Feasibility Study

Feasibility Study

A

 Feasibility Study is a report investigating the feasibility, risks, rewards and options of undertaking a course of action or project.  The report should consist of:

  • Term of reference – Why, what and how you are doing it?
  • Scope and objectives – How wide the study is – what is not covered, what you are hoping to achieve?
  • Business requirements – To address business problems, changes and wishes.
  • Business case – What will be gained by the business for addressing the business requirements?
  • SWOT analysis – Strengths, weaknesses, opportunities, threats arising from undertaking/not undertaking project.
  • Options available – What options are available including the “do nothing” option?
  • Cost benefit analysis – Costs and benefits for each option.
  • Impact and effects – What will happen, to what and how if the options are undertaken?
  • Recommendations– What happens now?

You need to assess the viability of the proposed system with respect to the following:

  • Will it meet the Business Requirement?
  • Is the risk of undertaking the project acceptable?
  • Is the required system and technical architecture appropriate to present technology?
  • Are the proposed budget and resources appropriate?
  • Are the costs of the system and it is operating costs justified?
  • Will the system meet the user’s expectations and requirements?
  • Will the system save the clients money and make them more profitable?
  • Will the system improve productivity and efficiency?
  • Will the system provide better management information allowing better decisions to be taken
  • Investigating the feasibility, risks, rewards and options of undertaking a course of action or project.

Feasibility Tasks 

Business Requirement

  • Interviews, discussions and consultations with proposed sponsors, senior users and budget providers to ascertain and agree the Business Requirement.
  • The formal definition of the problem faced by a business and the justification for requiring the system, an outline of the benefits that will accrue, the savings it will bring.

Term of Reference

  • The definition of the scope of the work to be undertaken by the consultants and project team, together with the project’s time and resource allocations.

Scope and Objectives  

  • The definition of the objectives for a project, background, reasons and constraints on the solution.

Business Case

  • The justification for undertaking a project, defining the benefits that the system is expected to deliver, the savings it will accrue, measured against the cost of implementing and running the system and the risks that will be run.

SWOT Analysis

  • Undertake a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis on the system, proposals and Business Requirement.

Risk Analysis  

  • Ascertain and measure the risks associated with each option.

Impact

  • Ascertain any constraints that may be placed upon the project or the system.

Cost Benefit Analysis

  • Obtain outline costs guesstimates (± 30%)
  • Define at least four options, including “no action” to meet the Business Requirement
  • Ascertain and measure the benefits associated with each option. Ensure that tangible and intangible benefits are documented
  • Ascertain and measure the costs associated with each option. Ensure that tangible and intangible costs are documented.
  • Prepare a cost benefit analysis (CBA) from the above actions.

Project Organization and Structure

  • Outline of the project organization and structure will be.

Initial Planning 

  • Outline macro analysis of the site, existing system, problems and solutions presently being considered.
  • Outline macro level discussions with senior users.
  • Macro walkthrough and outline document flow diagram of existing system

Authorisation

  • Prepare, present and obtain formal sign off of documentation.
  • Obtain sign off to proceed to next stage.

ONote: at this stage you are investigating the feasibility of the proposed system and not producing an outline system design.