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- 2. ? ? ?? It means : • Possible (Achievable) • Practical To Do Easily (Or) Conveniently
- 3. What is Feasibili ty Study ???? •The feasibility study is the term used to describe the preliminary analysis that is used to document the project work ability. • As the name implies, a feasibility study is used to determine the viability of an idea, such as ensuring a project is legally and technically feasible as well as economically justifiable • It tells us whether a project is worth the investment • The study helps the companies in deciding whether to move or not to move on with.
- 4. Benefits of Conducting a Feasibility Study……. •Afeasibility study might uncover new ideas that could completely change a project’s scope. • Conducting a feasibility study is always beneficial to the project as it gives you and other stakeholders a clear picture of the proposed project. • Improves project teams’ focus. • Identifies new opportunities. • Provides valuable information for a “go/no-go” decision. • Narrows the business alternatives. • Identifies a valid reason to undertake the project. • Enhances the success rate by evaluating multiple parameters. • Aids decision-making on the project
- 5. 5 AREAS OF Feasibility Study Technical Feasibility EconomicFeasibility Legal Feasibility Operational Feasibility Scheduling Feasibility
- 6. 1.Technical Feasibility • This assessmentfocuses on the technical resources available to the organization. • It helps organizations determine whether the technical resources meet capacity and whether the technical team is capable of converting the ideas into working systems. • Technical feasibility also involves evaluation of the hardware, software, and other technology requirements of the proposed system.
- 7. EXAMPLE: (For TechnicalFeasibility) Hyperloop Transportation Technologies (HTT), a US startup which is hoping to revolutionise travel.The Hyperloop high-speed travel in pods inside a partial-vacuum tube . that could lead to people being able to travel from Chennai to Bengaluru in 30 minutes — for a fraction of the cost of an airplane ticket. Source: economictimes.indiatimes.com/
- 8. 2.Economic Feasibility • This assessmenttypically involves a cost/ benefits analysis of the project, helping organizations determine the viability, cost, and benefits associated with a project before financial resources are allocated. • It also serves as an independent project assessment and enhances project credibility—helping decision makers determine the positive economic benefits to the organization that the proposed project will provide.
- 9. EXAMPLE : (ForEconomic Feasibility) Announced as the most affordable production car in the world, Tata aimed for a price of 1,00,000.Only the very first customers were able to purchase the car at that price, however, and as of 2017, the price for the basic Nano starts around 2,15,000. Increasing material costs may be to blame for this rapid rise in price
- 10. 3.Legal Feasibility • This assessmentinvestigates whether any aspect of the proposed project conflicts with legal requirements like zoning laws, data protection acts, or social media laws. • Let’s say an organization wants to construct a new office building in a specific location. A feasibility study might reveal the organization’s ideal location isn’t zoned for that type of business. • That organization has just saved considerable time and effort by learning that their project was not feasible right from the beginning.
- 11. 4.Operational Feasibility • This assessmentinvolves undertaking a study to analyze and determine whether—and how well—the organization’s needs can be met by completing the project. • Operational feasibility studies also analyze how a project plan satisfies the requirements identified in the requirements analysis phase of system development.
- 12. Example: (For OperationalFeasibility) Jio is not just a telecom network, it is an entire ecosystem that allows Indians to live the digital life to the fullest. Jio strives to mould the future of the country by enabling end-to-end digital solutions, not only for institutions and businesses but also for households, thus building a communicative bridge with rural and urban areas. So, I think their slogan Jio Digital Life truly exudes the correct meaning of their vision of Digital India.
- 13. 5.Scheduling Feasibility • This assessmentis the most important for project success; after all, a project will fail if not completed on time. • In scheduling feasibility, an organization estimates how much time the project will take to complete
- 14. Example : (ForScheduling Feasibility) Dominos pizza 30 min delivery challenge • Baking takes 6 minutes • Cutting, packing and pick-up make up for, say, another 5 minutes • Delivery time should never exceed 12 minutes • Add all that-it's a neat 23 minutes. • Give a 7 minute buffer to our employees for unforeseen traffic, rains etc., • With 20,000 employees across 552 stores spanning 118 cities, the process is performed.
- 15. 6 STEPS OF FeasibilityStudy 1. Conduct preliminary analysis 2. Outlining the project scope and conducting current analysis 3. Compare your proposal with existing products and services 4. Examine market conditions 5. Understanding financial costs 6. Reviewing and analysing data
- 16. Step 1. Conductpreliminary analysis • Outline the planned idea or action • Examine the market space and the commercial viability of the action • Examine the unique characteristics of the idea • Determine if there are insurmountable risks to the action
- 17. Step2 . Outliningthe project scope and conducting current analysis • Defining the area of study for the feasibility study • It’s essential to study the different parts of your business that might be influenced by the proposed action or idea • The key to outlining the scope is about understanding the different participants and end-users of the proposed idea or action • Finally, you also need to analyze the current situation prior to the implementation of the idea or action. • Once you’ve done this, you can study the savings and the operational benefits you are hoping to achieve with the new proposal.
- 18. Step 3. Compareyour proposal with existing products and services • Whether you are implementing a new software or equipment or launching your own new product, you need to compare the proposed product or service with other similar items on the market. • This might mean you need to compare the feasibility of your chosen software (for example, accounting platform) with other products on the market • Are the risks associated with your chosen software smaller or bigger than those of competitive products? • The same analysis applies when launching a new product. • Part of your feasibility study must then focus on understanding what the customers are looking for ??and whether your proposed idea answers these needs. • You should also compare the proposed product with the existing products or services and focus on the advantages, as well as disadvantages, you might have.
- 19. Step 4. Examinemarket conditions •Defining the target market. • Studying the buying habits of the target market. • Understanding the sale and market share outlook of the proposal. • Outlining the product awareness required for the use of your product or service. • Understand the revenue projection for implementing the proposed idea or action. • For example, in terms of product or service awareness, you must be able to determine the type of marketing required for potential customers to understand and be able to use the item.
- 20. Step 5. UnderstandingFinancial costs • The resources required to implement the idea or action. • The source for these resources: Internal or external financing. • The break-even schedule for the proposal: This refers to the time it takes to a point when the profits from the idea or action equal the costs associated with it. • The financial risks associated with the idea or action: This can refer to risky market conditions, the probability of requiring more resources and so on. • The financial cost of failure: You also need to calculate the financial cost of the worst- case scenario. This can determine whether your business has the means of embarking on this new venture or not.
- 21. Step 6. Reviewingand Analysing data • Are there any risks you weren’t aware of previously? • Have the market conditions changed? • Has the competition changed? • If the conditions have changed, you can review these parts of the feasibility study. • Once you’ve reviewed your results, you can go ahead with the final decision. • The feasibility study should provide you the answer of either moving ahead with the proposed idea or action, or scrapping the idea and looking for something different.
- 22. Cons of conducting Feasibility Study •Atfirst the analysis is just on paper and this will not highlight any real practical problems resulting a total failure of the business idea. To overcome this problem you should make better simulations and reiterations to minimize any gap between the predicted and actual situations. • Another cons is the analysis may take some time & effort. • Finally it may be costly depending on the industry type.