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Feasibility Analysis: Feasibility - The Measure of How Beneficial or Practical

This document discusses the feasibility analysis process for new information systems. It defines feasibility and the key elements of technical, economic, and operational feasibility. It then provides details on how to assess operational feasibility, including essential questions to ask, potential issues to consider, and a six step process. The document also discusses determining hardware and software needs, choosing vendors, and the types of costs associated with new systems.

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Namrata Gupta
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307 views14 pages

Feasibility Analysis: Feasibility - The Measure of How Beneficial or Practical

This document discusses the feasibility analysis process for new information systems. It defines feasibility and the key elements of technical, economic, and operational feasibility. It then provides details on how to assess operational feasibility, including essential questions to ask, potential issues to consider, and a six step process. The document also discusses determining hardware and software needs, choosing vendors, and the types of costs associated with new systems.

Uploaded by

Namrata Gupta
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Feasibility Analysis

Feasibility the measure of how beneficial or practical an information system will be to an organization. Feasibility analysis the process by which feasibility is measured. Creeping Commitment an approach to feasibility that proposes that feasibility should be measured throughout the life cycle.
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The Three Key Elements of Feasibility Include Technical, Economic, and Operational Feasibility

Feasibility Checkpoints During Analysis

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Six Tests For Feasibility


Operational feasibility a measure of how well a solution meets the system requirements. Cultural (or political) feasibility - a measure of how well a solution will be accepted in an organizational climate. Technical feasibility a measure of the practicality of a technical solution and the availability of technical resources and expertise. Schedule feasibility a measure of how reasonable the project timetable is. Economic feasibility - a measure of the cost-effectiveness of a project or solution. Legal feasibility - a measure of how well a solution can be implemented within existing legal/contractual obligations.
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Feasibility Assessment
Why feasibility assessment?
Information systems are major investments IS projects are subject to the same cost justifications as any other capital investments Business value paradox Avoid "black hole" projects

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. It caters to: How well proposed system solves the problems and takes advantage of opportunities identified during the scope definition and problem analysis phases How well proposed system satisfies system requirements identified in the requirements analysis phase Is the problem still worth solving?

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?

Six Steps required for checking Operational Feasibility


Process input and analysis from everyone the new redesign will affect along with a data matrix on ideas and suggestions from the original plans. Evaluation Determinations from the process suggestions; will the redesign benefit everyone? Who is left behind? Who feels threatened? Implementation Identify resources both inside and out that will work on the redesign. How will the redesign construction interfere with current work? Resistance What areas and individuals will be most resistant? Develop a change resistance plan. Strategies How will the organization deal with the changed workspace environment? Do new processes or structures need to be reviewed or implemented in order for the redesign to be effective? Adapt & Review How much time does the organization need to adapt to the new redesign. How will it be reviewed and monitored? What will happen if through a monitoring process, additional changes must be made?

Ascertaining Hardware and Software Needs


Steps used to determine hardware and software needs:
Inventory computer hardware currently available Estimate current and future system workloads Evaluate available hardware and software Choose the vendor Acquire the computer equipment

Steps in Choosing Hardware and Software

Information System Costs


Development costs - one time costs that will not recur after the project has been completed.
Personnel Computer usage Training Supply, duplication, and equipment Computer equipment and software

Operating costs - costs that recur throughout the lifetime of the system.
Fixed costs occur at regular intervals but at relatively fixed rates. Variable costs occur in proportion to usage.
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