Scribd
Upload
8 views

System Study

The document outlines a feasibility study that evaluates the technical, operational, and economic aspects of a proposed project to determine its viability. It emphasizes the importance of assessing whether the project can be executed with existing resources, if it will be accepted by users, and if the benefits will outweigh the costs. The study serves as a preliminary review to guide management in deciding whether to proceed with the project or explore alternative solutions.

Uploaded by

swarnamandru15
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
8 views

System Study

The document outlines a feasibility study that evaluates the technical, operational, and economic aspects of a proposed project to determine its viability. It emphasizes the importance of assessing whether the project can be executed with existing resources, if it will be accepted by users, and if the benefits will outweigh the costs. The study serves as a preliminary review to guide management in deciding whether to proceed with the project or explore alternative solutions.

Uploaded by

swarnamandru15
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

SYSTEM STUDY

1. TECHNICAL FEASIBILITY

2. OPERATIONAL FEASIBILITY

3. ECONOMIC FEASIBILITY

INTRODUCTION

A feasibility study assesses the operational, technical and economic merits of


the proposed project. The feasibility study is intended to be a preliminary
review of the facts to see if it is worthy of proceeding to the analysis phase.
From the systems analyst perspective, the feasibility analysis is the primary tool
for recommending whether to proceed to the next phase or to discontinue the
project.

The feasibility study is a management-oriented activity. The objective of a


feasibility study is to find out if an information system project can be done and
to suggest possible alternative solutions.

Projects are initiated for two broad reasons:

1. Problems that lend themselves to systems solutions

2. Opportunities for improving through:

(a) upgrading systems

(b) altering systems

(c) installing new systems

A feasibility study should provide management with enough information to


decide:
 Whether the project can be done
 Whether the final product will benefit its intended users and
organization
 What are the alternatives among which a solution will be chosen
 Is there a preferred alternative?

TECHNICAL FEASIBILITY

A large part of determining resources has to do with assessing technical


feasibility. It considers the technical requirements of the proposed project. The
technical requirements are then compared to the technical capability of the
organization. The systems project is considered technically feasible if the
internal technical capability is sufficient to support the project requirements.

The analyst must find out whether current technical resources can be upgraded
or added to in a manner that fulfils the request under consideration. This is
where the expertise of system analysts is beneficial, since using their own
experience and their contact with vendors they will be able to answer the
question of technical feasibility.

The essential questions that help in testing the operational feasibility of a system
include the following:

 Is the project feasible within the limits of current technology?


 Does the technology exist at all?
 Is it available within given resource constraints?
 Is it a practical proposition?
 Manpower- programmers, testers & debuggers
 Software and hardware
 Are the current technical resources sufficient for the new system?
 Can they be upgraded to provide to provide the level of technology
necessary for the new system?
 Do we possess the necessary technical expertise, and is the schedule
reasonable?
 Can the technology be easily applied to current problems?
 Does the technology have the capacity to handle the solution?
 Do we currently possess the necessary technology?

OPERATIONAL FEASIBILITY

Operational feasibility is dependent on human resources available for the


project and involves projecting whether the system will be used if it is
developed and implemented.

Operational feasibility is a measure of how well a proposed system solves the


problems, and takes advantage of the opportunities identified during scope
definition and how it satisfies the requirements identified in the requirements
analysis phase of system development.

Operational feasibility reviews the willingness of the organization to support the


proposed system. This is probably the most difficult of the feasibilities to gauge.
In order to determine this feasibility, it is important to understand the
management commitment to the proposed project. If the request was initiated by
management, it is likely that there is management support and the system will
be accepted and used. However, it is also important that the employee base will
be accepting of the change.

The essential questions that help in testing the operational feasibility of a system
include the following:
 Does current mode of operation provide adequate throughput and
response time?
 Does current mode provide end users and managers with timely,
pertinent, accurate and useful formatted information?
 Does current mode of operation provide cost-effective information
services to the business?
 Could there be a reduction in cost and or an increase in benefits?
 Does current mode of operation offer effective controls to protect against
fraud and to guarantee accuracy and security of data and information?
 Does current mode of operation make maximum use of available
resources, including people, time, and flow of forms?
 Does current mode of operation provide reliable services
 Are the services flexible and expandable?
 Are the current work practices and procedures adequate to support the
new system?
 If the system is developed, will it be used?
 Manpower problems
 Labour objections
 Manager resistance
 Organizational conflicts and policies
 Social acceptability
 Government regulations
 Does management support the project?
 Are the users not happy with current business practices?
 Will it reduce the time (operation) considerably?
 Have the users been involved in the planning and development of the
project?
 Will the proposed system really benefit the organization?
 Does the overall response increase?
 Will accessibility of information be lost?
 Will the system affect the customers in considerable way?
 Legal aspects
 How do the end-users feel about their role in the new system?
 What end-users or managers may resist or not use the system?
 How will the working environment of the end-user change?
 Can or will end-users and management adapt to the change?

ECONOMIC FEASIBILITY

Economic analysis could also be referred to as cost/benefit analysis. It is the


most frequently used method for evaluating the effectiveness of a new system.
In economic analysis the procedure is to determine the benefits and savings that
are expected from a candidate system and compare them with costs. If benefits
outweigh costs, then the decision is made to design and implement the system.
An entrepreneur must accurately weigh the cost versus benefits before taking an
action.

Possible questions raised in economic analysis are:

 Is the system cost effective?


 Do benefits outweigh costs?
 The cost of doing full system study
 The cost of business employee time
 Estimated cost of hardware
 Estimated cost of software/software development
 Is the project possible, given the resource constraints?
 What are the savings that will result from the system?
 Cost of employees' time for study
 Cost of packaged software/software development
 Selection among alternative financing arrangements (rent/lease/purchase)

The concerned business must be able to see the value of the investment it is
pondering before committing to an entire system study. If short-term costs are
not overshadowed by long-term gains or produce no immediate reduction in
operating costs, then the system is not economically feasible, and the project
should not proceed any further. If the expected benefits equal or exceed costs,
the system can be judged to be economically feasible. Economic analysis is
used for evaluating the effectiveness of the proposed system.

The economic feasibility will review the expected costs to see if they are in-line
with the projected budget or if the project has an acceptable return on
investment. At this point, the projected costs will only be a rough estimate. The
exact costs are not required to determine economic feasibility. It is only
required to determine if it is feasible that the project costs will fall within the
target budget or return on investment. A rough estimate of the project schedule
is required to determine if it would be feasible to complete the systems project
within a required timeframe. The required timeframe would need to be set by
the organization.

You might also like