Introduction
The feasibility study is the second major phase in the Software Development Life Cycle. This study is of great importance since once a rough specification of the information system has been drawn up, it is important to access whether it is possible to implement such a system.
It is is made up of a series of studies conducted to assess if the proposed information system can be developed and whether its implementation will benefit the business. The feasibility report provides a formal summary of the findings of the feasibility study.
It addresses a range of issues including: the benefits of the project, projected costs, effectiveness, alternatives considered, and the opinions of potential users. This report is addressed to the management and should therefore be brief enough and sufficiently non-technical to be understood; yet at the same time detailed enough to provide the basis for system design.
The feasibility report serves as the basis for making the decision to begin or abandon the project. This paper will highlight the main parts of a feasibility report which are; economic Feasibility, technical feasibility, operational feasibility, and scheduling feasibility. It will then proceed to discuss why it is important to undertake each part of the feasibility report.
Economic Feasibility
The cost of development is a key concern for all parties involved. This is because the costs will have a direct bearing on the design of the system as well as how it operates. It is important to be able to demonstrate that the investment in the information system will create value for money (Dixit 2007).
The benefits identified in this phase include tangible and intangible benefits. The tangible benefits are easy to identify since they are quantifiable in terms of savings or profits accrued as a result of the new system.
For the information system, intangible benefits are harder and at times impossible to quantify. They include benefits such as improved customer service and higher employee motivation.
A cost-benefit analysis is done to identify costs and benefits and at the same time assign real values to this costs and benefits. Through this process, the financial risks that the project possesses are identified (Norris & Simon 2000).
The costs identified are not just the development costs but also other expenses such as training costs and operational costs. From the real values assigned, the net present value can be calculated. This present value is the difference between the cost of the investment and the discounted present value of all future earnings from the investment.
If the net present value is positive, then the development of the information system should proceed. The feasibility study also determines the break-even point which is the point in time when the returns match the amounts invested in the project. Barnard (2008) states that the longer it takes to break even; the riskier the project will be viewed.
Technical Feasibility
The primary objective of the technical feasibility analysis will be to assess if the system can be successfully designed, developed and installed. The analysis determines if the hardware, software, and communications components required to develop the proposed information system exist.
This study also investigates whether the technology that is currently available to the business can be used to achieve the project’s performance objectives. Significant risks exist if the users are not familiar with the technology being introduced through the new system.
A technical risk analysis should therefore be conducted to find out if the users are familiar with the application and the technology being proposed.
Barnard (2008) states that user familiarity with the application should be assessed since there is a very high risk of failure if the users are unfamiliar with the application. As such, familiarity with the technology should be established to reduce the risk of failure associated with novel technologies.
The risk analysis will also reveal if the new system is compatible with the existing organizational systems. This is especially significant since if the new system is incompatible, it will not be of great use unless the old system is replaced; an action that is bound to be opposed by the organization due to financial considerations.
Compatibility should be assessed to make sure that the technology and applications are able to integrate seamlessly with the existing technology.
The size of the project also influences the risk of failure. For a project involving a large number of people and where many distinctive features which must be integrated are involved, the failure risk is high.
Operational feasibility
The operational analysis seeks to identify any operational risk associated with the proposed information system. As such, the operational feasibility study is aimed at determining if the new IS will be used as intended. The study seeks to find out if the new system will be compatible with the culture of the particular organization or business for which it is being developed.
Wixom and Roth (2008) declare that the information system is first and foremost a social system and the success of the project is primarily determined by social factors. The social aspect of the information system is very important since the new system will affect people and data flows and it can have unintended consequences.
Barnard (2008) warns that if the users of the system fail to accept the new system and incorporate it into their everyday operations, then it will have failed to add any value to the organization.
Operational feasibility also assesses whether the intended users of the system will be able to use the system to its full capacity. This is important since if it is determined that most of the capabilities of the system will not be used, then they can be omitted from the final product.
The operational feasibility of the project is normally hard to assess since it requires a deep understanding of how well the goals of the project align with business objectives.
It is therefore necessary for the views of the relevant stakeholders of the business to be obtained and taken into consideration (Bidgoli 2011). It is important for the stakeholders whose activities might be affected by the system to be informed beforehand about the proposed system.
They should also be encouraged to give their views on the system. This early involvement will increase the chances of the system being embraced by this influential group.
Scheduling Feasibility
Schedule feasibility aims to assess if the project can be completed in a reasonable amount of time. Stair and Reynolds (2009) state that a key goal of the scheduling process is to balance the time and resource requirements of the project. Schedule feasibility helps the systems analyst to tell if the potential time frames and completion date schedules can be met.
Through the schedule feasibility, it will be established if the deadlines set for project activities are realistic. When it is determined that deadlines are unreasonable, then the project leader might have to make a new schedule. Quasney and Sebok (2008) observe that if the set deadlines cannot be extended, then the project leaders can consider reducing the scope of the project in order to meet mandatory deadlines.
Project duration is a major concern in the development of an IS (Dixit 2007). For example, the system may have to be operational by a government-imposed deadline or it may need to be operational by the time a competitor is expected to introduce a similar system.
A number of tools can be used in the schedule feasibility analysis stage. The Gantt chart is very useful in planning and tracking the project progress. Klein (2000) demonstrates that the Gantt chart can be used to plan and schedule the time relationships among project activities.
It breaks down processes into precise phases which can be carried out either simultaneously or in series (Thomsett 2009). The Gantt chart makes use of a visual display chart to communicate the ideas to other people.
The network diagram is a left-to-right breakdown of each activity with connecting lines which demonstrate the sequence of the process and divisions between areas of responsibility (Dandan 2009).
This diagram assists in scheduling and controlling of the project since the labour and time estimates of each task are highlighted. Better coordination of efforts between groups working on different phases of the project can be achieved by use of this tool.
Conclusion
This paper began by stating the importance of the feasibility study phase in the development of an information system. It highlighted that the feasibility report should be framed in such a manner that it offers important information on the issues such as the success of the project.
The paper has shown how feasibility studies can assist developers to meet user requirements and develop the system within budget constraints and on time. It has documented the roles that each of the feasibility studies plays.
From this analysis, it has been shown that the feasibility study will assist in determining if the project makes financial sense and if the projected benefits justify the costs.
It will also assess if the project can be put into action with the acceptance of the key stakeholders in the business, and if the project can be completed within a reasonable period of time.
References
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Bidgoli, H 2011, Management Information Systems, Cengage Learning, Boston.
Dandan, H 2009, “Visualization Techniques for Schedule Comparison”, Computer Graphics Forum, 28 (3): 951-958.
Klein, R 2000 Scheduling of Resource-Constrained Projects, Springer, NY.
Norris C Perry J & Simon P 2000. Project Risk Analysis and Management, The Association for Project Management, NY.
Quasney, S & Sebok, J 2008, Discovering Computers: Fundamentals, Cengage Learning, Boston.
Stair, R & Reynolds, G 2009, Principles of Information Systems, Cengage Learning, Boston.
Thomsett, M 2009, The Little Black Book of Project Management, AMACOM Div American Mgmt Assn, Washington.
Wixom, B & Roth R 2008, Systems Analysis and Design, John Wiley & Sons, NY.