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Feasibility Study Template

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Feasibility Study Template Powered By Docstoc
					This is a template that can be used by a business or an employee to demonstrate the
feasibility of a particular project. This template includes a summary of the project,
project requirements, steps for execution, and a current business overview. The
template can easily be modified to fit the industry-specific needs of the user. This
document is ideal for small businesses and its employees to analyze the feasibility of a
given project.
 Project Name
Feasibility Study
                                                    —Error! Unknown document property name.Draft




Table of Contents
  1    INTRODUCTION ....................................................................................... 4
       1.1 Purpose.............................................................................................. 4
       1.2 Audience ............................................................................................ 4
       1.3 Assumptions....................................................................................... 4
       1.4 Associated Documents....................................................................... 4
       1.5 Definitions .......................................................................................... 4
  2    VERSION CONTROL ................................................................................ 4
  3    EXECUTIVE SUMMARY ........................................................................... 5
  4    BACKGROUND......................................................................................... 5
  5    CURRENT BUSINESS OVERVIEW .......................................................... 6
       5.1 Current Business Definition ................................................................ 6
         5.1.1 Current Business Processes .......................................................... 6
         5.1.2 Current Business Organization ...................................................... 6
         5.1.3 Current Business Locations ........................................................... 6
         5.1.4 Current Business Data ................................................................... 6
         5.1.5 Current Business Applications ....................................................... 6
         5.1.6 Current Business Technologies...................................................... 6
       5.2 Current Business Problems ................................................................ 7
         5.2.1 Business Process Problems........................................................... 7
         5.2.2 Business Organization Problems ................................................... 7
         5.2.3 Business Location Problems .......................................................... 7
         5.2.4 Business Data Problems ................................................................ 8
         5.2.5 Business Application Problems ...................................................... 8
         5.2.6 Business Technologies Problems .................................................. 8
         5.2.7 Other Business Problems............................................................... 8
  6    BUSINESS REQUIREMENTS ................................................................... 9
       6.1 Business Process Requirements ........................................................ 9
       6.2 Business Organization Requirements................................................. 9
       6.3 Business Location Requirements ....................................................... 9
       6.4 Business Data Requirements ........................................................... 10
       6.5 Business Application Requirements ................................................. 10
       6.6 Business Technology Requirements ................................................ 10
       6.7 Other Business Requirements .......................................................... 10
  7    OPTIONS................................................................................................. 11
       7.1 Options Identified ............................................................................. 11
         7.1.1 Option 1: <Name> ........................................................................ 11
         7.1.2 Option 2: <Name> ........................................................................ 11
         7.1.3 Option 3: <Name> ........................................................................ 13
       7.2 Options Analysis .............................................................................. 14
         7.2.1 Financial Costs ............................................................................ 14
         7.2.2 Non-Financial Costs ..................................................................... 14
         7.2.3 Financial Benefits ......................................................................... 15
         7.2.4 Non-Financial Benefits ................................................................. 15
         7.2.5 Duration ....................................................................................... 15
         7.2.6 Risks ............................................................................................ 15
         7.2.7 Issues .......................................................................................... 15




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       7.2.8 Other ............................................................................................ 15
     7.3 Options Selection ............................................................................. 15
8    RECOMMENDATIONS............................................................................ 17




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1 Introduction
1.1 Purpose
  This Feasibility Study has been conducted to determine the best course of action on the
  _________.

1.2 Audience
  Identified stakeholders include:




1.3 Assumptions
  This document assumes:

1.4 Associated Documents
  There are no documents to be read in conjunction with this document.

1.5 Definitions
  The following definitions apply to this document:

  <Enter text>

2 Version Control
  File Name: Document1

  Date           Status   Version    Updated by       Reason for Update
  __/__/__       Draft    a




  Version: a                          Page 4
  Date:
3 Executive Summary
    The purpose of this section is to provide an overview of the entire Feasibility Study
    report.


Provide a descriptive summary of the:
 Purpose of this document;
 Current business organizations and IT systems in place today;
 Requirement for change to current business organizations and IT systems;
 Options for change to current business organizations and IT systems;
 Recommended option chosen;
 Financial expenditure associated with recommended option;
 Risks and issues associated with recommended option;
 Business benefits associated with recommended option;
 Nature of approval requested for this document; and
 Next steps requested.



4 Background
    Describe the project background. This includes:

 The date of formation of the project;
 The method of formation and current level of approval; and
 The general business problem to which the project will address.




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5 Current Business Overview
5.1 Current Business Definition
5.1.1 Current Business Processes
List each of the current business processes relevant to this project. Provide a description for
each major business process. Depict all business processes within a process flow diagram
in order to highlight typical business transaction types (e.g., the payments process).


5.1.2 Current Business Organization
List each of the current business units (e.g., Finance Department) relevant to this project.
Provide a description of the function of each major business process. Depict all business
units within an organization chart in order to highlight business reporting and internal
communication lines.



5.1.3 Current Business Locations
Document the physical location (i.e., street address, city, state) of each business unit
relevant to this project. Depict all business locations within a geographical map (where
appropriate) in order to highlight the physical placement of each business unit.


5.1.4 Current Business Data
Document the major types of business data (e.g., payment information) required in order to
undertake the generic business processes listed above. Document the source repositories
of each of the data types listed (e.g., payments database). Depict all business data types
and sources within a data flow diagram.


5.1.5 Current Business Applications
List each of the current business applications (e.g., financial management system) relevant
to this project. Provide a description for each current business application. Depict all
business applications within an applications architecture diagram in order to highlight the
interfaces between current business applications.


5.1.6 Current Business Technologies
List each of the current business technologies (e.g., mainframe) relevant to this project.
Provide a description for each major technology. Depict all business technologies within a
technology architecture diagram in order to highlight the interfaces between current business
technologies.




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5.2 Current Business Problems


5.2.1 Business Process Problems
List all issues and problems associated with the current business processes (as defined
above). Examples include:
 Process efficiency problems;
 Process timeliness problems;
 Process owner problems;
 Process clarity problems;
 Process dependency problems; and
 Process relevancy problems.
Rate and prioritize the problems highlighted above.


5.2.2 Business Organization Problems
List all issues and problems associated with the current business units (as defined above).
Examples include:
 Business unit definition problems (lack of vision, scope, objectives…);
 Business unit direction problems (misalignment with corporate vision…);
 Business unit structure problems (inefficient/inappropriate structure…);
 Business unit size problems (too large/small…);
 Business unit makeup problems (percentage contractors to permanent….);
 Business unit performance problems (lack of service performance…); and
 Business unit expenditure problems (expenditure consistently greater than budget…).
Rate and prioritize the problems highlighted above.



5.2.3 Business Location Problems
List all issues and problems associated with the current business locations (as defined
above). Examples include:
 Business location security problems (lack of…);
 Business location size problems (too large/small…);
 Business location relevancy problems (does not fit corporate image…);
 Business location financial problems (too expensive…); and
 Business location physical problems (deterioration…).
Rate and prioritize the problems highlighted above.




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5.2.4 Business Data Problems
List all issues and problems associated with the current business data (as defined above).
Examples include:
 Business data quality problems;
 Business data management problems;
 Business data ownership problems;
 Business data maintenance problems;
 Business data adequacy problems;
 Business data consistency problems; and
 Business data reliability.


5.2.5 Business Application Problems
List all issues and problems associated with the current business applications (as defined
above). Examples include:
 Business application reliability problems;
 Business application scalability problems;
 Business application relevancy problems (i.e., fit to business objectives);
 Business application performance problems;
 Business application architecture problems; and
 Business application sizing problems.


5.2.6 Business Technologies Problems
List all issues and problems associated with the current business technologies (as defined
above). Examples include:
 Business technology reliability problems;
 Business technology scalability problems;
 Business technology relevancy problems (i.e., fit to business application);
 Business technology performance problems;
 Business technology architecture problems; and
 Business technology sizing problems.


5.2.7 Other Business Problems
List any other business problems here. Examples include:
 Lack of compliance with safety/regulatory standards;




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6 Business Requirements

6.1 Business Process Requirements
List the requirements associated with all business-process-related problems (see above).


Process Problem                Requirement Summary             Requirement Description




6.2 Business Organization Requirements
List the requirements associated with all business-organization-related problems (see
above).


Organizational Problem         Requirement Summary             Requirement Description




6.3 Business Location Requirements
List the requirements associated with all business-location-related problems (see above).


Location Problem               Requirement Summary             Requirement Description




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6.4 Business Data Requirements
List the requirements associated with all business-data-related problems (see above).


Data Problem                   Requirement Summary             Requirement Description




6.5 Business Application Requirements
List the requirements associated with all business-application-related problems (see above).


Application Problem            Requirement Summary             Requirement Description




6.6 Business Technology Requirements
List the requirements associated with all business-technology-related problems (see above).


Technology Problem             Requirement Summary             Requirement Description




6.7 Other Business Requirements
List the requirements associated with all other-business-related problems (see above).


Other Problems                 Requirement Summary             Requirement Description




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7 Options
7.1 Options Identified
(An “option” is defined as a set of activities which, once implemented, will result in the
satisfaction of the business requirement, as described above).
List each of the options available for implementation. Each option should be described as
follows:


7.1.1 Option 1: <Name>
    Overview

    Provide a comprehensive description of the option. Complete the following table.



Category         Requirement       Solutions
                 (see section 4)

Process                            e.g., undertake a business process re-engineering exercise
Organization                       e.g., undertake a business re-organization exercise
Location                           e.g., undertake a business re-location exercise
Data                               e.g., undertake a data cleansing exercise
Application                        e.g., replace the existing business applications
Technology                         e.g., replace the existing business technologies
Other                              e.g., undertake a safety standards compliance exercise


Issues
List any issues (e.g., technical, architectural, cultural) to be taken into account when
considering the potential implementation of the above option.
Constraints
List any constraints to be taken into account when considering the potential implementation
of the above option.
Risks
List any risks (e.g., business, safety, regulatory) to be taken into account when considering
the potential implementation of the above option.
Assumptions
List any assumptions to be taken into account when considering the potential
implementation of the above option.


7.1.2 Option 2: <Name>


    Overview


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    Provide a comprehensive description of the option. Complete the following table.



Category         Requirement       Solutions
                 (see section 4)

Process                            e.g., undertake a business process re-engineering exercise
Organization                       e.g., undertake a business re-organization exercise
Location                           e.g., undertake a business re-location exercise
Data                               e.g., undertake a data cleansing exercise
Application                        e.g., replace the existing business applications
Technology                         e.g., replace the existing business technologies
Other                              e.g., undertake a safety standards compliance exercise


Issues
List any issues (e.g., technical, architectural, cultural) to be taken into account when
considering the potential implementation of the above option.
Constraints
List any constraints to be taken into account when considering the potential implementation
of the above option.
Risks
List any risks (e.g., business, safety, regulatory) to be taken into account when considering
the potential implementation of the above option.
Assumptions
List any assumptions to be taken into account when considering the potential
implementation of the above option.




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7.1.3 Option 3: <Name>


    Overview

    Provide a comprehensive description of the option. Complete the following table.



Category         Requirement       Solutions
                 (see section 4)

Process                            e.g., undertake a business process re-engineering exercise
Organization                       e.g., undertake a business re-organization exercise
Location                           e.g., undertake a business re-location exercise
Data                               e.g., undertake a data cleansing exercise
Application                        e.g., replace the existing business applications
Technology                         e.g., replace the existing business technologies
Other                              e.g., undertake a safety standards compliance exercise


Issues
List any issues (e.g., technical, architectural, cultural) to be taken into account when
considering the potential implementation of the above option.
Constraints
List any constraints to be taken into account when considering the potential implementation
of the above option.
Risks
List any risks (e.g., business, safety, regulatory) to be taken into account when considering
the potential implementation of the above option.
Assumptions
List any assumptions to be taken into account when considering the potential
implementation of the above option.




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7.2 Options Analysis
Analyze and rate each of the above options based on the following criteria:
 Financial costs;
 Non-financial costs;
 Financial benefits;
 Non-financial benefits;
 Duration;
 Risks;
 Issues; and
 Other.


7.2.1 Financial Costs
    Calculate the financial costs associated with each option and comprise an overall rating
    on a scale of 1-10. Financial costing examples include:



    One-off Project Costs (CAPEX)

 Internal labor costs;
 3rd party vendor costs;
 IT hardware costs;
 IT software costs;
 Premises costs;
 Communications costs; and
 Training costs


   On-going Support Costs (OPEX)

 On-going support costs;
 On-going maintenance costs; and
 On-going training costs.


7.2.2 Non-Financial Costs
    Identify all non-financial costs associated with each option and comprise an overall
    rating on a scale of 1-10. Non-financial costing examples include:

 Temporary reduction in customer service during rollout.




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7.2.3 Financial benefits
   Calculate the financial benefits associated with each option and comprise an overall
   rating on a scale of 1-10. Financial benefit examples include:

 Revenue generation; and
 Cost reduction.



7.2.4 Non-Financial Benefits
   Identify all other non-financial costs associated with each option and comprise an overall
   rating on a scale of 1-10. Non-financial benefit examples include:

 Improved organizational culture; and
 Improved brand image.


7.2.5 Duration
   Identify the likely project duration for each option and comprise an overall rating on a
   scale of 1-10. (The shorter the duration, the earlier the benefits will be realized and
   consequently the higher the overall rating).



7.2.6 Risks
   Identify all risks associated with each option and comprise an overall rating on a scale of
   1-10. Risk examples include:



7.2.7 Issues
   Identify all issues associated with each option and comprise an overall rating on a scale
   of 1-10. Non-financial cost examples include:



7.2.8 Other
   Identify any other criteria applicable to each option and comprise an overall rating on a
   scale of 1-10.



7.3 Options Selection
Complete the following table in order to comprise a complete view of all options available.
Calculate the total score based on a weighting applied to each rating type.




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                                                      Options Rating Table


                       COSTS                               BENEFITS                               OTHER




 Option    Financial   Tangible   Intangible   Financial   Tangible   Intangible    Risk    Issues     Project    Other     TOTAL
  No.        costs      costs        costs     benefits    benefits    benefits    rating    rating   duration   criteria   SCORE
                                                                                                       rating



    1




    2




    3




Select the recommended option based on the highest score from the “Options Rating Table” above.




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8 Recommendations

Based on the selected option above, provide a listing of the specific recommendations made
in order to ensure the timely approval and implementation of the final solution.
Example recommendations include:
 That the recommended option be approved immediately;
 That the time scales for implementation are approved immediately;
 That the “next steps” (as defined below) are approved immediately for execution;
 That the required budget is allocated immediately in order to undertake the “next stage
  plan;”
 That the project manager is allocated immediately in order to undertake the “next stage
  plan;” and
 That the required resources are allocated immediately in order to undertake the ”next
  stage plan.”




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Description: This is a template that can be used by a business or an employee to demonstrate the feasibility of a particular project. This template includes a summary of the project, project requirements, steps for execution, and a current business overview. The template can easily be modified to fit the industry-specific needs of the user. This document is ideal for small businesses and its employees to analyze the feasibility of a given project.