In addition to enterprise environmental factors, organizational process assets, and project initiator/sponsor, the initiating process group requires pre-feasibility/feasibility data and business case/business assessment model (BAM). The research department can spend significant time, potentially years, collecting pre-feasibility/feasibility data. The business case/BAM is research conducted by the marketing department. Both departments provide essential data to ensure a smooth project.
How does each dataset impact one another? Is there a major relationship between the two?
The pre-feasibility/feasibility data and the business case(BAM) are interdependent with each other. The feasibility data provides the fundamental information that is necessary for the development of the business case for that project. For instance, the feasibility data might suggest market analysis, technical assessments, financial projections, and risk assessments. This data will inform the creation of the business case for the project by providing insights into the viability, risks, and benefits.
Thus, they are intertwined with each other and influence each other mutually so a strong relationship needs to develop between these two departments.
The two go hand in hand to form the final business case that allows the project to be chartered. Marketing will do market research to see what the gaps are in the market, gather data on the target customer and start building a preliminary user needs assessment, as well as build the financial model and forecasting of profitability of the idea. Feasibility data gathering takes the market gap assessment and preliminary user needs that marketing determined and use that to modify the idea from a technical standpoint. From there, technical assessments will be done to determine the feasibility of the idea as well as cost projections for cost of goods sold (COGS). Both the BAM and feasibility data are taken together to determine if a project should be chartered.
The pre-feasibility/feasibility dataset and BAM are both critical in initiating projects. The pre-feasibility/feasibility dataset feeds into the BAM by making an assessment on the economic, operational, and technical viability of the project. Without this data, it would be significantly more difficult to create the BAM where the business alignment, benefits, and costs can be determined. The BAM is more particular on how the project would affect the business while the pre-feasibility/feasibility dataset provides data on whether or not it is possible. Making a BAM without careful deliberation on the pre-feasibility/feasibility dataset is asking for a financial disaster within the company since one cannot possibly complete a project without knowing whether or not the company can actually handle it at the time of execution. Both datasets provide a front and back-end form of Risk Analysis. Pre-feasibility/feasibility data provides information on how risky this project could be to the company's resources in trying to complete it, and BAM data provides information on the risk of the return of investment coming through. In the end, both are critical in upper management decision making, where they decide whether or not completing the project will be beneficial for them in the future.
The pre-feasibility/feasibility dataset and the BAM dataset are interrelated in many ways. One way is that the data gathered in the pre-feasibility/feasibility dataset provides information regarding the technical and financial aspects of the project which sets up the premise for the BAM dataset to assess the validity and the potential success of the project. Moreover, the BAM dataset provided by the marketing department includes analyzing marketing trends and competition and the pre-feasibility/feasibility dataset may provide insights into the market conditions to develop the BAM model. Although there is no direct cause-and-effect relationship between the two datasets, there are secondary and complementary relationships between the two.
Pre-feasibility/feasibility data and business/case assessment model (BAM) play interconnected roles in the project initiation phase. I give explanations about this kind of issue here, maybe there are suitable solutions in it.
Pre-feasibility/feasibility data:
This data, usually collected by the research department, aims to assess the viability and potential success of a project. which has content including technical, economic, legal, operational and planning aspects that provide a comprehensive understanding of project feasibility. Feasibility data forms the basis of the business case. This helps determine whether the project is worth pursuing and provides critical input for the various aspects covered in the business case.
Case Business/BAM:
Often researched by the marketing department, the business case or BAM is a comprehensive document that justifies the project from a business perspective. which content includes information about costs, benefits, risks and expected returns. It evaluates the financial and strategic aspects of the project. which can affect the pre-feasibility/feasibility data. The business case relies on technical and economic feasibility data provided by the research department. BAM verifies the commercial viability of the project based on the technical and operational aspects identified in the pre-feasibility/feasibility data.
From this point of view, there is a significant interdependence between the two data sets. The technical and economic feasibility data provided by the research department for the business case is crucial for making informed decisions about the financial and strategic aspects of the project.
In my opinion, in essence, pre-feasibility/feasibility and business case/BAM data are completely interrelated and each data set influences and supports the other. The seamless integration of these data sets ensures a comprehensive and well-supported foundation for project initiation.
Marketing will see if there is a market for your product. Your product might be very good, but if there is no market. Then, there might not be a need to move forward with that product. On the other hand, something like feasibility, this is to see if you can make this at this current point in time.