Feasibility study

:"Feasibility Study" is also the title of an episode from "The Outer Limits" television show."

What is Feasibility Study

A feasibility study is a preliminary study undertaken to determine and document a project's viability. The term is also used to describe the preliminary analysis of an existing system to see if it is worth upgrading all or a part. [Shelly Cashman and Rosenblatt, Systems Analysis and Design, Thompson 2006] . Also known as feasibility analysis [ Satzinger Jackson and Burd, Systems Analysis and Design, Thompson 2007 ] The term feasibility study is also used to refer to the resulting document. The results of this study are used to make a decision whether or not to proceed with the project. If it indeed leads to a project being approved, it will — before the real work of the proposed project starts — be used to ascertain the likelihood of the project's success. It is an analysis of possible alternative solutions to a problem and a recommendation on the best "alternative". It, for example, can decide whether an order processing be carried out by a new system more efficiently than the previous one.

A feasibility study is an important part ofcreating a business plan for a new enterprise, since it has been estimated that only one idea in fifty is commercially viable. [Allan Thompson 2003] [Hoagland & Williamson2000]

If a project is seen to be feasible from the results of the study, the next logical step is to proceed with it. The research and information uncovered in the feasibility study will support the detailed planning and reduce the research time. [Allan Thompson 2003]

Components of Feasibility

This involves questions such as whether the technology needed for the system exists, how difficult it will be to build, and whether the firm has enough experience using that technology. The assessment is based on an outline design of system requirements in terms of Input, Processes, Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes of data, trends, frequency of updating, etc in order to estimate if the new system will perform adequately or not.

Resource Feasibility

This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, etc. Contingency and mitigation plans should also be stated here so that if the project does over run the company is ready for this eventuality.

Cultural Feasibility

In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered. Further an enterprise's own culture can clash with the results of the project. Operational feasibility – Do the current work practices and procedures support a new system. Also social factors i.e. how the organisational changes will affect the working lives of those affected by the system..

Legal Feasibility

Determines whether the proposed system conflicts with legal requirements, e.g. a Data Processing system must comply with the local Data Protection Acts. When an organization has either internal or external legal counsel, such reviews are typically standard. However, a project may face legal issues after completion if this factor is not considered at this stage.

Marketing and Economic Feasibility

A business plan needs to be based on the market forces that could affect the commercial viability of the business. Internal projects must establish the cost-effectiveness of the proposed system i.e. if the benefits do not outweigh the costs then it is not worth going ahead. This includes a cost benefit analysis.

Schedule Feasibility

A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. " - Dr. Japheth kyle Rebojo"

References

External links

* Hoagland & Williamson 2000: http://www.uky.edu/Ag/AgEcon/pubs/ext_other/feasibility_study.pdf

* Matson: http://www.rurdev.usda.gov/rbs/pub/sr58.pdf

* Allan Thompson 2003: http://bestentrepreneur.murdoch.edu.au/Business_Feasibility_Study_Outline.pdf