FEASIBILITY STUDY:

A feasibility study is an analysis of the viability of an idea through a disciplined

and documented process of thinking through the idea from its logical beginning to
its logical end.
A feasibility study aims to objectively uncover the strengths and weaknesses of
an existing business or proposed venture, opportunities and threats present in
then environment.
A well-designed feasibility study should provide a historical background of the
business or project. Such as a description of the product or service, accounting
statements, details of the operations and management, marketing research and
policies, financial data, legal requirements and tax obligations.
A feasibility study evaluates the project's potential for success. It must therefore
be conducted with an objective that answers the basic question: Should we
proceed with the proposed project idea?
And an unbiased approach to provide information upon which decisions can be
based.

Key factor:
The key factor in any feasibility study must be ensuring that you are dealing with
correct facts, correct assumption, and up to date financial data.

Why do we need a Feasibility Study?

Provide a thorough examination of all issues and assessment of probability of
success.
Give focus to the project and outline alternatives.
Identifies new opportunities through the investigative process.
Identify reasons NOT to proceed.
Increase the probability of success by identifying weaknesses early.
Provide quality information for decision making.
To determine the viability of an idea BEFORE proceeding with the development
of a business or project.

The Five Common Factors

The acronym TELOS refers to the five areas of feasibility - Technical, Economic, Legal,
Operational, and Scheduling.
1. Technical feasibility
(Can a solution be supported with the existing technology or not?)
The technical feasibility assessment is focused on gaining an
understanding of the present technical resources of the organization and
their applicability to the expected needs of the proposed system.
It is an evaluation of the hardware and software and how it meets the
need of the proposed system
The technical analysis concern projects inputs (supplies) and outputs
(production) of real goods and services
It also include the quality of machinery and equipment's

2. Economic feasibility (is the existing technology cost effective?)

The purpose of the economic feasibility assessment is to determine the
positive economic benefits to the organization that the proposed system
will provide.
It includes quantification and identification of all the benefits expected.
(Taxes).
The point of view taken by economic analysis is that of the society as a
whole

3. Legal feasibility
Determines whether the proposed system conflicts with legal
requirements, e.g. a data processing system must comply with the local
data protection regulations and if the proposed venture is acceptable in
accordance to the laws of the land.

4. Operational feasibility (Will the solution work in the organization if

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.

5. Schedule feasibility
Schedule feasibility is a measure of how reasonable the project timetable
is. Given our technical expertise, are the project deadlines reasonable?
Some projects are initiated with specific deadlines. It is necessary to
determine whether the deadlines are mandatory or desirable.
Typically this means estimating how long the system will take to develop,
and if it can be completed in a given time period.