How is a feasibility study conducted in new system planning?

A feasibility study in new system planning is conducted by assessing the practicality and potential success of the proposed system.

In more detail, a feasibility study is a crucial step in new system planning that helps to identify whether the proposed system is viable or not. It involves a comprehensive evaluation of the project's potential for success. The feasibility study aims to objectively and rationally uncover the strengths and weaknesses of the proposed system, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success.

The feasibility study typically involves several key steps. Firstly, a preliminary analysis is conducted to identify the problem or opportunity that the new system is intended to address. This involves a detailed understanding of the business needs and the expected benefits of the new system.

Next, a proposed system is defined. This involves identifying the system's objectives, scope, and performance requirements. The proposed system is then evaluated in terms of its feasibility. There are four types of feasibility that are typically considered: technical, economic, legal, and operational.

Technical feasibility assesses whether the necessary technology and software are available to develop the system and whether it can be integrated with existing systems. Economic feasibility, also known as cost-benefit analysis, examines whether the expected benefits of the system outweigh the estimated costs. Legal feasibility checks if the system complies with all relevant laws and regulations. Operational feasibility evaluates whether the system will function in the existing operational environment.

Once the feasibility study is completed, a feasibility report is prepared. This report provides a summary of the findings and recommendations for the proposed system. It is used to make an informed decision about whether to proceed with the system development or not.

In conclusion, a feasibility study is a critical step in new system planning. It provides a comprehensive evaluation of the proposed system's potential for success and helps to make informed decisions about system development.