Feasibility Analysis

Feasibility Analysis

prepared September 8, 2008

Slides by Topic

  • Terminology
  • Terminology: Goals versus Objectives
  • IS Goals & Objectives
  • Terminology: Feasibility «Analysis» or «Study»
  • Goals
  • Goals for Feasibility Analysis
  • What Kind of Feasibility?
  • Objectives
  • Objectives of Feasibility Study
  • Place IS in Context
  • Define the Scope
  • Client Factors
  • Benefit/Cost Analysis
  • Benefit/Cost Analysis
  • Benefits
  • Costs
  • Presenting Benefit/Cost Analyzes
  • Tradeoffs
  • Approaches and Techniques
  • Determine Available Knowledge
  • Sources of Knowledge
  • Dimensional Analysis
  • Dimensional Analysis Example

  • Terminology: Goals versus Objectives

    Conventional usage:

     goal 'go^-l, chiefly Northern esp in 1b &
    3a also 'g:ul n [ME gol boundary, limit] 1: the terminal point of a race
    2: the end toward which effort is directed: AIM 3a: an area or object
    toward which players
        in various games
                 . . .  syn see INTENTION 

    ob-jec-tive \b-'jek- tiv, a^:b- n 1: a lens or system of lenses that forms an image of an object 2a: something toward which effort is directed :an aim, goal, or end of action 2b: a strategic position to be attained or purpose to be achieved by a military operation syn see INTENTION

    That is, essentially the same.

    Specialized usage:

    GOAL

    * desired state or object

    * broad, high-level, long-term

    * «vision statement,» sometimes mistaken for platitudes

    == strategy

    OBJECTIVE

    * specific action or accomplishment

    * short-term

    * measurable

    can be evaluated
    not necessarily quantified

    == tactic

    [ slides 2 thru 3 combined in above ]


    IS Goals & Objectives

    GOALS

    * External

    * improve products or services

    * Internal

    * improve process quality

    * decrease effort or cost

    desirable goal, but not likely

    OBJECTIVES (* a few examples)

    * «Technology injection»

    * network all clerical staff

    * Change operations

    * data entry at point-of-sale

    * Improve productivity

    * share data


    Terminology: Feasibility «Analysis» or «Study»

    our usage:

    Feasibility Study: the milestone 1 document

    Feasibility analysis: the process of determining whether or not a project is feasible

    a related term, conventional usage:

    Systems analysis: the process examining a problem from initial definition through preliminary design


    Goals for Feasibility Analysis

    Our primary goal:

    * Determine whether the problem admits a useful solution within our capabilities?

    Additional goal, important in commerce

    * Demonstrate value of project to potential client.

    A Lighter Note

    Fees-ability: What fee can we charge for doing this project?


    What Kind of Feasibility?

    * Economic
    Does the benefit/cost analysis justify the project?

    * Specification
    Do the requirements appear to be clear and stable?

    Are the scope boundaries well-defined?

    * Technical
    Are there limits of theory or technology applicable to the project?

    * Schedule
    Can the project be completed on time with available staff and resources?

    * Information
    Is the available information complete, reliable, and meaningful?

    * Operational
    Is the client staff technically able to operate the project? example issues - data entry, ``computer phobia''

    * Motivational
    Is the client staff willing motivated to perform the necessary steps correctly and promptly.

    * Legal & Ethical
    Do any infringements or liabilities arise from this project?

    * Summary
    Can we build a reliable, effective system on-time and within cost?

    [ slides 7 thru 8 combined in above ]


    Objectives of Feasibility Study

    * Place IS in context

    * Define the scope

    * Determine client factors

    * Determine benefits and costs

    * Determine whether necessary knowledge is available

    will discuss each in turn


    Place IS in Context

    Components of an Information System:

    expand this figure

    ****** OMITTED OVERLAY ******


    Define the Scope

    Scope a dominant factor!

    Scope and context often intertwined

    both involve the boundary

    Context:

    what holds outside the boundary

    Scope:

    what is do be done inside the boundary

    e.g. warehouse operations

    context -

    scope -


    Client Factors

    Identify the stakeholders

    * Over the entire scope

    * Over the entire life of the project


    Benefit/Cost Analysis

    Analyze separately

    * Clearly focus on each

    * Something has both benefits and costs

    => It appears both places

    Benefit or cost for whom?

    * Personal versus organizational

    Danger zones:

    * Intangible benefits

    * Intangible costs

    * Hidden costs


    Benefits

    Example:

    order information propagated from sales to other departments

    Consequences:

    * Eliminate redundant data entry

    => Efficiency of operation

    * Lack of redundancy increases consistency

    => Accuracy

    * Shared data facilitates product development

    => New or improved capabilities

    * Managers have access to up-to-date information

    => Timeliness of decisions


    Costs

    * Hardware
    [] remember backup

    * Software Acquisition
    [] for development [] for operation (run-time) [] documentation, training, etc.

    * Software development
    (real world, not P465-P565)

    * Changeover to new system
    [] retraining [] data reentry [] data cleaning

    * Client's personnel
    [] during development

    [] for operations [] for system management

    * Operational costs
    [] maintenance [] expendables [] etc.

    * Other


    Presenting Benefit/Cost Analyzes

    Why use the phrase «benefit/cost»

    while «cost/benefit» is more typical?

    Because benefits are often difficult to monetize

    while costs have clear dollar amounts

    itemize rather than just show «bottom line»

    Is tabular format a good idea?


    Tradeoffs

    Consider alternatives

    * Do benefit/cost analysis on each

    * Make tradeoffs explicit

    * Table of alternative versus benefit/cost

                  |                      |
     alternative  |       benefit        |         cost
    --------------+----------------------+----------------------
                  |                      |
                  |                      |
                  |                      |
                  |                      |
                  |                      |
                  |                      |
                  |                      |
                  |                      |
                  |                      |
    
    


    Determine Available Knowledge

    You need to know about:

    * information

    * operations

    * what the client does

    * how they do it

    * personnel

    * responsible («owners»)

    * supervisors

    * operators

    * technology

    * current

    * potential


    Sources of Knowledge

    * Background

    * technical

    * domain

    * Investigation

    * library

    * web/on-line

    * observation

    ! interviews

    * Anticipation

    * the essential mark of professionalism


    Dimensional Analysis

    Clarify classification & description by asking:

    Along what dimensions do these things differ?

    e.g. Biological taxonomy - trees

    Dimensions may be:

    * binary
    e.g. deciduous/non-deciduous

    * parametric
    e.g. bark texture (ordered smooth -> rough)
    e.g. branching structure (unordered)

    * numeric
    e.g. mature height (continuous)
    e.g. number of lobes per leaf (discrete)


    Dimensional Analysis Example

    In considering benefits and costs,
    where do disadvantages fit into the picture?

    Need to do dimensional analysis of benefits & costs

    Dimension already identified:

    old versus new system

    one-time versus ongoing

    Contrast:

    * no data reentry versus data conversion effort

    * no data reentry versus manager has better data

    * no data reentry versus more system administration

    © Copyright Edward Robertson, 2108-9-8