- ✓A feasibility study evaluates whether a proposed project should proceed, providing a structured analysis of its viability.
- ✓Technical feasibility assesses whether the required technology exists and whether the team has the skills to implement it.
- ✓Economic feasibility compares the projected costs of development with the expected business benefits, typically expressed as a return on investment.
- ✓Operational feasibility considers whether the organisation has the processes, people, and culture to successfully adopt the new system.
- ✓A feasibility study should present a clear recommendation: proceed, proceed with modifications, or do not proceed, backed by evidence.
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Start learning →Alex: Today we're exploring feasibility studies. Sam, what's the purpose of a feasibility study before a software project begins?
Sam: A feasibility study is a formal assessment of whether a proposed project is viable. It investigates different dimensions of viability to help decision-makers determine whether to proceed, to proceed with modifications, or to abandon the idea altogether. It's the 'should we build this' question that precedes the 'how do we build this' question.
Alex: What are the different dimensions of feasibility?
Sam: There are typically four or five main areas. Technical feasibility asks whether the technology required to build the system exists and is within reach of the development team. Economic feasibility compares costs and benefits to determine whether the project makes financial sense. Operational feasibility assesses whether the organisation is capable of using and maintaining the system once built, considering its processes, skills, and culture. Legal feasibility examines whether the project complies with relevant laws, regulations, and contractual obligations. And sometimes schedule feasibility is assessed separately: can the project be delivered within the required timeframe?
Alex: How do you assess technical feasibility?
Sam: You research the technologies involved, assess whether they're mature and supported, identify any technical risks or unknowns, and evaluate whether the team has the skills to implement them or can acquire those skills. Proof-of-concept work, building a small prototype to test a key technical assumption, is often part of technical feasibility assessment for novel or uncertain technical approaches.
Alex: And economic feasibility? What's involved in the cost-benefit analysis?
Sam: You estimate all the costs: development, hardware, software licences, training, ongoing maintenance. You then estimate the benefits: cost savings from efficiency, revenue generation, risk reduction, or strategic value. Cost-benefit analysis compares these over a defined time horizon. Metrics like return on investment, payback period, and net present value help quantify the economic case. For public sector projects, benefits might be harder to quantify in purely financial terms and include service improvements or social outcomes.
Alex: What does a feasibility study document look like?
Sam: It's typically a structured report covering the background and objectives of the proposed project, the scope of the study, an assessment of each feasibility dimension, a summary of risks and assumptions, and a clear recommendation. Appendices might include cost breakdowns, technical research notes, or relevant regulatory references. It should be concise enough to be readable by decision-makers who are busy, while being thorough enough to support a confident decision.
Alex: And when in the project lifecycle does it happen?
Sam: At the very beginning, before significant investment is made in requirements gathering, design, or development. The whole point is to validate that the investment is worthwhile before committing to it. If the feasibility study reveals that the project is not viable, discovering that early is enormously valuable.
Alex: Brilliant. A crucial gate at the start of any project. Thanks Sam. Next we walk through a complete SDLC in practice.