Feasibility Studies

Feasibility Study
A Feasibility Study is the analysis of a

problem to determine if it can be solved

effectively.
The results determine whether the
solution should be implemented.
This activity takes place during the
project initiation phase and is made
before significant expenses are engaged.
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Definition of Feasibility
Studies
A feasibility study looks at the viability of

an idea with an emphasis on identifying

potential problems and attempts to
answer one main question: Will the idea
work and should you proceed with it?

Definition of Feasibility
Studies
A feasibility study is an evaluation of a

proposal designed to determine the

difficulty in carrying out a designated
task. Generally, a feasibility study
precedes technical development and
project implementation.

business success
Establishing a feasibility study of projects

is a critical factor in business success.

Many factors can be involved and
invariably luck can and probably will play
a hand.

Key factor
A key factor in any feasibility study must

be ensuring that you are dealing with

correct facts, correct assumption, and up
to date financial data.

Types of feasibility Study

1. Technical feasibility
can a solution be supported with the existing
technology or not?
2. Economic feasibility
is the existing technology cost effective?
3. Operational feasibility
Will the solution work in the organization if
implemented?
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The Components of a
Feasibility Study
1. Description of the Business: The product or

services to be offered and how they will be

delivered.
2. Market Feasibility: Includes a description of the
industry, current market, anticipated future market
potential, competition, sales projections, potential
buyers, etc.
3. Technical Feasibility: Details how you will deliver
a product or service (i.e., materials, labor,
transportation, where your business will be
located, technology needed, etc.).
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continue
4. Financial Feasibility: Projects how much start-up

capital is needed, sources of capital, returns on

investment, etc.
5. Organizational Feasibility: Defines the legal and
corporate structure of the business (may also
include professional background information about
the founders and what skills they can contribute to
the business).
6. Conclusions: Discusses how the business can
succeed. Be honest in your assessment because
investors wont just look at your conclusions they will
also look at the data and will question your
conclusions if they are unrealistic.
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Objective
The feasibility study answers the basic

questions: is it realistic to address the

problem or the opportunity under
consideration?
And it produce a final proposal for the
management, this final report might
includes:

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Feasibility includes
1.
2.
3.
4.
5.
6.
7.
8.
9.

Project name
Problem or opportunity definition
Project description
Expected benefit
Consequence of rejection
Resource requirements
alternatives
Other consideration
Theorization
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Five common factors

(TELOS)
1.
2.
3.
4.
5.

Technology and system feasibility

Economic feasibility
Legal feasibility
Operational feasibility
Schedule feasibility

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1. Technology and system

feasibility
The assessment is based on an outline design

of system requirements in terms of Input,

Processes, Output, Fields, Programs, and
Procedures. This can be quantified in terms of
volumes of data, trends, frequency of updating,
etc. in order to estimate whether the new
system will perform adequately or not this
means that feasibility is the study of the based
in outline.
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2. Economic feasibility
Economic analysis is the most frequently used method

for evaluating the effectiveness of a new system. More

commonly known as cost/benefit analysis, the
procedure is to determine the benefits and savings that
are expected from a candidate system and compare
them with costs. If benefits outweigh costs, then the
decision is made to design and implement the system.
An entrepreneur must accurately weigh the cost
versus benefits before taking an action. Time Based:
Contrast to the manual system management can
generate any report just by single click .
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Legal feasibility. 3
Determines whether the proposed

system conflicts with legal requirements,

e.g. a data processing system must
comply with the local Data Protection
Acts.

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4. Operational feasibility
Is a measure of how well a proposed

system solves the problems, and takes

advantages of the opportunities
identified during scope definition and
how it satisfies the requirements
identified in the requirements analysis
phase of system development.
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5.schedule feasibility
A project will fail if it takes too long to be

completed before it is useful. Typically this

means estimating how long the system will
take to develop, and if it can be completed in a
given time period using some methods like
payback period. Schedule feasibility is a
measure of how reasonable the project
timetable is. Given our technical expertise, are
the project deadlines reasonable? Some
projects are initiated with specific deadlines.
You need to determine whether the deadlines
are mandatory or desirable.
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