Feasibility
Study
A feasibility study is a preliminary study undertaken before the
real work of a project starts to ascertain the likelihood of the
project's success. It is an analysis of possible solutions to a
problem and a recommendation on the best solution to use. It
involves evaluating how the solution will fit into the corporation.
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 could be used to test a new working system,
which could be used because:
- The current system may no longer
suit its purpose,
- Technological advancement may
have rendered the current system redundant,
- The business is expanding,
allowing it to cope with extra work load,
- Customers are complaining about
the speed and quality of work the business provides,
- Competitors are not winning a
big enough market share due to an effective integration of a
computerized system.
A feasibility study encompasses all
of the following:
Economic Feasibility This
involves questions such as whether the firm can afford to build the
system, whether its benefits should substantially exceed its costs,
and whether the project has higher priority than other projects that
might use the same resources.
Technical 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.
Schedule Feasibility This
involves questions such as how much time is available to build the
new system, when it can be built (i.e. during holidays),
interference with normal business operation, etc.
Organizational Feasibility This
involves questions such as whether the system has enough support to
be implemented successfully, whether it brings an excessive amount
of change, and whether the organization is changing too rapidly to
absorb it. |
