Feasibility studies

Feasibility Studies are systematic studies conducted to understand the practicality and viability of a proposed project, system, product or business. The study aims to objectively and rationally uncover the strengths and weaknesses, opportunities and threats a project may face; the resources required to carry it through, and ultimately, the prospects for success.

Definition

A Feasibility Study is an evaluation and analysis of the potential of a proposed project which is based on extensive investigation and research to support the process of decision making. It encompasses five main areas of analysis: technical, economic, legal, operational, and scheduling feasibility studies.

Types of Feasibility Studies

There are several types of feasibility studies:

• Technical Feasibility: This assessment focuses on the technical resources available to the organization or project. It considers the technical aspects and the technological implications of the project.

• Economic Feasibility: Also known as cost-benefit analysis, this type of study examines the economic impact of a project, including the direct and indirect costs to the organization.

• Legal Feasibility: This type of study considers legal and regulatory implications of the project. It can include factors such as zoning laws, copyright or patent infringement, and other legal considerations.

• Operational Feasibility: This study looks at how a project plan satisfies the requirements identified in the system analysis phase. The operational feasibility assessment is focused on gaining an understanding of whether the proposed system will be accepted by the users and the organization.

• Scheduling Feasibility: This type of feasibility study is a timeline that explains what tasks need to be accomplished and when they can be completed. It helps to identify the amount of time the system will take to develop and whether it can be completed in a given time period or not.

Importance of Feasibility Studies

Feasibility studies are important for many reasons. They can help to identify new opportunities, save time and money on unfeasible ideas, and help to plan and structure a project in a way that increases its chances of success.

See Also

• Business Plan
• Project Management
• Risk Management
• Strategic Planning