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Uint 2 Topic 5 Feasibility Study

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100 views

Uint 2 Topic 5 Feasibility Study

Uploaded by

Lovish Sheikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Feasibility Study

Dr. Rohit Rastogi


Associate Professor,
Computer Science & Engineering Department,
ABES EC, Ghaziabad
Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Uttar
Pradesh, Lucknow
Basic
A feasibility study is a detailed analysis that considers all of
critical aspects of a proposed project in order to determine the
likelihood of it succeeding.

 Success in business may be defined primarily by return on


investment, meaning that project will generate enough profit to
justify the investment.

A feasibility study, as name suggests, is designed to reveal


whether a project/plan is feasible. It is an assessment of the
practicality of a proposed project/plan.
Conti..
A feasibility study is a comprehensive evaluation of a
proposed project that evaluates all factors critical to its
success in order to assess its likelihood of success.
Business success can be defined primarily in terms of
ROI, which is the amount of profits that will be
generated by the project.

In a feasibility study, a proposed plan or project is


evaluated for its practicality. As part of a feasibility
study, a project or venture is evaluated for its viability in
Conti..
 Feasibilitystudy is part of the initial design stage of any
project/plan. It is conducted in order to objectively uncover
the strengths and weaknesses of a proposed project or an
existing business.
 It can help to identify and assess the opportunities and
threats present in the natural environment, the resources
required for the project, and the prospects for success. It is
conducted in order to find answers to the following
questions:
◦ Does the company possess the required resources and technology?
◦ Will the company receive a sufficiently high return on its
Aim of Feasibility Study
Overall objective of organization are covered and
contributed by the system or not.

Implementation of system be done using current


technology or not.

Can system be integrated with other system which are


already exist
Steps in a Feasibility Study
Step I: Conduct preliminary analyses.

Step II: Prepare a projected income statement. What are


the possible revenues that the project can generate?

Step III: Conduct a market survey. Does the project


create a good or service that is in demand in the market?
What price are consumers willing to pay for the good or
service?
Conti…
Step IV: Plan the organizational structure of the new
project. What are the staffing requirements? How many
workers are needed? What other resources are needed?

Step V: Prepare an opening day balance of projected


expenses and revenue
Conti…
Step VI: Review and analyze the points of vulnerability
that are internal to the project and that can be controlled
or eliminated.

Step VII: Decide whether to go on with the plan/project.


Feasibility Study Process
Information assessment
Information collection
Report writing
General information

Information assessment
It assesses the original project concept and establishes
the main aims and objectives.
Conti…
Information collection
It collects the necessary information and data required
to evaluate the project’s many components.

Report writing
It produces an in-depth feasibility report that details the
analysis and results.
Conti…
General information
It gives a summary of the main points discussed in the
report on the feasibility study.
Types of Feasibility Study
Technical Feasibility
 Focuses on technical resources available to the organization.

 It helps organizations determine whether the technical resources meet capacity


and whether the technical team is capable of converting the ideas into working
systems.

 Involves evaluation of hardware, software, and other technical requirements of


the proposed system.

◦ Technical: Hardware and software


◦ Existing or new technology
◦ Manpower
◦ Site analysis
Conti…
Economic Feasibility
 This assessment typically involves a cost/ benefits analysis of the
project, helping organizations determine viability, cost, and benefits
associated with a project before financial resources are allocated.

 Italso serves as an independent project assessment and enhances


project credibility—helping decision-makers determine positive
economic benefits to organization that proposed project will provide.

◦ Initial investment
◦ Resources to procure capital: Banks, investors, venture capitalists
◦ Return on investment
Conti…
Legal Feasibility
 Investigates whether any aspect of proposed project conflicts with legal
requirements like zoning laws, data protection acts or social media laws.

 Let’s say an organization wants to construct a new office building in a specific


location.

 A feasibility study might reveal organization’s ideal location isn’t zoned for
that type of business. That organization has just saved considerable time and
effort by learning that their project was not feasible right from beginning.

◦ The organizational structure of the business


◦ Legal structure of the business or the specific project
◦ Management team’s competency, professional skills, and experience
Conti…
Operational Feasibility
Involves undertaking a study to analyze and determine
whether—and how well—the organization’s needs can
be met by completing the project.

Operational feasibility studies also examine how


a project plan satisfies the requirements identified in the
requirements analysis phase of system development.
Conti…
Scheduling Feasibility
Most important for project success; after all, a project
will fail if not completed on time.

Inscheduling feasibility, an organization estimates how


much time the project will take to complete.
Conti…
Market Feasibility
 Refers to evaluating market’s willingness and ability to accept suggested software
system.

 Analyzing target market, understanding consumer wants and assessing possible


rivals are all part of this study.

 It assists in identifying whether the project is in line with market expectations and
whether there is a feasible market for the good or service being offered.

◦ Type of industry
◦ Prevailing market
◦ Future market growth
◦ Competitors and potential customers
Conti…
Resource Feasibility
Evaluates if resources needed to complete the software
project successfully are adequate and readily available.

Financial, technological and human resources are all


taken into account in this study.

It guarantees that sufficient hardware, software, trained


labor and funding are available to complete project
successfully.
Contents of Feasibility Report
A feasibility report should include following sections:
• Executive Summary
• Description of the
Product/Service
• Technology Considerations • Identification of the Specific
• Product/ Service Marketplace Market
• Marketing Strategy
• Organizational Structure
• Schedule
• Financial Projections
Benefits of feasibility study
key benefits of conducting a feasibility study:
Improves project teams’ focus

Identifies new opportunities

Provides valuable information for a “go/no-go” decision

Narrows the business alternatives


Conti…
Identifies a valid reason to undertake the project

Enhances the success rate by evaluating multiple


parameters

Aids decision-making on the project

Identifies reasons not to proceed

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