Step 2: The Feasibility Study

The objective for this phase is a report indicating the possible ways of accomplishing the project objective, stating the costs and benefits of each approach. Normally, a recommendation for the best way is implicit, if not explicit. Here are the main activities comprising the feasibility study: Identify the main characteristics of the system.Determine the main output requirements, including response times.Analyse the organisation chart, geographical distribution, etc., of the department(s) involved.Determine the varieties of data and estimated volumes.Consider possible alternative ways of meeting the requirements of user(s).Examine other systems meeting similar requirements.Prepare gross estimates of probable overall implementation and operation costs for each possible alternative.Prepare gross estimates of probable overall direct and indirect benefits for each possible alternative.Document the Feasibility Study in a report for user and systems management.Determine that the requirements of the system are consistent with the company objectives.