

  • Minimum Valuable Product, a derivative of ‘Viable’ – focusing development on valuable capabilities, not just the bare minimum.
  • Minimum Marketable Product (MMP) – a version that contains just enough value to promote and sell, prioritising features that resonate with users and justify go-to-market strategy.
  • Minimum Lovable Product (MLP) – focuses on delight, building something users not only tolerate but genuinely enjoy. It’s especially relevant when emotional engagement or brand differentiation matters.

The most critical element when scoping any initiative is asking the right questions from the start:

“What does success look like?”

“When can we confidently consider this project phase complete?”

By defining success criteria early and aligning stakeholders around measurable outcomes, you reduce ambiguity, improve accountability, and accelerate delivery.

Planning a project build?

From initial scoping to final execution, we specialise in ensuring your digital transformation delivers measurable impact. Success starts with a conversation, contact us today.

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Dax Group brings clarity and structure to complexity. We’re more than advisors. We’re execution partners who work side-by-side with your teams to deliver measurable outcomes. With a deep understanding of business operations and emerging technologies, we help you reduce risk, move faster, and realise value from day one.

We provide:

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