PoB (Proof of Business) Edition: Testing whether a business can be sustained.

This article is the third in a three-part series on proof-of-concept (PoB) testing for hardware commercialization. Hardware commercialization progresses through three stages: PoC → PoV → PoB, gradually increasing the level of verification.

• Part 1: PoC - Verifying if the Proof of Concept "Works"
• Part 2: PoV (Proof of Value) - Verifying Value: "Is it useful? Is it worth it?"
• Third installment: PoB (Proof of Business) - Testing whether the business can be sustained (This article)

What is PoB? "Having value" and "Being able to make a business out of it" are two different things.

Even if value can be confirmed through proof-of-visualization (PoV), whether mass production can be achieved at the target cost, whether quality can be stable, whether there are sales channels, and whether production can be sustained are all separate issues. Many projects run out of steam before reaching mass production. This is what is known as the "valley of death" (the phenomenon where ideas and technologies disappear without ever becoming practical).

The characteristics of PoB (Proof of Business) are as follows:

• This stage involves verifying whether a product that has been confirmed to have "value" through Proof of Vision can be sustained as a business from the perspectives of mass production, sales, revenue, and support.
• The focus of the verification is not effectiveness, but rather feasibility of mass production at the target unit price, mass production quality, certification, sales channels, and continuous supply.
• Only after overcoming this hurdle does an idea become a "product business."

[Comparison Table] What is the difference between PoV and PoB?

Five elements to verify with PoB

The five elements to be verified with PoB (Proof of Business): mass production cost, quality, certification, sales channels, and continuous supply.

How to Conduct a Proof of Business (PoB): 5 Steps

The five steps of PoB (Proof of Bid): ① Finalize mass production specifications → ② Prototype mass production → ③ Certification → ④ Sales channels and revenue → ⑤ Pilot implementation and mass production.

① Finalizing mass production specifications – turning the Proof of View results into a "manufacturable format".

We translate the "specifications truly needed on-site" as seen in the proof-of-visual (PoV) into a design based on mass production. If the target unit price is not clearly defined at this stage, the problem in later processes will be that "we can make it, but it's too expensive to sell."

② Mass production prototyping and yield verification – "One unit works" and "10,000 units are consistent" are two different things.

In mass production, individual differences, yield, and process variations significantly impact quality. In one particular project, the process involved: 1st prototype (a few units) → 2nd prototype (30 units) → mass production prototype (500 units) → mass production (over 10,000 units per year).  We built up quality in stages, carefully developing each stage. It's standard practice to gradually increase production rather than jumping straight into mass production.

③ Obtaining certification – Don't underestimate lead time.

Certification and regulatory compliance can take several months. If this isn't started in parallel with mass production design, the product may be completed but still unsaleable, delaying mass production.

④ Determining sales channels and revenue structure – Focusing on "what can be sold and profitable" rather than "what can be produced."

We will finalize the sales channels, pricing, and revenue model. If we proceed to mass production design without clarifying these points, we will end up having to rework the packaging and pricing.

⑤ Pilot implementation → Mass production — up to quality assurance of the initial batch

We will conduct final checks through trial implementations at our partner companies and guarantee the quality of the initial batch before proceeding to mass production.

Macnica 's PoB support: What only a semiconductor trading company can do.

Macnica 's greatest strength is its ability to provide consistent support from PoC to mass production with the same team. This avoids the "valley of death" where contractors change. The features of MonoCon® support are as follows:

• Conducting PoC → PoV → PoB with the same team: Knowledge is not interrupted even as the stages change.
• Neutral component selection: We select components that are optimal for mass production and continuous supply, without being tied to any particular manufacturer.​
• Procurement Quality Control: We employ 4M Change/PCN/EOL to continuously trace components at the individual part level and ensure supply after mass production.​
• Global mass production network: With a system in place to operate 100 locations domestically and internationally, we can also handle direct overseas deliveries.

If you’re thinking, “We’ve drawn up our own schedule, but I’m worried whether we can actually stick to it,” please bring your commercialization schedule to us, and we’ll use Macnica Mono-Con® to rework it into a realistic timeline.The value of Macnica—which has supported numerous hardware commercialization projects—lies in our ability to identify issues such as “this is how it should be done” (too early/too late) with an eye toward mass production during this phase.

Comparison of Before (Our company: Serial process with PoV and sales channel verification at the end = approximately 30 months) and After (Expert: Parallel process, brought forward = approximately 22 months)

Frequently Asked Questions (FAQ)

Q1. What is the difference between PoV and PoB?

PoV (Proof of Value) verifies whether value can be generated on-site, while PoB (Proof of Business) verifies whether the business is viable. PoB verifies mass production costs, quality, certification, sales channels, and continuous supply.

Q2. What is the "Valley of Death"?

This phenomenon refers to ideas and technologies disappearing without ever reaching practical application. In this context, it specifically describes situations where partners, design requirements, and quality standards break down between the prototyping (PoC/PoV) and mass production phases, causing the commercialization to fail. This is more likely to occur when different partners are involved in prototyping and mass production, and can be avoided by having the same team handle both.

Q3. We have completed the prototype, but can we request mass production from you?

Yes. We handle everything from analyzing the bottlenecks of existing prototypes to mass production design, yield verification, certification, and mass production. We also design the process for transitioning from prototypes to mass-production boards for products like Raspberry Pi (modularization, replacement with dedicated boards, etc.).

Q4. What is the minimum order quantity required for mass production?

The standard approach is to gradually increase the number of units produced. In one project, we progressed through stages: first prototype (a few units) → second prototype (30 units) → mass production prototype (500 units) → mass production (over 10,000 units per year). You can start with small lots and expand while building in quality.

Q5. What kind of support will be provided after mass production?

We ensure supply and quality after mass production through continuous management of 4M changes, PCN, and EOL. With a network of 100 locations domestically and internationally, we also handle overseas deliveries.

Summary

Proof of Bid (PoB) is the final hurdle you cross when you've confirmed the value and now want to make it a viable business.

• Proof of Business (PoB) is the stage where you verify whether a project has value and whether it can be sustained as a business.
• The five elements to be examined are mass production cost, quality, certification, sales channels, and continuous supply.
• The process involves five steps: ① Finalizing mass production specifications → ② Prototype mass production → ③ Certification → ④ Sales channels/revenue → ⑤ Pilot implementation and mass production.
• The biggest hurdle is the "valley of death." The key is whether the same team can get through both prototyping and mass production.

Macnica MonoCon® provides comprehensive support from mass production design and certification to sales channels and continuous supply. No specifications are required. Please feel free to contact us for a consultation.

Related article

• How to Conduct a Hardware Proof of Concept (PoC): 5 Steps, Costs, Duration, and Failure Examples
• How to Conduct a Hardware Proof of Value: 5 Steps to Value Proof and ROI/Effect Measurement
• How to Choose the Right Outsourcing Service for Product Development: Differences Between OEM, EMS, and ODM, and Your Options Beyond That.
• [Essential Guide] Wearable Development | Requirements by Application and Three Implementation Difficulties
• Pitfalls to avoid and the realities from prototype development to mass production