Feasibility Study can be considered as preliminary investigation that helps the management to take decision about whether study of system should be feasible for development or not.
- It identifies the possibility of improving an existing system, developing a new system, and produce refined estimates for further development of system.
- It is used to obtain the outline of the problem and decide whether feasible or appropriate solution exists or not.
- The main objective of a feasibility study is to acquire problem scope instead of solving the problem.
- The output of a feasibility study is a formal system proposal act as decision document which includes the complete nature and scope of the proposed system.
Steps Involved in Feasibility Analysis
The following steps are to be followed while performing feasibility analysis −
- Form a project team and appoint a project leader.
- Develop system flowcharts.
- Identify the deficiencies of current system and set goals.
- Enumerate the alternative solution or potential candidate system to meet goals.
- Determine the feasibility of each alternative such as technical feasibility, operational feasibility, etc.
- Weight the performance and cost effectiveness of each candidate system.
- Rank the other alternatives and select the best candidate system.
- Prepare a system proposal of final project directive to management for approval.
Types of Feasibilities
- It is evaluating the effectiveness of candidate system by using cost/benefit analysis method.
- It demonstrates the net benefit from the candidate system in terms of benefits and costs to the organization.
- The main aim of Economic Feasibility Analysis (EFS) is to estimate the economic requirements of candidate system before investments funds are committed to proposal.
- It prefers the alternative which will maximize the net worth of organization by earliest and highest return of funds along with lowest level of risk involved in developing the candidate system.
- It investigates the technical feasibility of each implementation alternative.
- It analyzes and determines whether the solution can be supported by existing technology or not.
- The analyst determines whether current technical resources be upgraded or added it that fulfill the new requirements.
- It ensures that the candidate system provides appropriate responses to what extent it can support the technical enhancement.
- It determines whether the system is operating effectively once it is developed and implemented.
- It ensures that the management should support the proposed system and its working feasible in the current organizational environment.
- It analyzes whether the users will be affected and they accept the modified or new business methods that affect the possible system benefits.
- It also ensures that the computer resources and network architecture of candidate system are workable.
- It evaluates and estimates the user attitude or behavior towards the development of new system.
- It helps in determining if the system requires special effort to educate, retrain, transfer, and changes in employee’s job status on new ways of conducting business.
- It ensures that the project should be completed within given time constraint or schedule.
- It also verifies and validates whether the deadlines of project are reasonable or not.