Difference between revisions of "Feasibility Study Quarter"

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[[Feasibility Study Quarter]] (hereinafter, the ''Quarter'') is the first of four lectures of [[Operations Quadrivium]] (hereinafter, the ''Quadrivium''):
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[[Feasibility Study Quarter]] (hereinafter, the ''Quarter'') is a lecture introducing the learners to [[portfolio research]] primarily through key topics related to [[feasibility study]]. The ''Quarter'' is the second of four lectures of [[Portfolio Quadrivium]], which is the first of seven modules of '''[[Septem Artes Administrativi]]''' (hereinafter, the ''Course''). The ''Course'' is designed to introduce the learners to general concepts in [[business administration]], [[management]], and [[organizational behavior]].
*The ''Quarter'' is designed to introduce its learners to [[enterprise discovery]], or, in other words, to concepts related to obtaining data needed to administer the [[enterprise effort]]; and
 
*The ''Quadrivium'' examines concepts of administering various types of enterprises known as [[enterprise administration]] as a whole.
 
 
 
The ''Quadrivium'' is the first of seven modules of [[Septem Artes Administrativi]], which is a course designed to introduce its learners to general concepts in [[business administration]], [[management]], and [[organizational behavior]].
 
  
  
 
==Outline==
 
==Outline==
''The predecessor lecture is [[Idea Generation Quarter]].''
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''[[Idea Generation Quarter]] is the predecessor lecture.  In the [[enterprise discovery]] series, the previous lecture is [[Bookkeeping Quarter]].''
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:[[Portfolio research]] is the [[enterprise research]] of [[data]] needed to design and/or modify the [[enterprise portfolio]]. Organizationally, the [[data]] needed to design or modify these [[market exchangeable]]s is collected through [[idea generation]], [[validated learning]], [[monitoring]], and [[market intercourse]]s. This particular lecture concentrates on [[validated learning]] because these [[enterprise effort]]s are the primary method for collecting [[data]] that emerges as a result of [[product development]]s. This lecture concentrates on [[feasibility study]] of [[proposed change]]s because the [[data]] collected from [[operational business]]es is researched through [[controlling]].
  
 
===Concepts===
 
===Concepts===
#'''[[Feasibility study]]'''. In [[enterprise administration]], an assessment of the practical potential of a [[proposed change]]. Depending on the nature of the [[proposed change]] and the complexity of its [[proposed change implementation|implementation]], this assessment may consist of one or more evaluations. If the [[proposed change implementation]] is a single project, a [[cost-benefit analysis]] may be needed. If the [[proposed change]] refers to the [[enterprise portfolio]], another evaluation, [[portfolio appraisal]], is needed. A [[feasibility study]] is feasible itself when its [[change stimulus]] is a [[business opportunity]]. If its [[change stimulus]] is a [[business need]], no [[feasibility study]] is needed; [[business analysis]] is conducted instead.
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#[[File:Enterprise-intelligence.png|400px|thumb|right|[[Enterprise intelligence]]]]'''[[Feasibility study]]'''. In [[enterprise administration]], an assessment of the practical potential of a [[proposed change]]. Depending on the nature of the [[proposed change]] and the complexity of its [[proposed change implementation|implementation]], this assessment may consist of one or more evaluations; a [[feasibility study]] may also not be feasible itself. [[Feasibility study]] can also be described as an evaluation of proposed alternatives to determine if they are legally and technically possible within the constraints of the enterprise and whether they will deliver the desired benefits to the enterprise.
#*[[Change]]. In [[enterprise administration]], the act or instance of becoming different and/or doing business differently.
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#*[[Proposed change]]. Any [[change]] that is proposed in order to be implemented.
#*[[Proposed change]]. Any [[change]] that is proposed to be implemented.
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#*[[Proposed change implementation]]. A [[project]] undertaken in order to implement the [[proposed change]].
#*[[Proposed change implementation]]. The implementation of the [[proposed change]]. This ''implementation'' can be a [[project]] or a strategic decision, especially related to the [[enterprise portfolio]].
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#'''[[Change]]'''. In [[enterprise administration]], the act or instance of becoming different and/or doing business differently.
#*[[Organizational change]]. Creation and/or creative alteration of how the organization conducts its overall business and/or what it offers to its stakeholders. The change can include its [[enterprise portfolio]], [[organizational structure]], people, work environment, [[technology]], etc.
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#*[[Unexpected change]]. Change activities that are unintentional and not necessarily goal oriented.
#*[[Business strategy change]]. Creation and/or creative alternation of a [[business strategy]]. This [[proposed change]] may be a new or existing [[product]] on the market, its scope or features, pricing, presentations, production personnel, and/or way of production usually in order to (a) offer new and/or additional benefits to the customer and/or (b) serve some organizational needs.
 
 
#*[[Planned change]]. Change activities that are intentional and goal oriented.
 
#*[[Planned change]]. Change activities that are intentional and goal oriented.
#*[[Unexpected change]]. Change activities that are unintentional and not necessarily goal oriented.
 
 
#'''[[Idea evaluation]]'''. An appraisal of potential solutions to problems to identify the best one.
 
#'''[[Idea evaluation]]'''. An appraisal of potential solutions to problems to identify the best one.
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#*[[Evaluation]]. The systematic and objective assessment of a solution to determine its status and efficacy in meeting objectives over time, and to identify ways to improve the solution to better meet objectives. See also metric, indicator and monitoring.
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#*[[Domain]]. The problem area undergoing analysis.
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#*[[Opportunity analysis]]. The process of examining new business opportunities to improve organizational performance.
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#*[[Social screening]]. Approving social criteria (screens) to investment decisions.
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#[[File:Enterprise-constituencies.png|400px|thumb|right|[[Enterprise constituency]]]]'''[[Enterprise environment]]'''. (1) The surroundings or conditions in which an [[enterprise]] operates; (2) The combined [[internal environment|internal]] and [[external environment|external]] factors and forces, both standing alone and interacting with one another, that affect or can potentially affect the enterprise's performance.
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#*[[Structured environment]] (or [[controlled environment]]). A certain, predictable environment under one's control.
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#*[[Unstructured environment]]. An uncertain, unpredictable environment with unknown or no structure.
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#*[[Internal environment]]. (1) Those [[factor]]s and forces inside of somebody or something that affect or can potentially affect his, her, or its performance; (2) [[Enterprise environment]] within the borders of the [[enterprise]].
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#*[[File:External-environment.png|400px|thumb|right|[[External environment]]]][[External environment]]. (1) Those [[factor]]s and forces outside of somebody or something that affect or can potentially affect his, her, or its performance; (2) [[Enterprise environment]] beyond the borders of the [[enterprise]].
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#[[File:Environment-characteristics.png|400px|thumb|right|[[Environment characteristic]]s]]'''[[Environment characteristic]]'''. Any distinguishing trait, quality, or property of the environment.
 
#*[[Enterprise environmental complexity]]. The number of components in an enterprise's environment and the extent of the enterprise's knowledge about its components.
 
#*[[Enterprise environmental complexity]]. The number of components in an enterprise's environment and the extent of the enterprise's knowledge about its components.
 
#*[[Enterprise environmental uncertainty]]. The degree of change and complexity in an enterprise's environment.
 
#*[[Enterprise environmental uncertainty]]. The degree of change and complexity in an enterprise's environment.
#*[[Idea prioritization]]. The process that arranges [[proposed change]]s in order of importance relative to each other.
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#'''[[Change readiness assessment]]'''. An assessment that describes whether stakeholders are prepared to accept the change associated with a solution and are able to use it effectively.
#'''[[Cost-benefit analysis]]'''. A set of studies of the difference between the [[change benefit estimate]], which is what the enterprise is going to obtain, and [[change cost estimate]], which is what the enterprise is going to lose, is the primary target of the [[feasibility study]] if the [[proposed change]] is a [[project]].  
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#*[[Business capability]]. A function of an organization that enables it to achieve a business goal or objective.
#*[[Change cost estimate]]. The expected total cost of a set of [[enterprise effort]]s undertaken in order to implement a [[proposed change]] when the defined scope of work has been completed. In simple words, it is what the enterprise is going to lose as a result of the [[proposed change implementation]]. Because the budgets likely depend on the [[payroll]] and the [[payroll]] depends on work time, [[schedule feasibility]] needs to be evaluated before the budget. Because the work time likely depends on the [[project scope]], [[effort feasibility]] needs to be evaluated before the work time. Because the [[project scope]] definitely depends on the [[product scope]], [[deliverable feasibility]] needs to be evaluated first of all.  
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#*[[Compliance feasibility]]. An assessment of how the [[proposed change]] would conflict with legal, corporate, and other mandated requirements.
#*#[[Product scope estimate]].  
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#*[[Integration feasibility]]. An assessment of how the [[proposed change]] would conflict with existing systems that the enterprise already employs.
#*#[[Project scope estimate]].
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#'''[[Cost-benefit analysis]]'''. An [[analysis]] of the difference between the [[change benefit estimate]], which is what the enterprise is going to obtain, and [[change cost estimate]], which is what the enterprise is going to lose when some [[proposed change]] is implemented. In other words, the financial and non-financial costs of making a [[change]] or implementing a [[solution]] are compared and quantified to the benefits gained during this ''analysis''. Usually, the [[cost-benefit analysis]] is the core of [[feasibility study]].
#*#[[Project schedule estimate]].  
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#*[[Change benefit estimate]]. The difference between the positive and negative impacts of the [[proposed change]]. The positive impact can be assessed as the expected total value that the [[enterprise]] is going to obtain after a [[proposed change]] is implemented. The negative impact is what the enterprise is going to lose. These estimates may have several components and may be obtained as a result of an [[impact analysis]].
#*[[Change benefit estimate]]. The expected total value that the [[enterprise]] is going to obtain when a [[proposed change]] is implemented. Because this value shall have several components, several evaluations may be needed. The components may include economic, social, compliance, and configuration ones.
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#'''[[Impact analysis]]'''. An assessment of the impact that a proposed change will have on a stakeholder or stakeholder group, project, or system.
#*#[[Configuration feasibility]].  
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#*[[Political impact]]. Political advantages and disadvantages gained from the [[proposed change implementation]].
#*#[[Compliance feasibility]].
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#*[[Economic impact]]. A profit gained from the [[proposed change implementation]].
#*#[[Economic benefit]].  
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#*[[Social impact]]. Social advantages and disadvantages gained from the [[proposed change implementation]].
#*#[[Social benefit]].
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#*[[Technological impact]].  Technological advantages and disadvantages gained from the [[proposed change implementation]].
#*#[[Political benefit]].
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#'''[[Change cost estimate]]'''. The expected total cost of a set of [[enterprise effort]]s undertaken in order to implement a [[proposed change]] when it is implemented. This ''estimate'' is always approximated. In other words, it is what the enterprise is going to lose as a result of the [[proposed change implementation]]. Because the cost likely depends on the [[payroll]] and the [[payroll]] depends on the [[work time]], a [[schedule estimate]] needs to be evaluated before the cost. Because the schedule likely depends on the work to be accomplished, a [[effort estimate]] needs to be evaluated before the schedule. Because the work definitely depends on the [[change scope]], a [[change scope]] needs to be developed first of all.
#*#[[Technological benefit]].  
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#*[[Change scope]]. All the features and functions that characterize a [[proposed change]].
#'''[[Market analysis]]'''.  
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#*[[Effort estimate]]. The expected effort or work that needs to be accomplished to deliver a [[market exchangeable]] with the specified features and functions.
#*[[Market]].  
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#*[[Life-cycle costing]]. The concept of including acquisition, operating, and disposal costs when evaluating various alternatives.
#*[[Market research]].  
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#*[[Schedule estimate]]. The expected time of the delivery of a [[market exchangeable]] with the specified features and functions.
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#'''[[Market analysis]]'''. Studies of the attractiveness, the risks, and the dynamics of the [[market]] that is identified by the analysis' buyer. Sometimes, [[market research]] is considered being the first phase of the [[market analysis]].
 
#*[[Planned economy]]. An economic system in which economic decisions are planned by a central government.
 
#*[[Planned economy]]. An economic system in which economic decisions are planned by a central government.
 
#*[[Free market economy]]. An economic system in which resources are primarily owned and controlled by the private sector.
 
#*[[Free market economy]]. An economic system in which resources are primarily owned and controlled by the private sector.
#*[[Competition]].
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#*[[Valuation]]. The process by which a company's worth or value is determined. An analyst will look at capital structure, management team, and revenue or potential revenue, among other things.
#*[[Competitor intelligence]]. Gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.
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#'''[[Estimate]]'''. An assessment of the likely quantitative result. Usually applied to project costs and durations and should always include some indication of accuracy (e.g., ±x percent). Usually used with a modifier (e.g., preliminary, conceptual, feasibility). Some application areas have specific modifiers that imply particular accuracy ranges (e.g., order-of-magnitude estimate, budget estimate, and definitive estimate in engineering and construction projects).
#*[[First mover]]. An enterprise that's first to bring a product innovation to the market or to use a new process innovation.
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#*[[Estimate at completion]] (EAC). The expected total cost of an activity, a group of activities, or the project when the defined scope of work has been completed. Most techniques for forecasting EAC include some adjustment of the original cost estimate, based on actual project performance to date.
#*[[Restraining force]]. A force that hinders movement from the existing equilibrium ([[Kurt Lewin]]).
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#*[[Estimate to complete]] (ETC). The expected additional cost needed to complete an activity, a group of activities, or the project. Most techniques for forecasting ETC include some adjustment to the original estimate, based on project performance to date. Also called "estimated to complete." See also earned value and estimate at completion.
#'''[[Enterprise portfolio]]'''. A collection of all [[business]]es in which a particular [[organization]] is.  
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#*[[Should-cost estimate]]. An estimate of the cost of a product or service used to provide an assessment of the reasonableness of a prospective contractor's proposed cost.
#*[[Startup business]] (or, simply, [[startup]]). A [[business]] in its search of its [[business model]] or its ways of making money.
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#*[[Percent complete]] (PC). An estimate, expressed as a percent, of the amount of work that has been completed on an activity or a group of activities.
#*[[Ongoing business]]. A [[business]] that executes its [[business model]] in order to make money.
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#'''[[Estimation]]'''. The process of assigning a quantifiable measure to the amount of workload needed to complete a project or task, in order to determine the duration, effort, or cost required to complete the project or task.
#'''[[Portfolio appraisal]]'''. An appraisal of practical potentials of [[enterprise portfolio]]s undertaken in order to identify the best one.
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#*[[Relative estimation]]. One of several types of estimations Agile teams use to determine the amount of effort needed to complete project tasks. Tasks or user stories are compared against equivalent, previously completed tasks or group of tasks of similar difficulty.
#*[[Business strategy]]. The formulation of how an [[organization]] is going to compete in a particular [[business]]. This formulation may or may not include (a) what products, (c) resulted from what production, (d) at what price, (e) using what presentation, (f) on what market, (g) with what people, (h) with what level of organization's support this organization is going to offer, as well as (i) what financial results and/or competitors' actions would trigger what changes in those decisions. Rarely, a mature organization formulates just one [[business strategy]]; usually, there are several [[Business strategy|business strategi]]es in the organization's [[enterprise portfolio]] since both/either different divisions may have their own [[business strategy|business strategi]]es and/or different [[business strategy|business strategi]]es are developed for different [[product]]s, regions, and/or segments of customers.
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#*[[Planning poker]]. A team building exercise or game used to arrive at a group consensus for estimating workload based on the [[Delphi method]].
#*[[Organization]]. A consciously coordinated social unit, composed of two or more [[legal entity|legal entiti]]es, that functions on a relatively continuous basis to achieve a common goal or set of goals.
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===Roles===
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#'''[[Subject matter expert]]''' (SME). A stakeholder with specific expertise in an aspect of the problem domain or potential solution alternatives or components.
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#*[[Implementation subject matter expert]] (SME). A stakeholder who will be responsible for designing, developing, and implementing the change described in the requirements and have specialized knowledge regarding the construction of one or more solution components.
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#*[[Domain subject matter expert]] (SME). A person with specific expertise in an area or domain under investigation.
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#'''[[Investor]]'''. An individual or [[enterprise]] that puts money into financial schemes, property, enterprise, etc. with the expectation of achieving a profit.
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#*[[Angel investor]]. A private investor or group of private investors who offers financial backing to an [[entrepreneurial venture]] in return for equity in the venture. Typically, [[angel investor]]s provide small amounts of [[Owner's Capital|capital]] at early stages of startup development, usually when it is in its infancy, and before a [[seed round]].
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#*[[Venture capitalist]]. An individual investor, who works for a venture capital firm and is authorized by it to professionally manage pools of investor money in order to invest in specific companies. [[Venture capitalist]]s typically have a focused market or sector that they know well and invest in. [[Venture capitalist]]s never or almost never invest in infant startups.
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#'''[[Cost estimator]]'''. An individual or enterprise that prepares cost estimates for product manufacturing, construction projects, or services to aid management in bidding on or determining price of product or service. He or she may specialize according to particular service performed or type of product manufactured.
  
 
===Methods===
 
===Methods===
#'''[[Idea evaluation technique]]'''.
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#'''[[Idea-evaluation technique]]'''. An established [[procedure]] for [[idea evaluation]].  
#*[[Funding]]: Most people are familiar with getting budget from within their company, but crowdfunding is another way to validate ideas. A great example is, of course, the Kickstarter model which not only empowers individuals to collect money for their ideas, it also validates that there’s an audience for their idea in the first place.
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#*[[Visual comparison]]. An [[idea evaluation technique]] that represents a comparison of two or more [[proposed idea]]s by eye. The ''ideas'' may be placed side by side, overlaid, or being dynamically alternated. This [[idea evaluation technique|technique]] also include a [[pairwise comparison]].
#*[[Proof of concept]].
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#*[[Scoring]]. An [[idea evaluation technique]] that encourages its participants to score [[proposed change]]s with one or more criteria in order to prioritize those ''changes''. This [[idea evaluation technique|technique]] also include the [[five star assessment]] and [[pass or fail test]]. Those techniques can be implemented in various ways, either online or onsite, including a simple or anonymous voting.
#*Pairwise Comparison: Organizations will put up ideas right next to one another and ask which idea is preferred? This generates a ranking system for an entire list of ideas with the most commonly chosen ideas appearing on top and the least selected at the bottom.
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#*[[Proof of concept]]. Evidence, typically derived from an [[experiment]] or [[pilot project]], which demonstrates that a design concept, business proposal, etc., is feasible. Many [[venture capitalist]]s require a demonstration of the feasibility of a concept or idea that a startup is based on in order to fund it.
#*the five star assessment, idea scoring, ROI analysis.
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#'''[[Due diligence]]'''. An analysis an investor makes of all the facts and figures of a potential investment. Can include an investigation of financial records and a measure of potential ROI.
#*Pass/Fail: Pass/fail is pretty easy. Ideas must meet specific required criteria in order to be considered and/or move forward in the selection process.
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#*[[ROI estimating]]. An [[idea evaluation technique]] that represents an attempt to expect the [[return on investment]] ([[return on investment|ROI]]) ratio for a [[proposed change]].
#*Anonymous voting
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#*[[Funding]]. The act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an [[organization]].  
#'''[[Project estimate technique]]'''.
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#*[[Equity crowdfunding]]. The online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets.
#*[[Precedence diagramming method]] (PDM). A network diagramming technique in which activities are represented by boxes (or nodes). Activities are linked by precedence relationships to show the sequence in which the activities are to be performed.
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#*[[Venture capital]] (VC). Money provided by venture capital firms to small, high-risk, startup companies with major growth potential.
#*[[Critical Path Method]] (CPM). A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float). Early dates are calculated by means of a forward pass, using a specified start date. Late dates are calculated by means of a backward pass, starting from a specified completion date (usually the forward pass' calculated project early finish date).
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#'''[[Assumptions analysis]]'''. A technique that explores the [[assumption]]s' accuracy and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of [[assumption]]s.
#*[[Program Evaluation and Review Technique]] (PERT). An event-oriented network analysis technique used to estimate program duration when there is uncertainty in the individual activity duration estimates. PERT applies the critical path method using durations that are computed by a weighted average of optimistic, pessimistic, and most likely duration estimates. PERT computes the standard deviation of the completion date from those of the path's activity durations.
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#*[[Assumption]]. An [[environment factor]] that is believed to be true, real, or certain, but have not been confirmed to be accurate. While being simplified for early planning purposes, [[assumption]]s may be considered to be true without questioning. At the same time, [[assumption]]s generally involve a degree of [[risk]]. For risk identification, [[assumption]]s may be questioned. In [[project management]], [[assumption]]s affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams frequently identify, document, and validate assumptions as part of their planning process.
#'''[[Risk evaluation technique]]''':
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#'''[[Force field analysis]]'''. A graphical method for depicting the forces that support and oppose a [[proposed change]]. Involves identifying the forces, depicting them on opposite sides of a line (supporting and opposing forces) and then estimating the strength of each set of forces.
#*[[Assumptions analysis]]. A technique that explores the assumptions' accuracy and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.
 
  
 
===Instruments===
 
===Instruments===
#'''[[Idea evaluation tool]]'''.
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#'''[[Idea evaluation tool]]'''. A tangible and/or software implement used to evaluate [[concept]]s.  
#*[[Pros and cons table]].
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#*[[Pros and cons table]]. An [[idea evaluation tool]] that usually represents two columns, one of the advantages called "pros" and another for disadvantages called "cons."
#*[[What if question]].
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#*[[What if question]]. An [[idea evaluation tool|idea]] and [[risk evaluation tool]] that encourages asking "What if?" while evaluating an [[idea]].
#*[[Should we question]].
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#*[[Should we question]]. An [[idea evaluation tool]] that encourages asking "Should we?" while evaluating an [[idea]].
#'''[[Project estimate tool]]'''.
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#'''[[Affinity diagram]]''' (or [[affinity diagramming]]). A business tool used to organise a large number of ideas, sorting them into groups based on their natural relationships, for review and analysis.
#*[[Bar chart]]. A graphic display of schedule-related information. In the typical bar chart, activities or other project elements are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. Also called a Gantt chart.
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#'''[[Gantt chart]]'''. A [[project management tool]] that represents actual and planned output over a period of time. In other words, it is a graphic display of schedule-related information. In the typical [[Gantt chart]], activities or other project elements are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. Any bar shows the start and finish dates of the activity it represents. The ''chart'' was initially developed by [[Henry Gantt]].
#'''[[Market analysis tool]]'''.
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#*[[Load chart]]. A modified [[Gantt chart]] that schedules [[capacity]] by entire departments or specific resources.
#*[[SWOT analysis]]. An analysis of the organization's strengths, weaknesses, opportunities, and threats.
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#[[File:Swot.png|400px|thumb|right|[[SWOT analysis]]]]'''[[SWOT analysis]]'''. A tool that maps analyses of the [[enterprise environment]]. SWOT is an acronym for [[strength|'''s'''trength]]s, [[weakness|'''w'''eakness]]es, [[opportunity|'''o'''pportuniti]]es, and [[threat|'''t'''hreat]]s.
#*#[[Strength]]. Any activity the organization does well or its unique resource.
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#*[[Strength]]. Any activity the organization does well or its unique resource.
#*#[[Weakness]]. An activity the organization does not do well or a resource it needs but does not possess.
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#*[[Weakness]]. An activity the organization does not do well or a resource it needs but does not possess.
#*#[[Opportunity]]. A positive trend in the [[external environment]].
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#*[[Opportunity]]. A positive trend in the [[enterprise environment]].
#*#[[Threat]]. A negative trend in the [[external environment]].
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#*[[Threat]]. A negative trend in the [[enterprise environment]].
#*[[Porter's Five Forces]].
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#[[File:Porter-forces.png|400px|thumb|right|[[Porter's five forces framework]]]]'''[[Porter's five forces framework]]'''. A tool that maps analyses of competition of a [[business]]. The five forces include (a) threat of new entrants, (b) threat of substitutes, (c) bargaining power of customers, (d) bargaining power of suppliers, and (e) industry rivalry.
#'''[[Portfolio strategy tool]]'''.
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#*[[BCG matrix]]. A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of [[strategic business unit]]s.
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===Results===
#*[[Strategic business unit]]. A single independent business of an organization that formulates its own competitive strategy.
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#'''[[Feasible idea]]''' (or [[feasible alternative]]). Reviews of available alternate procurement actions which could attain the objectives.
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#*[[Verified idea]] (or [[verified alternative]]).
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#*[[Validated idea]] (or [[validated alternative]]).  
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#'''[[Business case]]'''. An assessment of the costs and benefits associated with a proposed initiative.
  
 
===Practices===
 
===Practices===
 
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#Methods and instruments used for [[stakeholder engagement]] can be always or nearly always applied to [[change support analysis]].
''The successor lecture is [[Business Modeling Quarter]].''
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#Some researches agree that the [[SWOT analysis]] shall be outsourced if an enterprise decides to employ it. [[Porter's five forces framework]] initially indented to better map the [[enterprise environment]].
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''[[Enterprise Architecture Quarter]] is the successor lecture. In the [[enterprise research]] series, the next lecture is [[Business Analysis Quarter]].''
  
 
==Materials==
 
==Materials==
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==See also==
 
==See also==
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[[Category:Septem Artes Administrativi]][[Category:Lecture notes]]

Latest revision as of 19:24, 13 June 2023

Feasibility Study Quarter (hereinafter, the Quarter) is a lecture introducing the learners to portfolio research primarily through key topics related to feasibility study. The Quarter is the second of four lectures of Portfolio Quadrivium, which is the first of seven modules of Septem Artes Administrativi (hereinafter, the Course). The Course is designed to introduce the learners to general concepts in business administration, management, and organizational behavior.


Outline

Idea Generation Quarter is the predecessor lecture. In the enterprise discovery series, the previous lecture is Bookkeeping Quarter.

Portfolio research is the enterprise research of data needed to design and/or modify the enterprise portfolio. Organizationally, the data needed to design or modify these market exchangeables is collected through idea generation, validated learning, monitoring, and market intercourses. This particular lecture concentrates on validated learning because these enterprise efforts are the primary method for collecting data that emerges as a result of product developments. This lecture concentrates on feasibility study of proposed changes because the data collected from operational businesses is researched through controlling.

Concepts

  1. Feasibility study. In enterprise administration, an assessment of the practical potential of a proposed change. Depending on the nature of the proposed change and the complexity of its implementation, this assessment may consist of one or more evaluations; a feasibility study may also not be feasible itself. Feasibility study can also be described as an evaluation of proposed alternatives to determine if they are legally and technically possible within the constraints of the enterprise and whether they will deliver the desired benefits to the enterprise.
  2. Change. In enterprise administration, the act or instance of becoming different and/or doing business differently.
    • Unexpected change. Change activities that are unintentional and not necessarily goal oriented.
    • Planned change. Change activities that are intentional and goal oriented.
  3. Idea evaluation. An appraisal of potential solutions to problems to identify the best one.
    • Evaluation. The systematic and objective assessment of a solution to determine its status and efficacy in meeting objectives over time, and to identify ways to improve the solution to better meet objectives. See also metric, indicator and monitoring.
    • Domain. The problem area undergoing analysis.
    • Opportunity analysis. The process of examining new business opportunities to improve organizational performance.
    • Social screening. Approving social criteria (screens) to investment decisions.
  4. Enterprise environment. (1) The surroundings or conditions in which an enterprise operates; (2) The combined internal and external factors and forces, both standing alone and interacting with one another, that affect or can potentially affect the enterprise's performance.
  5. Environment characteristic. Any distinguishing trait, quality, or property of the environment.
  6. Change readiness assessment. An assessment that describes whether stakeholders are prepared to accept the change associated with a solution and are able to use it effectively.
  7. Cost-benefit analysis. An analysis of the difference between the change benefit estimate, which is what the enterprise is going to obtain, and change cost estimate, which is what the enterprise is going to lose when some proposed change is implemented. In other words, the financial and non-financial costs of making a change or implementing a solution are compared and quantified to the benefits gained during this analysis. Usually, the cost-benefit analysis is the core of feasibility study.
    • Change benefit estimate. The difference between the positive and negative impacts of the proposed change. The positive impact can be assessed as the expected total value that the enterprise is going to obtain after a proposed change is implemented. The negative impact is what the enterprise is going to lose. These estimates may have several components and may be obtained as a result of an impact analysis.
  8. Impact analysis. An assessment of the impact that a proposed change will have on a stakeholder or stakeholder group, project, or system.
  9. Change cost estimate. The expected total cost of a set of enterprise efforts undertaken in order to implement a proposed change when it is implemented. This estimate is always approximated. In other words, it is what the enterprise is going to lose as a result of the proposed change implementation. Because the cost likely depends on the payroll and the payroll depends on the work time, a schedule estimate needs to be evaluated before the cost. Because the schedule likely depends on the work to be accomplished, a effort estimate needs to be evaluated before the schedule. Because the work definitely depends on the change scope, a change scope needs to be developed first of all.
  10. Market analysis. Studies of the attractiveness, the risks, and the dynamics of the market that is identified by the analysis' buyer. Sometimes, market research is considered being the first phase of the market analysis.
    • Planned economy. An economic system in which economic decisions are planned by a central government.
    • Free market economy. An economic system in which resources are primarily owned and controlled by the private sector.
    • Valuation. The process by which a company's worth or value is determined. An analyst will look at capital structure, management team, and revenue or potential revenue, among other things.
  11. Estimate. An assessment of the likely quantitative result. Usually applied to project costs and durations and should always include some indication of accuracy (e.g., ±x percent). Usually used with a modifier (e.g., preliminary, conceptual, feasibility). Some application areas have specific modifiers that imply particular accuracy ranges (e.g., order-of-magnitude estimate, budget estimate, and definitive estimate in engineering and construction projects).
    • Estimate at completion (EAC). The expected total cost of an activity, a group of activities, or the project when the defined scope of work has been completed. Most techniques for forecasting EAC include some adjustment of the original cost estimate, based on actual project performance to date.
    • Estimate to complete (ETC). The expected additional cost needed to complete an activity, a group of activities, or the project. Most techniques for forecasting ETC include some adjustment to the original estimate, based on project performance to date. Also called "estimated to complete." See also earned value and estimate at completion.
    • Should-cost estimate. An estimate of the cost of a product or service used to provide an assessment of the reasonableness of a prospective contractor's proposed cost.
    • Percent complete (PC). An estimate, expressed as a percent, of the amount of work that has been completed on an activity or a group of activities.
  12. Estimation. The process of assigning a quantifiable measure to the amount of workload needed to complete a project or task, in order to determine the duration, effort, or cost required to complete the project or task.
    • Relative estimation. One of several types of estimations Agile teams use to determine the amount of effort needed to complete project tasks. Tasks or user stories are compared against equivalent, previously completed tasks or group of tasks of similar difficulty.
    • Planning poker. A team building exercise or game used to arrive at a group consensus for estimating workload based on the Delphi method.

Roles

  1. Subject matter expert (SME). A stakeholder with specific expertise in an aspect of the problem domain or potential solution alternatives or components.
    • Implementation subject matter expert (SME). A stakeholder who will be responsible for designing, developing, and implementing the change described in the requirements and have specialized knowledge regarding the construction of one or more solution components.
    • Domain subject matter expert (SME). A person with specific expertise in an area or domain under investigation.
  2. Investor. An individual or enterprise that puts money into financial schemes, property, enterprise, etc. with the expectation of achieving a profit.
    • Angel investor. A private investor or group of private investors who offers financial backing to an entrepreneurial venture in return for equity in the venture. Typically, angel investors provide small amounts of capital at early stages of startup development, usually when it is in its infancy, and before a seed round.
    • Venture capitalist. An individual investor, who works for a venture capital firm and is authorized by it to professionally manage pools of investor money in order to invest in specific companies. Venture capitalists typically have a focused market or sector that they know well and invest in. Venture capitalists never or almost never invest in infant startups.
  3. Cost estimator. An individual or enterprise that prepares cost estimates for product manufacturing, construction projects, or services to aid management in bidding on or determining price of product or service. He or she may specialize according to particular service performed or type of product manufactured.

Methods

  1. Idea-evaluation technique. An established procedure for idea evaluation.
  2. Due diligence. An analysis an investor makes of all the facts and figures of a potential investment. Can include an investigation of financial records and a measure of potential ROI.
  3. Assumptions analysis. A technique that explores the assumptions' accuracy and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.
    • Assumption. An environment factor that is believed to be true, real, or certain, but have not been confirmed to be accurate. While being simplified for early planning purposes, assumptions may be considered to be true without questioning. At the same time, assumptions generally involve a degree of risk. For risk identification, assumptions may be questioned. In project management, assumptions affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams frequently identify, document, and validate assumptions as part of their planning process.
  4. Force field analysis. A graphical method for depicting the forces that support and oppose a proposed change. Involves identifying the forces, depicting them on opposite sides of a line (supporting and opposing forces) and then estimating the strength of each set of forces.

Instruments

  1. Idea evaluation tool. A tangible and/or software implement used to evaluate concepts.
  2. Affinity diagram (or affinity diagramming). A business tool used to organise a large number of ideas, sorting them into groups based on their natural relationships, for review and analysis.
  3. Gantt chart. A project management tool that represents actual and planned output over a period of time. In other words, it is a graphic display of schedule-related information. In the typical Gantt chart, activities or other project elements are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. Any bar shows the start and finish dates of the activity it represents. The chart was initially developed by Henry Gantt.
  4. SWOT analysis. A tool that maps analyses of the enterprise environment. SWOT is an acronym for strengths, weaknesses, opportunities, and threats.
  5. Porter's five forces framework. A tool that maps analyses of competition of a business. The five forces include (a) threat of new entrants, (b) threat of substitutes, (c) bargaining power of customers, (d) bargaining power of suppliers, and (e) industry rivalry.

Results

  1. Feasible idea (or feasible alternative). Reviews of available alternate procurement actions which could attain the objectives.
  2. Business case. An assessment of the costs and benefits associated with a proposed initiative.

Practices

  1. Methods and instruments used for stakeholder engagement can be always or nearly always applied to change support analysis.
  2. Some researches agree that the SWOT analysis shall be outsourced if an enterprise decides to employ it. Porter's five forces framework initially indented to better map the enterprise environment.

Enterprise Architecture Quarter is the successor lecture. In the enterprise research series, the next lecture is Business Analysis Quarter.

Materials

Recorded audio

Recorded video

Live sessions

Texts and graphics

See also