What is a Feasibility Study?

Ruben Buijs
3 minutes • Aug 10, 2023 • Product Management

A feasibility study is a crucial step in the process of product management for a SaaS (Software as a Service) product. It involves evaluating the practicality and viability of a proposed project or idea before committing resources to its development. By conducting a feasibility study, product managers can assess the potential success of a product, identify potential challenges, and make informed decisions about whether to proceed with the project.

Examples of Feasibility Study

Here are a few examples to help you understand the concept of a feasibility study better:

  1. Market Demand: Before developing a new SaaS product, conducting a feasibility study can help determine if there is a sufficient market demand for it. For example, a feasibility study for a project management tool would assess the number of potential users in the market and their willingness to adopt a new solution.

  2. Technical Feasibility: Evaluating the technical feasibility of a product is crucial to ensure that it can be developed and maintained effectively. For instance, a feasibility study for a video conferencing software would consider factors such as required infrastructure, bandwidth requirements, and integration capabilities.

  3. Financial Feasibility: A feasibility study also examines the financial viability of a product. It involves estimating the costs involved in development, marketing, and ongoing maintenance, as well as projecting potential revenue streams. This assessment helps determine if the product can generate a satisfactory return on investment.

Importance of Feasibility Study

A feasibility study holds significant importance in Saas product management for several reasons:

  1. Risk Assessment: By conducting a feasibility study, product managers can identify potential risks and challenges associated with a product idea. This allows them to proactively address these issues and minimize risks before committing resources.

  2. Resource Allocation: A feasibility study helps in optimal resource allocation by providing insights into the project's requirements. It enables product managers to allocate time, budget, and human resources effectively, ensuring efficient project execution.

  3. Decision Making: Feasibility studies provide valuable information that aids in informed decision making. By evaluating different aspects of a product idea, such as market demand, technical feasibility, and financial viability, product managers can make well-informed decisions about whether to proceed with the project or explore alternative ideas.

How to Use Feasibility Study

To effectively use a feasibility study in your Saas product management process, follow these steps:

  1. Define the Project: Clearly define the proposed project or idea that you want to evaluate. Ensure that the scope and objectives of the study are well-defined.

  2. Conduct Research: Gather relevant information and conduct thorough research to assess various factors associated with the project. This may include market research, technical analysis, financial projections, and competitor analysis.

  3. Evaluate Feasibility Factors: Analyze the gathered information to evaluate the feasibility of the project. Consider factors such as market demand, technical requirements, resource availability, financial viability, and potential risks.

  4. Make Informed Decisions: Based on the findings of the feasibility study, make well-informed decisions about whether to proceed with the project, modify the idea, or explore alternative options. Consider the strengths, weaknesses, opportunities, and threats associated with the project.

Useful Tips for Feasibility Study

Here are some useful tips to enhance the effectiveness of your feasibility study:

  1. Involve Stakeholders: Engage relevant stakeholders, such as developers, marketers, and financial experts, during the feasibility study process. Their input and expertise can provide valuable insights and help make more accurate assessments.

  2. Consider Scalability: Assess the scalability of the proposed product. Determine if it can accommodate future growth and evolving user needs. Scalability is essential for the long-term success of a SaaS product.

  3. Review Assumptions: Regularly review the assumptions made during the feasibility study. Market conditions, technology advancements, or other external factors may change, requiring reassessment of the project's feasibility.

  • Market Research
  • Competitive Analysis
  • Technical Analysis
  • Return on Investment (ROI)
  • Scalability
  • Risk Assessment
  • Resource Allocation
  • Project Management
  • Product Development
  • Market Demand

FAQ

A feasibility study is a systematic analysis and evaluation of the potential success of a project or product.
A feasibility study helps product managers assess the viability of a product idea or project before investing time, resources, and money into its development.
The key objectives of a feasibility study are to determine if the product idea is technically feasible, financially viable, and aligned with the organization's goals and resources.
A feasibility study typically includes an analysis of the market potential, technical feasibility, financial feasibility, and organizational feasibility of a product or project.
Market potential is assessed in a feasibility study by analyzing the target market, competition, customer needs, and potential demand for the product.
Technical feasibility refers to the assessment of whether the product idea can be developed and implemented using the available technology, resources, and expertise.
Financial feasibility evaluates the economic viability of the product idea by analyzing the projected costs, revenues, and potential return on investment.
Organizational feasibility assesses whether the product idea aligns with the organization's capabilities, resources, and strategic objectives.
Product managers, along with cross-functional teams, are typically responsible for conducting a feasibility study.
A feasibility study should be conducted early in the product development process, preferably before significant resources are allocated to the project.

Article by

Ruben Buijs

Ruben is the founder of ProductLift. I employ a decade of consulting experience from Ernst & Young to maximize clients' ROI on new Tech developments. I now help companies build better products

Table of contents

  1. Examples of Feasibility Study
  2. Importance of Feasibility Study
  3. How to Use Feasibility Study
  4. Useful Tips for Feasibility Study
  5. Related Terms

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