List in detail all the things you need to make the business work

Identify logistical and other business-related problems and

solutions
Develop marketing strategies to convince a bank or investor
that your business is worth considering as an investment
Serve as a solid foundation for developing your business plan
 Why Feasibility Study

To determine rediness to start

(continue) your ICT project
Develop a set of criteria to
determine the available
solution options (alternatives)
Make ready for IS
development & design
Feasibility Study Tasks

Describe the existing system

Describe the hardware/software
alternatives
Determine the probability of
success
Perform cost-benefit analysis
Provide information needed to
come up with the best
technological solutions
 Feasibility Study Components

Existing system analysis (As Is)

Proposal of the new system
(To Be)
Selection criteria
Detailed cost-benefit
analysis
 Feasibility Study Components
1. Description of the Business
2. Market feasibility
3. Technical feasibility
4. Financial feasibility
5. Organizational feasibility
6. Conclusions and suggestions
Examples:
Feasibility study - course
Business plan - software
 Feasibility Study Components
Description of the Business: The product or
services to be offered and how they will be delivered.
Market feasibility: Includes a description of the
industry, current market, anticipated future market
potential, competition, sales projections, potential
buyers, etc.
Technical feasibility: Details how the product or
service will be delevered (i.e., materials, labor,
transportation, where the new business will be
located, technology needed, etc.).
 Feasibility Study Components
Financial feasibility: Projects how much start-up
capital is needed, sources of capital, returns on
investment, etc.
Organizational feasibility: Defines the legal and
corporate structure of the business (may also include
information about the founders and what skills they
can contribute to the business).
Conclusions and suggestions: Discusses how the
business can succeed. Honest assessment needed
because investors will look at the data, questioning
conclusions if they are unrealistic.
 Existing System Analysis
INFORMATION: flow,
characteristics, forms, sources,
destinations
PROCESSES: operations,
transactions, who does what,
average and peek #transactions
DECISIONS: who makes them,
input and output needed,
frequency
COSTS
Framework for Analysis (SWOT)

S trengths
Weaknesses
O pportunities
T hreats
 PEST (LE)
P political factors, probability of occurence
E economic factors and their impact
S social factors and their contribution
T technologically relevant factors
L legal aspects concerning the environment
E ecological issues
 Risc Factors Analysis
Small probability, big Big probability, big
relevance relevance

Small probability, small Big probability, small

relevance relevance

Risc matrix
Risc Management Plan

What actions will be taken in case the

risk situation occurs
Action plan with activities, due dates,
implementation details
Key Sources of Risc
1. Political risc
2. Financial risc
3. Technological risc
4. Stock market risc
5. Development risc
6. Integration risc
7. Inovation risc
8. Information risc
9. Legal risc
 New System Proposal
Problems with the old system
Goals of the new system
New system description (options to
choose from)
Time table, costs, required
investment
Technical issues (H, S, L, O, D, N)
Benefits and company impact
 Decision Criteria

Time to implement
Tangible and intangible benefits
Impact on business strategy
Customer satisfaction level
Capital expenditure(CAPEX)
Operating expenditure (OPEX)
Probability of success
 Cost-benefit analysis

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