A feasibility study for an information system project is an in-depth look at the project in order to determine whether or not an organization should proceed with its implementation. Feasibility studies provide project managers with an overview of the primary issues related to the project, as well as insights about the outcomes of the project, before the company invests too much time and money.
The feasibility study for an information system project is important because it provides a way for project managers to assess the risks and resources involved in carrying out the project. Project managers can also use a feasibility study to determine if the project fits within the company's budget and goals. Businesses must also consider the cost and availability of technology in order to develop a feasibility study of an information system project. If the project requires the development of new or complex technology, the feasibility study must be equally as complex; this gives project managers an opportunity to find any weaknesses and reveal any hidden problems ahead of time. Identifying weaknesses early not only increases the chances of success of the project, but also reduces the costs associated with correcting problems in the future. A feasibility study can also be used to create a business plan and indicate whether a business idea is sound.