Steps to Prepare Feasibility Study Report for Software Development Project


Steps to Prepare Feasibility Study Report

Carrying out a feasibility study is one of the primary activities at the starting of a project. Its main aim is analyzing and also justifying the project with regards to technical feasibility, cost-effectiveness, and even business viability.

Feasibility study serves as a way of proving the project’s reasonability as well as justify why the launch is needed. After carrying out a study, the report is developed to conclude on the whole activity. Besides, the report states if the project is practical and also realistic.

1. Definition Of A Feasibility Study Report

This is a document that mainly aims at identifying, exploring, and evaluating the solution of the project to save money and time. FSR (feasibility study report) is a documented sample of a feasibility study. It summarizes analysis and evaluation results conducted for reviewing the solution that was proposed and also investigated the alternatives of the project. This will help in determining whether the project is profitable, feasible, and cost-effective. The report normally describes and even support the feasible solution of the project.

A feasibility study today is becoming a fundamental document that is developed both at the foundation and in the process of development of the company. The absolute need for a feasibility study appears during the introduction of innovative technologies in the development of the software for the implementation of the desired goals.

The feasibility study partially covers the activities of the company and does not include articles describing the business as a whole. The feasibility study describes and calculates the information corresponding to the upcoming changes in the company.

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The feasibility study is used to calculate innovations and the opportunity to determine all the possible bottlenecks of this action. At the stage of compiling a feasibility study, the totality of all the circumstances that affect the enterprise is taken into account. All changes in financial indicators are also taken into account.

This software product, like any technical solution, must be considered from an economic point of view of economic feasibility and benefit. The purpose of the feasibility study is the quantitative and qualitative proof of the economic feasibility of improving the program, as well as determining the organizational and economic conditions for its effective functioning.

The effectiveness of a software module is determined by its quality and the effectiveness of the development and maintenance process.

A correctly created feasibility study makes it possible at this stage to determine the effectiveness of investments spent on opening additional or reconstruction of existing types of activities of the enterprise. A feasibility study will answer the questions about the need for a takeover or merger, justify the possible need for credit, help determine the choice of the required equipment, determine the optimal technology, and ensure optimal operation of the enterprise.

2. Steps to Prepare Feasibility Study Report

Preparing a FSR for a software development project is not an easy thing. You need to know the basics involved and how to start with the preparation. Below are steps on how to carry out that:



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a) Project Description

This is the first step in preparing a feasibility study report for the software development project. Here, you are required to gather the necessary background data on that project and write a description. For instance, if a firm is to increase the sales online and even promote your services on the web, then, the very first part of the report is the description. It will be “This project is a site developed to enhance the services on the internet and also increase online sales” mainly by encouraging clients to get to your site. This will, in turn, increase your online sales.

b) Market Analysis

In this section, you want to show that you spent time exploring your target audience and how they are likely to react to your project or business. It will also help you show them how you plan to convert the target market into paying customers. You must include:

• A demographic description of your target audience, especially its age, profession, ethnicity, income, place of residence, etc.

• Details of your industry, competitors, and how you plan to enter the market and defeat your competitors.

• How do you plan to reach your target audience and turn it into loyal customers?

• Your competitive advantage and why you think you will perform better than other current players in the industry.

c) Technical Specifications

This section describes the steps that can be taken to complete the project, which describes the length of time required for the project and the main stages of the project, the machines that will be used to complete the project, and the time frame during which the entire project will be completed.

Here you will also tell about the steps that you intend to take to ensure the highest possible quality of the project (quality control).

d) Risk Analysis

In this section, you want to show your customers that you have spent time analyzing and understanding the weaknesses and risks associated with this project and are fully prepared to deal with any potential risks. And stop them from becoming a serious problem.

e) Describe the Possible Solutions

Here you are required to perform alternatives analysis and also make the description of solutions for the project. The solutions will help you with the way forward of your project.

f) Evaluation Criteria

After the market research, you need to define the evaluation criteria. This step is where you need to investigate solutions and match them with the evaluation criteria.

g) Propose with the Feasible Solution

After evaluating the solutions, the next step is to determine the economical and technically feasible solution. Then the most feasible solution for your project is identified.

h) Conclusion

This is the very last step in preparing a feasibility report. You are required to make a conclusion, which is the summary of the aim of the project while stating the best feasible solution. For instance, your conclusion might be, “The main aim of this project is to develop a software that will aid in online selling, attract the attention of the customers and also be cost-effective.

After the feasibility study is completed, the results are compared with the (FSR), which will contain a summary of the project, and this will determine whether the project should be carried out in the first place or not.

3. Things To Consider Before Conducting Feasibility Study for Software Development Project

The task of economic calculation is to determine from an economic point of view the feasibility of the development and implementation of the project.

This software product, like any technical solution, must be considered from an economic point of view of economic feasibility and benefit. The purpose of the feasibility study is the quantitative and qualitative proof of the economic feasibility of improving the program, as well as determining the organizational and economic conditions for its effective functioning.

a) Quality and Effectiveness of The Product

The effectiveness of a software module is determined by its quality and the effectiveness of the development and maintenance process. Three components determine the quality of a software product:

• From the point of view of a specialist – user of this software product;

• From the standpoint of the use of resources and their assessment;

• To meet the requirements for a software product.

A software product must be designed so that it performs its functions without unnecessary resources.

The content of the feasibility study for the development of the program is as follows:

• Calculation of technical and economic indicators and the choice of a comparison base;

• Determination of the complexity and cost of software;

b) Product Innovation and Impact

The feasibility study is used to calculate innovations and the opportunity to determine all the possible bottlenecks of this action. At the stage of compiling a feasibility study, the totality of all the circumstances that affect the enterprise is taken into account. All changes in financial indicators are also taken into account.

To fully prepare the feasibility study, it is necessary to solve a lot of problems:

• Describe the technical and technological component of the project;

• Describe the innovative part with the idea and technical implementation (if it takes place);

• Describe the whole structure of the system and determine whether it is possible to realize the idea on its basis or whether it will be necessary to make changes in the structure, purchase new equipment, expand scope, and master new technologies;

• Determine the requirements for labor resources, requirements for possible suppliers, the necessary qualifications of employees

This will help in determining if the project is profitable, feasible, and cost-effective. The report normally describes and supports the feasible solution of the project.

Conclusion

Preparing feasibility report for software development projects are very important and should not be ignored at all costs.

If you follow the steps described in this article, you will be able to prepare a comprehensive feasibility study report containing all the important details that potential investors and other relevant parties should see.

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