The Feasibility Study
The Feasibility study is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative. It can decide whether a process be carried out by a new system more efficiently than the existing one.
The feasibility study should examine three main areas; - market issues, - technical and organizational requirements, - financial overview. The results of this study are used to make a decision whether to proceed with the project, or table it. If it indeed leads to a project being approved, it will - before the real work of the proposed project starts - be used to ascertain the likelihood of the project's success.
A feasibility study should provide management with enough information
…show more content…
Examples of things to consider:
Hardware/software selection
How to convince management to develop the new system
Selection among alternative financing arrangements (rent/lease/purchase)
Difficulties -- discovering and assessing benefits and costs; they can both be intangible, hidden and/or hard to estimate, it's also hard to rank multi-criteria alternatives
Examples of particular benefits: cost reductions, error reductions, increased flexibility of operation, improved operation, better (e.g., more accurate) and more timely information.
Benefits may be classified into one of the following categories:
Monetary : when $-values can be calculated e.g. Increased sales through increased production.
Tangible (Quantified) : when benefits can be quantified, but $-values can't be calculated e.g. cost/error reductions, increased throughput/efficiency, increased margin on sales, more effective use of staff
Intangible: when neither of the above applies, it is difficult to quantify, but maybe more important! -- business analysts help estimate $ values. e.g., increased flexibility of operation, higher quality products/services, better customer relations, improved staff morale.
The analyst report will also show how will the benefits accrue, when and over what timescale and how to identify benefits. (Benefits are identified at organizational level (operational, lower/middle/higher management) and by department
The purpose is to assess the likelihood of a particular solution option's achieving the benefits outlined in the Business Case. The Feasibility Study will also investigate whether the forecast costs are reasonable, the solution is achievable, the risks are acceptable and/or any likely issues are avoidable.
It adds value to the business i.e. it enhances the business operations which would inturn have a positive impact on the business
Measuring success is no easy mission but it is imperative in guaranteeing the sustainment of the project. The section below will address further measures of success in the aspect of the feasibility within the project.
With the $15,000 Mr. Brownlow allocated to feasibility research, the following studies were used during the analysis:
There are three types of analysis that have been used in determining project feasibility which are operational, technical, and economic. All three are important in determining this.
A thorough feasibility analysis needs to include a number of dimensions to assure that the company accounts for all of its
To complete this task you will need to prepare and submit a feasibility report containing at least the
The economic feasibility has been determined by performing an analysis of costs and benefits. The analysis could help the
•Implement all Riordan's current and future information into the new systemFeasibility of the ProjectThe feasibility of the project will be determined by many factors. These factors include1.Does Riordan have enough experience to use newer technology2.Will the new system allow for efficient, effective, and cost
Purpose of this criterion is to answer the question, Does the whole benefit and savings of implementation of this alternative outweigh the other costs of implementing it?
5. Evaluate the feasibility of the potential project based on data from the above. In the case of the Town of Eden Bay, each of the four feasibility 'tests' would provide valuable information. Reviewing Operational Feasibility would involve what level of technology and processes the town employees would require in order to better manage the garage operations. Technical Feasibility covers precisely what systems would be most useful. Economic Feasibility would be important in order to consider the costs to be incurred by the city's residents (in the form of taxes, levies, etc.). Schedule Feasibility would combine the urgency shown by the employees as well as take input from the townspeople as to their expectations.
Alternatives analysis. Are there multiple ways to achieve this scope? If so, what are the pros and cons for each alternative?
Integrated reporting enables organization to use new information to measure performance in all sectors and this enhances understanding on how value is created. Since communicating value creation is one of the key aspects of integrated reporting, organization can now understand how they create or destroy value. According to IIRC (2014), up to 92 per cent of businesses in the pilot project reported better understanding of value creation. Companies that use integrated reported can now understand how non-financial aspects affect financial performance and vice versa.