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Feasibility ROE Analysis

Feasibility ROE Analysis

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Published by: sebascian on Feb 24, 2012
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Pae #
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 1
VI. The Feasibility Study VI. The Feasibility Study 
What is a feasibility study? What is a feasibility study? What to study and conclude? What to study and conclude? Benefits and costs Benefits and costs Cost/Benefit analysis Cost/Benefit analysis Accounting methods Accounting methods Comparing alternatives Comparing alternatives 
Do it!
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 2 
The Feasibility Study Phase The Feasibility Study Phase 
The objectives of a feasibility study are to find out if aninformation system project can be done (...is it possible?...is it justified?) and to suggest possible alternative solutions.
A feasibility study should provide management with enoughinformation to decide:
Whether the project can be done;
Whether the final product will benefit its intended users;
What are the alternatives among which a solution will bechosen (during subsequent phases)?
Is there a preferred alternative?
After a feasibility study, management makes a go/no-godecision.
A feasibility study is a A feasibility study is a 
management-oriented activity 
 
management-oriented activity 
 
Pae #
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 3
What to Study? ...What to Conclude? What to Study? ...What to Conclude? 
I
Things to be studied during the feasibility study phase:
The present organizational system, including users, policies,functions, objectives,...
Problems with the present system (inconsistencies, inadequaciesin functionality, performance,...,)
Objectives and other requirements for the new system (whatneeds to change?)
Constraints, including nonfunctional requirements on the system(preliminary pass)
Possible alternatives (the current system is always one of those)
Advantages and disadvantages of the alternatives
I
Things to conclude: Feasibility of the project and the preferredalternative.
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 4
Types of Feasibility Types of Feasibility 
Operational Operational 
-- Define the urgency of the problem and theacceptability of any solution; If the system is developed, will it beused? Includes people-oriented and social issues: internal issues,such as manpower problems, labour objections, manager resistance,organizational conflicts and policies; also external issues, includingsocial acceptability, legal aspects and government regulations.
Technical Technical 
-- Is the project feasibility within the limits of currenttechnology? Does the technology exist at all? Is it available withingiven resource constraints (i.e., budget, schedule,...)?
Economic Economic 
(
Cost/Benefits Analysis Cost/Benefits Analysis 
) -- Is the project possible, givenresource constraints? Are the benefits that will accrue from the newsystem worth the costs? What are the savings that will result from thesystem, including tangible and intangible ones? What are thedevelopment and operational costs?
Schedule Schedule 
-- Constraints on the project schedule and whether theycould be reasonably met.
Constraints may be 
 
Constraints may be hard hard or or soft soft 
 
Pae #
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 5 
Operational Feasibility: Operational Feasibility: The PIECES Framework The PIECES Framework 
The PIECES framework can help in identifying operational problems tobe solved, and their urgency:
erformance -- Does current mode of operation provide adequatethroughput and response time?
nformation -- Does current mode provide end users and managers withtimely, pertinent, accurate and usefully formatted information?
conomy -- Does current mode of operation provide cost-effectiveinformation services to the business? Could there be a reduction incosts and/or an increase in benefits?
ontrol -- Does current mode of operation offer effective controls toprotect against fraud and to guarantee accuracy and security of dataand information?
fficiency -- Does current mode of operation make maximum use ofavailable resources, including people, time, flow of forms,...?
ervices -- Does current mode of operation provide reliable service? Isit flexible and expandable?
Information Systems Analysis and Design CSC34
 
2002 Jaelson Castro and John MylopoulosThe Feasibility Study -- 6 
More on Operational Feasibility: More on Operational Feasibility: Acceptability of Potential Solutions Acceptability of Potential Solutions 
How do end-users and managers feel about the problem (solution)?
It's not only important to evaluate whether a system
can 
work butalso evaluate whether a system
will 
 
work.
A workable solution might fail because of end user or managementresistance.
Does management support the project?
How do the end users feel about their role in the new system?
What end users or managers may resist or not use the system?People tend to resist change. Can this problem be overcome? Ifso, how?
How will the working environment of the end users change?
Can or will end users and management adapt to the change?

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