Blog

Prototyping 101

Blog

Prototyping 101

Blog

Prototyping 101

Blog

Prototyping 101

Blog

Prototyping 101

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Why you should watch

Prototyping 101

12.8.2022

Let us jump to a situation where you have done some research and are convinced that from a market perspective as well as technically your proof-of-concept (POC) is worth exploring. Now, the next step is to figure out how your solution will look like. This stage is the prototyping stage and comes before spending any further resources on building a minimum viable product (MVP) and even before you should be thinking about concluding on a product-market-fit. Prototyping is about working out (mostly visually) how exactly your digital solution guides the user from point a to point b.

Done right, prototyping has the potential to save you and your team from building an application you shouldn’t build and get confirmation on applications you should take to the next stage. How so? Let us go through some observations on why to use prototypes, how to use them, and other points to consider.

The why

  • Realistic versions of your product make you go through all the details of the proposed solution which leads to further improvements and even major redesigns of the solution. It is almost impossible to find the solution components to be improved or redesigned without actually building the design. Your design path is unknown before you start building and anyone thinking to know how the design path and how the final solution will look like simply never built before.
  • Realistic versions of your product allow you to conduct usability testing and gather valuable insights on what should be improved. The quality of feedback from realistic prototypes is higher compared to the quality of insights obtained when test subjects are given conceptual sketches.
  • For product ideas where data-driven decision-making is possible a prototype is a great tool to extract feedback from customers. However, many products or features are novel with user testing going beyond where to place the action button and into whether the user will use your software at all. In these cases, we require opinion-driven decision making and well-designed prototypes are again an excellent tool to reevaluate your intuition of how the application really feels and whether you should put your resources into it.

The how

  • Based on your use case and design resources accessible choose the right prototyping technology (Hint: Evaluate especially no-code tools on top of UI design tools). A designer should be able to explain the choice of the right product design tool and master the features of the chosen tool to unlock the true value of prototyping.
  • Understand the domain in which the solution resides and engineer a solution that solves the identified domain problem with great design. The domain usually requires an expert system which you create yourself or leverage from. The expert system will determine the design and architecture of the solution. Merging then the solution with great design (potentially using a design system to speed up the process) is the next challenging part as budgets and skills often run dry when you get to the design part.
  • Dive into the psychology of people to understand how to design an application that people actually use. It is surprising how general design principles and decade-old research still summarizes what you should and shouldn’t do more understandable than some modern articles and blog posts — For example, get your hands on a copy of Human Interface Guidelines: The Apple Desktop Interface, published in 1987.

Points to consider

  • Each time you upgrade your prototyping approach, including your stack of technology, ask yourself, how does this improve the quality and time-to-market of your software? This question will spare you from wasting time and resources on the wrong approach and technology and make you a better product designer.
  • Let the product, design, and development team look up from their immediate tasks to understand what marketing, sales, legal, etc. are doing. This may lead to making necessary adjustments to the prototype that will save the product from failure as it goes through the rest of the development and launch stages. (see on that topic Build: An Unorthodox Guide to Making Things Worth Marking by Tony Fadell).
  • Always establish a connection between your solution and the wider company and product vision. Learn from the things that benefited the ultimate success of past prototyping projects.
  • Double-check with engineering whether the updated design is still doable from a technical perspective as established during the POC phase. In particular, your customers may have introduced many ideas while involved in co-creation sessions.
  • Be bold enough to set projects aside or entirely walk away from certain ones after your prototype does not deliver the results you hoped for. On the other side, if things go well, move projects up your priority list if a prototype is convincing and adjust your roadmap.

If you want to receive more insights into the workflows of designing digital solutions in the transfer pricing or international tax domain the experts at Aibidia will be glad to share additional learnings gained in dozen ongoing projects in different stages of early stage development.

Meet the authors

Author
Max Stobbe
Digital TP Lead Western Europe

Max Stobbe is a Digital Transfer Pricing Lead at Aibidia, where he focuses on product development. With years of experience working on transfer pricing documentation and planning for Silicon Valley-based multinationals, Max is an expert in his field. As a Digital Transfer Pricing Lead at Aibidia, Max uses his expertise to develop the company's cutting-edge digital transfer pricing platform. With a deep understanding of the complexities of transfer pricing, Max is able to push the boundaries of what is possible, creating solutions that are efficient, effective, and relevant for transfer pricing management.

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REPORTS

Prototyping 101

Hereʼs Why You Should Get the Report

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See how peers are adapting to global change

Understand how 140+ MNEs and advisory firms are responding to shifting regulations, heightened audit scrutiny, and technology-driven change, and where your approach stands in comparison.

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Learn how others are driving compliance

Explore the approaches to resourcing, data management, and operational transfer pricing that teams are using to tackle growing workloads.

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Identify emerging trends shaping the profession

Gain insight into how AI, automation, and operating models are redefining transfer pricing, so you can plan for the skills, tools, and processes youʼll need next.

Insights

What youʼll learn inside the Aibidia report 2025

The rising cost of tax scrutiny
01

The rising cost of tax scrutiny

Heightened tax authority demands are driving up the time and money TP teams spend on audits. Companies with stronger documentation processes, centralised data, and proactive OTP practices are better positioned to contain both costs and risk.

02

The state of OTP maturity

Only 35% of companies have a well-defined OTP process, while 24% have none at all. Barriers to OTP maturity include poor data access, complex business models, and limited coordination between tax, finance, and IT.

03

The importance of structured data

With 72% of companies in fragmented data environments, the report shows how centralised data helps TP teams insource more processes, ensure consistent compliance, and handle audits more efficiently.

04

Technology and AI adoption in practice

42% of MNEs are investing in specialist software, reducing reliance on traditional tools. AI interest is steady rather than explosive, hinting that TP teams need clean, structured data before advanced analytics can add value.

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Expert insights

Structured, reliable data is essential for executing a consistent, defensible transfer pricing strategy. Common barriers to structured data include siloed legacy source systems, unclear data ownership, and inconsistent definitions across entities and functions.

Prasad Parwidala
Head of Professional Services, Aibidia
Read the case study

We see significant variation in OTP maturity across companies. In many cases, if existing processes appear to work, there’s less motivation to change. However, where we see this changing, is within MNEs that have faced increased scrutiny or operate with more complex structures.

Pia Honkala
Global Commercial Head - Operational Transfer Pricing, Aibidia
Read the case study

While there are many challenges in accessing the right data for TP calculations and analysis, one of the most significant barriers to OTP adoption can be the misalignment of KPIs between Finance and Tax teams.

Marlon Manto
Director, Transfer Pricing Advisory, Aibidia
Read the case study

We’re seeing practical AI adoption in areas such as navigating country-specific documentation requirements, researching transfer pricing methods, comparing jurisdictional rules, and tracking global compliance timelines.

Maria Helander
VP Product, Aibidia
Read the case study