University of Toronto Department of Computer Science Stakeholders users policies functions objectives Problems with the present system inconsistencies inadequacies in functionality performance Goals and other requirements for the new system Types of feasibility Which problem s need to be solved What would the stakeholders like to achieve Technical Economic Schedule Operational Constraints including nonfunctional requirements on the system preliminary pass Possible alternatives Sticking with the current system is always an alternative Different business processes for solving the problems Different levels types of computerization for the solutions Quantifying benefits and costs Advantages and disadvantages of the alternatives Payback analysis Net Present Value Analysis Return on Investment Analysis Things to conclude Feasibility of the project The preferred alternative Comparing alternatives 1 Easterbrook 2004 University of Toronto Things to be studied in the feasibility study The present organizational system What is a feasibility study What to study and conclude Department of Computer Science University of Toronto To find out if an system development project can be done The PIECES framework Useful for identifying operational problems to be solved and their urgency Performance is it possible is it justified Is current throughput and response time adequate To suggest possible alternative solutions To provide management with enough information to know Department of Computer Science Exploring Feasibility Objectives of a feasibility study 3 Easterbrook 2004 Why a feasibility study Department of Computer Science Content of a feasibility study Lecture 4 Part 1 the Feasibility Study University of Toronto Information Do end users and managers get timely pertinent accurate and usefully formatted information Whether the project can be done Whether the final product will benefit its intended users What the alternatives are so that a selection can be made in subsequent phases Whether there is a preferred alternative Economy Are services provided by the current system cost effective Could there be a reduction in costs and or an increase in benefits Control A feasibility study is a management oriented activity Are there effective controls to protect against fraud and to guarantee information accuracy and security After a feasibility study management makes a go no go decision Need to examine the problem in the context of broader business strategy Efficiency Does current system make good use of resources people time flow of forms Services Are current services reliable Are they flexible and expandable See the course website for a more specific list of PIECES questions Easterbrook 2004 2 Easterbrook 2004 4 1 Department of Computer Science University of Toronto Four Types of feasibility Technical feasibility Does the technology exist at all Economic feasibility Schedule feasibility a judgement of whether solving the problem is worthwhile Once specific requirements and solutions have been identified the costs and benefits of each alternative can be calculated Urgency of the problem and the acceptability of any solution What are the development and operational costs Are the benefits worth the costs external issues Available of human resources Potential labour objections Manager resistance Organizational conflicts and policies Hardware software selection How to convince management to develop the new system Selection among alternative financing arrangements rent lease purchase Difficulties benefits and costs can both be intangible hidden and or hard to estimate ranking multi criteria alternatives 5 University of Toronto Is the project justified I e will benefits outweigh costs Can the project be done within given cost constraints What is the minimal cost to attain a certain system Which alternative offers the best return on investment Examples of things to consider Social acceptability legal aspects and government regulations Easterbrook 2004 Cost benefit analysis Purpose answer questions such as If the system is developed will it be used Human and social issues internal issues Can the bottom line be quantified yet Very early in the project Operational feasibility Is the project possible given resource constraints What benefits will result from the system Both tangible and intangible benefits Quantify them Any constraints on the schedule Can these constraints be met How much technical risk is there Is it available locally Can it be obtained Will it be compatible with other systems Economic Feasibility Is it possible to build a solution in time to be useful Is the project possible with current technology Department of Computer Science 7 Easterbrook 2004 Benefits and Costs Tangible Is the proposed technology or solution practical What kinds of technology will we need benefits Difficult to quantify but most prefer to use mature and proven technology But maybe more important business analysts help estimate values A mature technology has a larger customer base for obtaining advice concerning problems and improvements Examples Is the required technology available in house If the technology is available How does it have the capacity to handle the solution If the technology is not available increased flexibility of operation higher quality products services better customer relations improved staff morale will the benefits accrue When over what timescale Where in the organization can it be acquired Easterbrook 2004 increased sales cost error reductions increased throughput efficiency increased margin on sales more effective use of staff time Intangible Some organizations like to use state of the art technology Benefits Readily quantified as values Examples Do we currently possess the necessary technology Do we possess the necessary technical expertise and is the schedule reasonable Is relevant technology mature enough to be easily applied to our problem Department of Computer Science University of Toronto Technical Feasibility Department of Computer Science University of Toronto 6 Easterbrook 2004 Development costs OTO Development and purchasing costs Cost of development team Consultant fees software used buy or build hardware what to buy buy lease facilities site communications power Installation and conversion costs installing the system training personnel file conversion Operational costs on going System Maintenance hardware repairs lease supplies software licenses and contracts facilities Personnel For
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