A thorough analyses of successful project completion by considering all factors that could possibly affect it is the definition of a Feasibility study, to name a few- economic, technological, legal, scheduling etc. It essentially determines the practicality of an idea, project or a new business. This ensures that the said project is legally, technically and economically admissible before taking it up and investing in it. It is crucial that this study is carried out as it determines the potential positive and negative results of a project.
The aim is to emphasise on the likely problems that could occur if a particular project is pursued and to determine if after considering all significant factors, the project should still be pursued. The study allows companies to identify and organise all the necessary details to make the business or idea work. In a nutshell, it helps in identifying nearly almost all business-related problems, along with solutions to alleviate them and keep the business up and running. Furthermore, it can help in the development of marketing strategies in case of businesses that will aid in convincing investors/banks to invest in the said business.
Typically there are different types of feasibility studies, a few of them are described below
- Technical feasibility– This analyses the availability of technical resources within the organisation that are capable of pursuing the said project. I.e. it will help evaluate the hardware, software and other technological requirements of the proposed system and also whether the technical team is capable of converting the ideas into efficient working systems as per requirement. This is crucial as it determines the success of the project and most importantly the credibility of the company that undertakes the project.
- Marketing feasibility– This analyses the industry concerned- the present and upcoming market prospective, the potential buyers, likely competition and sales projections. The study analyses the target population and determine if there could be a need for a test run or marketing strategies to attract the masses and so on.
- Economic feasibility– This assessment basically involves the projection of funding that is needed throughout the project and the expected return on investment. In other words it is a cost/benefit analysis of a project helping the organisation undertaking the project determine the viability associated with the project before allocating financial resources. This serves as an important tool to determine project credibility and economic benefit to the organisation
- Operational feasibility– This analysis involves determining if and how the organisational needs could be met by undertaking and completing the project. This measures how well the company could solve problems and take advantage of the opportunities that are presented during the course of the project. Operational feasibility also analyses how the project plan satisfies the requirements identified during the requirement phase of the project development
- Scheduling feasibility– This assess if the company has the time resource to undertake the project and also have the necessary means to complete the project on time. This is crucial for project success. In this stage of feasibility analysis, the organisation estimates the time it would take to complete the project
- Legal/Ethical feasibility– To ensure that the project undertaken will meet all the legal and ethical requirements before undertaking it is as important as ensuring the successful completion of it. The analysis considers whether any aspect of the proposed project conflicts with legal requirements. This would save the organisation considerable time and effort even before kick-starting the project.
- Resource feasibility– This study analyses if the company has enough resources required for the project, it determines the type and amount of resources and other dependent factors that would typically need to considered.
Benefits of conducting Feasibility study
- Any time a completely new project or business is being put together, the company carries out Feasibility study, this not only offers them a set direction but also helps them to define and draw focus on the team working
- It identifies new opportunities and narrows business alternatives
- Identifies the reason for undertaking the project and also enhances success rate by thorough evaluation
- Aids in decision making on the project and helps in identifying the different steps that need to be taken throughout the project life cycle
In conclusion, the advantages of performing a feasibility study could not only enhance the success of the project on a longer run but also ensure credibility of the company and increase its delivering efficiency. It is always better to determine factors that could affect the project well in advance than in the later stages of the project life cycle. This study would clearly give all the stakeholders a clear perspective of the proposed project.