Feasibility study, as the name indicates, is an analysis of the feasibility of a project both technically and legally and if it is economically justifiable. This helps an organization from making the wrong investment. A project can be unreasonable for many reasons. Some might require too many resources that would keep them from doing other tasks.
This might eventually cost the company more than what they have invested in the projects. A good feasibility study covers key areas like the details of the services or products related to the project, account statements, legal obligations, tax requirements, financial data, and policies. Some projects might require additional investment in technology and for implementation of the project. Feasibility study finds relevant in the current-day business landscape which is severely affected by the COVID-19 pandemic.
Many organizations prefer to ensure the feasibility of a project before investing in that. This makes it an excellent career choice more than ever. To pursue this career, you may enrol in a Business Management Course.
Different Kinds of Feasibility Studies
Depending upon the type of project evaluated, feasibility studies can of different types. Some important types are:
Technical Feasibility Study
In this type of project assessment, the focus is on technical resources in a company, and if their technical team is skilful and capable of converting the concepts and ideas into practical working models. The person is also responsible to evaluate the technical requirements including software, hardware, and other components.
Economic Feasibility Study
As the title suggests, the role deals with the cost factor. This role is designed to help the organization to decide if a project is viable and economically feasible, after evaluating various factors. This is done before allocating the financial resources needed for a project. Assessing a project independently also helps enhance the credibility of that project, and to evaluate the economic benefits the proposed project brings to the organization.
Legal Feasibility Study
While finalizing and approving a project, it is important to make sure that it does not conflict with the legal aspects about the subject – data protection rules, social media regulations or zoning laws.
For example, if an organization is planning to build a new office or moving to new premises, the legal feasibility manager is responsible for making sure that that kind of business is allowed in that location, and that locality is not part of any special zone with restrictions to certain businesses.
Operational Feasibility Study
Operational feasibility assessment involves a thorough analysis of a project and its outcome to determine if that project can satisfy the needs of the organization. Mostly requirement analysis is done while the system development is in progress, and while doing a feasibility study, the capability of the project to satisfy the needs identified during requirement analysis.
Scheduling Feasibility Study
For any project, the timeline is important. A project will not be able to deliver the expected result if not completed on time. Scheduling feasibility is concerned with estimating how much time would it take to finish.
The Relevance of the Feasibility Study
Organizations need to invest in the right project. So before committing, organizations prefer to analyse the project in terms of resources, budget, and time. Sometime, feasibility studies could help to unearth a new idea or scope. Also, conducting a feasibility study is important for the stakeholders to get a clear picture of the project. Conducting such a feasibility study has many other benefits including:
- Helps in decision-making (about the project).
- Improves the success rate by assessing multiple factors.
- Identifies and establishes a strong reason to take on the project.
- Recognizes new opportunities for improvement.
- Identifies flaws and unreasonable grounds to call off a project.
- Improves the focus of the project team.
You now know the importance of feasibility studies. If you want to pursue a business management career, enrol in a good course offered by a reputed organization like Imarticus Learning.
Not only you get business management training from good faculties, but also get to build your network and secure a good job. Imarticus has partnered with many leading organizations to get a good launching pad for their students. After all, what could be a better beginning than working with a market leader!