Feasibility study

"Feasibility Study" is also the title of an episode from The Outer Limits television show.

A feasibility study is a preliminary study undertaken to determine and document a project's viability. 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. It is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative. It, for example, can decide whether an order processing be carried out by a new system more efficiently than the previous one.

Explanation

A feasibility study could be used to test a new working system, which could be used because:

• The current system may no longer suit its purpose,
• Technological advancement may have rendered the current system redundant,
• The business is expanding, allowing it to cope with extra work load,
• Customers are complaining about the speed and quality of work the business provides,
• Competitors are now winning a big enough market share due to an effective integration of a computerized system.

Within a feasibility study, six areas must be reviewed, including those of Economics, Technical, Schedule, Organizational, Cultural, and Legal.

Economic feasibility study

This involves questions such as whether the firm can afford to build the system, whether its benefits should substantially exceed its costs, and whether the project has higher priority and profits than other projects that might use the same resources. This also includes whether the project is in the condition to fulfill all the eligibility criteria and the responsibility of both sides in case there are two parties involved in performing any project.

Technical feasibility study

This involves questions like whether the technology needed for the system exists, how difficult it will be to build, and whether the firm has enough experience using that technology.The assessment is based on an outline design of system requirements in terms of Input, Output, Fields, Programs, and Procedures.This can be qualified in terms of volumes of data,trends,frequency of updating,etc..in order to give an introduction to the technical system.

Schedule Feasibility study

This involves questions such as how much time is available to build the new system, when it can be built (i.e. during holidays), whether it interferes with normal business operation, etc.

Organizational Feasibility study

This involves questions such as whether the system has enough support to be implemented successfully, whether it brings an excessive amount of change, and whether the organization is changing too rapidly to absorb it.

Cultural Feasibility study

In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered.

Legal Feasibility study

Not necessarily last, but all projects must face legal scrutiny. When an organization either has legal council on staff or on retainer, such reviews are typically standard. However, any project may face legal issues after completion too.

Marketing Feasibility study

This will include analysis of single and multi-dimensional market forces that could affect the commercial