2. Whitten, Bentley & Dittman 2001,
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Measure of how beneficial or practical the
development of a system or a product or any
business or project idea will be to an organization.
• Feasibility Analysis
Process by which feasibility is measured
Continuing process of feasibility assessment
Feasibility
4. Whitten, Bentley & Dittman 2001,
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• Operational Feasibility
How well will the solution work in the
organization?
• Technical Feasibility
How practical is the technical solution?
How available are technical resources and
expertise?
Tests of Feasibility
5. Whitten, Bentley & Dittman 2001,
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• Schedule Feasibility
How reasonable is the project timetable?
• Economic Feasibility
How cost-effective is the project or
solution?
Cost-benefit analysis
Tests of Feasibility
6. Whitten, Bentley & Dittman 2001,
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• Questions to Ask
Is the problem worth solving?
Will the solution to the problem work?
How do end users and management feel
about the solution?
Has a usability analysis been conducted?
Operational Feasibility
7. Whitten, Bentley & Dittman 2001,
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• Questions to Ask
Is the proposed solution practical?
Do we possess the necessary technology?
Do we possess the necessary technical
expertise?
Is the schedule reasonable?
Technical Feasibility
8. Whitten, Bentley & Dittman 2001,
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• Cost-benefit analyses
How much will the system cost?
Development costs
Operation costs
Maintenance and support costs
Do we possess the necessary technology?
Do we possess the necessary technical
expertise?
Is the schedule reasonable?
Economic Feasibility
9. Whitten, Bentley & Dittman 2001,
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Cost Analysis
Project Budget Template
Author's Name Organization Name, Date
Assumptions
Personnel/Infrastructure assumptions
Infrastructure assumptions
--Initial network and remote access upgrades covered in ZYX project
Programmatic assumptions
--Budget currently contains expenses only
--Revenues to be estimated upon completion of market survey
Worksheet and expense assumptions
--Average manager salary (2002$$) $75,000
--Annual expense increase 3%
--Benefits and indirect costs changes per year 0%
--Benefits (as a percentage of wages) 32%
Expenses Year 1 Year 2 Year 3 Year 4 Year 5
Personnel
Benefits (at 32%)
Hardware
Software
Computer Usage Costs
Training Costs
Library Resources
Program Maintenance and Upgrade Costs
Travel Costs
Administrative Costs
Administration
Postage, Fedex
Communications
Publication costs
Total Administrative Costs
Total Direct Cost
Indirect Costs (at 54.5%)
Yearly Project Costs
10. Whitten, Bentley & Dittman 2001,
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•Benefit analyses
Tangible benefits can be easily quantified.
Measured in terms of monthly or annual
savings, or of profit to organization
Intangible benefits more difficult to
quantify.
Benefit Analysis
12. Whitten, Bentley & Dittman 2001,
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• Payback analysis
How long will it take to recoup the costs of
this project?
Return on investment (ROI) analysis
Net present value analysis
Economic Feasibility
13. Whitten, Bentley & Dittman 2001,
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• Compare candidate systems on basis of
several characteristics
Better analysts always consider multiple
solutions
Feasibility Analysis
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Candidate Systems Matrix
Candidate Systems Matrix 10.13.01
Characteristics Candidate 1 Candidate 2 Candidate 3
Portion of System Computerized
Brief description of portion of COTS package
system that would be computerized Platinum Plus
in this candidate. from Entertainment
Solutions, Inc.
Benefits
Brief description of business benefits Solution can be
that would be realized for this implemented
candidate quickly.
Servers and Workstations
Description of the servers and PIV, MS Windows
workstations needed to support this 2000 class servers
candidate. and workstations
Software Tools Needed
Software tools needed to design and MS Visual C++
build the candidate solution (e.g., MS Access for
DBMS, operating systems, customization
languages) of package for
report writing.
Application Software
Description of software to be built, Package solution
purchased, accessed or some
combination of the above.
Method of Data Processing
On-line, batch, deferred batch, real-time Client-server
Output Devices and Implications
Output devices that would be used (e.g., HP4MV dept
network, preprinted forms, etc.) as well laser printers
as output considerations (timing constraints)
Input Devices and Implications
Description of input methods to be used keyboard & mouse
(e.g., keyboard, mouse, etc.), special
input requirements (new or revised forms),
input considerations (timing of actual inputs)
Storage Devices and Implications
Description of what data would be stored, MS SQL DBMS
what data would be accessed from existing with 100G arrayed
stores, what storage media would be used, capability
how much storage capacity needed, how
that data would be organized.
15. Whitten, Bentley & Dittman 2001,
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Feasibility Analysis Matrix
Feasibility Analysis 10.13.01
Feasibility Criteria Weight Candidate 1 Candidate 2 Candidate 3
Operational Feasibility 30%
Functionality: To what degree does the Only supports Fully supports Same as
candidate solution benefit the organization? Members Services required Candidate
Political: How well will the solution be requirements and functionality #2
received by users? Management? current business
processes would
have to be modified
Score: 60 Score: 100 Score: 100
Technical Feasibility 30%
Technology: Assessment of maturity, Current release of Current technical
availability, ability to acquire, and Platinum Plus is staff only has
desirability of computer technology needed 1.0; only on market Powerbuilder
to support the candidate. 6 weeks experience.
Expertise: Assessment of the technical Staff thinks Access
expertise needed to develop, operate, app is simple.
and maintain the candidate system Score: 50 Score: 95 Score: 60
Economic Feasibility 30%
Cost to Develop $350,000 $418,040 $400,000
Payback period (discounted) 4.5 years 3.5 years 3.3 years
Net Present Value $210,000 $306,748 $325,500
Detailed Calculations See attachment A See Attachment A See Attachment A
Score: 60 Score: 85 Score: 90
Schedule Feasibility 10%
Assessment of how long the solution will Less than 3 months 9-12 months 9 months
take to design and implement.
Score: 95 Score: 80 Score: 85
Ranking 60.5 92 83.5
