Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.
A well-designed feasibility study should provide a historical background of the business or project, a description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations.Generally, feasibility studies precede technical development and project implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions.
It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based.
What is a feasibility study?
Feasibility is defined as the practical extent to which a project can be performed successfully. To evaluate feasibility, a feasibility study is performed, which determines whether the solution considered to accomplish the requirements is practical and workable in the software.
Information such as resource availability, cost estimation for software development, benefits of the software to the organization after it is developed and cost to be incurred on its maintenance are considered during the feasibility study.
The objective of the feasibility study is to establish the reasons for developing the software that is acceptable to users, adaptable to change and conformable to established standards. Various other objectives of feasibility study are listed below.
To analyze whether the software will meet organizational requirements
To determine whether the software can be implemented using the current technology and within the specified budget and schedule
To determine whether the software can be integrated with other existing software.
Needs of feasibility study
1. It determine the potential of the existing system .
2. It finds or determine all the problem of existing system.
3. To determine all the goals of the system.
4. It finds all possible solutions of the problem of existing system.(that becomes proposed system).
5. It find technology required to solve these problems.
6. It determines really which solution is easy for operational from the point of view of customer or employees such that it requires very less time with 100% accuracy
7. It determines what hardware and software is required to obtain solution of each problem or proposed system.
8. It determines cost requirements of the complete proposed system in terms of cost of hardware required, software required, designing new system, implementation and trainning, proposed maintenance cost.