I T Feasibility Study

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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
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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

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