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Lecture 3

This document summarizes a lecture on feasibility studies for new software applications. It discusses that feasibility studies are important to establish if an idea is viable and can be completed given available resources and timeframes. The ITIL approach to feasibility studies involves 12 stages including introducing the study, providing a management summary of objectives and benefits, assessing background, technical requirements, options, and costs/benefits. It aims to identify problems, risks, and provide a clear recommendation on how to budget and implement the proposed project. Feasibility studies provide decision makers with an impartial and objective analysis of a new application or system.

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David Tawiah
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34 views24 pages

Lecture 3

This document summarizes a lecture on feasibility studies for new software applications. It discusses that feasibility studies are important to establish if an idea is viable and can be completed given available resources and timeframes. The ITIL approach to feasibility studies involves 12 stages including introducing the study, providing a management summary of objectives and benefits, assessing background, technical requirements, options, and costs/benefits. It aims to identify problems, risks, and provide a clear recommendation on how to budget and implement the proposed project. Feasibility studies provide decision makers with an impartial and objective analysis of a new application or system.

Uploaded by

David Tawiah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Engineering Software Applications/

Software Engineering

Lecture 3 - Feasibility
Overview
• Look at feasibility
• The ITIL Feasibility template

2
Feasibility

A new computer application may come into


existence for many reasons

• Before any project starts need to consider


whether it can actually be done
• Surprisingly this often does not happen!
• Why?

3
Importance of feasibility
• Carried out to establish feasibility of a venture
• Is the idea viable?
• Can we do it?
• Do we have the resources
• Do we have the skills
• Can we do it in time
• Can we afford to do it
• Can we afford not to!

• You do it all the time!

4
What is required?
• Not uncommon for consultants to be used
• Why?
• Preliminary study
• Looks at alternatives
• Simple cost benefit analysis (CBA)
• Often does not directly include the stakeholders
• Field narrowed down for full study

5
Feasibility Study Factors
• Looks at key areas such as:
• Any existing system
• Functions and objectives of new system
• Who are the key stakeholders?
• What are the challenges?
• What are the potential improvements?
• Cost
• Resources
• Efficiency
• Productivity

6
Key questions
• How well will the system work in the given
environment?
• How critical is the need?
• Are timescales realistic?
• What is the probability of success?
• What is the attitude of the stakeholders?
• How well will the organisation/stakeholders
deal with change?
• What is the buy-in from the decision makers?
7
ITIL APPROACH
Origins of ITIL
• UK government recognised growing
importance of IT in 1980’s
• Central Computer and Telecommunications
Agency (CCTA) specified all IT compliance
requirements for government IT projects
• IT Infrastructure Library (ITIL) emerged as a set of
best practices including feasibility
• Latest version 2019
• http://www.itil-officialsite.com/
• ITIL Feasibility approach has 12 stages

9
Stage 1 - Introduction
• The content of the study
• The intent
• The audience
• The purpose
• Organisational details
• Where impacted

10
Stage 2 – Management Summary
• Overview of the ITIL approach
• Background to study
• Objectives
• Situation
• Benefits
• Problems and Risks
• Technical requirements
• Options
• CBA
• Financial/Budget Implications
11 • Recommendations
Stage 3 – Background to Project
• What is the reason for the project?
• Financial
• Operational
• Resource
• Competition
• New technology
• New channel
• Etc.

12
Stage 4 – Objectives
• What is the purpose of the system
• Increase revenues
• Reduce costs
• Material
• People
• New markets
• Often includes metrics
• E.g. reduce costs by 15%
• Gain 5% market share in Nigeria

13
Stage 5 – Situation
• What is the current state
• Old system
• Market
• Organisational
• Products
• Technology
• Resources
• Aim is to establish justification
• And consequences of none adoption

14
Stage 6 – Benefits
• What will be immediate benefits?
• Higher production volumes
• Reduced time to market
• Reduce money to market
• Increased productivity
• Lower overheads cost
• Reduced inventory
• Higher customer satisfaction

15
Stage 7 – Problems and Risks
• Vital to identify the barriers
• Resources
• Technology
• Timescale
• Cost
• Will
• Need to do a full risk assessment

16
Stage 8 – Technical Requirements
• Do we have the technology?
• Hard/Software
• Do we have the expertise?
• In-house
• Outsourced

17
Stage 9 – Options
• What are the alternatives?
• Analysis of each
• Including not doing it
• Costs
• Advantages
• Disadvantages

18
Stage 10 – Cost/Benefit (1)
• Key stage!
• Total cost estimated
• Design
• Development
• Deployment
• Maintenance
• Benefits calculated
• Process improvement
• Delivery times
• Revenue per customer
19
Stage 10 – Cost/Benefit (2)
• Alternatives to CBA
• Payback Analysis
• Return on Investment (ROI)
• Net present value (NPV)

20
Stage 11 – Financial/Budget Implications
• How will the project be funded?
• Constraints
• Reallocations
• Alternatives
• Phased roll-out
• Reduced functionality
• COTS vs Bespoke

21
Stage 12 – Recommendation
• Present recommendation on how project will
be
• Budgeted and scheduled
• Deployed
• Phases
• All at once.

22
Summary
• Be impartial
• Be objective
• Be inclusive
• Be clear/concise
• Feasibility studies are aimed at decision
makers

23
QUESTIONS?

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