Feasibility analysis is the process of evaluating the potential of a proposed project or idea to determine if it is viable, practical, and likely to be successful. It typically involves assessing the technical, financial, and market aspects to identify any potential challenges or risks and to determine if the project is worth pursuing.
Scope of feasibility analysis
The process typically includes a thorough examination of the project’s goals, requirements, and constraints, as well as an assessment of the resources and support that will be required to bring the project to fruition.
- Problem identification
- Concept development
- Market analysis
- Technical analysis
- Organizational analysis
- Financial analysis
- Final report
- Recommendation
- Implementation
Actions of feasibility analysis
1. Problem or opportunity identification: This is the first step in which the problem or opportunity that the project aims to address is defined and identified.
2. Concept development: This phase involves developing a general concept for the project, including a high-level description of the project goals, objectives, and deliverables.
3. Market analysis: This phase involves researching the market to identify potential customers, competitors, and trends that may impact the project. It also includes an analysis of the target market size, potential revenue streams, and the overall market viability of the project.
4. Technical analysis: This phase involves evaluating the technical aspects of the project, such as the feasibility of using current technology, the resources required to develop and implement the project, and any technical risks that may need to be addressed.
5. Organizational analysis: This phase involves assessing the organizational resources and capabilities required to complete the project, including staffing, budget, and management support.
6. Financial analysis: This phase involves evaluating the project’s potential financial return, including projected costs, revenues, and profitability.
7. Final report and recommendation: This phase involves compiling the findings from the previous phases into a final report and making a recommendation to proceed or not with the project.
8. Implementation: This phase is where the project is implemented and executed if the recommendation is to proceed with the project.
Deliverables of feasibility analysis
Note that depending on the project, some phases may be combined or omitted, or additional phases may be added. The results of a feasibility analysis can be used to make informed decisions about whether to proceed with a project and can help to identify any areas that may need further development or attention.
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