Research By Martins Library
"Those who do not do their home work do not graduate." Bryce's
Law 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.
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 over riding considerations though are: Does the recommended
approach satisfy the requirements? Is it also a practical and viable solution?
(Will it "Play in Pough keepsie?") 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 labour 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 car 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 analyses what was delivered versus what was proposed in the
Feasibility Study. Feasibility Studies represent a common sense approach to
planning. Frankly, it is just plain good business to conduct them. However, I
have read where some people in the IT 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.
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