The importance of the feasibility study
The feasibility study is the tool that through the analysis of the application of the management model and the financial and economic feasibility, allows you to obtain a significant improvement both in the use of information systems and in the efficiency of new initiatives. By following this guide, you will understand how to complete a feasibility study which works on the quality of the interventions, thereby decreasing the uncertainty of the projects.
It is necessary to carry out a feasibility study for all the important projects. In a feasibility study, the level of detail included must ensure all the objectives that it arises from the beginning, such as allowing to estimate costs, identifying all possible risks, making a rough plan, to identifying the ‘analysis of supply and demand’ etc… The feasibility study should include an analysis of alternatives too, like to accomplice a general goal with the project and a specific one.
We must also consider the analysis of design alternatives which will be outlined following the functional and technical profiles and financial review. They allow you to have a fairly clear picture thus helping you make a choice based on the needs of the context. As regards to the analysis of supply and demand, it is useful to locate the actual need to perform the work taken from time to time into consideration. In fact, if the demand is not large enough or is not essential, the best choice is to not realize the alleged investment and move on a next project.
Once you have assessed the appropriate option you must identify the activities and functions to insert, based on useful information before arriving in the pre-planning stage. It is very important in the feasibility study to always take into account the type of project you are focusing on and any problems to be addressed.
To carry out a feasibility study it is necessary to resort to short-term activities or else the careful planning you have to do is exposed to holes and the sudden appearance of unpredictable situations. The ideal time varies from one to five months depending on the type of project to be analyzed.