You have been asked to conduct a feasibility study for a new

You have been asked to conduct a feasibility study for a new customer portal website to be developed in house. Which economic and operational factors would you consider in your study? Would you calculate the Total Cost of Ownership (TCO), Return on Investment (ROI), both, or some other measure(s) to characterize the economic impact of this new portal? Defend your choices.

Solution

A Feasability study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question ie will the idea work and whether you should procced with it or not!

Total Cost of Ownership(TCO):

It is an analysis meant to uncover all the lifetime costs that follow from owning certain kinds of assets, for this reason it is sometimes also called as life cycle cost analysis.

Asset ownership brings purchase costs, of the course, but ownership can also bring substantial costs for installing, deploying, operaing, upgrading, and maintaning the same assets.

TCO mainly takes into concern the following:

Return on Investment(ROI):

It is a performance measure used to evaluate the efficiency of an investment or to compate the efficiency of a number of differnet investments involved in implementing the idea.

A Typical feasibility study addresses the following issues:

Realistic Budget is also a major factor that should be taken into consideration for the bew project to be taken over.

The largest costs that are involved in a typical web project are :

Apart from this there are some more economic factors that to be considered they are: