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Can We Build It?: Should We Build It?: If We Build It, Will They Come?

The document summarizes the key aspects of a feasibility analysis for a proposed online ATM system project, including: 1. Technical feasibility considers the risks around familiarity with the application and technology, as well as project size and compatibility. The analysis finds medium to high risks. 2. Economic feasibility shows the project has a good chance of profitability based on a 229% ROI over 3 years and breakeven after 1.7 years, as well as intangible benefits. 3. Organizational feasibility is low risk as the project objectives align with business goals and a senior leader champions it who can socialize it within the organization.

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anisa apriani
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161 views12 pages

Can We Build It?: Should We Build It?: If We Build It, Will They Come?

The document summarizes the key aspects of a feasibility analysis for a proposed online ATM system project, including: 1. Technical feasibility considers the risks around familiarity with the application and technology, as well as project size and compatibility. The analysis finds medium to high risks. 2. Economic feasibility shows the project has a good chance of profitability based on a 229% ROI over 3 years and breakeven after 1.7 years, as well as intangible benefits. 3. Organizational feasibility is low risk as the project objectives align with business goals and a senior leader champions it who can socialize it within the organization.

Uploaded by

anisa apriani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

2.

Planning - Feasibility Analy


sis
1. Technical feasibility: Can we build it?

2. Economic feasibility: Should we build it?

3. Organizational feasibility: If we build it, will


they come?

1
2. Planning - Feasibility Analy
sis
1 Technical • Familiarity with application: Less familiarity generates more risk
Feasibility • Familiarity with technology: Less familiarity generates more risk
• Project size: Large projects have more risk
• Compatibility: The harder it is to integrate the system with the
company’s existing technology, the higher the risk will be
2 Economic • Return on Investment (ROI)
Feasibility • Break Even Point (BEP)
• Intangible Benefit
3 Organizational • Is the software project strategically aligned with the
Feasibility business?

2
Feasibility Analysis - Technical Fea
sibility
Familiarity with • Knowledge of business domain
application • Need to understand improvements
• Need to recognize pitfalls and bad ideas
Familiarity with • Is technology new to this organization?
technology • Is this a brand new technology?
• Extension of existing firm technologies
Project size • Number of people, time, and features
Compatibility • Systems are not built in a vacuum
• Needs to integrate with current systems and data

3
4
Feasibility Analysis - Economic Fea
sibility

5
6
Feasibility Analysis - Organizational Feasibility

• Strategic Alignment
• How well does the project match up with the busin
ess strategy?

• Stakeholder analysis considers


• Project champion(s)
• Organizational management
• System users
• Anybody affected by the change

7
Stakeholder Analysis Conside
rs
• Project champion(s)
• High-level non-IS executive
• Shepherds project to completion
• It's good to have more than one
• Organizational management
• Need this support to sell system to organization
• System users
• In the loop so end system meets needs

8
Feasibility Analysis – Case Study

1. Technical feasibility
2. Economic feasibility
3. Organizational feasibility

9
Feasibility Analysis - Online ATM System
Margaret Mooney and Alec Adams created the following feasibility analysis
for the Online ATM System Project.

1. Technical Feasibility
The Online ATM System is feasible technically, although there is some risk.
1.1 Online ATM System’s risk regarding familiarity with the application is high
• The Marketing Department has little experience with Internet-based marketing and sales
• The IT Department has strong knowledge of the company’s existing ATM systems,
however, it has not worked with Web-enabled ATM systems.
1.2 Online ATM System’s risk regarding familiarity with the technology is medium
• The IT Department has relied on external consultants to develop its existing Web env.
• The IT Department has learned about Web technology by maintaining the corporate site
1.3 The project size is considered medium risk
• The project team likely will include less than ten people
• Business user involvement will be required
• The project timeframe cannot exceed a year and it should be much shorter
1.4 The compatibility with existing technical infrastructure should be good
• The current ATM System is a client-server system built using open standards. An interface
with the Web should be possible
• Retail bank already place and maintain orders electronically
• An Internet infrastructure already is in place at retail bank and at the corporate
headquarters

10
2. Economic Feasibility
• A cost–benefit analysis was performed. A conservative approach shows that the
Online ATM System has a good chance of adding to the bottom line of the company
significantly.
• Return on Investment (ROI) over 3 years: 229 percent
• Break-even point (BEP) occurs: after 1.7 years
• Total benefit after three years: $3.5 million
• Intangible Costs and Benefits
• Improved customer satisfaction
• Greater brand recognition

3. Organizational Feasibility
• From an organizational perspective, this project has low risk. The objective of the
system, which is to increase sales, is aligned well with the senior management’s goal
of increasing sales for the company. The move to the Internet also aligns with
Marketing’s goal to become more savvy in Internet marketing and sales.
• The project has a project champion, Margaret Mooney, Vice President of Marketing.
Margaret is well positioned to sponsor this project and to educate the rest of the
senior management team when necessary. Much of senior management is aware of
and supports the initiative.

11
Latihan Studi Kasus
• Lakukan Feasibility Analysis untuk System Re
quest yang dibuat

12

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