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Feasibility Analysis

Explore the process of feasibility analysis in information systems, covering operational, technical, schedule, and economic feasibility tests. Learn how to assess cost-benefit, benefits, and payback for system development projects.

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Feasibility Analysis

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  1. This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation • In Slide Show, click on the right mouse button • Select “Meeting Minder” • Select the “Action Items” tab • Type in action items as they come up • Click OK to dismiss this box • This will automatically create an Action Item slide at the end of your presentation with your points entered. Feasibility Analysis Martha Grabowski LeMoyne College

  2. Feasibility • Measure of how beneficial or practical the • development of an information system • will be to an organization. • Feasibility Analysis • Process by which feasibility is measured • Continuing process of feasibility assessment

  3. Tests of Feasibility • Operational Feasibility • Technical Feasibility • Schedule Feasibility • Economic Feasibility

  4. Tests of Feasibility • Operational Feasibility • How well will the solution work in the organization? • Technical Feasibility • How practical is the technical solution? • How available are technical resources and expertise?

  5. Tests of Feasibility • Schedule Feasibility • How reasonable is the project timetable? • Economic Feasibility • How cost-effective is the project or solution? • Cost-benefit analysis

  6. Operational Feasibility • Questions to Ask • Is the problem worth solving? • Will the solution to the problem work? • How do end users and management feel about the solution? • Has a usability analysis been conducted?

  7. Technical Feasibility • Questions to Ask • Is the proposed solution practical? • Do we possess the necessary technology? • Do we possess the necessary technical expertise? • Is the schedule reasonable?

  8. Economic Feasibility • Cost-benefit analyses • How much will the system cost? • Development costs • Operation costs • Maintenance and support costs • Do we possess the necessary technology? • Do we possess the necessary technical expertise? • Is the schedule reasonable?

  9. Cost Analysis

  10. Benefit Analysis • Benefit analyses • Tangible benefits can be easily quantified. • Measured in terms of monthly or annual savings, or of profit to organization • Intangible benefits more difficult to quantify.

  11. Benefit Analysis • Tangible Benefits • Fewer processing errors • Increased throughput • Decreased response time • Elimination of job steps • Increased sales • Reduced credit losses • Reduced expenses • Intangible Benefits • Improved customer goodwill • Improved employee morale • Better service to community • Better decision-making

  12. Economic Feasibility • Payback analysis • How long will it take to recoup the costs of this project? • Return on investment (ROI) analysis • Net present value analysis

  13. Feasibility Analysis • Compare candidate systems on basis of several characteristics • Better analysts always consider multiple solutions

  14. Candidate Systems Matrix

  15. Feasibility Analysis Matrix

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