Feasibility Study

To define feasibility study

How feasibility is used

The different types of feasibility study

Market analysis

Definition

a systematic analysis of factors that affect a specific market

key example questions

What is the market?

healthcare

providing laboratory equipment

Who are the competitors?

Qatar Scientific

MedTech

Who is the target customer?

Labs

hmc

sidra

macrohealth

What does the customers want?

sidra

sample prep

sequencing reagents/equipments

hmc

sample prep

rt-pcr

macrohealth

sample prep

dna extraction

What are my competitor offering?

Qatar Scientific

carry MGI

dna extraction ~1 hour

reagent prep takes time ~30 mins

MedTech

Bioneer

dna extraction ~40 mins

only dna extraction

wo pre-PCR

What differentiate my product from others?

dna extraction

analytica

dna extraction + pre-pcr < ~ 1hour

FASTER sample prep

Methods

Field research

Primary research

collecting and analyzing new data to generate information

examples

Face-to-face interview

Telephone interview

Postal survey

Purchase survey

Online survey

training

Desk research

Secondary research

collecting and analyzing existing data and information that has been previously published

examples

market/industry reports

literature reviews

online databases

government reports

newspaper

census data

analystics

our healthcare example

MGI

protocol

Bioneer

Subtopic

Analytica

Source

internal sources

sales figures

accounting records

customers' comments

customers' complaints

online research

search engines

newspapers

online database

document research

Business directories

Business statistics

Market research reports

Advantages

Help in Risk Mitigation

Resource Allocation

Understanding Customer Needs

Identifying Market Opportunities

Assess Growth Potential

Challenges

Data Availability

Data Reliability

accuracy

bias

Limited Predictive Power

Global Variations

Market Uncertainty

Financial analysis

Definition

evaluation of the financial performance and health of a business

seeks to ascertain the financial viability of the proposed project/idea

can the business pay the debt?

will it provide a good return on invesment?

Methods

breakeven point (BEP)

is used to determine how much sales volume your business needs to do before start making a profit.

useful when you're developing a pricing strategy

Cost-Plus Pricing

a strategy where a fixed percentage is added to the production cost of a product

Advantage

Easy to calculate/implement

Guarantees that all costs are covered, reducing the risk of losses

Provides a consistent profit margin on all products

Disadvantage

Doesn't consider customer willingness to pay or competitor pricing

Less incentive to minimize costs since they can be passed on to consumers.

May result in prices that are too high for the market, reducing sales.

Tiered Pricing

a strategy where multiple pricing levels for a product is offered based on customer needs and budget

Advantages

Provides options to meet diverse customer needs

Encourages upselling as customers may opt for higher tiers

Effectively targets different market segments

Disadvantages

More complicated to manage and market multiple tiers

Too many options might overwhelm customers

Requires careful planning to balance value across tiers

Bundle Pricing

a strategy involving selling a set of products or services together at a single discounted price

Advantages

Encourages customers to buy more items

Customers feel they are getting a deal

Helps move less popular items by bundling them with bestsellers

Disadvantages

Discounts may lower profit margins

Managing bundles adds complexity to inventory control.

May devalue individual products if always sold at a discount.

Dynamic Pricing

a flexible strategy where prices are adjusted in real-time based on market demand

Advantages

Maximizes profits by capturing consumer surplus

Quickly adapts to supply and demand fluctuations

Stay ahead of competitors by offering timely price adjustments

Disadvantages

Frequent price changes may frustrate customers

Requires sophisticated technology and data analys

Risk of price discrimination allegations if not managed carefully.

2 types of cost

Variable cost (V)

costs that change with changes in production/sales

material cost

Fixed cost (F)

roughly the same regardless of production/sales

rent

wages

insurance

Equation

to calculate BEP

BEP=F/(P-V)

P = The amount of money charged to the customer for each unit

a.k.a Selling price

example

How many number of products need to be sold before I start making a profit?

i would like to produce 100K of product X given

fixed cost is 30k

variable cost are

2.20 QR per unit

paper

4 QR per unit

ink

0.80 QR per unit

delivery

selling price

12 QR per unit

Limitation

is only for supply side analysis

it does not tell you about what or how you should conduct your sales.

based on a number of assumption

fixed cost is constant

variable cost are constant through out production

all goods produce get sold

credit analysis

the process of evaluating the creditworthiness of individuals, businesses, or other entities that are seeking to borrow money or obtain credit

creditwothiness

how confident the lender (the one who gives out credit) thinks the borrower (the one who received credits) will be able to pay back

How do one check for creditworthiness of a business?

Financial statement

Income statement

can provide information regarding Revenue Growth

Steady or increasing revenue over time is generally a positive sign of a healthy business.

If there is positive growth every year, the chances of the business not being able to pay back the loan/credit is low

Balance sheet

Assets

Fixed assets (e.g., real estate) can be used as collateral

this will increase creditworthiness of a business because if the business used the fixed assets as guarantee for a loan

Cash Flow

Cash flow trends

Positive operating cash flow

if a business has a positive and steady cash flow trend, the creditworthiness increases because it assures lenders that the business can pay their day-to-day operations

Credit scores history

Obtain the company's credit history and payment history from credit reporting agencies

Late payments or a history of defaults can be red flags.

examples

FICO score

one of the most widely used credit scoring models

provided by the Fair Isaac Corporation

FICO scores typically range from 300 to 850, with higher scores indicating better creditworthiness

mainly in the USA

The Qatar Credit Bureau

the primary credit reporting agency in Qatar

collects and maintains credit information on individuals and businesses in Qatar

Lenders and financial institutions in Qatar typically use the data provided by the Qatar Credit Bureau to assess credit risk

Experian

a global credit reporting agency that operates in many European countries

provide credit scores and reports to lenders and consumers

Source

Financial statements

income statement

balance sheet

cash flow statement

annual/quarterly reports

Credit ratings agencies

Stock exchanges

Financial databases

Advantages

Assessment of Financial Performance:

Informed Decision-Making

Identify Financial Risks

Cost Control

Better Resource Allocation

Challenges

Reliability of financial data

Lack of Transparency

Differences in accounting methods

External Factors

Technical analysis

Definition

evaluating the technical aspects required to execute a project

Methods

Resource Assessment

Technology Compatibility

Technical Skill Sets

Supplier Evaluation

Cost Analysis

Source

Internal Documentation

project plans

Technical specs

Company Records

inventory records

personnel records

Supplier Agreements

Industry Events and Conferences

Advantages

Resource Optimization

Cost Estimation

Resource Assessment

Supplier Evaluation

Challenges

Assumption of Efficiency

Market Dynamics

Data Quality

Operational analysis

Definition

assessing the practical aspects of a business

Methods

SWOT analysis

Identify operational areas where the business can capitalize on strengths, address weaknesses, exploit opportunities, and mitigate threats

Strength

Leveraging Strengths for Improved Day-to-Day Operations

example

XYZ Electronics is an electronics manufacturing company specializing in consumer electronics e.g. smartphones

strengths

usage of technology

the company has invested heavily in R&D in the past 5 years

as a result, now they have

state-of-the-art manufacturing technology

proprietary software for quality control

workforce

company has a skilled and experienced workforce

as a result

due to their experiences, they can come out with new innovation

scenario

company is experiencing increased demand

to keep up with the demands, the company resort to its strength

cutting-edge tech

utilizes its proprietary software for quality control

e.g.

instead of 1 QA officer per 100 phones, with the proprietary software, the rate can be increased to 1 Q per 1000 phones

workforce empowerment

utilizes its highly-skilled workforce to do innovation

e.g.

usually it takes 3 hours to create 1 phone but with a new innovative method from highly skilled workforce, it can take only 30 mins to create 1 phone

Weaknesses

Addressing Weaknesses for Improved Day-to-Day Operations

example

Sunshine Medical Clinic is a small healthcare clinic specializing in general family medicine and primary care

weaknesses

Outdated Patient Record System

the clinic relies on paper-based patient records, which are time-consuming and error-prone

as a result

difficult to access patient history quickly

Limited Online Presence and Patient Engagement

the clinic has very minimal online presence

as a result

hard to attract new customer and difficult to engage with current ones

scenario

the clinic recognized they have the two weaknesses and so they come out with a way to improve their day-to-day operations

Outdated Patient Record System

realizing they do not have an Electronic Health Record (EHR), the clinic invest in one

as a result

patient history can be accessed quickly and no errors in the information

Limited Online Presence and Patient Engagement

realizing the weakness, the clinic build a user-friendly website which includes onlin-booking, list of experts and their expertise, contact information and ability for patient to see their health records online

as a result

potential customers can search about the clinic and their expertise

current customers feel empowered and does not seek alternative clinic

Opportunity

Exploiting Opportunities for Improved Day-to-Day Operations

example

HealthAdvise Consultants is a healthcare consultancy firm specializing in healthcare technology implementation

opportunities

Healthcare Analytics

there are many analytical tools developed for healthcare related purposes post COVID19

Telehealth Services

there is an increasing demand for telehealth services post COVID-19

scenario

the company wants to leverage the 2 trends that is happening in the healthcare industry

Advanced Analytics Solutions

the company hire skilled data analytic workers to utilize the analytical tool

as a result

the company is able to

optimize resource allocation

improve patient outcomes

enhance operational efficiency

Telehealth Integration

the company implement telehealth integration in their day-to-day operation

as a result

the company is now able to

align its services with real-time market needs of its customer

Threat

Mitigating Threats to Improve Day-to-Day Operations

example

WellCare Medical Center is primary care clinic offering a range of healthcare services

threats

Cybersecurity Risks

increase in cyber threats e.g. data breach

as a result

this pose a serious risk to patient personal and clinical information

Healthcare Regulatory Changes

frequent changes in healthcare regulations

as a result

this create challenges in maintaining records and procedures according to the regulations

scenario

the clinic takes a proactive approach to mitigate these threats

Cybersecurity Risks

the clinic invest in robust cybersecurity infrastructure including firewalls and encryption

as a result

this increases the confidence that the patient data is secured

Healthcare Regulatory Changes

the clinic hire a compliance specialist that closely monitor changes in healthcare regulations

as a result

reduces the risk of non-compliance penalties and audits from regulatory bodies

Flowcharts

visually represent the step-by-step processes involved in the project's operations to identify

identify bottlenecks

identify inefficiencies

areas for optimization

Resource requirement assessment

estimating the resources needed for project operations

personnel

equipment

material

Source

business documentation

proposals

business plans

business charter

market research

provide insights to critical aspects of operation planning

customer demand

market trends

industry benchmarks

financial statements

can help in understand industry financial norms and trends

Customer feedbacks

offer insights into customer expectations and preferences

important for designing and optimizing operations

Employees survey

provide insights into the availability of skilled labor and workforce requirements

Advantages

Improved Decision-Making

provides valuable insights into how a business will operate on a day-to-day basis

Risk Identification and Mitigation

can identify potential operational risks and challenges early in the planning process

allows for the development of mitigation strategies and contingency plans

Efficiency and Cost Optimization

can lead to reduced operational expenses and increased profitability

Resource Allocation

can ensure that the business has the necessary resources in place to function effectively

Quality Assurance

ensure that the business can consistently deliver products or services that meet or exceed quality standards, enhancing customer satisfaction and reputation

Challenges

Data availability

Gathering accurate and up-to-date data require access to proprietary or confidential information from existing businesses that are not readily available

Data quality

Inaccurate or incomplete data can lead to flawed conclusions and decisions

Complexity of Operations

In certain healthcare businesses some have complex processes which requires expertise and resources.

Interdependencies

Some operations are often interdependent with one another such as market demand and financing

Forecasting Uncertainty

operational analysis usually involves making forecast about future operation e.g. market demand and cost inflation

what?

an analysis of the viability of

idea

initiative

service

project

product

a team effort requiring

time

efforts

cost

how?

analyze all possible solutions to a problem

make recommendation on the best solution

decide what type of system can be developed to match the needs of the organization

provides a guideline for development and delivery

why?

to find cost-effective solution

to find well-organized solution

to find probable market for our product/service

to identify opportunities and threats

to determine probable income

to show the impact/contributions of an idea

help in narrowing business alternatives

project team can be more focus

aid in decision making