Software Engineering

Lecture 3

[These slides are adapted from Software Engineering: A Practitioner’s Approach, Roger S.
Pressman © 2015 & Software Engineering, Ian Somerville © 2015 ]
Feasibility Studies
Lecture Outcomes
• Understanding of:
– Implement techniques learnt in other units to formulate potential solutions
– Integrate knowledge from a wide range of sources
– Write a concise report addressing the key issues
– Analyse a range of solutions to make informed recommendations
– Manage their own time and resources in the completion of the report
Feasibility Study
• A feasibility study is a study made before committing to a project.
• A feasibility study leads to a decision:
• go ahead
• do not go ahead
• think again
 Why are Feasibility Studies Difficult?
• Uncertainty…
Clients may be unsure of the scope of the project.
Often, clients may not have a clear understanding of what exactly they want to achieve with the project. The lack of a well-defined scope makes
it difficult to assess the feasibility accurately, as the objectives and requirements might change during the course of the study.
Benefits are usually very hard to quantify.
Determining the potential benefits of a project can be a complex task. Some benefits might be intangible or difficult to measure in monetary
terms, such as improved customer satisfaction or enhanced brand reputation. As a result, putting a precise value on these benefits can be
challenging.
Approach is usually ill-defined. Estimates of resources needed and timetable are very
rough.
In the initial stages of a project, the approach to achieving the desired goals might not be well-established. This lack of clarity can lead to
uncertainties in resource allocation, project timelines, and overall feasibility. During the feasibility study, the estimates of required resources
and the project timetable are often quite rough. It's difficult to predict with precision how much time and resources will be needed, especially
when the project is in its early stages.
Therefore, feasibility studies rely heavily on the judgment of experienced people.
• Mistakes made at the beginning are the most difficult to correct.
The Decision Maker's Viewpoint
• The feasibility study makes recommendations.
• A senior member or expert of an organization must decide whether to begin a
major software project. What information do they need?
End Users: Who is this project for?
Scope: What are the boundaries of the project?
Benefits: What are the benefits? Can they be quantified ? What are the forecasts
of likely sales?
Technical: Is the project possible? Is there at least one technical way to carry out
the project?
Resources: What are the estimates of staff, time, equipment, etc.?
Alternatives: What are the options if the project is not begun?
Feasibility Study
A major computer system makes demands on an organization:
• Does the organization have the management expertise?
• Does the organization have the technical expertise? Even if the work is carried out by
a contractor, the organization needs expertise to oversee the work.
• Is the organization committed to the changes in personnel, workflow, etc.?
Feasibility Study: Scope
Scope expresses the boundaries of the system:
• It will include <list of included functions>
• It will exclude <list of excluded functions>
• It depends on <list of dependencies>
Confusion over scope is a common reason for clients to be dissatisfied with a
system.
•"Is that all you planned to do?"
•"But I assumed that you were going to do xyz."
•"I can't use the system without abc.”
 Feasibility Study: Benefits
Why is this project proposed? Can you quantify the benefits?
Examples
• Create a marketable product (Creating a marketable product means developing a product that has the
potential to be successful in the marketplace, generating demand, and ultimately being purchased by
customers. It involves designing and producing a product that fulfills a specific need or desire of the target
market, possesses unique features or benefits, and offers value that customers are willing to pay for).
• Improve the efficiency of an organization (e.g., work productivity)
• Control a system that is too complex to control manually
• New or improved service (e.g., faster response to customers)
• Safety or security
Feasibility Study: Technical
A feasibility study needs to demonstrate that the proposed system is technically
feasible. This requires:
• a rough outline of the requirements
• a possible system design (e.g., database, distributed, etc.)
• estimates of numbers of users, data, transactions, etc.
• possible choices of software to be acquired or developed
These very rough numbers are fed into the provisional plan that is used to estimate
the staffing, timetable, equipment needs, etc.
Feasibility Study: Planning and Resources
The feasibility study should include an outline plan:
• Estimate the staffing and equipment needs, and the preliminary timetable
• Identify major decision points
• Identify interactions with and dependences on external systems
• Provide a preliminary list of deliverables and delivery dates
There is a separate lecture about Project Management.
Feasibility Study: Alternatives and Risks
A feasibility study should identify alternatives and risks.
Alternatives
• Continue with current system, enhance it, or create new one?
• Develop in-house, or contract out? (How will a contract be managed?)
• Phases of delivery and possible points for revising plan.
Risks
• What can go wrong?
• How will progress be monitored and problems identified (visibility)?
• Are there fall-back options? (fall-back options refer to alternative plans or strategies that can be
implemented if the primary or initial plan encounters challenges or does not achieve the desired results.
Having fall-back options is a form of risk management and contingency planning, which allows
individuals or organizations to be prepared for unforeseen circumstances and adapt to changing
situations.
Feasibility Study: Types of Feasibility

• Operational Feasibility
• Technical Feasibility
• Schedule Feasibility
• Economic Feasibility
 Operational Feasibility
Operational feasibility means that a proposed system will be used effectively after it has been developed.
If users have difficulty with a new system, it will not produce the expected benefits.

Consider the following questions:

•Does management support the project? Do users support the project? Is the current system
well liked and effectively used? Do users see the need for change?
• Will the new system result in a workforce reduction? If so, what will happen to affected employees?
 Operational Feasibility
• Will the new system require training for users? If so, is the company prepared to provide the
necessary resources for training current employees?
• Will customers experience adverse effects in any way, either temporarily or permanently?
• Will any risk to the company’s image or goodwill result?
• Do legal or ethical issues need to be considered?
 Technical Feasibility

Technical feasibility refers to the technical resources needed to develop, purchase, install, or operate
the system.

When assessing technical feasibility, consider the following points:

• Does the company have the necessary hardware, software, and network resources? If not, can
those resources be acquired without difficulty?
 Technical Feasibility
• Does the company have the needed technical expertise? If not, can it be acquired?
• Does the proposed platform have sufficient capacity for future needs? If not, can it be expanded?
• Will the hardware and software environment be reliable? Will it integrate with other company’s
systems, both now and in the future?
• Will it interface properly with external systems operated by customers and suppliers?
• Will the combination of hardware and software supply adequate performance?
• Will the system be able to handle future transaction volume and company growth?
 Schedule Feasibility
Schedule feasibility means that a project can be implemented in an acceptable time frame. When
assessing schedule feasibility, consider the interaction between time and costs.

For example, speeding up a project schedule might make a project feasible, but much more expensive.
 Schedule Feasibility
Other issues that relate to schedule feasibility include the following:

• Can the company or the IT team control the factors that affect schedule feasibility?
• Has management established a firm timetable for the project?
• Will an accelerated schedule pose any risks? If so, are the risks acceptable?
• Will project management techniques be available to coordinate and control the project?
• Will a project manager be appointed?
 Economic Feasibility
Economic feasibility means that the projected benefits of the proposed system outweigh the estimated
Costs.

Cost must be estimated costs in each of the following areas:

• People, including Technical staff and users
• Hardware and equipment
• Software, including in-house development as well as purchases from vendors
• Formal and informal training
• Licenses and fees
• Consulting expenses
• Facility costs
 Economics Feasibility

In addition to cost, there is a need to evaluate tangible and intangible benefits of

the project to the company.
 Economic Feasibility

Tangible benefits are benefits that can be measured or calculated. Tangible Benefits result
from a decrease in expenses, an increase in revenues, or both.

Examples of tangible benefits include the following:

• A new scheduling system that reduces overtime
• An online package tracking system that improves service and decreases the need for clerical staff
• A sophisticated inventory control system that cuts excess inventory and eliminates production
delays
 Economic Feasibility
Intangible benefits are advantages that are difficult to measure or calculate but are important to the
company.

Examples of intangible benefits include the following:

• A user-friendly system that improves employee job satisfaction
• A sales tracking system that supplies better information for marketing decisions
• A new Web site that enhances the company’s image
 Project Scope, Creep and Constraints
Project Scope
•Define the range or extent of the project
•Set project boundaries

Project Creep / Scope Creep also know as “requirement creep” or even “feature creep” refers
to changes, continuous or uncontrolled growth in a project’s scope, at any point after the project
begins.

This can occur when the scope of a project is not properly defined, documented, or controlled. It is
generally considered harmful.
 Project Constraints
Identify conditions, restrictions, or requirements, such as:

• Present vs. Future

• Internal vs. External
• Mandatory vs. Desirable
 Techniques for Feasibility Studies
The highest priority is to ensure that the client and development team have the same
understanding of the goals of the system.
For the development team to understand the goals:
• Interviews with client and the staff of the client’s organization
• Review of existing systems (including competitors’) for the client to appreciate the
proposed system:
• Demonstration of key features or similar systems
• Mock-up of user interfaces
• Walk through typical transactions or interactions
Techniques for Feasibility Studies
Outline budget:
• n people for m months at $x per month
• equipment, buildings, etc.
• contingency (at least 50% is needed)
Phases/milestones:
• specify deliverables and approximate dates
• planned releases

Detail explanation in the next slide

 Techniques for Feasibility Studies
An outline budget is a structured overview of the expected financial costs and expenditures for a
specific project, task, or activity. In this case, the outline budget includes the costs associated with
human resources, equipment, buildings, and a contingency fund. Let's break down each component:

1. n People for m Months at $x per Month:

1. This section accounts for the expenses related to human resources, such as salaries or wages
for the individuals involved in the project or task.
2. "n" represents the number of people required for the project.
3. "m" represents the number of months the project is expected to last.
4. "$x" represents the cost per month for each individual. This includes not only the salary or
wage but also any additional costs, such as benefits or taxes associated with hiring and
employing the individuals.
 Techniques for Feasibility Studies
2.Equipment, Buildings, etc.:
1. This section covers the costs of acquiring or renting necessary equipment, machinery, tools, or
buildings required for the project.
2. It includes one-time expenses for purchasing or leasing equipment as well as any ongoing
maintenance or operational costs.
3.Contingency (At Least 50% is Needed):
1. Contingency refers to a reserved amount of funds set aside to cover unforeseen events, risks, or
changes in the project scope that may impact the budget.
2. In this outline budget, the contingency fund is specified to be at least 50% of the total
estimated costs. This ensures that there is a substantial buffer to address unexpected expenses
without disrupting the project.

Overall, the outline budget provides a comprehensive breakdown of the estimated financial requirements for the project, considering both
known and potential costs. It helps stakeholders understand the financial commitments involved and ensures that adequate resources are allocated to
successfully execute the project.
Feasibility Report
A written document
• It should be a well written, well presented document.
• For a general audience: client, financial management, technical
management, etc.
• Short enough that everybody reads it.
• Long enough that no important topics are skipped.
• Details are often included in supporting documents.

• It should be a well written, well presented document.

Thank you