Feasibility

Analysis

Martha Grabowski
LeMoyne College
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
Project Budget Template
Author's Name Organization Name, Date

Assumptions
Personnel/Infrastructure assumptions

Infrastructure assumptions
--Initial network and remote access upgrades covered in ZYX project

Programmatic assumptions
--Budget currently contains expenses only
--Revenues to be estimated upon completion of market survey

Worksheet and expense assumptions

--Average manager salary (2002$$) $75,000
--Annual expense increase 3%
--Benefits and indirect costs changes per year 0%
--Benefits (as a percentage of wages) 32%

Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Personnel

Benefits (at 32%)

Hardware

Software

Computer Usage Costs

Training Costs

Library Resources

Program Maintenance and Upgrade Costs

Travel Costs

Administrative Costs
Administration
Postage, Fedex
Communications
Publication costs
Total Administrative Costs

Total Direct Cost

Indirect Costs (at 54.5%)
Yearly Project Costs

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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 Intangible Benefits
• Fewer processing errors • Improved customer goodwill
• Increased throughput • Improved employee morale
• Decreased response time • Better service to community
• Elimination of job steps • Better decision-making
• Increased sales
• Reduced credit losses
• Reduced expenses

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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
Candidate Systems Matrix 10.13.01

Characteristics Candidate 1 Candidate 2 Candidate 3

Portion of System Computerized

Brief description of portion of COTS package
system that would be computerized Platinum Plus
in this candidate. from Entertainment
Solutions, Inc.
Benefits
Brief description of business benefits Solution can be
that would be realized for this implemented
candidate quickly.

Servers and Workstations

Description of the servers and PIV, MS Windows
workstations needed to support this 2000 class servers
candidate. and workstations

Software Tools Needed

Software tools needed to design and MS Visual C++
build the candidate solution (e.g., MS Access for
DBMS, operating systems, customization
languages) of package for
report writing.
Application Software
Description of software to be built, Package solution
purchased, accessed or some
combination of the above.

Method of Data Processing

On-line, batch, deferred batch, real-time Client-server

Output Devices and Implications

Output devices that would be used (e.g., HP4MV dept
network, preprinted forms, etc.) as well laser printers
as output considerations (timing constraints)

Input Devices and Implications

Description of input methods to be used keyboard & mouse
(e.g., keyboard, mouse, etc.), special
input requirements (new or revised forms),
input considerations (timing of actual inputs)

Storage Devices and Implications

Description of what data would be stored, MS SQL DBMS
what data would be accessed from existing with 100G arrayed
stores, what storage media would be used, capability
how much storage capacity needed, how
that data would be organized.

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Feasibility Analysis Matrix
Feasibility Analysis 10.13.01

Feasibility Criteria Weight Candidate 1 Candidate 2 Candidate 3

Operational Feasibility 30%

Functionality: To what degree does the Only supports Fully supports Same as
candidate solution benefit the organization? Members Services required Candidate
Political: How well will the solution be requirements and functionality #2
received by users? Management? current business
processes would
have to be modified
Score: 60 Score: 100 Score: 100
Technical Feasibility 30%
Technology: Assessment of maturity, Current release of Current technical
availability, ability to acquire, and Platinum Plus is staff only has
desirability of computer technology needed 1.0; only on market Powerbuilder
to support the candidate. 6 weeks experience.
Expertise: Assessment of the technical Staff thinks Access
expertise needed to develop, operate, app is simple.
and maintain the candidate system Score: 50 Score: 95 Score: 60

Economic Feasibility 30%

Cost to Develop $350,000 $418,040 $400,000
Payback period (discounted) 4.5 years 3.5 years 3.3 years
Net Present Value $210,000 $306,748 $325,500
Detailed Calculations See attachment A See Attachment A See Attachment A

Score: 60 Score: 85 Score: 90

Schedule Feasibility 10%

Assessment of how long the solution will Less than 3 months 9-12 months 9 months
take to design and implement.
Score: 95 Score: 80 Score: 85

Ranking 05/19/23 Whitten,

60.5 Bentley & Dittman
92 2001, 83.5 15
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