Feasibility Analysis

Feasibility Analysis • What is feasibility and when should feasibility checkpoints occur? • What are the four types of feasibility and what is the description of each?

Feasibility • Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization.

Feasibility Analysis • Feasibility analysis is the process by which feasibility is measured. • Feasibility should be measured throughout the life cycle. • The scope and complexity of an apparently feasible project can change after the initial problems and opportunities are fully analyzed or after the system has been designed. • A project that is feasible at one point in time may become infeasible at a later point in time.

A Creeping Commitment Approach • The scope and complexity of an apparently feasible project can change after the initial problems and opportunities are fully analyzed or after the system has been designed. • A project that is feasible at one point in time may become infeasible at a later point in time.

Feasibility AnalysisEarly Analysis • Systems Analysis • a measure of the urgency of the problem and the first-cut estimate of development costs. • “Do the problems (or opportunities) warrant the cost of a detailed study of the current system?'' • Feasibility can't be accurately measured until the problems (and opportunities) and requirements are defined.

Feasibility Analysis Later in Analysis • Because the problems are better understood, the analysts can make better estimates of development costs and of the benefits to be obtained from a new system. • The minimum value of solving a problem is equal to the cost of that problem. • Development costs are still just guesstimates. • If the cost estimates significantly increase from the survey phase to the study phase, the likely culprit is scope. • Scope has a tendency to increase in many projects. • If increased scope threatens feasibility, then scope might be reduced.

Feasibility AnalysisDefinition of User Requirements • These requirements frequently prove more extensive than originally stated. • For this reason, the analyst must frequently revise cost estimates for design and implementation. • Once again, feasibility is reassessed. • If feasibility is in question, scope, schedule, and costs must be rejustified.

Feasibility AnalysisWhen Evaluating Different Possible Solutions • a major feasibility analysis activity since it charts one of many possible implementations as the target for systems design. • alternative solutions are defined in terms of their input/output methods, data storage methods, computer hardware and software requirements, processing methods, and people implications.

Feasibility AnalysisWhen Evaluating Different Possible Solutions • The following list presents the typical range of options that can be evaluated by the analyst. • Do nothing! Leave the current system alone. • Reengineer the (manual) business processes, not the computer-based processes. • Enhance existing computer processes. • Purchase a packaged application.

Feasibility AnalysisWhen Evaluating Different Possible Solutions • The following list presents the typical range of options that can be evaluated by the analyst. (continued) • Design and construct a new computer-based system. This option presents numerous other options. • After defining these options, each option is analyzed for operational, technical, schedule, and economic feasibility.

Feasibility Analysisduring implementation • this is the last chance to cancel or downsize the project. • Downsizing is the act of reducing the scope of the initial version of the system. • Future versions can address other requirements after the system goes into production.

Four Types of Feasibility • Operational feasibility • a measure of how well the solution of problems or a specific solution will work in the organization. • a measure of how people feel about the system/project. • Technical feasibility • a measure of the practicality of a specific technical solution. • a measure of the availability of technical resources and expertise. • Schedule feasibility • a measure of how reasonable the project timetable is. • Economic feasibility • a measure of the cost-effectiveness of a project or solution. This is often called a cost-benefit analysis.

Operational Feasibility • Operational feasibility criteria measure the urgency of the problem or the acceptability of a solution. • There are two aspects of operational feasibility to be considered: • Is the problem worth solving, or will the solution to the problem work? • How do the end-users and management feel about the problem (solution)?

Operational Feasibility • PIECES can be used as the basis for analyzing the urgency of a problem or the effectiveness of a solution. The following is a list of the questions that address these issues: • Performance. Does the system provide adequate throughput and response time? • Information. Does the system provide end-users and managers with timely, pertinent, accurate, and usefully formatted information? • Economy. Does the system offer adequate service level and capacity to reduce the costs of the business or increase the profits of the business?

Operational Feasibility • Control. Does the system offer adequate controls to protect against fraud and embezzlement and to guarantee the accuracy and security of data and information? • Efficiency. Does the system make maximum use of available resources including people, time, flow of forms, minimum processing delays, and the like? • Services. Does the system provide desirable and reliable service to those who need it? Is the system flexible and expandable?

Operational Feasibility • How do End-Users and Managers Feel about the Problem (Solution)? • It's not only important to evaluate whether a system can work but also evaluate whether a system will work. • The success of a system is determined by its end users (not its developers).

Four Tests for Feasibility • How do End-Users and Managers Feel about the Problem (Solution)? A workable solution might fail because of end-user or management resistance. The following questions address this concern: • Does management support the system? • How do the end-users feel about their role in the new system? • What end-users or managers may resist or not use the system? People tend to resist change. Can this problem be overcome? If so, how? • How will the working environment of the end-users change? Can or will end-users and management adapt to the change?

Operational Feasibility • Usability Analysis: • Usability analysis is often performed with a working prototype of the proposed system. • This is a test of the system’s user interfaces and is measured in how easy they are to learn, to use and support the desired productivity levels of the users. • The goal is to identify the areas of the system where the users are prone to make mistakes, processes which may be confusing or too complicated, and also observe the reactions of the user and assess their productivity.

Operational Feasibility • Usability Analysis: • How do you determines if a system’s user interface is usable? • Goals • Ease of Learning - How long does it take to train someone to perform at a desired level. • Ease Of Use - You are able to perform your activity quickly and accurately. If you are a first time user or infrequent user, the interface is easy and understandable. If you are a frequent user, your level of productivity and efficiency is increased. • Satisfaction - You the user are favorably pleased with the interface and prefer it over types you are familiar with.

Technical Feasibility • Technical feasibility can only be evaluated after the technical issues are resolved. • Technical feasibility addresses three major issues: • 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?

Technical Feasibility • Is the Proposed Technology or Solution Practical? • The technology for any defined solution is normally available. • The question is whether that technology is mature enough to be easily applied to our problems. • Some firms like to use state-of-the-art technology, but most firms prefer to use mature and proven technology. • A mature technology has a larger customer base for obtaining advice concerning problems and improvements.

Technical Feasibility • Do we Currently Possess the Necessary Technology? • Assuming the solution's required technology is practical: • Is the technology available in this shop?' • If the technology is available, does it have the capacity to handle the solution. • If the technology is not available: • Can the technology be acquired?

Technical Feasibility • Do we Possess the Necessary Technical Expertise, and is the Schedule Reasonable? • We may have the technology, but that doesn't mean we have the skills required to properly apply that technology. • All information systems professionals can learn new technologies but schedule will be impacted.

Schedule Feasibility • Given our technical expertise, are the project deadlines reasonable? • Some projects are initiated with specific deadlines. • You need to determine whether the deadlines are mandatory or desirable. • If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules.

Schedule Feasibility • It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! • Missed schedules are bad. • Inadequate systems are worse!

Economic Feasibility • The bottom line in many projects is economic feasibility. • During the early phases of the project, economic feasibility analysis amounts to little more than judging whether the possible benefits of solving the problem are worthwhile. • When specific requirements and solutions have been identified, the analyst can weigh the costs and benefits of each alternative. • This is called a cost-benefit analysis.

Making the Choice • Any alternative solution can be evaluated according to four criteria: operational, technical, schedule, and economic feasibility. • How do you pick the best solution? It's not always easy because of trade-offs. • Operational and economic issues often conflict. • The final decision can only be made by sitting down with end-users, reviewing the data, and choosing the best overall alternative.

Summary • Introduction • Feasibility Analysis - A Creeping Commitment Approach • Four Tests for Feasibility

Feasibility Analysis