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Feasibility Study

Feasibility Study. Selecting the Best Alternative Design Strategy. Feasibility analysis. Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization Feasibility analysis is the process by which feasibility is measured.

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Feasibility Study

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  1. Feasibility Study Selecting the Best Alternative Design Strategy

  2. Feasibility analysis • Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization • Feasibility analysis is the process by which feasibility is measured.

  3. Configuration Phase Checkpoint • Alternative solutions are defined in terms of their IS building blocks (hardware, software, data, network, etc.). • After defining these options, each option is analyzed for operational, technical, schedule, and economic feasibility.

  4. Four Tests for Feasibility • Operational feasibility • Technical feasibility • Schedule feasibility • Economic feasibility(cost-benefit analysis)

  5. Operational Feasibility • Is the problem worth solving, or will the solution to the problem work? • How well would the candidate solution be received from management, system users, and organization perspective? (political) • Is the solution compliant with laws and regulations? (legal)

  6. Technical Feasibility • Is the proposed technology or solution practical? • Do we currently possess the necessary technology? • Do we possess the necessary technical expertise, and is the schedule reasonable?

  7. Schedule Feasibility • Given our technical expertise, are the project deadlines reasonable?

  8. Economic Feasibility • How Much Will the System Cost? • What Benefits Will the System Provide? • Tangible benefits • Intangible benefits • Is the Proposed System Cost-Effective?

  9. Cost-Benefit Analysis Techniques • Brake-even analysis • Payback period analysis • Cash flow analysis • Net Present Value (NPV) • Return-on-Investment (ROI) Analysis

  10. Selecting the Best Alternative Guidelines to select the method for comparing alternatives: • Use break-even analysis if the project needs to be justified in terms of cost, not benefits. • Use payback when the improved tangible benefits form a convincing argument for the proposed system.

  11. Selecting the Best Alternative Guidelines to select the method for comparing alternatives (continued) • Use cash-flow analysis when the project is expensive, relative to the size of the company. • Use present value when the payback period is long or when the cost of borrowing money is high.

  12. Selecting the Best Alternative Design Strategy • Generate a comprehensive set of alternative design strategies -- CandidateSystemsMatrix • Select the one design strategy that is most likely to result in the desired information system – Feasibility Matrix

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