Since I have mentioned previously about planning in Difficulty of Wise Planning and its Importance, I think it is reasonable to write about what I have learned about feasibility analysis through the reading of System Analysis and Design with UML in this post since both the process of planning and feasibility analysis are sequential and closely related.
What is Feasibility Analysis?
According to the built-in dictionary of Mac OS X, the word feasibility means
the state or degree of being easily or conveniently done: the feasibility of a manned flight to Mars.
The feasibility analysis is there to guide the organization in determining whether or not to proceed with a project.So, assessing whether the project plan that the company or a group within the company created is possible to attain its goal or not is the main purpose of feasibility analysis. In order to determine the final decision of whether to proceed the project by injecting company's money into it, the feasibility analysis tries to analyze how feasible the project will be by evaluating 3 different types of feasibilities:
- technical feasibility
- economic feasibility
- organizational feasibility
The book gives us some of the examples of how to apply technical feasibility analysis:
- compare with other projects that have already done within the organization
- ask for IT professionals whether the project is possible to successfully complete
"identifying costs and benefits associated wit the system, assigning values to them, and then calculating the cash flow and return on investment for the project."
The book also mentions with regard to economic feasibility; it suggests that the more the expensive the project will be, the more effort and carefulness that companies should put into their economic feasibility. This is because expensive project simply implies that the big risk that companies have to bear and be aware of.
Not only future users or customers, but organizational feasibility also concerns how existing users or customers will benefit from the project. This means that companies can make sure whether the outcome of the project will create better environment for the user to be more familiar with other products or services, and the company itself. I personally thought that requires somewhat of connections or the brand impression between the project outcome and existing services, products, and the company itself must be shared in common. So that the existing customers or users of the company's business will like the company and be more familiar with it and its business.
Personal Review From the Reading