Chapter 3 Feasibility Analysis

Question 1

What is a feasibility study

Answer 1

A study made before committing to a project, it leads to a decision

Question 2

Requirements for a feasibility report

Answer 2

-outline plan
- Discussion of Business
- Risk analysis

Question 3

Organization benefits examples that can be identified in the feasibility study

Answer 3

• Create a marketable product
• Improve the efficiency of an organization (e.g., save staff)
• Control a system that is too complex to control manually
• New or improved service (e.g., faster response to customers)
• Safety or security

Question 4

Feasibility study alternatives

Answer 4

Continue with current system, enhance it, or create new one?
Develop in-house, or contract out? (How will a contract be managed?)
Phases of delivery and possible points for revising plan.

Question 5

Why are Feasibility Studies difficult?

Answer 5

Uncertainty
Advocacy

Question 6

Discuss Uncertainty

Answer 6

i. Benefits are usually very hard to quantify
ii. Approach is usually ill-defined. Estimates of resources and timetable are very rough.
iii. Organizational changes may be needed

Question 7

Discuss Advocacy

Answer 7

i. Advocacy is needed to build enthusiasm for a project: to convince an organization to undertake an expensive, complex project with many risks.
ii. Enthusiasm is good, but enthusiasts usually emphasize potential benefits and downplay risks

Question 8

Feasibility study risks

Answer 8

What can go wrong?
How will the problems be identified ?
What are the fallback options?

Question 9

What information should be in a feasibility study to help make a decision?

Answer 9

Client: Who is this project for?
Scope: What are the boundaries of the project?
Benefits: What are the benefits? Can they be quantified?
Technical: Is the project possible. Is there at least one
technical
way to carry out the project?
Resources: What are the estimates of staff, time, equipment,
etc?
Alternatives: What are the options if the project is not done?