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Module 2.4 Overview and Evaluating Feasibility

Feasibility analysis determines the viability of a project by assessing technical, economic, and organizational feasibility. Technical feasibility examines a project's technical requirements and an organization's ability to complete them. Economic feasibility analyzes the financial costs and benefits to determine if a project is financially worthwhile. Organizational feasibility assesses whether a project will be accepted and used within the organization by gaining support from management and users. The feasibility analysis process helps identify potential issues to inform decisions about pursuing a project.

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77 views3 pages

Module 2.4 Overview and Evaluating Feasibility

Feasibility analysis determines the viability of a project by assessing technical, economic, and organizational feasibility. Technical feasibility examines a project's technical requirements and an organization's ability to complete them. Economic feasibility analyzes the financial costs and benefits to determine if a project is financially worthwhile. Organizational feasibility assesses whether a project will be accepted and used within the organization by gaining support from management and users. The feasibility analysis process helps identify potential issues to inform decisions about pursuing a project.

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earl bagain
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2.

4 Overview and Evaluating Feasibility

Objectives:

What is feasibility analysis?

 Feasibility analysis is a process used to determine the viability of a particular project.

Feasibility analysis typically consists of three dimensions:

1. Technical feasibility: Can we build the system? This looks at an organization's technical
readiness to take on a project, including factors such as familiarity with the business application
and technology, project size, and integration requirements.

What is technical feasibility?

Some considerations for technical feasibility include:

 Familiarity with the business application: Does the organization have experience using the type
of system being proposed?
 Familiarity with the technology: Does the organization have the necessary skills and tools to
develop and maintain the system?
 Project size: Is the project realistic in terms of the time and resources required to complete it?
 Integration requirements: Will the system need to be integrated with other systems or
processes within the organization? If so, is the organization capable of handling these
integration requirements?

2. Economic feasibility: Should we build the system? This involves analyzing the financial
implications of a project, including the costs of developing and implementing the system, as well
as any potential benefits.

What is economic feasibility?

Economic feasibility is the second dimension of a typical feasibility analysis, and it answers the question
of "should we build it?" In other words, is it a good idea from a financial or economic standpoint?

What are the primary considerations for economic feasibility?

Some of the primary considerations for economic feasibility include tangible benefits, total cost of
ownership, and net present value.

 Tangible benefits are the financial benefits that can be directly quantified and measured. These
might include increased revenue, cost savings, or increased efficiency. Intangible benefits are
the non-financial benefits that cannot be directly quantified, but are still important to consider.
These might include increased customer satisfaction, improved employee morale, or increased
market share.
 Total cost of ownership (TCO) is the long-term financial cost of a project, including both the
initial cost of development and the ongoing maintenance and support costs. It is important to
consider TCO in economic feasibility analysis because it gives a more complete picture of the
financial impact of a project.
 Net present value (NPV) is another tool that can be used to determine economic feasibility. It is
a financial calculation that estimates the value of a project by comparing the present value of
the cash inflows (benefits) to the present value of the cash outflows (costs). A positive NPV
indicates that the project is expected to generate more value than it will cost, while a negative
NPV indicates the opposite.

By considering these and other factors, organizations can assess the economic feasibility of a project and
determine whether it is worth pursuing.

3. Organizational feasibility: Will people use the system? This assesses whether a project will be
accepted and used by the target audience.

What is organizational feasibility?

 Organizational feasibility is a dimension of feasibility analysis that assesses whether or not an


organization is ready for a new or improved system or process.

What does it involve?

 It involves considering whether there is support for the change from both top management and
users, and identifying any groups that may resist the new system.

How can organizational feasibility be enhanced?

Enhancing organizational feasibility involves:

 Leveraging stakeholders, including the project champion, to promote the project and its benefits
 Building a coalition of supporters
 Addressing any potential objections or concerns
 Communicating effectively with all stakeholders throughout the project, including keeping them
informed of progress and addressing any issues that may arise
 Involving users in the design and testing of the system to increase their acceptance of the
system and ensure that it meets their needs
 Having a plan in place for training and supporting users after the system is implemented
Why is it important?

The feasibility analysis process is important because it helps to identify potential challenges and issues
before a project is fully committed to, allowing for informed decision-making about whether to move
forward with the project.

Source:

https://www.linkedin.com/pulse/business-analysis-lesson-1-system-request-mark-moore/

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