Y

T
D
C
U
E
T
J
S
O
Y
R
T
P
I
L
I
B
I
S
A
E
F

DEF
INIT
ION,
NAT
U RE
AND
PUR
PO S
E

DE F

INIT
IO N,
AND NATUR
E
P UR
PO S
E

A feasibility study is an
analysis of the viability of an
idea through a disciplined and
documented process of thinking
through the idea from its logical
beginning to its logical end.
It is also define as an analysis
and evaluation of a proposed
project to determine if it (a) is
technically feasibile), (2) is
feasibile within the estimated
cost, and (3) will be profitable.
Feasibility study are almost
always conducted where large
sums are at stake. It is also
known as feasibility analysis.

INIT
IO N,
AND NATUR
E
P UR
PO S
E
DE F

feasibility study aims to

objectively and rationally uncover
the strengths and weaknesses of
an existing business or proposed
venture, opportunities and threats
present in the environment, the
resources
required
to
carry
through,
and
ultimately
the
prospects for success. In its
simplest terms, the two criteria to
judge feasibility are cost required
and value to be attained.
The nature and components of
feasibility studies depend primarily
on the areas in which analyzed
projects are implemented.

INIT
IO N,
AND NATUR
E
P UR
PO S
E
DE F

The

purpose is to identify any

make or Break issues that
would prevent your business
from being successful in the
marketplace.
The feasibility study is
conducted
to
assist
the
decision-makers in making the
decision to the best interest of
the
organization.
The
extensive research, conducted
in a non-biased manner, will
provide data upon which to
base a decision.

CHA
RAC
TER
ISTIC
S OF
FEAS
A GO
IBIIT
O
D
Y ST
UDY

CHA
RAC
A G O T E RI S T
ICS
OD F
OF
EAS
I BI IT
Y
STU
DY

BEN
EFIT
BE D S THAT
ERIV
M
THE
A
Y
E
PRE
D
PARA FROM
A PR
TION
OJEC
O
F
T ST
UDY

BEN
E F IT
S TH
DER
A
IVED T MAY
BE
F RO
PRE
M TH
PARA
T
E
I
O
PRO
N OF
JECT
A
STU
DY

General

requirements and
potential
benefits
of
conducting feasibility study
include:

1)Developing

any
new
business venture is difficult.
2)Taking project from initiation
of idea to operational stage
is
complex
and
time
consuming effort.
3)Projects involve business
operations that differ from
individual business.

BEN
E F IT
S TH
DER
A
IVED T MAY
BE
F RO
PRE
M TH
PARA
T
E
I
O
PRO
N OF
JECT
A
STU
DY

4)It

minimizes project failureMost ideas, whether from

cooperative
or
investorowned businesses, do not
develop
into
business
operations. If these ideas
make it to the operational
stage, majority of the fail
within first six months.
5)Feasibility
study
allows
groups developing a business
idea to preview potential
project outcomes and decide
if they want to continue
developing the project

BEN
E F IT
S TH
DER
A
IVED T MAY
BE
F RO
PRE
M TH
PARA
T
E
I
O
PRO
N OF
JECT
A
STU
DY

6)Though

the cost conducting

a study can seem high,
almost always, these costs
are relatively minor when
compared to
the
total
project cost.
7)Small initial expenditure on
a feasibility study by a
group can help to protect
large capital investments
later.
8)Feasibility study is a useful
tool and is valid for many
kinds of projects.

BEN
E F IT
S TH
DER
A
IVED T MAY
BE
F RO
PRE
M TH
PARA
T
E
I
O
PRO
N OF
JECT
A
STU
DY

9)An

effective
feasibility
analysis will provide the
client
with
a
solid
foundation upon which a
project is built.
10)A feasibility study provides
concept
identification,
estimates of supportable
market, design parameters,
attendance
estimates,
revenue projections, and
net warranted investment.
11)It is essentially becomes a
road map for your project.

KIND
S OF
PRO
JECT
AND
PART S
INTE
IES
RES
TED

KIND
S
OF P
ROJE
AN D
CTS
PART
INTE
IES
RE S
TED

S
PREP TEPS I
N TH
ARA
T
E
I
O
PRO
N OF
JECT
A
STU
DY

STEP1 Evaluation of a project according to selected criteria

There are usually five major criteria. One possibility of carrying out
a quick and easy evaluation id to use tabular statement.
Evaluation of technical and
system
capabilities/requirements

The type
of
data/met
hods/soft
ware
necessary
in the
project

The
name of
the
source
of
data/me
thods/so
ftware

The
quality
of the
source
of
data/me
thods/so
ftware

Evaluation of
legal
capabilities/r
equirements

Evaluation
of
operational
capabilities/
requirement
s

The rules
of
publishing
and using

Knowledge
and
skills

o
w
n
e
r

part
icip
atio
n

Evaluation
of
economic
capabilities
/requireme
nts

Evaluatio
n of
capabiliti
es/require
ments
Related
to the
schedule

cost

time

Eva
luat
of a
i on
p
acco rojec
t
s e le
rdin
cted
g to
crite
ri a

STE
P1

Evaluation of technological
and system requirements
The evaluation of technical
and
system
requirements
refers basically to issues
related to the type, availability
and quality of the following,
used in the project:

Data sources
Methods of data processing,
analyzing and visualizing
software

Eva
luat
of a
i on
p
acco rojec
t
s e le
rdin
cted
g to
crite
ri a

STE
P1

Evaluation of legal
requirements
The
evaluation
of
legal
requirements concern basically the
rules of publishing and using data,
software and methods. A part of
the rules concerning publishing
spatial data (mostly future ) can
be found in the directives and in
copyright laws. Most data and
software include information on
the form of publishing in metadata
or websites where such data is
published.

Eva
luat
of a
i on
p
acco rojec
t
s e le
rdin
cted
g to
crite
ri a

STE
P1

Evaluation of operational
requirements
Allowing for the level of knowledge
and skills necessary for data
acquisition, and later to process,
analyze and visualize them, as well
as to implement the results, is of
paramount
importance
in
the
evaluation
of
operational
requirements. Since the projects
involved
concern
sustainable
development and spatial planning, it
is also important to allow for public
participation (e.g. practitioners or
representatives of local community.

Eva
luat
of a
i on
p
acco rojec
t
s e le
rdin
cted
g to
crite
ri a

STE
P1

Evaluation of economic
requirements
Two
components
are
important in the evaluation
of economic requirements:

The cost of data or software

procurement,
The
cost
of
employing
workforce for specific tasks,
The
cost
of
possible
improvement of qualifications
of the workforce employed.

Eva
luat
of a
i on
p
acco rojec
t
s e le
rdin
cted
g to
crite
ri a

STE
P1

Evaluation of
requirements related to
the schedule
The
evaluation
of
requirements related to
the schedule concerns the
estimation
of
time
necessary to complete
respective parts of project,
e.g. data procurement and
processing.

Step 2: Summary of evaluation results

A summary of project evaluation results, by presenting the strengths
and weaknesses of suggestsed solutions, is another step of
feasibility analysis. This part of analysis can be carried out usigng
the components of SWOT analysis.
Step 2 and 3 of feasibility studies (summary and
recommendations) carried out using SWOT analysis
positive

negative

Stages of
completing
feasibility
analysis

Internal features
of the
surrounding

Strengths of
project

Weaknesses of
the project

summary

External
features of the
surrounding

Opportunities
new solutions
that can
additionally
emerge in the
project

Threats
recommendation
concerning the
additional
solutions
suggested in the
project

Step 2: Recommendations
Recommendationns are the last element of feasibility analysis. They
contain directions of actions in the project which allow its better
implementation.
STEP 1
STEP 2
STEP 3
Evaluation
of legal
capabilitie
s
Evaluation
of system
and
technologi
cal
capabilities

Evaluation

Project
of
evaluation
operation
al
using
capabilitie
selected
s
capabilities
of feasibility
Evaluation
analysis Evaluation

of
capabilities
related to
the
schedule

of
economic
capabilitie
s

Summary
of
evaluatio
n results

Recomme
n-dations

Workflow in feasibility analysis