Demo vs. POC: Building B2B Trust

Demo and PoC projects are two distinct B2B startup corporate engagement methods and they are used for different purposes. (Unlocking B2B Startup Value: A Stage-by-Stage Guide)

• Demos are for selling, focusing on what the product can do.
• POCs are for testing, focusing on whether the product will work for the specific customer.

A B2B scaleup startup focuses on repetitive sales rather than custom projects and engages corporate clients with a demo. These startups typically are well funded and investors expect rapid growth through fast market penetration.

Whereas, B2B problem-fit stage startup focuses on productization and commercialization. Ideal candidates for PoC projects are B2B startups with expertise in a specific technology and a working prototype. However, these startups often lack real-world validation from potential corporate clients.

By participating in PoCs, startups can refine their prototype based on corporate needs and gather valuable validation data to prove their product's market fit. In return, corporations gain unique business intelligence. (PoC Data and Business Intelligence)

Here's a breakdown of the difference between a B2B startup doing a demo and a PoC project:

Demo (Demonstration):

• Purpose: A demo aims to introduce, showcase, and convince potential customers about the features and functionalities of a product or service. It's a sales tool used to generate interest and highlight the product's value proposition.
• Complexity: Demos are typically pre-scripted presentations or interactive sessions that showcase the product's capabilities in a controlled environment. They might involve walkthroughs of key features or simulated use cases.
• Focus: Demos focus on user experience (UX) and usability. They aim to be engaging and informative, demonstrating how the product can solve the customer's problems.
• Preparation: Demos require less preparation compared to POCs. They often use pre-built versions of the product with limited customization.
• Example: Many international B2B scaleups have country managers in different markets, where these managers assist corporate clients in using demo products to test usability and ROI. ( For example our friend Eytan Ovadya Country Operations Manager at Humanz )

Proof of Concept (PoC):

• Purpose: A PoC aims to validate the technical feasibility of a product or service in a real-world setting. It's a testing and evaluation phase to assess if the product can meet the specific needs of a customer.
• Complexity: PoCs are more in-depth and customized than demos. They might involve custom development or configuration to integrate with the customer's existing systems and data.
• Focus: PoCs focus on functionality and performance. They aim to demonstrate that the product can work in the intended environment and address the customer's specific challenges.
• Preparation: PoCs require more preparation time and resources. Developers might need to adapt the product or build custom components to fit the customer's requirements.
• Example: Turkish B2B startup Wyseye conducted research and development of an AI-powered damage assessment solution. After running PoC projects with automotive, fleet, and insurance customers, fine-tuned its low-code damage estimation product. (Fast track to product 1.0 and product market fit via effective PoC projects)

Corporate Perspective

Think of a demo as a test drive of a car showcasing its features on a pre-defined course. A PoC is like taking a car on a variety of roads and terrains to see how it performs in real-world conditions.

Nonprofit NGO initiatives like TüS?AD SD2 raise awareness and match generic digitalization demand with solution providers through transparent open innovation processes.

Other corporate demands can be unique, confidential, and require custom developments. At Workinlot , we developed expertise in designing and executing such tailor-made PoC projects. (How PoCs Help Businesses Unlock Startup Potential) PoC engagement requires custom scenario designs, project management, and mitigation between two different cultures; startup and enterprise. It is a cumbersome process. Yet, the returns present strategic gains as well as financial ones.