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FeasibilityAnalysis
Martha Grabowski
LeMoyne College
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Measure of how beneficial or practical thedevelopment of an information systemwill be to an organization.
Feasibility AnalysisProcess by which feasibi l i ty is measu red
Cont inu ing p rocess of feasibi l i ty
assessment
Feasibility
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Operational FeasibilityTechnical FeasibilitySchedule Feasibility
Economic Feasibility
Tests of Feasibil i ty
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Operational FeasibilityHow wel l wi l l the solut ion wo rk in the
organizat ion?Technical FeasibilityHow p ract ical is the technical solut ion?
How available are techn ical resources and
expert ise?
Tests of Feasibil i ty
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Schedule FeasibilityHow reasonable is the project t imetable?
Economic FeasibilityHow cost-ef fect ive is the project or
so lu t ion?
Cos t-benef i t analysis
Tests of Feasibil i ty
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Quest ions to AskIs the prob lem wo rth solv ing?
Will the solut ion to the problem work?
How do end users and management feel
about the solut ion?
Has a usabi l i ty analys is been conducted?
Operational Feasibi l i ty
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Quest ions to AskIs the proposed solu t ion pract ical?
Do we possess the necessary technology?
Do we possess the necessary technical
expert ise?
Is the schedu le reasonable?
Technical Feasibi l i ty
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Cos t-benefi t analysesHow much wi l l the system cost?
Development cos ts
Operat ion co sts
Maintenance and support cos ts
Do we possess the necessary technology?
Do we possess the necessary technical
expert ise?
Is the schedule reasonable?
Economic Feasibi l i ty
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Cost AnalysisProject Budget Template
Author's Name Organization Name, Date
Assumptions
Personnel/Infrastructure assumptions
Infra structure assumptions
--Initial network and remote access upgrades covered in ZYX project
Programmatic assumptions
--Budget currently contains expenses only
--Revenues to be estimated upon completion of market survey
Worksheet and expense assumptions
--Average manager salary (2002$$) $75,000
--Annual expense increase 3%
--Benefits and indirect costs changes per year 0%
--Benefits (as a percentage of wages) 32%
Expenses Year 1 Year 2 Year 3 Year 4 Year 5
Personnel
Benefits (at 32%)
Hardware
Software
Computer Usage Costs
Training Costs
Library Resources
Program Maintenance and Upgrade Costs
Travel Costs
Administrative Costs
Administration
Postage, Fedex
Communications
Publication costs
Total Administrative Costs
Total Direct Cost
Indirect Costs (at 54.5%)
Yearly Project Costs
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Benef it analyses
Tang ible benefitscan be easi ly quant i f ied.
Measured in terms o f month ly or annual
savings , or o f prof i t to organizat ion
Intang ible benef i ts more di ff icul t to
quant i fy .
Benefit Analysis
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Benefit Analysis
Tangible BenefitsFewer processing errors
Increased throughput
Decreased response time
Elimination of job steps
Increased salesReduced credit losses
Reduced expenses
Intangible BenefitsImproved customer goodwill
Improved employee morale
Better service to community
Better decision-making
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Payback analys isHow long wi l l it take to recoup the costs o f
th is pro ject?
Return on investment (ROI) analysis
Net p resent value analysis
Economic Feasibi l i ty
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Compare candidate systems on basis ofseveral characterist ics
Better analysts always consider mult ip le
so lu t ions
Feasibi l i ty Analysis
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Candidate Systems Matr ixCandidate S ystems Matrix 10.13.01
Characteristics Candidate 1 Candidate 2 Candidate 3
Portion of System Computerize d
Brief description of portion of COTS package system that would be computerized Platinum Plus
in this candidate. from Entertainment
Solutions, Inc.
Benefits
B rief des cript ion of bus ines s benefit s S olut ion c an be
that would be realized for this implemented
candidate quickly.
Servers and Workstations
Description of the servers and PIV, MS Windows
workst ations needed to s upport this 2000 c las s s ervers
candidate. and workstations
Software Tools Needed
Software tools needed to design and MS Visual C++ build the candidate solution (e.g., MS Access for
DBMS, operating syst ems, customization
languages) of package for
report writing.
Application Software
Description of software to be built, Package solution
purchased, accessed or some
combination of the above.
Method of Data Processing
On-l ine , batch, defer red batch, rea l-t ime Cl ient -server
Output Devices and Implications
Output devices that would be used (e.g., HP4MV dept
network , preprinted forms, etc. ) as well l aser printers as output considerations (timing constraints)
Input Devices and Implications
Description of input methods to be used keyboard & mouse
(e.g., keyboard, mouse, etc.), special
input requirements (new or revised forms),
input considerations (timing of actual inputs)
Storage Devices and Implications
Description of what data would be stored, MS SQL DBMS
what data would be accessed from existing with 100G arrayed
stores, what storage media would be used, capabil ity
how much storage capacity needed, how
that data would be organized.
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Feasibi l i ty Analysis Matr ixFeasibility Analysis 10.13.01
Feasibility Criteria Weight Candidate 1 Candidate 2 Candidate 3
Operational Feasibility 30%
Functionality: To what degree does the Only supports Fully supports Same as
candidate solution benefit the organization? Members Services required Candidate
Political: How well will the solution be requirements and functionality #2
received by users? Management? current business
processes would
have to be modified
Score: 60 Score: 100 Score: 100
Technical Feasibility 30%
Technology:Assessment of maturity, Current release of Current technical availability, ability to acquire, and Platinum Plus is staff only has
desirabili ty of computer technology needed 1.0; only on market Powerbuilder
to support the candidate. 6 weeks experience.
Expertise:Assessment of the technical Staff thinks Access
expertise needed to develop, operate, app is simple.
and maintain the candidate system Score: 50 Score: 95 Score: 60
Economic Feasibility 30%
Cost to Develop $350,000 $418,040 $400,000
Payback period (discounted) 4.5 years 3.5 years 3.3 yearsNet Present Value $210,000 $306,748 $325,500
Detailed Calculations See attachment A ee Attachment A See Attachment A
Score: 60 Score: 85 Score: 90
Schedule Feasibility 10%
Assessment of how long the solution will Less than 3 months 9-12 months 9 months
take to design and implement.
Score: 95 Score: 80 Score: 85
Ranking 60.5 92 83.5