DIGITAL ASSIGNMENT 3

RISHABH RAJ PRASAD

18BEE0069
Feasibility study on Technical Marketing
Feasibility study
A feasibility study is an assessment of the practicality of a proposed project
or system. A feasibility study aims to objectively and rationally uncover the
strengths and weaknesses of an existing business or proposed venture,
opportunities and threats present in the natural environment,
the resources required to carry through, and ultimately the prospects for
success. In its simplest terms, the two criteria to judge feasibility
are cost required and value to be attained.
A well-designed feasibility study should provide a historical background of
the business or project, a description of the product or service, accounting
statements, details of the operations and management, marketing
research and policies, financial data, legal requirements and tax
obligations. Generally, feasibility studies precede technical development
and project implementation. A feasibility study evaluates the project's
potential for success; therefore, perceived objectivity is an important factor
in the credibility of the study for potential investors and lending
institutions. It must therefore be conducted with an objective, unbiased
approach to provide information upon which decisions can be based.
A project feasibility study is a comprehensive report that examines in detail
the five frames of analysis of a given project. It also takes into
consideration its four Ps, its risks and POVs, and its constraints (calendar,
costs, and norms of quality). The goal is to determine whether the project
should go ahead, be redesigned, or else abandoned altogether. The five
frames of analysis are: The frame of definition; the frame of contextual
risks; the frame of potentiality; the parametric frame; the frame of dominant
and contingency strategies.
The four Ps are traditionally defined as Plan, Processes, People, and
Power. The risks are considered to be external to the project (e.g.,
weather conditions) and are divided in eight categories:
(Plan) financial and organizational (e.g., government structure for a private
project); (Processes) environmental and technological; (People) marketing
and socio cultural; and (Power) legal and political. POVs are Points of
Vulnerability: they differ from risks in the sense that they are internal to the
project and can be controlled or else eliminated.
The constraints are the standard constraints of calendar, costs and norms
of quality that can each be objectively determined and measured along the
entire project lifecycle. Depending on projects, portions of the study may
suffice to produce a feasibility study; smaller projects, for example, may not
require an exhaustive environmental assessment.
Feasibility Analysis is an analytical program through project manager
determines the project success ratio and through feasibility study project
manager able to see either project will useful for us or not and how much
time, it will take to get completed. Also feasibility study allows project
manager to determine all positive and negative points of the project.

As the name implies, a feasibility analysis is used to determine the

viability of an idea, such as ensuring a project is legally and technically
feasible as well as economically justifiable. It tells us whether a project
is worth the investment—in some cases, a project may not be doable.
There can be many reasons for this, including requiring too many
resources, which not only prevents those resources from performing
other tasks but also may cost more than an organization would earn back
by taking on a project that isn’t profitable.

It is an analytical program through project manager determines the

project success ratio and through feasibility study project manager able
to see either project will useful for us or not and how much time, it will
take to get completed. Also feasibility study allows project manager to
determine all positive and negative points of the project.
Feasibility Study is a preliminary study undertaken to determine and
document a project's viability. The term feasibility study is also used to
refer to the resulting document. These results of this study are used to
make a decision whether to proceed with the project, or table it. If it
indeed leads to a project being approved, it will — before the real work
of the proposed project starts — be used to ascertain the likelihood of
the project's success. It is an analysis of possible alternative solutions to
a problem and a recommendation on the best alternative. It, for
example, can decide whether an order processing be carried out by a
new system more efficiently than the previous one.

Market Research and feasibility studies explained

Market research is the process of systematically gathering, recording and

analyzing data and information about customers, competitors and the
market. Its uses include to help create a business plan, launch a new product
or service, fine tune existing products and services, and expand into new
markets. Market research can be used to determine which portion of the
population will purchase a product/service, based on variables like age,
gender, location and income level.

Market research is generally either primary or secondary. In secondary

research, the company uses information compiled from other sources that
appears applicable to a new or existing product this has advantages and
disadvantages some of the advantages are that its very cheap and easily
accesable but the disadvantages are that its not specific to what you want to
find out and can also be biased but that can never be checked. Primary
market research involves testing such as focus groups, surveys, field tests,
interviews or observation, conducted or tailored specifically to that product.

A list of questions that can be answered through market

research:
•What is happening in the market? What are the trends? Who are the
competitors?

•How do consumers talk about the products in the market?

•Which needs are important? Are the needs being met by current
products?

Market research for business planning

Market research is for discovering what people want, need, or believe. It can
also involve discovering how they act. Once that research is complete it can
be used to determine how to market your specific product.

For starting up a business there are a few things that are important:

Market information
Market information is making known the prices of the different
commodities in the market, the supply and the demand. Information about
the markets can be obtained in several different varieties and formats.
Examples of market information questions are:

1. Who are the customers?

2. Where are they located and how can they be contacted?

3. What quantity and quality do they want?

4. What is the best time to sell?

Market segmentation
Market segmentation is the division of the market or population into
subgroups with similar motivations. Widely used bases for segmenting
include geographic differences, personality differences, demographic
differences, use of product differences, and psychographic differences.

Market trends
The upward or downward movements of a market, during a period of time.
The market size is more difficult to estimate if you are starting with
something completely new. In this case, you will have to derive the figures
from the number of potential customers or customer segments.

But besides information about the target market you also need information
about your competitor, your customers, products etc. A few techniques are:

•Customer analysis

•Choice Modelling

•Competitor analysis
•Risk analysis

•Product research

•Advertising research

Tools for Conducting a Feasibility Study

Feasibility studies reflect a project's unique goals and needs, so each

is different. However, the tips below can apply broadly to undertaking
a feasibility study. You may, for example, want to do the following:

 Get feedback about the new concept from the appropriate

stakeholders
 Analyze and ask questions about your data to make sure that it's
solid
 Conduct a market survey or market research to enhance data
collection
 Write an organizational, operational, or a business plan
 Prepare a projected income statement
 Prepare an opening day balance sheet
 Make an initial "go" or "no-go" decision about moving ahead with
the plan

Different Types of Feasibility Study

There are certain important types of feasibility study which are as follow

1.Technical Feasibility Study

2.Managerial Feasibility Study

3.Economic Feasibility Study

4.Financial Feasibility Study

5.Cultural Feasibility Study

6.Social Feasibility Study

7.Safety Feasibility Study

8.Political Feasibility Study

9.Environmental Feasibility Study

10.Market Feasibility Study

The engineering feasibility of the project in viewed in the technical

feasibility. Certain important engineering aspects are covered which are
necessary for the designing of the project like civil, structural and other
relevant aspects. Technical capability of the projected technologies and the
capabilities of the personnel to be employed in the project are considered.
In certain examples especially when projects are in third world countries,
technology transfer between cultures and geographical areas should be
analyzed. By doing so productivity gain (or loss) and other implications are
understood due to the differences in fuel availability, geography,
topography, infrastructure support and other problems.

Managerial Feasibility Study

Managerial feasibility is ascertained by certain key elements like employee
involvement, demonstrated management availability & capability and
commitment. The managerial and organizational structure of the project is
addressed by this feasibility which ensures that the proponent’s structure
mentioned in the submittal is feasible to the kind of operation undertaken.
Economic Feasibility Study
Economic feasibility refers to the feasibility of the considered project to produce
economic benefits. A benefit-cost analysis is needed. Furthermore the economic
feasibility of a project can also be evaluated by a breakeven analysis. In order to
facilitate the consistent basis for the evaluation, the tangible and intangible facet
of a project must be translated into the economic terms. Economic feasibility is
critical even when the project is non-profit in nature.

Financial Feasibility
Financial feasibility must be differentiated from economic feasibility. The ability of
the project management to raise sufficient funds required to implement the
proposed project is included in the financial feasibility. Additional investors and
other sources of funds are considered by the project proponents for their projects
in many cases. In such situations feasibility, sources, soundness and applications
of these project funds may be a hindrance. Other aspects of financial feasibility
should also be viewed, if appropriate, like credit worthiness, loan availability,
equity, and loan schedule. The implications of land purchase, leases and other
estates in land are also reviewed in the financial feasibility analysis.

Cultural Feasibility Study

The compatibility of the proposed project with the cultural environment of the
project is included in the cultural feasibility. Planned operations should be
integrated with the local cultural beliefs and practices in labor intensive projects.
For example what a person is willing to perform or not perform is influenced by
his religious beliefs.

Social Feasibility Study

The affect that a proposed project may have on the social system in the project
environment is addressed in the social feasibility. It may happen that particular
category of employees may be short or not available as a result of ambient social
structure. The influence on the social status of the participants by the project
should be evaluated in order to guarantee compatibility. It must be identified that
employees in the particular industries may have specific status symbols within the
society.

Safety Feasibility Study

Another important aspect that must be considered in the project planning is the
safety feasibility. Safety feasibility involves the analysis of the project in order to
ascertain its capacity to implement & operate safely with least unfavorable
effects on the environment. Mostly in complex projects, environmental impact
assessment is not properly addressed.

Political Feasibility Study

The directions for the proposed project are mostly dictated by the political
considerations. This is certainly correct for large projects with potential visibility
that may have important political implications and government inputs. For
example, regardless of the merit of project, the political necessity may be a
source of assistance for a project. On the other hand because of political factors,
value able projects may face uncontrollable opposition. An evaluation of the
objectives of project with the current objectives of the political system is required
in the political feasibility analysis.

Environmental Feasibility Study

Environmental aspect is very crucial in making any potential project successful or
failed. In the very early stages of the project, this aspect should be considered. All
the environmental concerns raised or forecasted should be addressed in
environmental feasibility so that proper actions can be taken to cover relevant
issues of the environment. The ability of the project to timely acquire the
required permits, licenses and approvals at a reasonable cost should also be
included in this area.
Market Feasibility Study
Market feasibility must not be mixed up with the economic feasibility. The
potential influence of market demand, competitive activities and available market
share should be considered in the market feasibility analysis. During the start up,
ramp up and commercial start up phases of the project, possible competitive
activities (local, regional, national and international) should be analyzed for early
contingency funding and impacts on the operating costs.

Legal Feasibility
This assessment investigates whether any aspect of the proposed project
conflicts with legal requirements like zoning laws, data protection acts or
social media laws. Let’s say an organization wants to construct a new office
building in a specific location. A feasibility study might reveal the
organization’s ideal location isn’t zoned for that type of business. That
organization has just saved considerable time and effort by learning that
their project was not feasible right from the beginning

Operational Feasibility
This assessment involves undertaking a study to analyze and determine
whether—and how well—the organization’s needs can be met by
completing the project. Operational feasibility studies also examine how a
project plan satisfies the requirements identified in the requirements
analysis phase of system development.

Scheduling Feasibility
This assessment is the most important for project success; after all, a project
will fail if not completed on time. In scheduling feasibility, an organization
estimates how much time the project will take to complete.
Two criteria for judging a project feasibility
study
There are mainly two criteria to judge feasibility in a project feasibility study
according to. The first one is the cost required and the second one is the
value to be delivered. A well-designed and well-planned project feasibility
study should offer:

 A historical background of the business problem or improvement

opportunity
 A description of the product or service
 Accounting statements, details of operations and management
 Marketing research and policies
 Financial data, legal requirements and tax obligations

When these areas have all been examined, the feasibility analysis helps
identify any constraints the proposed project may face, including:

 Internal Project Constraints: Technical, Technology, Budget, Resource,

etc.
 Internal Corporate Constraints: Financial, Marketing, Export, etc.
 External Constraints: Logistics, Environment, Laws, and Regulations,
etc.
5 Benefits of conducting a project feasibility study
The importance of a feasibility study is based on organizational desire to
“get it right” before committing resources, time, or budget. A feasibility
study might uncover new ideas that could completely change a project’s
scope. It’s best to make these determinations in advance, rather than to
jump in and to learn that the project won’t work. Conducting a feasibility
study is always beneficial to the project as it gives you and other
stakeholders a clear picture of the proposed project

Let us quickly have a look at the 5 benefits of conducting a project feasibility

study. Conducting a project feasibility study is always beneficial to the
project. It gives all stakeholders a clear picture of the business problem
or improvement opportunity under consideration.

1. Give valid reasons for undertaking the project

A project feasibility study helps the project team to identify valid reasons
to undertake the project. Please remember that not every reason is actually
a valid reason. It is equally important that the project team should be able to
measure the validity of the reason in terms of data, facts, figures, etc. The
project feasibility study helps the project team to measure the validity of the
reasons for doing a project in a quantified manner. Our gut feelings do not
hold any value here!

2. Make key decisions prior to the project kick-off

A project feasibility study helps project team make critical decisions prior
to the project kick off. The crucial decision can be in terms of whether or
not the project is doable, whether or not the project is operationally and
financially viable etc.

3. Prioritize business problems and improvement opportunities

The project feasibility study helps project teams prioritize the business
problems or improvement opportunity. Of course, the prioritization is
done in a quantified manner.
4. Narrow down the scope of the project

The project feasibility study helps narrow-down the scope of the business
problem under consideration. The business problem can be complex and
vast in nature. In such a case, in order to reduce the complexity, it is
necessary to narrow down the scope of the problem or improvement
opportunity. One or two improvement projects cannot solve all problem of
the organization. You will have to look at each business problem separately
as long as none are co-related.

5. Determine the success rate of the project

The project feasibility study helps enhance the success rate of the project
by evaluating multiple parameters. The rule is simple! The project
feasibility study has to be 360-degree. For the given business problem or
improvement opportunity, the project feasibility study shall be done
considering all relevant parameters. It ensures project success on 95%+
occasions

. Below are some key benefits of conducting a feasibility study:

 Improves project teams’ focus

 Identifies new opportunities
 Provides valuable information for a “go/no-go” decision
  Narrows the business alternatives
 Identifies a valid reason to undertake the project
 Enhances the success rate by evaluating multiple parameters
 Aids decision-making on the project
 Identifies reasons not to proceed

Apart from the approaches to feasibility study listed above, some projects
also require other constraints to be analyzed -

 Internal Project Constraints: Technical, Technology, Budget, Resource,

etc.
  Internal Corporate Constraints: Financial, Marketing, Export, etc.
 External Constraints: Logistics, Environment, Laws and Regulations,
etc.

The results of this project feasibility study are used in making the decision
whether to proceed with the project or not. The objective of such a study
is to ensure that a project is legally, technically, financially, and operationally
feasible. The project feasibility study tells us whether a project is worth the
investment or not. Most importantly, a project feasibility study evaluates the
project and its potential for success. If the project feasibility study has any
errors, then there is a definite chance that your project will fail. This is how
the importance of feasibility study can be explained.

Common organizational or project issues for

success
For completing the project feasibility study successfully, we need to learn
about the common project issues; which project teams normally come across.

The first common issue is that the project is not relevant to customer or
business needs. Any Six Sigma project will certainly fail if it is not relevant
to customer or business needs. Of course, it has to be a key business need.
One project cannot address all business critical and non-critical problems. A
project feasibility study will shed light on this issue.

The second issue relates to the inability to define any kind of defect or
process boundaries. If the project team is not in a position to define one or
more defects for the business problem under consideration, then possibly, the
project feasibility study needs to be re-evaluated. Moreover, if the team
cannot identify Starting and End points, then such issue has to be addressed
on a high priority.

The third issue relevant to project feasibility study is all about the
complications in data collection. The project team should always ensure,
prior to the beginning of the project, that there are no complications in data
collection. The Six Sigma method is rigorous and data-driven. Without
sufficient data and information, the project team may not be able to proceed
at all across various stages in the project journey. Without data availability,
the project can also go on-hold. A project feasibility study helps to validate
the methods of measurement.

The fourth issue relates to the project scope. It is practically possible that the
business problem or improvement opportunity is so complex and vast that
project team is not in a position to commit timelines and resources. No such
business problems should be picked-up in one go. Slicing and dicing the
problem by means of a project feasibility study can help with this.

The fifth issue relates to sponsorship support. Six Sigma is a top-down

approach. The strategic blessings or complete buy-in from top management
are critically needed for each and every Six Sigma project to succeed. A
project feasibility study can provide all the ammunition needed to get buy-in
from key decision makers.

A needs analysis should be the undertaking of a feasibility study as it

clearly defines the project outline and the clients' requirements. Once
these questions have been answered the person/s undertaking the
feasibility study will have outlined the project needs definition. The
following questions need to be asked to define the project needs
definition: What is the end deliverable? What purpose will it serve?
What are the environmental effects? What are the rules and
regulations? What standards will we be measured against? What are
the quality requirements? What are the minimal quality requirements
allowed? What sustainability can we expect? What carry over work
can we expect? What are the penalty clauses? How much do we need
to outsource? How much do we need to insource?
.

Reference:
1. Justis, R. T. & Kreigsmann, B. (1979). The feasibility study as a
tool for venture analysis. Business Journal of Small Business
Management
2. Feasibility studies as a tool for successful co-operative business
enterprises "(A case study of the importance of Feasibility
students to co-operative investment)". grossarchive.com.
Retrieved 2015-11-09.
3. Application of the semantic learning approach in the feasibility
studies preparation training process. Information Systems
Management
4. O'Brien, J. A., & Marakas, G. M. (2011). Developing
Business/IT Solutions. In Management Information Systems
(pp. 488-489). New York, NY: McGraw-Hill/Irwin.
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