Principles behind the Micro-Strategy
Metropolitan College of New York
BUSINESS DESIGN; PROOF OF CONCEPT & LEGAL FORMATION
Micro Strategy for Proof of Concept comprises three principal components that must be in place to test any given concept. The entrepreneur must provide the goals that they are attempting to achieve which will indicate their outcomes. Take into account all assets that go into the venture like the financial needs as well as the physical, human and social needs which all factor in the outcome of the business. A proof of concept is a shared idea in the business industry, new start-ups or entrepreneurs validate if a company, and or products are feasible. Customarily, a broad study and analysis of a proof of concept is a single package submitted to investors and interested parties. The proof of concept maybe used in research and development, and a range of other fields.
PRINCIPLES BEHIND THE MICRO-STRATEGY
What are the principles behind the micro-strategy approach to proof of concept?
When a company invests in another company or project, typically a proof of concept is essential to validate the proposal is financially a sound investment. Occasionally, building a proof of concept involves producing a simple prototype, to show the idea or method could work and many companies will build a small demonstration to show potential investors how it might look and feel.
Nevertheless, sometimes people confuse a Proof of Concept that may involve building a prototype or conducting a demonstration, but that is in itself not the Proof of Concept. The Proof of Concept is about the vendor's viability and the entrepreneur cultivating a clear understanding of needs of the customer. Using a prototype diminishes the threat of product failure.
The principles behind the micro-strategy approach to proof of concept, usually includes an assessment of the
References: Arrow, Kenneth J. (1974). The Limits of Organizations. New York, Norton and Company, Inc. Matthews, C. M., and S. G. Scott. 1995. Uncertainty and Planning in Small and Entrepreneurial Firms: An Empirical Assessment. Journal of Small Business Management, October Table 1