Direct answer

A proof of concept (POC) is a deliberately limited exercise used to test whether a proposed approach can satisfy a defined requirement or remove a meaningful technical or process uncertainty. Its value comes from the decision it enables, not from how much of the final solution it builds.

POC versus demo

A solution demo usually communicates how a solution can support a scenario. A POC goes further when evidence is needed: it tests a bounded question using agreed assumptions and success criteria. A prototype may explore design or user experience, while a POC is primarily about feasibility or confidence.

DEMOshow scenarioPROTOTYPEexplore designPOCtest uncertainty
Similar-looking activities can serve very different project decisions.

What makes a POC useful

Start with one question, explicit scope, representative data or conditions, success criteria, owners and a time box. For example, a team might test whether a difficult integration pattern can exchange the required business data with acceptable behavior. The outcome may be proceed, redesign, investigate further or reject the approach.

What a POC should not become

POCs create risk when stakeholders treat them as production-ready, when temporary shortcuts become architecture, or when the test has no success criteria. Findings should be documented together with limitations and assumptions before they influence implementation scope or estimates.

QUESTIONuncertaintyBOUNDED TESTcriteria + evidenceDECISIONproceed / change
A POC is complete when evidence supports the intended decision.

Official SAP References

Put evidence into the wider project decision.