FEASIBILITY STUDY

1
FEASIBILITY STUDY

• AIM TO ALLOW MANAGEMENT TO DECIDE WHETHER TO
  CONTINUE WITH A PROJECT.
• IT IS A DECISION POINT.
• A GO/NO GO/REFER DECISION MUST BE MADE.
• IT DETERMINES OUR APPROACH TO THE PROJECT.
• IT DETERMINES THE ULTIMATE SUCCESS OR FAILURE OF
  THE PROJECT.

2
CONDUCTING A FEASIBILITY STUDY.

• SHOULD FORCE US TO -
• EXAMINE ALL ASPECTS OF THE PROBLEM.
• SO THAT WE ARE NOT SURPRISED BY THEM LATER ON
• TAKE ACCOUNT OF ALL (POSSIBLE?) COSTS AND
  BENEFITS.

3
CONDUCTING A FEASIBILITY STUDY.

• SHOULD FORCE US TO -
• PROVIDE CRITERIA FOR RANKING PROJECTS.
• CONSIDER ALTERNATIVE SOLUTIONS.
• CLARIFY OBJECTIVES.
• PROVIDE CRITERIA FOR JUDGING THE DEGREE OF
  SUCCESS OR FAILURE OF THE PROJECT

4
FEASIBILITY STUDY

• TECHNICAL
• CAN SYSTEM BE DEVELOPED?
• OPERATIONAL
• CAN THE ORGANISATION ABSORB THE CHANGE?
• ECONOMIC
• WHAT IS THE BUSINESS JUSTIFICATION?
• SOCIAL
• IS THE SYSTEM ACCEPTABLE TO THE WIDER COMMUNITY?

5
TECHNICAL FEASIBILITY

• IS THE TECHNOLOGY OR SOLUTION PRACTICAL?
• DO WE CURRENTLY POSSESS THE NECESSARY TECHNOLOGY?
• DO WE POSSESS THE NECESSARY TECHNICAL EXPERTISE?

6
OPERATIONAL/ORGANISATIONAL FEASIBILITY

• WILL THE SOLUTION TO THE PROBLEM WORK AS
  EXPECTED?
• HOW DO THE END-USERS AND MANAGERS FEEL ABOUT THE
  PROBLEM (OR SOLUTION)?
• HOW WILL THE SOLUTION FIT IN WITH THE REST OF THE
  ORGANISATION?
• PROBLEMS
• MANAGEMENT SUPPORT
• ORGANISATIONAL INERTIA
• ORGANISATIONAL POLITICS

7
ECONOMIC FEASIBILITY

• COST ESTIMATES
• TANGIBLE COSTS
• INTANGIBLE COSTS
• BENEFIT ESTIMATES
• TANGIBLE BENEFITS
• INTANGIBLE BENEFITS

8
SOCIAL FEASIBILITY.

• IS THE PROJECT CURRENTLY ACCEPTABLE TO THE WIDER
  COMMUNITY?
• WHAT WILL BE THE EFFECT OF FUTURE CHANGES IN
  PEOPLES' VALUES AND ATTITUDES?
• PROBLEMS
• ASSESSING THE EFFECTS OF VALUES AND ATTITUDES
• PREDICTING CHANGES IN VALUES AND ATTITUDES
• NIMBY

9
BRITISH SATELLITE BROADCASTING AND SKY

• OR HOW
• THE DISH" AND THE "SQUARIAL"
• LED TO
• BRITISH SKY BROADCASTING AND THEN SKY

10
THE DISH
THE SQUARIEL
11
AWACS/NIMROD

• OR HOW TO TELL THE DIFFERENCE BETWEEN A DOUBLE
• DECKER BUS
• AND A
• RUSSIAN BOMBER

12
A BUS
A JET FIGHTER