What is the purpose of conducting a feasibility study in business analysis?

The purpose of conducting a feasibility study in business analysis is to evaluate the viability of the proposed solutions before implementation. This involves assessing various aspects such as technical feasibility, financial feasibility, operational feasibility, and legal feasibility to determine whether the project should proceed. A thorough feasibility study provides critical insights into the potential challenges and risks associated with the proposed solutions, enabling stakeholders to make informed decisions and ultimately improving the chances of project success.

By analyzing whether a solution is practical and cost-effective, the feasibility study helps in identifying potential barriers early in the project lifecycle. This can prevent unnecessary expenditure and resource allocation to initiatives that are unlikely to succeed.

In contrast, designing the final solution is a subsequent step that comes after feasibility has been established, while gathering user feedback typically occurs after prototypes or initial solutions have been developed. Assigning project tasks is part of project management and execution, following the feasibility assessment and solution design phases. Thus, the focus of a feasibility study is primarily on evaluating the proposed solutions' viability, making the understanding of this step crucial in the business analysis process.