As the name implies, feasibility study is an analysis of the viability of an idea. It ensures that a project is legally and technically feasible and economically justifiable.
Moreover this study can be used in various ways with focus on the proposed business. It tells us whether a project is worth doable or not? Feasibility study is a must because:
- Every Project is not doable.
- Not every project should be done.
- Not every project makes use of effective resources of company.
In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained. A well-designed study should provide a historical background of the business or project, a description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, such studies precede technical development and project implementation.
Feasibility study is used for...
To determine whether the objectives stated in the assignment brief are reasonably attainable within the limitation and financial constraints period.
To define major problem areas, so that the system analyst can plan the strategy for the field investigation.
To find areas where potential exists for making saving in money, time or effort.
To determine the approximate time required for the full investigation and cost.
To discover the areas where some specialist knowledge needed for the full investigation.
Five different areas of Project Feasibility:
Technical Feasibility assessment is focused on the present technical resource available in the organization. It studies if the technical resources including the technical team are capable of converting the ideas into working system. It also evaluates the hardware and the software requirement of the proposed system.
Economic Feasibility studies enable organizations to assess the viability, cost and benefits of projects before financial resources are allocated. They also provide independent project assessment and enhance project credibility. It also helps to determine the positive economic benefits to the organization that the proposed system will provide. It includes quantification and identification of all the benefits expected. This assessment typically involves a cost/ benefits analysis of the project.
Legally Feasibility of the project determines whether the proposed system conflicts with legal requirements like any data protection act or any social media law.
Operational Feasibility, under which we conduct a study to analyze and determine whether your business need can be fulfilled by using a proposed solution. It also measures how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development.
Scheduling Feasibility is the most important in terms of project success. A project will fail if not completed on time. In scheduling feasibility we estimate how much time the system will take to complete and with our technical skill we need to estimate the period to complete the project using some methods.
Benefits
Conducting a feasibility study is always beneficial to the project and it gives a clear picture of your idea. Below are the top benefits of this study:
- Gives focus to the project and alternative outline.
- Narrows the business alternative.
- Identifies the reason to do the project.
- Enhances the success rate by considering multiple factor.
- Helps in decision making of the project.
- Provides a detailed documented status to the business.
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