Feasibility of a Digital Project

1. Benefits & Drawbacks

When looking at building a new system, the overall benefit to the business must be assessed. There is no point in spending time and money implementing a new IT system if it doesn’t make things better for the business or its employees.

The benefits of a digital project can include increased efficiency, better user experience, improved data management, increased collaboration and communication, and cost savings. However, these benefits are not guaranteed and may vary depending on the specific project.

On the other hand, the drawbacks of a digital project can include technical problems, high development costs, maintenance expenses, employee resistance, and data privacy concerns.

For example, let’s look at the advantages and disadvantages of implementing an automated stock control system (much like we learnt about last lesson) within a business.

• Increased Accuracy – Automated systems are designed to provide accurate and up-to-date information about stock levels, reducing the risk of overstocking or stock shortages.
• Increased Efficiency – Automated systems streamline many of the manual processes involved in stock control, reducing the time and effort required to manage inventory.
• Improved Decision-Making – Automated systems provide valuable data and insights, allowing companies to make informed decisions about inventory management, stock replenishment, and optimisation.
• Cost Savings – Automated systems reduce the need for manual labour, reducing labour costs and freeing up employees to focus on other tasks. In addition, by reducing stock shortages and overstocking, companies can reduce the cost of carrying excess inventory.

• Initial Costs – Implementing an automated system can be expensive, requiring significant investment in software, hardware, and training.
• Technical Difficulties – Automated systems can be complex and technical, requiring specialised knowledge to set up and maintain.
• Dependence on Technology – Automated systems rely on technology, which can be vulnerable to outages and other technical issues.
• Resistance to Change – Some employees may be resistant to change and may be uncomfortable with using a new system.

2. Risks, Constraints & Dependencies

Another critical aspect of determining the feasibility of a digital project is to assess the risks, constraints and dependencies involved.

Risks are problems that may or may not occur during the project development that could cause the project to fail. Risks may include:

• The organisation runs out of money to develop the system.
• Your employees might encounter problems they don’t know how to solve.
• It may not be possible to complete the project by the required date.
• Members of staff fall ill or leave the company, meaning that the project might not be finished on time.
• The legislation around the software changes while the project is being carried out.

Constraints are problems or restrictions that you already know exist and limit what can be achieved in the digital project. Constraints may include:

• There is only a fixed amount of money available for the project
• Staff members must have the skills to build and implement the system, or new staff members need to be hired.
• The project has to be completed by a certain date
• You don’t have enough staff members to complete the project
• The system must conform to all existing IT Legislation.

Dependencies are where one task or activity has a relationship to another, i.e. one task may not start until a previous activity has been completed. For example, a digital project may depend on the availability of certain software or hardware, the expertise of certain personnel, or the completion of another project.

Dependencies may belong to one of the following four categories:

• Mandatory – this is when one activity cannot be started until another has been completed, e.g. the project cannot begin until the team members are ready to begin working on it.
• Discretionary – this is where the order of activities has a preferred sequence, but the order is not fixed and can be changed if the need arises, e.g. the team decides to work on the user interface before building a database.
• External – the project relies on activities outside the project, e.g. the project cannot begin until it has been approved by stakeholders.
• Internal – these are activities within the project that rely on each other, e.g. the software cannot be installed until the hardware has been purchased and configured.