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FEASIBILITY ANALYSIS :desktop_computer: - Coggle Diagram
FEASIBILITY ANALYSIS :desktop_computer:
System Development Life Cycle (SDLC)
Project initiation
System request
Evaluating system request
Feasibility Study Definition & Objectives
Definition
Assessment of the practicality of a proposed project or system
Evaluating feasibility
Focus:-
To determine organization's need for a new system & cost
To give reasons on why a certain information system needs to be developed
3 items to measure success of the system:-
Operational feasibility (if we build it, will they come)
Technical feasibility (can we build it)
Economical feasibility (should we build it)
Operational Feasibility
The system can be used after it has been developed
Technical feasibility
Organization has resources to develop or buy, and operate the system at user locations
Economical Feasibility
Focus:-
Whether the system can be developed within budgetary constraints
Whether it can improve organization's economy by giving back in the form of benefits
Tangible benefits & intangible benefits
Tangible benefits
Can be measured in the form of money
Intangible benefits
Difficult to measure in monetary form
Cost Benefit Analysis (CBA)
People (IT staff & users)
Hardware & tools
Software
Trainings (formal & informal)
Licenses & fees
Consultation fees
Financial Models
Present Value (PV)
Net Present Value (NPV)
Break Even Point
Return on Investment (ROI)
7 steps
Identify costs & benefits
Assign values to costs & benefits
Determine cash flow
Determine NPV
Determine ROI
Calculate break even point
Graph break even point
Feasibility Report
To determine
Whether the project is feasible
Whether to invest significant resources
Problem definition summary, proposed solution, preliminary CBA, etc