Software Engineering Lecture 1 Feasibility Study Feasibility analysis

Software Engineering Lecture # 1

Feasibility Study Feasibility analysis should be conducted during the analysis phase before the decision is made by the top management. Feasibility is a measure of how beneficial or practical an information system will be to the organization. Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization. Feasibility analysis is the process by which feasibility is measured. Feasibility should be measured throughout the life cycle. The scope and complexity of an apparently feasible project can change after the initial problems and opportunities are fully analyzed or after the system has been designed. Thus, a project that is feasible at one point in time may become infeasible at a later point in time. 2

Continued A feasibility study should provide management with enough information to decide: • whether the project can be done • whether the final product will benefit its intended users • what are the alternatives among which a solution will be chosen (during subsequent phases) • is there a preferred alternative After a feasibility study, management makes a go/no go decision

Continued • Should we develop this system? • Does the system contribute to objectives of the customer? • Are there better and cheaper alternatives they have? • Will it work within the informational/ organizational structure of the organization? • Is the system affordable by the customer? • • Product development Supporting hardware/software User training Maintenance

Continued • Can we develop this system? • Do we have the resources? • People • Expertise/experience • Hardware/software resources • Can it be done within constraints? • On time • Within budget

Operational feasibility • is a measure of how well a specific solution will work in the organization. It is also a measure of how people feel about the system/project. • Does management support the system? • How do the end-users feel about their role in the new system? • What end-users or managers may resist or not use the system? Can this problem be overcome? If so, how? • Usability analysis Ease of use, Ease of learning, User satisfaction

Operational feasibility • Operational feasibility is dependent on human resources available for the project and involves projecting whether the system will be used if it is developed and implemented • Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development. Operational feasibility reviews the willingness of the organization to support the proposed system. .

Operational Feasibility: The PIECES Framework • The PIECES framework can help in identifying problems to be solved, and their urgency: • Performance -- Does current mode of operation provide adequate throughput and response time? • Information -- Does current mode provide end users and managers with timely, accurate and usefully formatted information? • Economy -- Does current mode of operation provide cost-effective information services to the business? Could there be a reduction in costs and/or an increase in benefits?

Continued • Control -- Does current mode of operation offer effective controls to protect against fraud and to guarantee accuracy and security of data and information? • Efficiency -- Does current mode of operation make maximum use of available resources, including people, time, flow of forms, . . . ? • Services -- Does current mode of operation provide reliable service? Is it flexible and expandable?

Technical Feasibility • Is the proposed technology or solution practical? • Do we currently possess the necessary technology? • Do we possess the necessary technical expertise, and is the schedule reasonable? • The technology for any defined solution is usually available; however, the question is whether that technology is mature enough to be easily applied to our problem.

Technical Feasibility • Is it available in the information systems shop? If the technology is available, does it have the capacity to handle the solution. • If the technology is not available, can it be acquired?

Schedule Feasibility • Constraints on the project schedule and whether they could be reasonably met • Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines; You need to determine whether the deadlines are mandatory or desirable. If the deadlines are desirable rather than mandatory, the analyst can propose alternative schedules. • It is preferable (unless the deadline is absolutely mandatory) to deliver a properly functioning information system two months late than to deliver an error-prone, useless information system on time! • Missed schedules are bad, but inadequate systems are worse!

Economic Feasibility • Economic feasibility is a measure to identify the financial benefits and costs related with the development project. • As soon as specific requirements and solutions have been identified, the analyst can weigh the costs and benefits of each alternative. • This is called a cost-benefit analysis.

TYPES Economic feasibility is divided into two major classifications. • Cost estimate • Benefit estimate

Cost classification Cost can be further classified as • Development cost and Operational cost • Fixed cost and Variable cost

Cost estimate • Development Cost and purchasing costs : Development costs are costs that can be associated with the development of a specific System. • who builds the system(internally or contracted out)? software used (buy or build)? hardware (what to buy, buy/lease)?

Operational cost is incurred after the system is implemented and continues while the system is in use. Examples might include systems maintenance, ongoing training, annual software license fees annual maintenance contract fees, and communications expense. Operational costs (on-going) Maintenance: hardware (maintenance, materials, . . . ), software (maintenance fees and contracts)

Continued

Continued • For a small business that wants to introduce a PC-based information system, these cost categories translate to the following: • Project costs: purchasing (hardware, software, office furniture), customizing software, training, system installation • On-going costs: operating the system (data entry, backups, helping users etc. ), maintenance (software) and user support, hardware and software maintenance

Fixed cost and Variable cost • Fixed cost: Fixed costs are costs that are relatively constant and do not depend on a level of activity or effort. Many fixed costs recur regularly, such as salaries and hardware rental charges, office rent etc. • Variable cost: Variable costs are costs that vary depending on the level of activity. Example: - The Costs of Printer stationary paper, ribbon, telephone line charges, electricity etc. are Variable costs.

Benefit estimate • TANGIBLE COSTS Are Costs for which you can assign a specific monetary value (i. e. Dollar value). Examples of Tangible Costs include Employee Salaries, Hardware and Software purchase, and office Supplies. • INTANGIBLE COSTS Are those costs whose monetary (Dollar) value cannot be calculated easily. Examples might include the Cost of Customer dissatisfaction, lowered employee morale, reduced information availability etc.

Benefit estimate

Feasibility • Ethical feasibility: is a test to determine if the project is ethical, or even legal. Ethical feasibility should be tested from both the company perspective, as well as the developer’s perspective and user perspective. • Legal feasibility : Legal feasibility is a measure of how well a solution can be implemented within existing legal and organization’s policy. It’s also regarding copyright issues. For example, if we need certain software in develop the system; we have to make sure that we use the licensed software.