Feasibility studies

Feasibility studies

aim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture,
opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the
prospects for success.[1][2] In its simplest terms, the two criteria to judge feasibility are cost required and value to be
attained.[3] As such, a well-designed feasibility study should provide a historical background of the business or project,
description of the product or service, accounting statements, details of the operations and management, marketing
research and policies, financial data, legal requirements and tax obligations.[1] Generally, feasibility studies precede
technical development and project implementation. In its simplest form, a Feasibility Study represents a definition of a
problem or opportunity to be studied, an analysis of the current mode of operation, a definition of requirements, an
evaluation of alternatives, and an agreed upon course of action. As such, the activities for preparing a Feasibility Study
are generic in nature and can be applied to any type of project, be it for systems and software development, making an
acquisition, or any other project.

There are basically six parts to any effective Feasibility Study:

1. The PROJECT SCOPE which is used to define the business problem and/or opportunity to be addressed. The old adage,
"The problem well stated is half solved," is very apropos. The Scope should be definitive and to the point; rambling
narrative serves no purpose and can actually confuse project participants. It is also necessary to define the parts of the
business affected either directly or indirectly, including project participants and end-user areas affected by the project.
The project sponsor should be identified, particularly if he/she is footing the bill.

I have seen too many projects in the corporate world started without a well defined Project Scope. Consequently,
projects have wandered in and out of their boundaries causing them to produce either far too much or far too little than
what is truly needed.

2. The CURRENT ANALYSIS is used to define and understand the current method of implementation, such as a system, a
product, etc. From this analysis, it is not uncommon to discover there is actually nothing wrong with the current system
or product other than some misunderstandings regarding it or perhaps it needs some simple modifications as opposed
to a major overhaul. Also, the strengths and weaknesses of the current approach are identified (pros and cons). In
addition, there may very well be elements of the current system or product that may be used in its successor thus saving
time and money later on. Without such analysis, this may never be discovered.

Analysts are cautioned to avoid the temptation to stop and correct any problems encountered in the current system at
this time. Simply document your findings instead, otherwise you will spend more time unnecessarily in this stage (aka
"Analysis Paralysis").

3. REQUIREMENTS - how requirements are defined depends on the object of the project's attention. For example, how
requirements are specified for a product are substantially different than requirements for an edifice, a bridge, or an
information system. Each exhibits totally different properties and, as such, are defined differently. How you define
requirements for software is also substantially different than how you define them for systems. (See, "Understanding
the Specifications Puzzle")

4. The APPROACH represents the recommended solution or course of action to satisfy the requirements. Here, various
alternatives are considered along with an explanation as to why the preferred solution was selected. In terms of design
related projects, it is here where whole rough designs (e.g., "renderings") are developed in order to determine viability.
It is also at this point where the use of existing structures and commercial alternatives are considered (e.g., "build versus
buy" decisions). The overriding considerations though are:

Does the recommended approach satisfy the requirements?
Is it also a practical and viable solution? (Will it "Play in Poughkeepsie?")

A thorough analysis here is needed in order to perform the next step...

5. EVALUATION - examines the cost effectiveness of the Approach selected. This begins with an analysis of the
estimated total cost of the project. In addition to the recommended solution, other alternatives are estimated in order
to offer an economic comparison. For development projects, an estimate of labor and out-of-pocket expenses is
assembled along with a project schedule showing the project path and start-and-end dates.

After the total cost of the project has been calculated, a cost and evaluation summary is prepared which includes such
things as a cost/benefit analysis, return on investment, etc.

6. REVIEW - all of the preceding elements are then assembled into a Feasibility Study and a formal review is conducted
with all parties involved. The review serves two purposes: to substantiate the thoroughness and accuracy of the
Feasibility Study, and to make a project decision; either approve it, reject it, or ask that it be revised before making a
final decision. If approved, it is very important that all parties sign the document which expresses their acceptance and
commitment to it; it may be a seemingly small gesture, but signatures carry a lot of weight later on as the project
progresses. If the Feasibility Study is rejected, the reasons for its rejection should be explained and attached to the
document.

CONCLUSION

It should be remembered that a Feasibility Study is more of a way of thinking as opposed to a bureaucratic process. For
example, what I have just described is essentially the same process we all follow when purchasing an automobile or a
home. As the scope of the project grows, it becomes more important to document the Feasibility Study particularly if
large amounts of money are involved and/or the criticality of delivery. Not only should the Feasibility Study contain
sufficient detail to carry on to the next succeeding phase in the project, but it should also be used for comparative
analysis when preparing the final Project Audit which analyzes what was delivered versus what was proposed in the
Feasibility Study.

Feasibility Studies represent a commonsense approach to planning. Frankly, it is just plain good business to conduct
them. However, I have read where some people in the I.T. field, such as the "Agile" methodology proponents, consider
Feasibility Studies to be a colossal waste of time. If this is true, I've got a good used car I want to sell them.

Business Proposal

A business proposal is a written scheme from a seller to a prospective customer. The main purpose is to fulfill the
requirements of a client. A proposal includes a company's profile as well as its products and services offered. An
entrepreneur mentions profile and other components to convince a prospective client about the benefits of his products
and services for a client. A proposal also aims to demonstrate the credibility and authenticity of a company and its
products and services to win a client's confidence. A good proposal has the potential to portray a company unique and
credible that gives an edge over its competitors.

The good or standard business proposal consists of following elements:

1.TITLE PAGE

Most organizations specify the information to include in the title page. Some even providing special farms that
summarize basic administration and fiscal data. As a minimum, the title page should include the title, the name of
person or company to whom the proposal is submitted, the person submitting the proposal and the date.

2.EXECUTIVE SUMMARY, ABS TACT, SYNOPSIS

Brief proposal should have an executive summary. Because you will be competing with other for the same opportunity,
some evaluator will initially read only the executive summary seeking to gain a quick overview. So should give it careful
attention and time and effort. Budget figures are frequently omitted because proposal abstract may receive wide

distribution.

3.DRAFT CONTRACT

A draft contact allows the receiver to offer a counter offer.

4.Table Of Contents

Brief proposal usually do not require a table of content. Long proposal do require one as well as a list of table, figure and
illustration.

5.INTRODUCTION

The proposal introduction section includes,
a)Purpose in which u mission the main purpose of the proposal writing.
b)Problem in here a business proposal, show clearly that what u understand from the problem or problems & how you
overcome from that problem.
c)Scope should be precise specially when dealing with a foreign country or company.

6.BACKGROUND

In short proposal no need have background while long proposal includes;
• Previous work completed on identical or related project.
• Possibly, literature reviews on the subject, particularly your evaluation of them.
• Statements showing how your proposal will build on the already completed projects and research.

7.PROCEDURES

In procedure, you give brief state, without exaggeration, how you will meet the requirement of your reader. A good way
to review your proposal they will be different in each situation.

8.EQUIPMENT AND FACILITIES

It shows that you have thought deeply to realize what facilities will be needed. If your proposal id for your company's bid
on an enormous construction job, probably several departments will cooperate with you in presenting needed facts and
figures.

9.PERSONNEL

If you did not include brief information of individuals involved in the project in the introduction then give full
information about the proposal and also the percentage of time that personal will devote to t6he project.

10.BUDGET

Organization requesting proposal frequently specify how the budget should be presented. Read such specifications
carefully. Not all groups allow the same costs.

11.APPENDIXES

Feasibility studies

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