Components of Feasibility Study.

Are you wondering how to go about with Feasibility Studies?

Let me help you.

A feasibility study generally has four components:

1. Product/service technology feasibility,

2. industry/target market feasibility,

3. organizational feasibility, and

4. Financial feasibility.

As the name suggests, the product/service technology feasibility is an effort to understand if the product or the service is a pragmatic solution to customer pain points and if the current technology supports the product/service.

Industry/target market feasibility is to analyze if there is demand and customers are willing to pay for it. In marketing sciences, demand is a customer's desire to own a good/service and willingness to pay for it.

On the other hand, financial feasibility is the exact old figure analysis - the ROI, ratio analysis, breakeven analysis, etc. Numbers! However, it is not the numbers but the interpretation of these numbers that yield sense and predict a company/idea's well-being.

After the above three components, comes the organizational feasibility. It's the backbone of any organization - the legality of the business, its people and their effectiveness. This component maps the legal and corporate structure of the company or the project/idea with the timely availability of trained human resources.

But, if I were to do it for you, I'll break it into the following components for easy experience. I call them the Key Factors to a feasibility study.

1. Business Alignment.

2. Technology and System Assessment.

3. Economic Viability.

4. Operational Considerations.

5. Legal Ramifications.

6. Schedule and Resource Concerns.

7. Market Dynamics.

8. Company Cultural & Political Concerns.

The components and these key factors play a macro-micro role. Think of it as a linear equation. The key factors are the independent variables that have to be carefully weighed and placed into the equation to get the dependent variables, which are the four components. In the upcoming blogs, I shall write more on how to conduct feasibility studies and put a strategy in place for the product/idea development.