A feasibility study is a thorough evaluation that takes into account all of the important factors from a project proposal to ascertain the chances of success. Return on investment indicates that the project will yield sufficient revenue to justify the funding. This is one way to describe a company's success. The growth and prominence of project management training have changed, and such changes are here to continue and grow further. Several types of feasibility study in project management help a project foray further.
Here, a feasibility study comes to the rescue by evaluating all the factors critical to a project’s success. This study lets us know the different types of feasibility study and whether a project is worth the investment or is it doable. To have the ability to use feasibility tools and break down tasks into manageable pieces with achievable deadlines, get the best Project Management certifications now.
What is Feasibility Study?
The goal of a feasibility study within software engineering is to determine whether a given program or technology is feasible. One of the crucial four stages of the software management process is the feasibility study. As the name implies, a feasibility study is an investigation of the viability of a project or a measurement of the system product's potential value to the company from a practical standpoint.
A project feasibility study is conducted for various reasons, including determining whether a system software will be appropriate for creation, implementation, and overall contribution to the company. Let's discuss the different types of feasibility study in project management in detail.
Different Types of Feasibility Study in Project Management
The five criteria listed below receive the most attention in the financial feasibility study. The Economic Feasibility Study is its most important component among them, although the Legal Feasibility Study is not generally regarded as a feasibility study.
invensislearning1. Technical Feasibility
Technical Feasibility study of a project analyzes and evaluates its present resources, including equipment, programming, and necessary innovation. This technical feasibility analysis provides information about whether the technologies and resources needed to build the project are available. Additionally, a feasibility study examines the engineering team's expertise, the viability of using open systems, the ease of maintaining and upgrading the technology of choice, and other factors.
2. Operational Feasibility
Operational Feasibility study examines how well a product will satisfy needs and how simply it will be used and maintained after implementation. Along with this, additional operational responsibilities include evaluating the product's usefulness and the suitability of an application development teams offered to fix.
3. Economic Feasibility
The economic market feasibility study examines the project's expense and value. This implies that a thorough analysis is done to determine the program's development costs, including the cost of the design process and operating costs. After that, it is determined if the venture will be profitable. Conducting a feasibility analysis in project management plays a crucial role here, as it ensures a comprehensive assessment of financial viability and long-term success.
4. Legal Feasibility
The project is examined from a legal standpoint in examining Legal Feasibility. It evaluates project implementation legal obstacles such as privacy laws or social networking regulations, business certificates, licenses, trademarks, etc. Ultimately, it can be argued that a legal feasibility study is an investigation to determine whether a project proposal complies with the law and ethical guidelines.
5. Schedule Feasibility
A scheduling feasibility study's primary focus is the project proposal's schedules and due dates. This assessment involves how long it will take team members to finish the project, which significantly affects the company as the program's intended outcome may not be achieved if it cannot be completed on time.
6. Cultural and Political Feasibility
This section deep dives in understanding how the software project aligns with organizational culture and its impact on the political landscape within an organization. It helps in considering the acceptance of proposed changes and identifies any internal resistance that may arise.
7. Market Feasibility
It involves assessing whether the proposed software system meets the demands and expectations of the target market. This assessment includes understanding factors like consumer preferences, evaluating potential competitors, and the viability of a product or service. This feasibility study and its types help us to understand the product fit in the market, ensuring a comprehensive evaluation of market, technical, financial, and resource aspects.
8. Resource Feasibility
Access to resource assesses the availability and adequacy of financial, technological, and human resources required to complete the software project. This process ensures that sufficient hardware, software, skilled professionals, and funding are accessible to successfully implement the project. This evaluation is important for determining the project's feasibility based on available resources.
Key Benefits of Conducting Feasibility Study in Project Management
The feasibility study phase of the software project management process is essential. It determines whether to move forward with the proposed project because it is feasible or to end it because further development, thought, or evaluation of the project venture is not appropriate or viable. Types of feasibility study, such as technical, economic, legal, operational, and scheduling, play a critical role in this phase, helping to assess the practicality of the project from multiple perspectives.
In addition to this, project feasibility aids in recognizing the risk elements involved in creating and implementing systems. Preparing for risk assessment also helps to focus on potential business options and improve success rates by examining various feasibility study types and project-related aspects. These types, such as technical, financial, and operational feasibility, offer comprehensive insights that guide informed decision-making and risk mitigation strategies.
- Provides Valuable Information for a "go/no-go" Decision - A feasibility report evaluates all parameters and identifies if the risk-to-reward ratio is beneficial to the company or not.
- Improves Project Team Focus - If the risks are carefully analyzed, the team knows the most critical tasks that need to be addressed immediately.
- Narrows Business Alternatives - Riskier business ventures are ruled out, narrowing the business alternatives.
- Identifies New Opportunities - The primary objective of a company might change if the report shows extreme value in one of the branches of the business or a potential venture.
- Identifies Valid Reason to Undertake the Project - The report justifies the cost with the reward and gives a valid reason for company time and resources to be used.
- Aids Decision-making on the Project - Making company decisions based on logic is far superior to making them emotionally. Defining figures helps in a faster decision-making process.
- Identifies Reason Not to Proceed - If the risk-to-reward ratio is not favorable or qualifies, it is better to have a project with an extremely good ratio. Doing so reduces the chances of loss, even if the venture fails.
- Enhances Success Rate by Evaluating Multiple Parameters- Finance, time, management, future prediction, market demand, and many more are covered under the feasibility report.
If you want to learn more about financial feasibility analysis, you can opt for the online course for PMP certification that covers financial feasibility study and other project management techniques.
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What is Included in Feasibility Study Report?
A financial feasibility report, which usually consists of the following elements, summarizes the findings of your feasibility analysis:
- A concise summary
- Information about the product or service
- Considering the innovation and technologies
- The industry for products and services
- Method of advertising
- The monetary projections
- Advisory opinions derived from studies.
Feasibility Report Examples
There are multiple areas where a feasibility study is essential. Here are a few feasibility study examples:
- For instance, examining the setup and capabilities of a laptop before purchase mimics feasibility tests.
- A model car is a device for the feasibility study.
- A rat study to discover a novel drug is a technique for feasibility analysis.
Conclusion
A financial feasibility study is an effective tool for assessing a venture before it is launched. An effective project manager requires understanding what is possible given all the limitations and opportunities. You will learn everything about specific projects from this research, and to manage projects successfully, different types of feasibility study in project management, you must base your decisions on that information.
PMP is the most highly regarded training for project managers and those who wish to succeed as project managers. If you are willing to grow and prosper, KnowledgeHut courses on Project Management are among the most suitable. You can check out our website for more details and enroll.
