Feasibility Study

 Define feasibility study and why it should be carried out in IT projects

1. TECHNICAL FEASIBILITY

Assess technical expertise, access and availability of technical resources and see if the proposed
project succeed by answering the following questions

 Is the project feasible within the limits of current technology?

❖ Does the technology exist at all?

❖ Is it available within given resource constraints?

❖ Is it a practical proposition?

❖ Manpower- programmers, testers & debuggers

❖ Software and hardware

For example

Hardware Requirements and Specs

Software Requirements

OPERATIONAL FEASIBILITY

 Assess the readiness of the organization in accepting the new technological tool and its impact
to business.
 system users will be able to use the system in their context without having to alter the core of
their business just to make the system relevant
 Are resources for use with the system available e.g computing power, power, internet
connectivity, and a convenient working space.
Schedule feasibility

 Assess the degree to which a deadline for a strategy, plan, project or process is reality and
achievable.
 Use a Gantt chart to represent the stages the analyst will check through project and time
allocation of each phase.

Economic feasibility
What is it and why it should be done

Cost benefits analysis

i. Tangible benefits.
ii. Intangible benefits.
 iii. Operational Costs

BENEFITS
SYSTEM PROJECTED BENEFITS
COST-BENEFIT ANALYSIS

Use the following to justify your economic feasibility:

1. RETURN ON INVESTMENT (ROI)

2. PAYBACK PERIOD
PAYBACK PERIOD = (Initial Investment / Initial cashflow for the year) x number of months,

3. Break – Even Point (BEP)

The time it takes for a project to generate enough net cash flow to cover its initial
investment.

4. Net Present Value (NPV)