A feasibility study analyzes an idea to determine if the idea is viable. A cost-benefit analysis, on the other hand, is a process through which the costs of taking a particular action are compared to the benefits accruing from the procedure. The costs are deducted from the total benefits, and the remaining amount makes the benefit or profit accruing from that procedure. If the figure is negative, the procedure is deemed not to be a viable action. The two processes may happen simultaneously and are often related to each other. The link arises from the fact that during the feasibility study, when determining the viability of a business, a cost-benefit analysis forms the main factor used to determine the viability of the various alternatives and helps in choosing the best among them (Naidoo et al., 2006).
Both these processes need to be tied to the organization’s strategic plan. The organization’s strategic plan is a blue print of the business’s long-term business planning. Feasibility studies and cost-benefit analysis are usually done with respect to particular projects undertaken by an organization in furtherance of its objects. If both the feasibility study and cost-benefit analysis processes are not tied to an organization’s strategic plan, the business will face a number of problems. One, the perpetuity of a business is put in jeopardy because the projects being initiated do not conform to the general blue-print or are inconsistent to the strategic plan. Two, determining success of a particular project is difficult as the businesses use the organization’s strategic plan as the yardstick against which the viability and the success of projects are determined (Turner, 2006).
The Microsoft solution framework is a high-level sequence of procedures that Microsoft modeled to be used in the initiation and implementation of IT projects and solutions. The framework is versatile to allow modification and applicability to a wide range of project solutions. The framework is most applicable for long-term projects and does not prove to be an ideal solution for short-term projects (Turner, 2006). However, for long-term projects that fall within an organization’s strategic plan, MSF presents an ideal framework for implementation and evaluation purposes.
Naidoo, R., Balmford, A., Ferraro, P. J., Polasky, S., Ricketts, T. H., & Rouget, M. (2006). Integrating economic costs into conservation planning.Trends in Ecology & Evolution, 21(12), 681-687.
Turner, M. (2006). Microsoft® solutions framework essentials: building successful technology solutions. Microsoft Press.