Feasibility Analysis

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Feasibility Analysis

• This presentation will probably involve audience
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• Martha Grabowski
• LeMoyne College

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Feasibility

• Measure of how beneficial or practical the
• development of an information system
• will be to an organization.
• Feasibility Analysis
• Process by which feasibility is measured
• Continuing process of feasibility assessment

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Tests of Feasibility

• Operational Feasibility
• Technical Feasibility
• Schedule Feasibility
• Economic Feasibility

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Tests of Feasibility

• Operational Feasibility
• How well will the solution work in the
  organization?
• Technical Feasibility
• How practical is the technical solution?
• How available are technical resources and
  expertise?

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Tests of Feasibility

• Schedule Feasibility
• How reasonable is the project timetable?
• Economic Feasibility
• How cost-effective is the project or solution?
• Cost-benefit analysis

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Operational Feasibility

• Questions to Ask
• Is the problem worth solving?
• Will the solution to the problem work?
• How do end users and management feel about the
  solution?
• Has a usability analysis been conducted?

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Technical Feasibility

• Questions to Ask
• Is the proposed solution practical?
• Do we possess the necessary technology?
• Do we possess the necessary technical expertise?
• Is the schedule reasonable?

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Economic Feasibility

• Cost-benefit analyses
• How much will the system cost?
• Development costs
• Operation costs
• Maintenance and support costs
• Do we possess the necessary technology?
• Do we possess the necessary technical expertise?
• Is the schedule reasonable?

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Cost Analysis
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Benefit Analysis

• Benefit analyses
• Tangible benefits can be easily quantified.
• Measured in terms of monthly or annual savings,
  or of profit to organization
• Intangible benefits more difficult to quantify.

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Benefit Analysis

• Tangible Benefits
• Fewer processing errors
• Increased throughput
• Decreased response time
• Elimination of job steps
• Increased sales
• Reduced credit losses
• Reduced expenses

• Intangible Benefits
• Improved customer goodwill
• Improved employee morale
• Better service to community
• Better decision-making

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Economic Feasibility

• Payback analysis
• How long will it take to recoup the costs of this
  project?
• Return on investment (ROI) analysis
• Net present value analysis

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Feasibility Analysis

• Compare candidate systems on basis of several
  characteristics
• Better analysts always consider multiple solutions

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Candidate Systems Matrix
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Feasibility Analysis Matrix