A feasibility study attempts to establish whether a project is economically, financially, technically and socially acceptable. a) (i) Name two ways in which a new system...

      

A feasibility study attempts to establish whether a project is economically, financially,
technically and socially acceptable.
a) (i) Name two ways in which a new system can realize direct savings.
(ii) Name two intangible benefits that can be realized by a new system.
(iii) Name two methods of carrying out an investment appraisal.
b) (i) List three factors to be considered in technical feasibility.
(ii) Mention two circumstances under which you would recommend the use of computer
bureaux instead of developing a new system.
c) (i) Name two factors to be considered in social feasibility study.
(ii) What is the role of the user during the feasibility study stage?
d) You have just completed a feasibility study and you are now in the process of writing a
feasibility study report. Briefly describe five main sections of your report

  

Answers


gregory
a) (i) Ways in which the system can realize cost savings:
o Reduction in labour costs by reduction or elimination of clerical personnel.
o Elimination of some specific costs e.g. stationary costs.
(ii) Intangible benefits that can be realized by a new system:
o Improved customer satisfaction.
o Better performance.
o Improved organizational image.
o Increased staff morale.
o A competitive advantage to an organization.
(iii) Methods of carrying out an investment appraisal:
o Accounting Rate of Return (ARR).
o Pay back period.
o Net Present Value (NPV).
o Internal Rate of Return (IRR).
b) (i) Factors considered in technical feasibility:
o The hardware required for the new system.
o The software required for the new system.
o Evaluation of current technology and how it‘s applicable to the new system.
o Expertise of the employees and whether further training will be required.
(ii)Circumstances under which a computer bureau is preferred as opposed to developing a
new system:
o When it is cheap to use computer bureaux as compared to developing new
systems.
o When the system needed is temporary.
o When there is lack of sufficient expertise within the organization and thus the
external experts are desirable.
c) (i) Factors to be considered in a social feasibility study:
o Effect of the system on the existing organizational structure.
o Effect of the system on the current working practices and management levels.
o Redundancy or retrenchment and implication to company as a result of the new
system.
o Implication of the system on existing staff development programmers.
(ii) Role of the user during the feasibility study stage:
The user will give information on the existing system and how the new system will
affect them and how they feel.
d) The main sections of a feasibility study report are:
o Introduction- this gives the general description of the existing system, the people
contacted during the study and the purpose of the report.
o Description of the alternative proposed systems in terms of the inputs, outputs, file
processed, response times, etc.
o Quantification to justify the cost of running the proposed system.
o The recommendation by the analyst on the most cost-effective alternative solution.
o The author of the report.
o Recommendations on the new system indicating whether to commit further
resources.
gregorymasila answered the question on February 15, 2018 at 20:38


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