Chapter # 3

Feasibility Study
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FEASIBILITY STUDY:
A feasibility study is a preliminary study undertaken to determine and document a projects viability.
The results of this study are used to make a decision whether to proceed with the project, or not.

A feasibility study could be used to test a new working system, which could be used because:

The current system may no longer suit its purpose,

Technological advancement may have rendered the current system redundant,

The business is expanding, allowing it to cope with extra work load,

Users are complaining about the speed and quality of work the business providers,

Competitors are now winning a big enough market share due to effective integrations of a
computerized system.

There are six Areas which must be reviewed when starting the feasibility study.

1. Economics

2. Technical

3. Schedule

4. Operational

5. Cultural

6. Legal

Economic Feasibility Study:

This involves questions such as whether the firm can afford to build the system, whether its benefits
should substantially exceed its costs, and whether the project has higher priority and profits than other
projects that might use the same resources. This also includes whether the project is in the condition to
fulfill all the eligibility criteria and the responsibility of both sides in case there are two parties involved
in performing any project. Economically this system is exactly feasible as it will earn more profits than its
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cost. As people will buy from home also they have no need to rush to the store. People will facilitate
with this system and they will more eager to buy from your store.

Technical Feasibility Study:

This involves questions such as whether the technology needed for the system exists, how difficult it will
be to build, and whether the firm has enough experience using that technology. The assessment is
based on an outline design of system requirement in terms of input, Output, Fields, Programs, and
Procedures. The software required for this project are easily and freely available from internet. In
technical feasibility its also consider that either a person can run this system or not? So you should have
all technical resources to run this system like a person with knowledge of database and web etc.

Schedule Feasibility Study:

This involves questions such as how much time is available to build the new system or update the
existing system, when it can be build, whether it interferes with normal business operation. This system
takes one time to build but do not interfere with other business operations.

Operational Feasibility Study:

Operational feasibility means whether the system will be implemented by the organization or not.

The system has a very bright chance of being implemented, as it has been developed keeping in
mind all the organization requirements.

This is the web based system and easy to use.

It will meet increasing future needs.

This system increases the output of the overall system by decreasing the workload.

Cultural Feasibility Study:

In this stage, the projects alternatives are evaluated for their impact on the local and general culture.
For example, environment factors need to be considered.
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Legal Feasibility Study:

Not necessarily last, But all projects must face legal Scrutiny. When an organization either has legal
counsel on staff or on retainer, such reviews are typically standard. However, any project may face legal
issue after completion too. A legal feasibility will tell whether the development of system would violate
ant set of rules and regulations defined.

Software is an intellectual property, so legal feasibility also arises. All organizations have some such
information, which has to keep secret and confidential.

Marketing Feasibility Study:

The purpose of marketing feasibility study is to determine the suitable of this property for profitable
development, and to define optimal products and amenities in accordance with projected market
demand, and to project sales absorption and manual revenues from development of this property.
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Feasibility Study Matrix:

SUMMARY:
In this chapter I highlighted following topics:

What is Feasibility study?

Feasibility Studies Areas
Feasibility Study Matrix