FEASIBILITY COSTS AND BENEFITS
The costs associated with feasibility analysis are:
Hardware: Remember backup
Software: for development, operation, documentation, training etc.
Operational costs: Maintenance
Client’s personnel: During development for operations.
- Change over to new system
- Software development. The benefits associated with feasibility analysis are:
- New improved capabilities.
- Efficiency of operations.
- Timeliness of decisions
- Cost savings.
The considerations for cost/benefit analysis are:
- Do cost/benefit analysis on each case.
- Make trade off explicit
- Table of alternatives versus cost/benefits.