What is the purpose of a feasibility study in a business case?

A feasibility study is specifically designed to assess the viability of a project before significant resources are committed. It examines various aspects of a proposed initiative, including technical, financial, operational, and legal considerations, to determine whether the project can be successfully implemented and whether it aligns with the strategic goals of the organization.

By evaluating these dimensions, a feasibility study helps stakeholders understand whether the project is worth pursuing, ensuring that they make informed decisions based on systematic analysis rather than assumptions. This thorough evaluation aids in identifying potential challenges and the likelihood of achieving desired outcomes, ultimately serving as a critical checkpoint in project planning.

While analyzing risks, outlining project outcomes, and gathering stakeholder feedback are important aspects of project management, they are not the primary focus of a feasibility study. Instead, these activities may occur throughout the project lifecycle, but they do not encapsulate the core purpose of determining the project's overall viability, which is the essence of a feasibility study.