ULTIMATE FITNESS CENTER
Feasibility Analysis
The following feasibility analysis has been created for the system:

Technical Feasibility

Economic Feasibility

Organizational Feasibility
Technical Feasibility
1. Familiarity with Application:
The risk level is Low. The development team and users are familiar with the application. The
IT department has full experience in developing Ultimate fitness center system. In the past
year, they worked with two similar systems according to our client requirements which have
already been applied into business successfully. External consultants and companies are readily
available online to provide technology support in this system.
2. Familiarity with Technology:
Proven web based technology will provide low risk as it is easy to use. As the system is made
online, staff should be well acquainted with the website and the internet. So the staff will need
to undergo training to become familiar with the new system.
3. Project Size:

The project size is considered medium risk

The project team likely will include less than 10 people.

Business user involvement will be required.
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ULTIMATE FITNESS CENTER
4. Compatibility with the existing system:
This is a low-risk project as the system uses proven Microsoft technology (ASP.Net). Since
the existing process is manual the new system does not pose any compatibility challenges.
Time frame is 5 months to system completion and implementation.
Economic Feasibility
According to the cost-benefit analysis below, the new system is considered to be economically
feasible. The figures in cost-benefit analysis represent the tangible benefits.
Cost –Benefit Analysis
2009
Benefits
Increased Sales from New
Customers
Increased
sales
from
Existing Customers
Reduction in Man Hours
Total Benefits
Development Costs
Labor: Analysis and Design
Labor: Implementation
Development Training
Software
Hardware
Total Development Cost
Operational Cost
Labor: Administrator
Labor: Technical Operators
Labor: Operations Analyst
Labor: Five Technicians
Software Upgrades
Communications Charges
Software Licenses
Hardware Upgrades
Total Operational Cost
$25,000
$60,000
$3,000
$10,000
$6,500
$104,500
2010
2011
$400,000
$440,000
2012
TOTAL
$1,324,000
$200,000
$220,000
$484,000
$240,000
$100,000
$700,000
$0
$660,000
$0
$724,000
$100,000
$2,084,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,000
$60,000
$3,000
$10,000
$6,500
$104,500
$50,000
$40,000
$50,000
$70,000
$2500
$1000
$1500
$1000
$216,000
$53,000
$43,000
$53,000
$73,000
$2500
$1000
$1000
$500
$227,000
$57,000
$47,000
$57,000
$77,000
$2500
$1000
$1000
$500
$243,000
$160,000
$130,000
$160,000
$220,000
$7500
$3000
$3500
$2000
$686,000
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$660,000
ULTIMATE FITNESS CENTER
Total Costs
$104,500
$216,000
$227,000
$243,000
$790,500
Total Benefits - Total
Costs
Cumulative Net Cash Flow
($104,500)
$484,000
$433,000
$481,000
$1,293,500
($104,500)
$379,500
$812,500
$1,293,500
Return on Investment
(ROI)
Break-even Point
(1,293,500/
790,500)
0.21
1.6363
163%
Intangible Benefits

This system will speed up the business processes.

Attracting customers and improving satisfaction by allowing online registration and bill
payment.

It will reduce the number of staff members needed to manage the business.

Minimize errors in record keeping.

Easy approach for advertising.

The system is flexible and will meet goals for future business expansion.
Organizational Feasibility
Our new system has a low level of risk from the organizational perspective. The important goals of our
system are to increase sales and customer satisfaction. The product development updates is regularly
monitored and enhanced by a Product Champion, John smith. The users of the new system, employees
and the managers are expected to accept the system contingent upon increased sales and userfriendliness. The system will add value to the current business model.
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