Feasibility study, How to conduct it? and It's Impact in Project Management

A Feasibility study is a critical step in Project management that helps ensure projects are viable, strategically aligned, and have a higher chance of success by providing a thorough analysis of all relevant factors.

For projects involving new products or services, a feasibility study includes market analysis to determine demand, competition, and market conditions. This helps in developing a viable market strategy. Conducting a feasibility study in project management offers several significant benefits that help ensure the project's success.

The benefits are following:

Project Scope and Objectives Clarification: Conducting a feasibility study helps in clearly defining the project scope and objectives. This clarity ensures that all stakeholders have a common understanding of what the project aims to achieve, reducing scope creep and miscommunication. 

Improved Project Planning: The insights gained from a feasibility study contribute to more accurate and comprehensive project planning. This includes better scheduling, budgeting, and resource management.

Early Identification of Alternatives: If a project is deemed infeasible, the study can help identify alternative solutions or approaches, providing a basis for considering different strategies that may be more viable.

Stakeholder Confidence: A thorough feasibility study can increase confidence among stakeholders, including investors, clients, and team members. It demonstrates that the project has been carefully considered and planned, enhancing credibility and support. Informed Decision-Making: By analysing various aspects of the project such as technical, economic, legal, operational, and scheduling feasibility, stakeholders can make well-informed decisions. This leads to a higher likelihood of project approval and successful implementation.

Financial Viability: A feasibility study evaluates the financial aspects of the project, including cost estimates, revenue projections, and funding requirements. This helps in determining whether the project is financially viable and sustainable.

Risk Mitigation: All potential risks and challenges are identified through conducting a feasibility studies early in the project lifecycle, allowing for proactive measures to mitigate or avoid them. This can prevent costly mistakes and project failures.

Resource Allocation: Understanding the feasibility of a project helps in efficient allocation of resources. It ensures that time, money, and human resources are invested in projects with the highest potential for success.

Operational Feasibility: It assesses the operational aspects of the project, such as workflow, processes, and human resources, ensuring that the project can be operationally integrated into the existing system or organization.

Technical Feasibility: The study assesses whether the project can be technically implemented with the available technology and expertise. This ensures that technical challenges are identified and addressed early on.

A feasibility study also examines legal and regulatory requirements, ensuring that the project complies with all necessary laws and regulations. This can prevent legal issues that could derail the project.