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Feasibility Study

Feasibility Study

It is study to evaluate to the scope of the project within the budget, time & technologically viable. It is research methodology to check the economic viability of proposed projects and to look for all the possible roadblocks that may in the way of success of possibility. It is basically to proposed business project idea.

It commences after series of discussions on scenarios and ideas. Feasibility study generally covers the following

  • Feasibility is applied in different ways, but from the enterprise analysis perspective it emphasis mainly on the proposed business venture.
  • It is a frame work to do in-depth study on specific business scenario
  • Several routes that may be adopted to reach the project destination
  • It is conducted before Business plan
  • It is to analyze potential solution options by using reliable data and applying market research and statistics techniques
  • It is re-engineering of core business processes which can increase market share of new products or services
  • When there alternative are very limited
  • To provide quality information for decision marking
  • To evaluate reasons that may hinder the project

Feasibility Study Should be conducted

  • When it is already an existing business and it is know that it is feasible
  • When already feasibility study is already done on the same project
  • When it is not worthwhile to do feasibility study

Elements of Feasibility Study of Project

  • Financial Feasibility
  • Product or Services Feasibility
  • Industry and Market Feasibility

6 Steps approach for Feasibility Study

  1. Scope of the Project to under the current business opportunities or problems, areas of the business which shall directly or in-directly going to effected. Stake holders like project sponsor, project participants, end users who are going to be get effected by the project. The boundaries of the project which defines in scope and out scope of the project
  2. Present Analysis to under system, processes, products etc and to what kind of modifications are required to overhaul and pros & cons of the current approach. Current system or products which are already in use by other players
  3. Requirements are defined in the project for a system are different from for product related requirement. This is more pertinent, how you define a requirement from software development perspective
  4. Approach is a course of action to meet the requirements. It explains various alternatives that are considered along with the reasoning for considering for preferred solution is opted and checking if the opted solution satisfy the requirements. To check if it is practical and viable to implement the project
  5. Evaluation is check the suggested solution is cost effective like estimated cost of the project, man power cost, expenses to be incurred and preparing schedule representing cost benefit analysis, return on investment etc
  6. Review is conducted with all the involved parties of all the elements which check for the thoroughness and accuracy of the feasibility study and make a formal decision to approve or reject the project or any revision is required for final decision.

It is important to do feasibility study since there is good amount of money, time, and labor is involved in the project and on the flip side it has impact on the reputation of the company which is implementing the project

 

About S. Parimal Kumar

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