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Topics: Consulting, Information Technology, Strategy
Feasibility Analysis
When do you conduct a feasibility analysis ?

Every project starts with an idea or the problem statement/requirement . To go with that idea or not is based on feasibility analysis which entails out the viability of the project.

How feasibility analysis is conducted ?

1. Based on Market Research:
Analyze the idea/problem statement. Conduct proper research to back the idea to the management

2. Based on Cost:
Search for the alternatives in the market . Should we go for COTS or should be build from scratch ? The financials involved in each scenarios makes it easier to decide.

4. Based on Market Share:
What is the market share we are targeting ? Forecast about the sales and profits aids in decision making

5. Based on the Skills:
Does your organization have the capabilities to manage the type of work ?

The importance of conducting feasibility study is to understand the
a. Success of the project,
b. Saves business from spending time and money,
c. Backs the strategical decision

Are there any other ways you conduct the same ? How do you prepare Business Case ?


Thoughts are welcomed.
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Just to comment to put this in terms and information you can find inside the PMI documentation all related to this can be found in Business Analysis documentation: The PMI Guide to Business Analysis and Business Analysis for Practitioners: A Practice Guide. If you ask me you should delete the word "project" when you are making this. The focus is "solution", not project. Solution is equal to "the thing" to be created plus "the way" to create it. The idea is about to solve a business problem and the idea is what it has been teste if it is feasible or not. If you use the list above then items 1 and 4 does not belong to the feasibility analysis while items 2 and 5 belong to feasibility analysis. Points 1 and 4 belong to the Vision. Based on Vision business analyst iterates to understand feasibility. With 1 to 3 feasibles ideas then the Business Case is created in order to show people that they will be more "rich" with one of the solutions than without any of them. Project does not matter here (generally speaking), it just a mean to create the solution. So, points a to c are not valid "to sell" the solution in my personal experience, once again generally speaking. At the end, my recomendation, is to avoid the use of word project because this type of things push you to put focus on the wrong thing.
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1 reply by Poorvi Arora
Aug 24, 2021 1:05 AM
Poorvi Arora
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Thank you for the insights
Poorvi -

There is one additional outcome of a feasibility study - is it actually possible to do it (regardless of the approach)?

And another commonly asked question is whether it is the right time or not to do this project.

Kiron
I agree with Sergio, this about products and outcomes, not projects.

Another dimension to add to your list is priorities for a range of different features or outcomes that can be delivered independently or in increments. Viability doesn't have to mean all or nothing.
Establishing technical feasibility may be absolutely critical, depending on the nature of the project.

In the concept generation phase of product development, people without much knowledge in the technology (and some with) often offer up interesting sounding ideas, which I am asked to demonstrate how they will significantly benefit the project outcome. Much to the dismay of some stakeholders, I have had to point out that while interesting, some ideas would require an alternate physics to the fundamental laws we know today.

There may be a progression of feasibility analysis. My first high level analysis will identify the easy ideas, the impossible ones, and those that require more study. Then a period of focused study may be required for the ones with uncertain feasibility.

Some feasibility analysis is required to determine whether a project's goals are achievable at all and will occur prior to launching the project. Other project or product improvement ideas may still occur over time to refine the project outcome as well. For example introducing a new tool late in the project may not support the schedule, or be on-line long enough for productivity gains to outweigh the implementation costs.
I work at a company which is very heavily R&D based. I have decided that we will treat Feasibility Studies ("Research") as their own projects, and we will only take that to the next level ("Development") once we are positive all aspects of the project are feasible. At this time we create a new, separate project.

By the way, in terms of project management we consider a feasibility study project to be successful once we know whether something is feasible. Although a scientist may consider a non-feasible technology to be a project failure, in fact from a PM perspective the project is a success since the goal of the project was to determine whether or not a technology is feasible.

In most environments this approach can be handled with go/no-go gates, and that is probably a preferred approach in most cases.

-Bob C.
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1 reply by Poorvi Arora
Aug 24, 2021 1:06 AM
Poorvi Arora
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Agree
Referring to Sergio's comments on solutions and business analysis:
In the past, I took several online business analysis training sessions provided by Knowledge Adapters (Cheryl Lee, Canada).

I highly recommend these courses to anyone who wants to gain/improve knowledge in business analysis (in addition to that, you can earn PDUs if you are a PMI certification holder).

https://knowledgeadapters.com/
Aug 18, 2021 7:43 AM
Replying to Sergio Luis Conte
...
Just to comment to put this in terms and information you can find inside the PMI documentation all related to this can be found in Business Analysis documentation: The PMI Guide to Business Analysis and Business Analysis for Practitioners: A Practice Guide. If you ask me you should delete the word "project" when you are making this. The focus is "solution", not project. Solution is equal to "the thing" to be created plus "the way" to create it. The idea is about to solve a business problem and the idea is what it has been teste if it is feasible or not. If you use the list above then items 1 and 4 does not belong to the feasibility analysis while items 2 and 5 belong to feasibility analysis. Points 1 and 4 belong to the Vision. Based on Vision business analyst iterates to understand feasibility. With 1 to 3 feasibles ideas then the Business Case is created in order to show people that they will be more "rich" with one of the solutions than without any of them. Project does not matter here (generally speaking), it just a mean to create the solution. So, points a to c are not valid "to sell" the solution in my personal experience, once again generally speaking. At the end, my recomendation, is to avoid the use of word project because this type of things push you to put focus on the wrong thing.
Thank you for the insights
Aug 19, 2021 10:17 AM
Replying to Bob Cunningham
...
I work at a company which is very heavily R&D based. I have decided that we will treat Feasibility Studies ("Research") as their own projects, and we will only take that to the next level ("Development") once we are positive all aspects of the project are feasible. At this time we create a new, separate project.

By the way, in terms of project management we consider a feasibility study project to be successful once we know whether something is feasible. Although a scientist may consider a non-feasible technology to be a project failure, in fact from a PM perspective the project is a success since the goal of the project was to determine whether or not a technology is feasible.

In most environments this approach can be handled with go/no-go gates, and that is probably a preferred approach in most cases.

-Bob C.
Agree
What is Project Feasibility Study?
In project management, feasibility study (also known as feasibility analysis) is an in-depth analysis of the viability of a project or product idea. It is an initial risk assessment document that outlines a preliminary study undertaken to determine a project’s/product’s viability and help decision makers figure out whether to proceed with the project or not. It proves whether the project would create a technically and economically feasible concept upon its successful implementation.

The results outlined in the feasibility analysis document help determine whether the project would develop and deliver under a set of risks and assumptions related to technology, human resources, facilities and equipment, finance and budgeting, political feasibility, and legal and contractual aspects.

For example, in content-rich website projects the feasibility of results often depends on the quality of online essay writing service and outsourced content writing.

A typical feasibility study template consists of the following sections:

Executive Summary
Introduction
Justification
Solution
Alternatives
Cost-Benefit Analysis
The Executive Summary should create a summary of the following issues:

Here is the link to template. (As an example)

https://mymanagementguide.com/feasibility-study-template

PS: That being said, our organization look at the benefits of doing the Project. Uses DTC or Design to cost to get a good estimate of the product development (bottom-up approach or beak up of Bill of material). and a business case justification is required too. (Assuming you sell certain amount of the product for next 5-6 years). And in addition, at organizational level we have to see how it impacts the organization (resources and skills available), process impact and any anticipated risks (like test failures. long lead items, schedule slippage etc.)

Hope this helps.

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