What does it mean if the projected benefits of a proposed system outweigh the estimated costs?

When the projected benefits of a proposed system outweigh the estimated costs, it indicates that the project is economically viable, which is referred to as economic feasibility. This concept involves a cost-benefit analysis where the potential financial gains from implementing a system are compared to the costs incurred in its development and operation. If the benefits are greater, it suggests that pursuing the project makes sense from a financial perspective, and that it is likely to provide a positive return on investment.

In practice, economic feasibility helps organizations decide whether a project is worth the resources required and whether it aligns with their financial goals. It considers both quantifiable factors, such as increased revenue or cost savings, and qualitative factors, such as improvements in customer satisfaction.

While technical feasibility deals with whether the technology needed to build the system is available and capable of meeting the requirements, and operational feasibility addresses how well the system will function within the existing organizational structure, these factors do not directly relate to the assessment of financial implications as economic feasibility does. Schedule feasibility, on the other hand, evaluates whether the project can be completed within an acceptable timeframe, which also varies significantly from the economic aspect of decision-making.