FEASIBILITY STUDY What is Feasibility Study?
A feasibility study is a preliminary study undertaken to determine and document a project’s viability. The term feasibility study is also used to refer to the resulting document. The results of this study are used to make a decision whether or not to proceed with the project. If it indeed leads to a project being approved, it will — before the real work of the proposed project starts – be used to ascertain the likelihood of the project’s success. It is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative. It, for example, can decide whether an order processing be carried out by a new system more efficiently than the previous one.
Importance of Project Feasibility Study
Feasibility Study is an effective way to safeguard against wastage of further investment or resources. If a project is seen to be feasible from the results of the study, the next logical step is to proceed with the full Business Plan. The research and information uncovered in the feasibility study will support the business planning stage and reduce the research time. Hence, the cost of the Business Plan will also be reduced. A thorough viability analysis provides an abundance of information that is also necessary for the Business Plan. For example, a good market analysis is necessary in order to determine the business concept’s feasibility. This information provides the basis for the market section of the Business Plan. Finally, a feasibility study should contain clear supporting evidence for its recommendations. Recommendations will be reliant on a mix of numerical data with qualitative, experience-based documentation. A Feasibility Study is heavily dependent on the market research and analysis. A feasibility study provides the stake holders with varying degrees of evidence that a Business Concept will in fact be viable.
Technical Feasibility Study
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. The assessmen’ is based on an outline design of system requirements in terms of Input, Processes, Output, Fields, Programs, and Procedures. This can be qualified in terms of volumes of data, trends, frequency of updating, and other areas in order to give an introduction to the technical system.
Once a preliminary area of application has been identified, it may then be subjected to a more rigorous examination in the feasibility study. By the initial investigation, a user has recognized the need, user requirements are determined and the problems has been defined. Apart from this, an initial investigation is launched to study the present system and verify the problem– in a systematic way. The next step is to determine exactly what the proposed system is to do by defining its expected performance. This activity is carried out in the feasibility study. A feasibility study is carried out to select the best system that meets performance requirements.
Before proceeding to commit on a large expenditure that is involved in the development of a new system, it is important for any organization to be sure that the proposed system is indeed going to deliver.the goods and solve the problems on hand, within the expected schedules and costs.
Feasibility is the measure of how beneficial or practical the development of information system will be to an organization.
When there is a felt need for a new system, we need to do some basic search to figure out what are the various possible options to try and build a new system and which would be the most suitable and cost effective solution for that organization. This process of evaluating the options and arriving at the best solution is called Feasibility Study.
Some preliminary investigation is done at this stage to find out whether this new system is actually feasible and viable to implement. System analyst prepares a feasibility report on the basis of which it is decided to whether to proceed with the project or to drop it.