Feasibility Study Quarter

Feasibility Study Quarter (hereinafter, the Quarter) is the first of four lectures of Operations Quadrivium (hereinafter, the Quadrivium):

• The Quarter is designed to introduce its learners to enterprise discovery, or, in other words, to concepts related to obtaining data needed to administer the enterprise effort; and
• The Quadrivium examines concepts of administering various types of enterprises known as enterprise administration as a whole.

The Quadrivium is the first of seven modules of Septem Artes Administrativi, which is a course designed to introduce its learners to general concepts in business administration, management, and organizational behavior.

Outline

The predecessor lecture is Idea Generation Quarter.

1. Feasibility study. In enterprise administration, an assessment of the practical potential of a proposed change. This assessment, in fact, consists of several separate evaluations. The first is the change budget estimate, which is the estimation of costs related to the change implementation. The second is the estimation of the value to be attained as the result of change implementation. The third evaluation is made only when the change refers to the enterprise portfolio. A feasibility study is feasible itself when a business opportunity is its change stimulus. If its change stimulus is a business need, no feasibility study is needed; business analysis is conducted instead.
   • Change. In enterprise administration, the act or instance of becoming different and/or doing business differently.
   • Organizational change. Creation and/or creative alteration of how the organization conducts its overall business and/or what it offers to its stakeholders. The change can include its enterprise portfolio, organizational structure, people, work environment, technology, etc.
   • Business strategy change. Creation and/or creative alternation of a business strategy. This change may include the product that is offered on the market, its scope or features, pricing, presentations, production personnel, and/or way of production usually in order to (a) offer new and/or additional benefits to the customer and/or (b) serve some organizational needs.
   • Planned change. Change activities that are intentional and goal oriented.
   • Unexpected change. Change activities that are unintentional and not necessarily goal oriented.
2. Change budget estimate. The expected total cost of a set of enterprise efforts undertaken in order to implement a proposed change when the defined scope of work has been completed. Because the budgets likely depend on the payroll and the payroll depends on work time, schedule feasibility needs to be evaluated before the budget. Because the work time likely depends on the project scope, effort feasibility needs to be evaluated before the work time. Because the project scope definitely depends on the product scope, deliverable feasibility needs to be evaluated first of all.
   • Deliverable feasibility.
   • Effort feasibility.
   • Schedule feasibility.
3. Attained value estimate (AVE).

1. • Organization. A consciously coordinated social unit, composed of two or more legal entities, that functions on a relatively continuous basis to achieve a common goal or set of goals.
   • Business strategy. The formulation of how an organization is going to compete in a particular business. This formulation may or may not include (a) what products, (c) resulted from what production, (d) at what price, (e) using what presentation, (f) on what market, (g) with what people, (h) with what level of organization's support this organization is going to offer, as well as (i) what financial results and/or competitors' actions would trigger what changes in those decisions. Rarely, a mature organization formulates just one business strategy; usually, there are several business strategies in the organization's enterprise portfolio since both/either different divisions may have their own business strategies and/or different business strategies are developed for different products, regions, and/or segments of customers.

1. • Product.

• Proof of concept.
• Market.
• Competition.
• Market research.
• Business intelligence. Information that managers can use to make more effective strategic decisions.
• Competitor intelligence. Gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.
• Idea evaluation. The process of creative behavior involving the evaluation of potential solutions to problems to identify the best one.
• SWOT analysis. An analysis of the organization's strengths, weaknesses, opportunities, and threats.
• Strength. Any activity the organization does well or its unique resource.
• Weakness. An activity the organization does not do well or a resource it needs but does not possess.
• Opportunity. A positive trend in the external environment.
• Threat. A negative trend in the external environment.
• Restraining force. A force that hinders movement from the existing equilibrium (Kurt Lewin).
• Enterprise environmental complexity. The number of components in an entity's environment and the extent of the entity's knowledge about its components.
• Enterprise environmental uncertainty. The degree of change and complexity in an entity's environment.
• First mover. An organization that's first to bring a product innovation to the market or to use a new process innovation.
• Free market economy. An economic system in which resources are primarily owned and controlled by the private sector.
• Idea champion. An individual who takes an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.
• Planned economy. An economic system in which economic decisions are planned by a central government.

1. Enterprise. (a) An endeavor undertaken in order to create something or develop somebody, or (b) an undertaking that includes several endeavors and may or may not represent an entire business or organization. The enterprise assumes some level of enterprise effort.
   • Legal entity. Any entity such as an legally-adult individual or a corporation to which the law grants property rights and responsibilities. Particularly, the rights include capacity to buy and sell, enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued, as well as be held responsible for its actions.
   • Business. Either an individual's regular occupation, profession, or trade, or the practice of making one's profit by engaging in commerce.
2. Enterprise portfolio. A collection of all businesses in which a particular organization is.
   • Startup business (or, simply, startup). A business in its search of its business model or its ways of making money.
   • Ongoing business. A business that executes its business model in order to make money.
3. Enterprise administration. Practice and a set of concepts, based on that practice, that define culture of administering all enterprise efforts from identifying opportunities and up to getting of all enterprise outputs.
   • Administration. The process or activity of running a business, organization, etc. or the officials who executive that process or activity.
   • DADI (or DADI pattern). The enterprise development pattern that divides enterprise administration in four batches: Discovery (D), Analysis (A), Design (D), and Implementation (I). Although the batches tend to be both consecutive and complete, this statement is rarely true. Most frequently, Discovery can occur at any time and the newly discovered data re-starts the process.

The successor lecture is Business Modeling Quarter.