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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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