Prototyping in business is the process of creating simplified versions of a product, service or system to test and refine ideas before they are fully launched. It allows organizations to explore new ideas, gather feedback from real users and reduce risk before investing in a final product.
More than just testing physical features, prototyping today also focuses on improving user experience, validating market demand and building solutions that meet the needs of a wide variety of customers.
Why prototyping matters in business
Prototyping is an essential part of the business development process because it allows organizations to test ideas before investing in a final product. By creating early models, companies can spot usability issues, gather feedback from real users and make improvements that lead to better results. They have the chance to see a visual representation and provide feedback early.
Prototyping helps businesses...
- Reduce risk before a product launch
- Gather user feedback and explore ideas early
- Ensure products align with customer expectations
Prototyping has been around for ages
Prototyping may feel like a modern idea, but businesses have been using early models to test and refine designs for centuries.
- Ancient roots: Early artisans and builders created small‑scale models as early prototypes to visualize structures and designs early. These helped them avoid costly mistakes before starting full projects.
- Industrial revolution: Prototyping became formalized in manufacturing as engineers tested durability, safety and function with early models before mass production.
- Today: The process continues to support innovation by allowing businesses to gather feedback, adapt quickly and improve through continuous learning.
Universal design and prototyping
Universal design is about creating products and services that as many people as possible can use comfortably. Instead of adding fixes later, the goal is to design with a wide range of users in mind from the start. This approach helps businesses build solutions that provide a better understanding of the user journey.
What is universal design?
Universal design means designing projects that work well for people of all ages and abilities.
Examples of universal design in business
- Easy grip can openers, originally designed for people with arthritis but helpful for anyone
- Automatic doors, which remove barriers for those with mobility challenges while also helping parents with strollers or shoppers carrying bags
How it connects to prototyping
Inclusive testing during the prototyping process uncovers usability issues early. When businesses design with diverse users in mind, the final product is more effective for everyone.
Human-centered design and prototyping
Human centered design is closely related to universal design, but instead of focusing only on access, it emphasizes how products fit into real users’ lives. The goal is to understand actual behaviors, preferences, and needs so the final product feels natural and easy to use.
This approach became especially popular in the 1960s and 1970s, when businesses realized that “technology only” solutions often failed to connect with people in meaningful ways. Design firms like IDEO® helped spread this idea by showing how early feedback, direct user observation, and rapid prototyping could transform the design process.
How businesses apply human centered design
Instead of waiting to release a polished product, companies often start with a paper prototype or basic sketches to test early concepts. They may then move to clickable prototypes or digital wireframes that show basic interactions. Through user testing and observation, design teams can collect valuable user feedback to guide each new version.
The benefits of human centered prototyping
This iterative process supports better communication between project teams and users. It allows businesses to spot usability issues early and make changes before investing heavily in a final product. By gathering feedback from potential users at every stage, companies reduce risk and create solutions that work in the real world.
Prototyping on any budget
A common misconception is that prototyping is expensive or only for big companies. In reality, both low-fidelity prototypes and high-fidelity prototypes can be created at a low cost to test ideas before moving to the final product. The goal is to make ideas visible and testable, not to build the finished product.
Low fidelity prototypes
Low fidelity prototypes are quick, low cost models made with paper sketches, cardboard or other simple materials. These early models allow businesses to explore designs early and get feedback without major investment.
Examples of low fidelity prototypes include...
- Rearranging furniture in a retail space to test how customers move through a store layout
- Hosting a restaurant tasting event to get direct menu feedback
- Role playing a new HR training program with employees
These early prototypes, including paper wireframes or basic sketches, make it easy to adjust ideas quickly based on user feedback.
High fidelity prototypes
High fidelity prototypes are more polished models that closely resemble the final design. They might include 3D printed parts, interactive digital tools or clickable prototypes that simulate user flows.
These fidelity prototypes are often used in the later design phase when teams want to refine usability and ensure the prototype feels like the actual product. Testing with high fidelity prototypes helps identify usability issues and build confidence before moving to production.
The prototyping process step by step
The prototyping process usually follows a flexible but structured series of steps. Whether you’re working with paper sketches or a digital wireframe, each stage helps your team learn, improve and move closer to a finished product.
Step 1—Identify the problem or opportunity
Before you can build a prototype, you need to define the issue clearly. This starts with user research, market analysis, or internal feedback to understand what needs to be solved. Look for common pain points that customers experience or areas where systems break down. A clear initial concept helps the project team stay focused and aligned.
Step 2—Generate possible solutions
Once you’ve identified the problem, it’s time to explore new ideas. This might involve brainstorming sessions, simple sketches, or early mock ups. Teams may build a low fidelity prototype to represent the basic version of a product idea. The goal is to build a prototype quickly so ideas can be tested and improved.
Step 3—Share and test the prototype
Now it’s time to observe how real users interact with the model. This phase often includes usability testing, interviews, or surveys to collect user feedback. Testing doesn’t have to be formal—even watching someone use the prototype can reveal surprising insights. What you learn during user interactions helps shape the next version.
Step 4—Analyze and refine
After testing, the team reviews what worked and what didn’t. Early feedback helps guide improvements across multiple versions of the prototype. This iterative process often reveals new insights and opportunities that weren’t obvious at the start.
Step 5—Advance to the final design
Once a prototype meets the core needs of the user and project goals, the design team prepares to move forward. While the final product may still change slightly, the structure and flow are in place. A strong prototyping process helps avoid costly redesigns and leads to a more thoughtful finished product.
This cycle may repeat many times depending on the complexity of the solution and the needs of the organization. The goal is not to eliminate failure but to invite it early, cheaply, and productively.
Real world example—Issues with the Tesla® Cybertruck®
The development and release of the Tesla Cybertruck offers a powerful example of why prototyping matters in business. When the truck was first unveiled in 2019, its sharp, angular design and futuristic stainless-steel body made headlines, but not always for the right reasons.
A lesson in testing before the launch
During the live demo, Tesla’s design team claimed that the truck’s windows were made with “armor glass.” But when a metal ball was thrown to prove their strength, the glass shattered on stage. This highly public failure suggested a lack of real-world user testing before showcasing the actual product.
Other concerns soon followed. Early users shared issues with the truck’s size, visibility, interior ergonomics and software responsiveness. Photos showed that the Cybertruck didn’t fit in standard garages and reviews pointed to a bumpy user experience.
Inclusive prototyping—especially with a wider range of users—could have helped Tesla avoid these setbacks. Testing with average drivers, commercial operators, and other real users would have supported better communication, helped the design team spot problems early, and created a smoother path toward launch.
Inclusive prototyping in business
Inclusive prototyping means involving a wide range of potential users in the testing process. When companies test only with a limited group—like tech-savvy users or internal staff—they often miss key usability issues that show up in the real world.
For example, a self-checkout system might work perfectly in a lab environment. But if that system is tested only by young, experienced users, it may fall short when used by older adults, non-native speakers, or customers with visual or cognitive differences.
Why inclusivity leads to better outcomes
When businesses prototype with inclusion in mind, they gain a better understanding of the user’s world. Inviting feedback from a wide range of potential users allows the design team to adjust features early, avoiding costly changes after launch.
Inclusive testing supports better communication across teams and leads to final products that are more intuitive, accessible, and effective. It’s not just a nice-to-have—it’s an essential part of building solutions that work for real people.
Prototyping as an essential part of business success
Prototyping is more than a design tool — it’s a smart business strategy. Whether using paper wireframes or high-fidelity prototypes, the process helps businesses test ideas early, refine designs and build user-friendly products with greater confidence.
By embracing feedback, staying open to new insights, and designing for real users, companies can reduce risk, improve outcomes and bring better solutions to market.
This is something business leaders can decide to invest in and focus on. And it’s far better for the business in the long term. Many organizations focus too heavily on fast turnaround and fast profit, to their detriment.
Check out Sustainable Business Leadership: Putting People Over Profits to see what I mean.
IDEO® is a registered trademark of IDEO LLC
Cybertruck® is a registered trademark of Tesla, Inc.
Tesla® is a registered trademark of Tesla, Inc.
