What Is Feasibility Study?

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A feasibility study is the analysis of a problem to determine if and how it can be effectively solved. The results determine whether the suggested solution is implemented. Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture. Ideally, the study also identifies opportunities and threats presented by the environment, what the resources are which are necessary to carry through the study, and what the prospects are for success.These activities primarily take place during the project initiation phase and are most often made before significant expenses are incurred. Standard procedure is as follows.First, perform a preliminary study to determine whether the project is viable. Many ideas look good on paper, but when implemented, these ideas may encounter complications which were not considered in advance.Next, analyze an existing system to see if it is worth upgrading. Often, money and time are at a minimum, and upgrades to an existing system already in place can prove less complicated as well as less costly. With the state of economic affairs in modern society, many companies are concerned about the cost involved in starting a new system and are looking for ways to conserve funds and reduce down time.Thirdly, determine if there is sufficient time to build a new system if deemed necessary. It is also necessary to determine when it is viable to build the system, and whether building a new system is going to interfere with current operations. At this point, type and amount of resources required are assessed, as well as dependencies.Lastly, it is necessary to establish the cost-effectiveness of the proposed system, and to determine if the system, whether new or existing, is going to conflict with any legal requirements.Listed are some links to sites with samples and guidelines for feasibility studies.
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