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![Page 11Classification: Restricted
What to Study What to Conclude
• Things to be studied during the feasibility study phase:
• The present organizational system (users, policies, functions,
objectives,...)
• Problems with the present system (inconsistencies, inadequacies in
functionality, performance,...)
• Objectives and other requirements for the new system (what needs to
change?)
• Constraints, including nonfunctional requirements on the system
(preliminary pass)
• Possible alternatives (the current system [status quo] is always one of
those)
• Advantages and disadvantages of the alternatives
• Things to conclude:
• Feasibility of the project and the preferred alternative](https://image.slidesharecdn.com/session07gapanalysis-180814193040/85/GAP-Analysis-11-320.jpg)
More Related Content
GAP Analysis
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- 2. Page 2Classification: Restricted Agenda •GAP Analysis • Basic Process • Stages • Feasibility Study • What is Feasibility Study? • Why? • Types • ROI • Feasibility Matrix • Example
- 3. Page 3Classification: Restricted Gapanalysis is a technique to identify the area of improvement in any process ranging from Business to technology. The areas of improvement doesn’t necessarily mean any new enhancement, it is either about finding a gap between what is expected and what is really done. What is Gap Analysis?
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- 9. Page 9Classification: Restricted Whatis Feasibility Study? An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable. • Feasibility study is used to determine the viability of an idea • The objective of such a study is to ensure a project is legally and technically feasible and economically justifiable • It tells us whether a project is worth the investment • It is also called as Feasibility Analysis
- 10. Page 10Classification: Restricted Whydo a feasibility study • IT IS ALL ABOUT MAKING AN INFORMED CHOICE • It is an analysis of the viability of an idea through a disciplined and documented process. • A feasibility study is a management-oriented activity & should tell management: • Whether the project can be done • What are alternative solutions? • What are the criteria for choosing among them? • Is there a preferred alternative? • After a feasibility study, management makes a go/no-go decision. • A feasibility study: • Gives focus to the project and outline alternatives • Enhances the probability of success by addressing and mitigating factors early on that could affect the project • Provides quality information for decision making • Helps to increase investment in the company • Helps in securing funding from lending institutions and other monetary sources
- 11. Page 11Classification: Restricted Whatto Study What to Conclude • Things to be studied during the feasibility study phase: • The present organizational system (users, policies, functions, objectives,...) • Problems with the present system (inconsistencies, inadequacies in functionality, performance,...) • Objectives and other requirements for the new system (what needs to change?) • Constraints, including nonfunctional requirements on the system (preliminary pass) • Possible alternatives (the current system [status quo] is always one of those) • Advantages and disadvantages of the alternatives • Things to conclude: • Feasibility of the project and the preferred alternative
- 12. Page 12Classification: Restricted Typesof Feasibility - TRELOS ➢T - Technology and System Feasibility “Can it be built?” • Technological feasibility is carried out to determine whether the company has the capability, in terms of required technology, software, hardware, personnel and expertise, to handle the completion of the project ➢R - Risk Feasibility ➢E - Economic Feasibility “Will it make economic sense if it works and is built?” “ Will it generate PROFITS?” • Cost-based study: It is important to identify cost and benefit factors eg. Development costs and Operational costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system. • Time-based study: This is an analysis of the time required to achieve a return on investments. The future value of a project is also a factor.
- 13. Page 13Classification: Restricted Typesof Feasibility - TRELOS Cont’d… ➢ L – Legal Feasibility • It includes study concerning contracts, liability, violations, and legal other traps frequently unknown to the technical staff. • Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts. ➢ O – Operational Feasibility “Will it work?” • Operational feasibility is mainly concerned with issues like whether the system will be used if it is developed and implemented. ➢ S – Schedule Feasibility • A project will fail if it takes too long to be completed before it is useful. • Schedule feasibility is a measure of how reasonable the project timetable is.
- 14. Page 14Classification: Restricted EconomicFeasibility • The bottom line in many projects is economic feasibility. • As soon as specific requirements and solutions have been identified, the analyst can weigh the costs and benefits of each alternative. This is called a cost-benefit analysis • The purpose of a cost/benefit analysis is to answer questions such as: • Is the project justified (because benefits outweigh costs)? • Can the project be done, within given cost constraints? • What is the minimal cost to attain a certain system? • What is the preferred alternative, among candidate solutions? • Examples of things to consider: • Hardware/software selection • How to convince management to develop the new system • Selection among alternative financing arrangements (rent/lease/purchase) • Difficulties -- discovering and assessing benefits and costs; they can both be intangible, hidden and/or hard to estimate, it's also hard to rank multi-criteria alternative BENEFIT COST
- 15. Page 15Classification: Restricted Typesof Benefits • Benefits may be classified into one of the following categories: • Monetary -- when $-values can be calculated • Tangible (Quantified) -- when benefits can be quantified, but $-values can't be calculated • Intangible -- when neither of the above applies • Examples of particular benefits: • Cost reductions • Error reductions • Increased throughput • Improved time management ▪ How to identify benefits? • By organizational level (operational, lower/middle/upper management) • By department (production, purchasing, sales,...)
- 16. Page 16Classification: Restricted Typesof Costs • Project-related costs • Development and purchasing costs: • who builds the system (internally or contracted out)? • software used (buy or build)? • hardware (what to buy, buy/lease)? • facilities (site, communications, power,...) • Installation and conversion costs: • installing the system, training of personnel, file conversion,.... • Operational costs (on-going) • Maintenance: hardware (maintenance, lease, materials,...), software (maintenance fees and contracts), facilities • Personnel: operation, maintenance
- 17. Page 17Classification: Restricted Returnon Investment (ROI) • ROI is a percentage that shows what return you make by investing in something. ROI = (Benefit – Cost) ÷ Cost • Example: A company invests in a project that costs $200,000. The benefit of doing the project saves the company $230,000 in the first year alone. In this case, the ROI = (230,000-200,000)/200,000 = 15%. • So for ROI, Bigger is better.
- 18. Page 18Classification: Restricted OperationalFeasibility The PIECES framework can help in identifying problems to be solved, and their urgency: Performance -- Does current mode of operation provide adequate throughput and response time? Information -- Does current mode provide end users and managers with timely, pertinent, accurate and usefully formatted information? Economy -- Does current mode of operation provide cost-effective information services to the business? Could there be a reduction in costs and/or an increase in benefits? Control -- Does current mode of operation offer effective controls to protect against fraud and to guarantee accuracy and security of data and information? Efficiency -- Does current mode of operation make maximum use of available resources, including people, time, flow of forms,...? Services – Does current mode of operation provide reliable service? Is it flexible and expandable?
- 19. Page 19Classification: Restricted ScheduleFeasibility • We may have the technology, but that doesn't mean we have the skills required to properly apply that technology - The learning curve of the team members will impact the schedule. • Given our technical expertise, are the project deadlines reasonable? Determine whether the deadlines are mandatory or desirable? If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules. • It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! Missed schedules are bad, but inadequate systems are worse
- 20. Page 20Classification: Restricted FeasibilityAnalysis Matrix • How do we compare alternatives when there are multiple selection criteria and none of the alternatives is superior across the board? - Use a Feasibility Analysis Matrix! • In a feasibility analysis matrix: • The columns correspond to the candidate solutions • Some rows correspond to the feasibility criteria • The cells contain the feasibility assessment notes for each candidate. • Each row can be assigned a rank or score for each criterion (e.g., for operational feasibility, candidates can be ranked 1, 2, 3, etc.). • After ranking or scoring all candidates on each criterion, a final ranking or score is recorded in the last row
- 21. Page 21Classification: Restricted Exampleof a Feasibility Matrix Feasibility Criteria Wt. Candidate 1 Candidate 2 Candidate 3 Operational Feasibility Functionality. A description of to what degree the candidate would benefit the organization and how well the system would work. Political. A description of how well received this solution would be from both user management, user, and organization perspective. 30% Score: Score: Score: Technical Feasibility Technology. An assessment of the maturity, availability (or ability to acquire), and desirability of the computer technology needed to support this candidate. Expertise. An assessment to the technical expertise needed to develop, operate, and maintain the candidate system. 30% Score: Score: Score: Economic Feasibility Cost to develop: Payback period (discounted): Net present value: Detailed calculations: 30% Score: Score: Score: Schedule Feasibility An assessment of how long the solution will take to design and implement. 10% Score: Score: Score: Ranking: 100%
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- 23. Page 23Classification: Restricted Whatis a Problem Statement A problem statement is a clear concise description of the issue(s) that need(s) to be addressed by a problem solving team. It is used to center and focus the team at the beginning, keep the team on track during the effort, and is used to validate that the effort delivered an outcome that solves the problem statement.
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