Feasability study stages

The analysis, in turn, will determine the major investment affordability parameters, such as ROI, NPV (Net Present Value), IRR (Internal Rate of Return) and PBP (payback period). Alongside the purely economic analysis, qualitative factors such as opportunities and/or strategic considerations that are difficult to translate into monetary terms will be analyzed. The results of this design phase are available in a parametric calculation model that allows for the automatic recalculation of the indicators as a function of the input parameter variations.

The result of the feasibility study consists of:

  • a project document outlining the design of the technological solution that, starting from the current processes, can pursue the use-case goals that were outlined at the outset. The project design addresses various aspects such as hardware (e.g. processes-related devices such as tags), software (e.g. integration with resident systems, such as interfaces and architecture) and management (the new way of doing things) in an integrated manner;
  • an evolved and parametric calculation model that, starting from the main investment items as well as the terminating, initiating and operating costs, quantifies the cash flows associated with the investment itself and the major investment affordability indicators. The model is parametric, in the sense that it allows for the automatic recalculation of the indicators according to the variation of the input parameters;
  • an implementation roadmap that, starting from the current situation, defines how and when the ‘to be’ project result scenario may be achieved. Especially considering that, as frequently happens in fashion retail, the involved structures are so numerous (due to the extensive number of façons and/or sales outlets involved) it is important to conduct a roadmap study to highlight how the rollout of the project may be implemented.