For independent projects, Accept if IRR is equal or greater than required rate of return. Reject if IRR is less than required rate of return.
Julia Manzerova The best way to find out whether your project is feasible is to complete a Feasibility Study. This process helps you gain confidence that the solution you need to build can be implemented on time and under budget. The best time to complete it is when you have identified a range of different alternative solutions and you need to know which solution is the most feasible to implement.
Research the Business Drivers In most cases, your project is being driven by a problem in the business. For instance, the business driver might be that an IT system is outdated and is causing customer complaints, or that two businesses need to merge because of an acquisition.
Regardless of the business driver, you need to get to the bottom of it so you fully understand the reasons why the project has been kicked off. Then find out what the impact will be to the business, if the project slips. Confirm the Alternative Solutions Now you have a clear understanding of the business problem that the project addresses, you need to understand the alternative solutions available.
Only with a clear understanding of the alternative solutions to the business problem, can you progress with the Feasibility Study. Determine the Feasibility You now need to identify the feasibility of each solution.
Here are some examples of ways you can assess feasibility: Perform online research to see if other companies have implemented the same solutions and how they got on. Complete some of the tasks in your project plan and measure how long it took vs.
If you delivered it on time, then you know that your planning is quite accurate.
Choose a Preferred Solution With the feasibility of each alternative solution known, the next step is to select a preferred solution to be delivered by your project.
Choose the solution that; is most feasible to implement, has the lowest risk, and you have the highest confidence of delivering. List all of the tasks that are needed to complete the solution.
Then run those tasks by your team to see how long they think it will take to complete them. Add all of the tasks and timeframes to a project plan to see if you can do it all within the project deadline. Then ask your team to identify the highest risk tasks and get them to investigate them further to check that they are achievable.
Then document all of the results in a Feasibility Study report. After completing these 5 steps, get your Feasibility Study approved by your manager so that everyone in the project team has a high degree of confidence that the project can deliver successfully.Establishing a high level plan of the intended project and determining project goals.
The three activities are identify and select the system for development, assess project feasibility and develop the project plan. Feasibility Analysis in System Development Process. Prepare the Proposed Systems Flowchart: After determining the major objectives of the proposed system, the analysts prepare their systems flowcharts.
Systems flowcharts of the proposed system are compared with those of current system in order to ensure that they meet the objectives.
Q1 – What is systems development? Assess the feasibility of the project using four criteria: cost, schedule, technical, and organizational. Form a project team that includes systems analysts and users. Prepare a project plan. Q3 – How do businesses use the systems development life .
AIS chapter Description. N/A.
Total Cards. Subject. Accounting. Level. Undergraduate 3. Created. In which plan within planning systems development is the prioritized list of projects contained?
A) project development plan In which phase of the systems development life cycle is the feasibility study first performed? A) conceptual. Systems, Roles, and Development Methodologies; The feasibility study is not a full-blown systems study.
Rather, the feasibility study is used to gather broad data for the members of management that in turn enables them to make a decision on whether to proceed with a systems study.
Much of the art of determining operational feasibility. A feasibility study, also known as feasibility analysis, is an analysis of the viability of an idea. After determining costs and benefits of a new system, the system analysts evaluate the project using NPV, IRR, Break-even analysis, or other methods.
Also, on the users’ side, the more users familiar with the systems development.