1University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 1Lecture 7:the Feasibility Study What is a feasibility study? What to study and conclude? Types of feasibility Technical Economic Schedule Operational Quantifying benefits and costs Payback analysis Net Present Value Analysis Return on Investment Analysis Comparing alternativesUniversity of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 2Why a feasibility study? Objectives: To find out if an system development project can be done: ...is it possible? ...is it justified? To suggest possible alternative solutions. To provide management with enough information to know: 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 A management-oriented activity: After a feasibility study, management makes a “go/no-go” decision. Need to examine the problem in the context of broader business strategyUniversity of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 3Content of a feasibility study Things to be studied in the feasibility study: The present organizational system Stakeholders, users, policies, functions, objectives,... Problems with the present system inconsistencies, inadequacies in functionality, performance,… Goals and other requirements for the new system Which problem(s) need to be solved? What would the stakeholders like to achieve? 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 Advantages and disadvantages of the alternatives Things to conclude: Feasibility of the project The preferred alternative.University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 4Exploring Feasibility The “PIECES” framework Useful for identifying operational problems to be solved, and their urgency Performance Is current throughput and response time adequate? Information Do end users and managers get timely, pertinent, accurate and usefullyformatted information? Economy Are services provided by the current system cost-effective? Could there be a reduction in costs and/or an increase in benefits? Control Are there effective controls to protect against fraud and to guaranteeinformation accuracy and security? 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 questions2University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 5University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 6 Technical feasibility Is the project possible with currenttechnology? Economic feasibility Is the project possible, givenresource constraints? Schedule feasibility Is it possible to build a solution intime to be useful? Operational feasibility If the system is developed, will it beused?Four Types of feasibility Technical feasibility Is the project possible with currenttechnology? What technical risk is there? Availability of the technology:Is it available locally?Can it be obtained?Will it be compatible with othersystems? Economic feasibility Is the project possible, givenresource constraints? What are the benefits?Both tangible and intangibleQuantify them! What are the development andoperational costs? Are the benefits worth the costs? Schedule feasibility Is it possible to build a solution intime to be useful?What are the consequences of delay?Any constraints on the schedule?Can these constraints be met? Operational feasibility If the system is developed, will it beused? Human and social issues…Potential labour objections?Manager resistance?Organizational conflicts and policies?Social acceptability?legal aspects and governmentregulations?University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 7(1) Technical Feasibility Is the proposed technology or solution practical? Do we currently possess the necessary technology? Do we possess the necessary technical expertise …and is the schedule reasonable for this team? Is relevant technology mature enough to be easily applied to our problem? What kinds of technology will we need? Some organizations like to use state-of-the-art technology …but most prefer to use mature and proven technology. A mature technology has a larger customer base for obtaining adviceconcerning problems and improvements. Is the required technology available “in house”? If the technology is available: …does it have the capacity to handle the solution? If the technology is not available: …can it be acquired?University of TorontoDepartment of Computer Science© 2004-5 Steve Easterbrook. This presentation is available free for non-commercial use with attribution under a creative commons license. 8(2) Economic Feasibility Can the bottom line be quantified yet? Very early in the project… a judgment of whether solving the problem is worthwhile. Once specific requirements and solutions have been identified… …the costs and benefits of each
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