The data collection that occurs during preliminary investigations examines system feasibility, the likelihood that the system will be beneficial to the organization. Four tests of feasibility are studied: technical, operational, political, and economic. All are equally important.

1) Technical Feasibility:

It involves determining whether or not a system can actually be constructed to solve the problem at hand.

2) Operational Feasibility:

Proposed projects are of course beneficial only if they can be turned into information systems that will meet the organization’s operating requirements. Simply stated, this test of feasibility asks if the system will work when developed and installed.

3) Political Feasibility:

It is perhaps the most powerful type of feasibility, but it is never formally included in a system study documents. This involves the extent of managerial support for changes to the present system.

4) Economic Feasibility:

It involves estimating benefits and costs. These benefit and costs may be tangible or intangible. Because of confusion between the types of cost, it is sometimes very difficult to decide if the benefits outweigh the costs.

Cost benefits analysis is must in feasibility study.