In today’s fast-paced business world, numerous technologies are at your fingertips to reduce costs, enhance services, and disrupt the competition. Indeed, Artificial Intelligence (AI), smart robotics, and advanced analytics are just a few of these exciting developments. But the big question is: which technology and provider can truly spark innovation in your company and boost profits? Indeed, a pilot project may be the best approach to answer this question. It is an awesome way to find the most impactful tech solution for your organization without breaking the bank. In this article, tell you all about tech pilot projects, why they’re essential for your enterprise, and tips for executing a successful pilot project.

1. What Is A Technology Pilot Project?

Let’s start with a definition of a pilot project:

“… an initial small-scale implementation that is used to prove the viability of a project idea.”

APM

Hence for a tech pilot project, its primary aim is to test the effectiveness and feasibility of a new technology before it is fully implemented. Unquestionably, this approach is a low cost way for organizations to identify potential issues. Further, they can assess the suitability of the technology for their needs. Moreover, they can make necessary adjustments before committing resources to a large-scale implementation. For example, technology pilot projects can include such things as new software releases, soft launch of a new technology-based service, or the testing of a new information technology.

2. Why Conduct A Pilot Proof-Of-Concept (POC) Project?

Conducting a pilot proof-of-concept (POC) project is crucial to validate the viability and scalability of a new technology. Indeed, a pilot project’s primary objective is to provide valuable feedback on the technology before allocating significant resources. To detail, below is a list of the many advantages of implementing a pilot POC project:

Advantages Of Tech Pilot Projects For Your Enterprise

The bottom line is that conducting a pilot project helps organizations separate hype from reality when evaluating new technologies. Most emerging technologies go through a hype cycle, where initial excitement often exceeds actual capabilities. By running a pilot, you can assess a technology’s true potential and make informed decisions about its adoption. For more on this Technology Hype Cycles, see my article, Hype Curve? This Is What You Need To Know About The Technology Hype Cycle.

Hype Curve? This Is What You Need To Know About The Technology Hype Cycle

3. Tips To Assure A Successful Pilot Project.

Below are 9 tips for having a successful technology pilot project.

a. Craft Pilot Project Objectives that Drive Conclusive Results.

First, define precise goals and expected outcomes at the outset with the project sponsor. Remember, the whole purpose of a pilot project is to determine whether your organization should either start adopting the new technology or hold off. Indeed, a tech pilot project may be fun and exciting, but it will result in failure if it does not provide conclusive results on whether to adopt the tech or not.

b. Choose the Right Technology Partners That Are Experienced With Your Industry.

As most corporate pilot projects are evaluating a new or unfamiliar technology, it is key to pick the right technology partner. For example, prefer a technology vendor that has experience within your industry. Further, look for tech vendors that have the key staff who are both experienced in your industry and in the technology to be evaluated. 

c. Pilot in a Controlled Environment to Accurately Evaluate the New Tech. 

Running your pilot project in a controlled environment allows for more accurate data collection, helps identify potential issues, and facilitates making adjustments to meet the project’s objective. Most importantly, keep it simple. This is because introducing too many situational variables or involving too many organizations in the pilot project is a recipe for disaster. For instance, complexity makes it too difficult for the project team to make progress. Further, a convoluted project makes it hard to document results. Worse, it may be extremely difficult to determine the exact impact the technology has within a massive pilot project.

d. Involve Key Stakeholders to Gain Buy-In and Constructive Feedback.

involving all pertinent stakeholders in the pilot project — from end-users to management — ensures buy-in and improves the chances of success. Further, constructive feedback from a diverse mix of participants enhances the overall quality of the final product. On the other hand, exercise caution when there are a lot of stakeholders and interest in the project. In this case, keep the project team small by designating some of the stakeholders as observers and not participants.

e. Develop a Detailed Project Plan And Budget to Include Documenting Test Results.

A pilot project, even with its low cost, requires a detailed project plan and budget that outlines timelines, resource allocation, and expected costs. Indeed, the project manager must actively manage expectations and guide the pilot project to stay on track. Moreover, pilot projects demand even more attention to detail and focus compared to standard projects. This is because besides implementing the project, they have to also concentrate on testing the technology, discovering insights, and documenting results. Also to keep costs low, the team can create prototypes or run software simulations to achieve project objectives. This pilot project approach maintains simplicity and helps the team avoid the costs of building an entire ecosystem just to prove a concept.

f. Assemble a Small, Dedicated Cross-functional Pilot Team.

Creating a small, focused team dedicated to the pilot project will foster efficient communication, enhance problem-solving, and speed up the project execution. Also, having a cross-functional team assures all parts of the organization are represented. Additionally, a versatile team promotes rapid exchange of ideas and perspectives to assure a comprehensive evaluation of the technology.

g. Implement Efficient Testing and Data Collection Methods.

It is crucial that the project team uses effective testing strategies and data collection methods to ensure accurate and complete results. Unquestionably, quality data provides for valuable insights resulting in better decision-making about the future use of the technology. Also, especially for a pilot project, it is essential to collect data and measure results effectively. Indeed, this data will be the basis for management to make a decision to scale the technology. Moreover, the project test results will shape the future direction for deploying the technology as well as allocating resources for future deployments.

h. Conduct Frequent Reviews, Validate Assumptions, and Make Adjustments.

Regularly reviewing progress, validating assumptions, gaining constructive feedback and making necessary adjustments is key to meeting the pilot project’s objectives. Specifically, the project team must continuously collect feedback and conduct ongoing analysis of data. As a result, project management can adapt to new challenges or opportunities to stay aligned with project objectives.

i. Document Results and Lessons Learned for Future Projects.

Lastly, recording the results and lessons-learned from your project is the key objective of a pilot project. Indeed, the project report and lessons learned are key for the success of future initiatives. This is because the pilot project report will help determine the future deployment of the technology. Further, it will help avoid past mistakes and replicate successes.

The Way of Digital Transformation: A Business First, High Tech Reinvention 0f Processes and Culture

More References.

For more information on conducting a technology pilot project, see the following references.

• Mondays’ How to run a successful pilot project
• Method’s Pilot Implementation & Planning 101
• CIO’s How to launch—and scale—a successful AI pilot project, and Teamwork’s Pilot project excellence: A comprehensive how-to (+ an example).
• Also, for more tips on adopting new technologies, see my article, The Way of Digital Transformation: A Business First, High Tech Reinvention 0f Processes and Culture.

Digital Supply Chain Transformations Require Innovation: Here Is Some Advice for Executives That Will Make It Happen

Need help with an innovative supply chain solution that leverages emerging information technologies? I’m Randy McClure, and I’ve spent many years helping logistics organizations to make the most of new information technologies. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers. I specialize in new strategies, proof-of-concepts and operational pilot projects using emerging technologies and methodologies. If you’re ready to supercharge your supply chain or if you are a solution provider, let’s talk. To reach me, click here to access my contact form or you can find me on LinkedIn.

Also, for more from SC Tech Insights, see latest articles on information technology and decision science.