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Client Requirements Analysis. Feasibility Study. If the benefits do not exceed the costs, then the system is not worth developing. 2. What is a Feasibility Study?.
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Client Requirements Analysis Feasibility Study
If the benefits do not exceed the costs, then the system is not worth developing. 2
What is a Feasibility Study? • A feasibility study proposes one or more conceptual systems that solve the defined problem. It compares the solution’s tangible and intangible benefits to its costs.
Costs vs Benefits • Costs describes what the organisation must provide to implement the proposed solution. eg. dollars • Benefits describe the gains that are made as a consequence of implementing the proposed solution. eg. Reduced stock levels • ACost/Benefit Analysiscompares the expected cost with the expected benefits.
Fixed vs Variable • Fixedcosts or benefits have a set value. eg. Hardware purchases, reduced total salary costs • Variablecosts or benefits have a varying value and existence. Eg. CPU time, reduced sick leave
Direct vs Indirect • Directcosts or benefits are able to be easily attributed to the new system. eg. Employing Web Site Developers for development, Ability to ship orders two days earlier • Indirectcosts of benefitsare difficult to attribute to the new system.eg. Electricity used by the system, improved decision making
Tangible vs Intangible $Tangiblebenefits or costs are those that can be stated in terms of dollars • eg. reduced overtime costs • Intangiblebenefits or costs cannot be stated in terms of dollars. • eg. Improved employee morale, better ability for management to make timely decisions
Operational Timing Technical Legal Organisational Economic Establishing Feasibility Feasibility is established in a number of areas
Operational Feasibility • Does the solution satisfy the Client requirements and can it be fitted into the current system? eg. • Will the system produce poorer results? • Will customers be adversely affected?
Timing Feasibility • How long will it take to produce this solution and is this soon enough?
Technical Feasibility • Does the organisation have the required skills and equipment for the proposed system? If not can they be reasonably acquired?
Legal Feasibility • Does the system meet current and proposed legal requirements as stated by local, state and government authorities?
Organisational Feasibility • Does the proposed solution fit within the existing organisational structure? Does it adversely affect the company’s culture?
Economic Feasibility • Can the system be implemented within the resource limits? • Areas to consider are: • Development costs • Utilisation costs • Maintenance costs