If you are planning on conducting a feasibility study, you will need to include the following important elements:
The project scope: The first step is to clearly define the business problem/opportunity that has to be addressed. The project scope has to definitive and to the point. Rambling narratives serves no purpose and can actually confuse participants. Also ensure that you define the parts of the business that would be affected either directly or indirectly. This would include project participants and
end-users. A well-defined project scope can ensure an accurate feasibility study. Starting a project without a well-defined scope can easily lead to wandering outside budget and time.
The current Market analysis: This step is critical as it examines the business environment in which the new product or service will be placed. From this analysis, you can discover the strengths and weaknesses of the current approach. Reviewing the strengths, weaknesses, opportunities, and threats faced by a project helps decision makers focus on the big picture. In some organizations, the
executives may not want to approach a new market unless they know they can dominate it. Other companies prefer to focus on profits gained instead of market share.
The requirements: This component represents two groups of requirements, including technical requirements and organizational requirements. If there is a potential market and demand for the product or service then you need to identify what technical and resource requirements are needed for the new venture. You will need to define your requirements depending on the objective of your project. Project managers that understate the physical and fiscal resources required for a new product or service often end up with failed projects or unfulfilled promises.
The approach: You will next have to consider and choose the recommended solution or course of action to meet your requirements. You can consider various alternatives and then choose a solution that is the most preferable. Before you finalize on the approach, ask yourself the following questions: Does the approach meet my requirements? Is the approach taken a practical and viable solution?
Evaluation: Examines the cost effectiveness of the selected approach and the estimated total cost of the project. Other alternatives will also be estimated for comparison purposes. After the total cost of the project has been calculated, an evaluation and cost summary will be prepared to include a return on investment, cost/benefit analysis etc.
Review: Finally, all the above elements will be assembled into a feasibility study and a formal review will be conducted. The review will be used verify the accuracy of the feasibility study and to make a project decision. At this stage, you can approve, reject or even revise the study for making a decision. If the feasibility study is approved, make sure that all the involved parties sign the
document.
