u An essential task of a feasibility study is to evaluate the practicality and viability of a project or plan, as indicated by its name. This assessment involves analyzing whether the proposed project or plan is feasible and can be successfully implemented.
A feasibility study examines separate areas to determine the viability of a project or plan. Below are five types of feasibility studies that cover various aspects of assessment.
1. Technical Feasibility
The primary
focus of this assessment is on the organization's technical resources. It
assists in determining whether the available technical resources are adequate
in terms of capacity, and whether the technical team possesses the capability
to effectively transform ideas into functioning systems.
Example: using the software for analysis
Example: using the software for analysis
The primary objective of a feasibility study is to evaluate the practicality and viability of a project or plan. This evaluation usually includes a thorough analysis of the costs and benefits associated with the project, enabling organizations to make informed decisions before committing financial resources. Additionally, a feasibility study serves as an independent assessment of the project, bolstering its credibility and assisting decision-makers in understanding the positive economic impacts that the proposed project can bring to the organization.
This evaluation examines whether any element of the proposed project violates legal regulations, such as zoning laws, data protection acts, or social media laws. Let's consider a scenario where an organization intends to build a new office building in a particular area. Through a feasibility study, the organization might discover that their desired location is not appropriately zoned for their business type. By learning this early on, the organization has saved significant time and effort, as they now know that their project is not feasible from the outset.
This evaluation entails conducting a comprehensive study to analyze and ascertain the extent to which the project can meet the organization's requirements. Operational feasibility studies also assess how well a project plan aligns with the identified requirements during the system development's requirements analysis phase.
This evaluation holds significant importance for the success of a project since timely completion is crucial. In terms of scheduling feasibility, an organization makes estimations regarding the duration required to fully accomplish the project.
Once all these areas have been thoroughly examined, the feasibility analysis assists in identifying any limitations or challenges that the proposed project may encounter, including:
u Internal Project Constraints: Technical, Technology, Budget, Resource, etc.
u Internal Corporate Constraints: Financial, Marketing, Export, etc.
u External Constraints: Logistics, Environment, Laws, and Regulations, etc.
Importance of Feasibility Study
The significance of conducting a feasibility study lies in an organization's aspiration to ensure accuracy and avoid committing resources, time, or budget prematurely. Through a feasibility study, potential concepts that have the potential to significantly alter the scope of a project can be discovered. It is preferable to make these assessments beforehand, rather than plunging into a project only to discover its impracticability. Engaging in a feasibility study always proves advantageous to the project, as it provides a comprehensive understanding of the proposed endeavor to you and other stakeholders.
Some key benefits of conducting a feasibility study are:
u Identifies new opportunities
u Provides valuable information for a “go/no-go” decision
u Identifies a valid reason to undertake the project
u Enhances the success rate by evaluating multiple parameters
u Aids decision-making on the project
u Identifies
reasons not to proceed
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