Feasibility analysis: refers to conducting detailed analysis in relation to every aspect relevant to business and determining credibility of business.
It is an analysis of the viability of an idea. It focuses on helping answer the essential question… “Should we proceed with the proposed project idea?”
All activities of the study are directed toward helping answer this question
- It looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it?
- It is a preliminary study undertaken before the real work of a project starts to ascertain the likelihood of the project’s success.
- Is an analysis of all possible solutions to a problem and a recommendation on the best solution to use?
- Involves evaluating how the solution will fit into the corporation.
- Can decide whether an order processing be carried out a new system more efficiently than the previous one.
- Could be used to test a new working system, which could be used because although few businesses would not benefit from a computerized system at all, the process of carrying out this feasibility study makes the purchaser/client think carefully about how it is going to be used.