WHY TECHNOLOGY INVESTMENTS FAIL BEFORE THEY START

Most Technology Projects Fail Not Because of Execution — But Because Nobody Validated the Investment Before Signing

The Signed-Without-Scoping ERP

A business signs a three-year ERP contract worth $350,000 based on a vendor demo and a reference call. Eighteen months in, the system does not support the company's primary billing workflow. A $120,000 customisation is on the table, the go-live is delayed nine months, and the board wants to know how this was approved. No feasibility study was conducted before the contract was signed.

The Business Case Built on Vendor Numbers

The vendor's ROI calculator shows a 3-year payback. The CFO approved the project. Two years in, the actual ROI is negative — the vendor did not account for integration costs, data migration, or staff retraining. A structured financial model with independently verified assumptions would have shown a 5.5-year payback before any contract was signed.

The Platform Built for the Wrong Scale

A SaaS platform was built to handle 50,000 users. At 8,000 users, the architecture is already showing stress. The original technical design was never validated against growth scenarios. A technical feasibility assessment before development started would have flagged the architecture risk — a $40,000 fix versus the $280,000 re-platform now required.

The pattern is consistent: technology investment decisions made on vendor presentations, internal estimates, and optimistic assumptions rather than independent, structured evidence. A Techno Economic Feasibility Study replaces opinion with evidence — before the contract is signed, the capital is committed, or the project is announced.

THREE DIMENSIONS OF EVERY ENGAGEMENT

What Our Techno Economic Feasibility Study Covers

01

Technical Feasibility

Can this project actually be built, implemented, or operated given your current infrastructure, team, and technology choices?

  • Technology readiness assessment against current infrastructure and vendor ecosystem
  • Architecture evaluation: scalability, integration complexity, and failure mode analysis
  • Build-buy-partner decision matrix with dependency and capability gap mapping
  • Vendor capability assessment: track record, financial stability, and reference validation
  • Implementation risk scoring by phase with mitigation recommendations
02

Economic Feasibility

Does the financial case hold when independently modelled — not estimated by the vendor or the internal team proposing the project?

  • Total Cost of Ownership (TCO) model: capital, operational, integration, training, and maintenance costs
  • Revenue or savings projection with independently sourced assumptions
  • ROI, NPV, and IRR calculations with sensitivity analysis across three scenarios (conservative, base, optimistic)
  • Payback period analysis with cash flow waterfall by year
  • Break-even analysis and investment phasing options with cost-of-delay modelling
03

Risk & Sensitivity Analysis

What can go wrong, how likely is it, and what does it cost if it does?

  • Risk register: technical, financial, vendor, regulatory, and execution risks scored by probability and impact
  • Sensitivity model: how outcomes change if key assumptions move by ±10%, ±20%, ±30%
  • Scenario analysis: base case, best case, worst case with financial outcomes for each
  • Dependency map: which assumptions the entire business case rests on
  • Go/no-go recommendation with decision criteria and confidence scoring
WHAT YOU RECEIVE

A Bankable TEFS Report — Not a Slide Deck, Not a Vendor Summary

Every TEFS engagement produces a structured, investment-grade report your team owns entirely. The report is formatted for its audience: executive summary for the board, financial model for the CFO, technical appendix for the engineering team. No proprietary format — delivered as PDF and editable source files.

Techno Economic Feasibility Study Report
Client: [Confidential] Scope: ERP Implementation — Manufacturing Operations Date: Q2 2026
Project[Client Project Name]
Study DateQ2 2026
Engagement TypeTechno Economic Feasibility Study
ScopeERP Implementation — Manufacturing Operations
RecommendationPROCEED WITH CONDITIONS
ConfidenceHIGH — Score: 82/100
Key Finding: The project is technically feasible and economically viable under base assumptions. Financial viability is conditional on phased implementation with a vendor performance clause at the 6-month milestone.

Independent Financial Model — Scenario Summary

Metric Conservative Base Case Optimistic
Total Project Cost$1.24M$980K$860K
Annual Savings$210K$285K$340K
ROI (3-year)18%43%67%
Payback Period4.9 yrs3.4 yrs2.5 yrs
NPV (5-year)$142K$398K$612K

All figures independently modelled. Assumptions fully documented. Editable Excel model delivered on completion.

Risk Register — Scored by Probability & Impact

Risk Probability Impact Mitigation
Data migration complexity High High Parallel run for 60 days before cutover
Vendor delivery delay Medium High Penalty clause + milestone-linked payment escrow
User adoption failure Medium Medium Structured change management programme
Integration with legacy billing Low High API proof-of-concept validated in Phase 1

Recommendation

DecisionPROCEED — Phase 1 Only PROCEED
Conditions3 milestone gates required before Phase 2 approval
Next StepsIssue vendor RFP with defined scoring criteria and penalty framework
Review Date90 days post-Phase 1 go-live
The project proceeds with a phased approval structure. Phase 2 capital is not committed until Phase 1 milestone gates are validated independently.

Technical Appendix — Snippet

Architecture Assessment

Current ERP evaluated against 14 architecture criteria. Integration layer identified as critical path. API-first approach recommended.

Vendor Scoring Matrix

3 vendors assessed across 18 criteria: technical capability (40%), financial stability (20%), implementation track record (25%), contract terms (15%). Vendor B leads with score 81/100.

Integration Dependency Map

7 integration points identified. Billing system integration classified HIGH risk. Legacy warehouse module requires middleware bridge.

You Need a Techno Economic Feasibility Study If Any of These Apply

You're about to sign an ERP or enterprise software contract.

The vendor has presented ROI numbers and a reference list. Your team has completed a demo. A TEFS independently validates the financial case and technical fit before you are locked into a multi-year agreement.

A feasibility study for ERP implementation conducted before contract signing is the single most effective way to prevent budget overruns.

Your board or investors require independent investment validation.

The project has internal support but the board wants a third-party feasibility assessment before approving capital. A TEFS provides the structured, independent evidence that satisfies due diligence requirements.

A techno economic feasibility study for investors gives your board the confidence to approve without exposing them to unvalidated assumptions.

You're applying for a bank loan or government grant for a technology project.

Many lenders and subsidy programmes require a Detailed Project Report (DPR) or techno-economic feasibility assessment as a condition of application.

A TEFS produces a bankable report in the format lenders expect — with independent financial modelling, sensitivity analysis, and a risk-adjusted recommendation.

You're evaluating build-vs-buy-vs-partner for a major platform.

Three options are on the table, each with different cost profiles, timelines, and risk levels. A TEFS models all three scenarios and produces a structured recommendation with financial and technical evidence behind it.

You've run a failed technology project and need to understand what went wrong.

The project is over budget, behind schedule, or abandoned. A post-implementation TEFS audit documents what happened, why, and what the realistic recovery options are — without bias from the team that ran the original project.

You're planning a digital transformation programme and need a business case.

The initiative has executive support but no structured business case. A TEFS produces the financial model, risk register, and implementation sequence your board needs to approve funding with confidence.

HOW WE RUN A TEFS ENGAGEMENT

Six Phases — From Scoping to Board-Ready Report

01

Scoping & NDA Week 1

We define the scope, sign a mutual NDA before any discovery conversation takes place, and agree on the report format and the audience it is written for. We collect initial project documentation and lock scope in writing before work begins. Nothing proceeds without a signed scope document.

02

Discovery & Data Collection Weeks 1–2

Structured interviews with technical, finance, and operations stakeholders. We review vendor proposals, existing architecture documentation, financial assumptions, and integration requirements. Vendor-supplied financial projections are not accepted as inputs — we gather assumptions from primary sources and verify them independently.

03

Technical Assessment Weeks 2–3

We evaluate technical feasibility against your current infrastructure. We score vendor capability against a defined framework. We map integration complexity, identify architecture risks, and validate the implementation timeline against projects of comparable scope and complexity.

04

Financial Modelling Weeks 2–4

We build an independent financial model — not adapted from the vendor's calculator. The model documents every assumption, cites every source, and runs sensitivity analysis across conservative, base, and optimistic scenarios. All formulas are visible. The model is yours after delivery.

05

Risk Register & Scenario Analysis Week 4

We score all identified risks by probability and financial impact. We model financial outcomes under each scenario. We map the critical assumptions the entire business case depends on — the ones where a 20% variance changes the go/no-go decision.

06

Report Delivery & Presentation Weeks 4–5

We deliver the structured TEFS report and present findings to leadership or the full board. We provide the editable financial model and all source files. A 30-day Q&A window is included as standard — not an upsell — for questions from the board, CFO, investors, or legal team.

Typical Engagement Timelines

Pre-feasibility scoping report 2 weeks
Standard TEFS engagement 4–6 weeks
Complex / multi-vendor / multi-system TEFS 8–12 weeks

Every TEFS Engagement Delivers These Artefacts

TEFS Report (PDF + Editable Source)

The primary deliverable: a structured, investment-grade report covering technical feasibility, financial analysis, risk assessment, and recommendation. Delivered in PDF and editable format so your team can update it as the project evolves. Full IP transfer on delivery.

Independent Financial Model (Excel / Google Sheets)

A fully documented software investment ROI study: all assumptions listed, all formulas visible, sensitivity tables built in. You own it — no proprietary tool, no ongoing licence, no black box.

Risk Register

A scored risk matrix covering technical, vendor, financial, regulatory, and execution risks. Each risk includes probability rating, impact score, and a specific mitigation recommendation.

Vendor Evaluation Scorecard

Where vendor selection is in scope: a structured scorecard comparing vendors across technical capability, financial stability, contract terms, and reference quality. Designed to survive board scrutiny.

Executive Summary (1–2 Pages)

A standalone executive summary formatted for board presentation, investor due diligence, or bank submission. Written for decision-makers, not technical teams. Ready to submit without modification.

30-Day Q&A Window

Available for 30 days after delivery for questions from the board, CFO, investors, or legal team. Standard on every engagement — not an optional add-on.

Techno Economic Feasibility Studies Across Sectors

Manufacturing technology investments often involve ERP implementations, automation, and OT/IT integration — each with significant capital requirements and long payback windows. A TEFS provides the structured evidence that justifies the spend to the board and validates vendor claims before contracts are signed.

  • ERP selection and investment feasibility for multi-plant operations
  • Industry 4.0 and IoT programme investment validation
  • Automation ROI assessment for production lines
  • Legacy system replacement feasibility and business case

Healthcare technology decisions carry regulatory, patient safety, and data sovereignty dimensions that make independent feasibility assessment especially critical. We assess both the technical and compliance dimensions alongside the financial case.

  • Clinical information system or EMR platform investment feasibility
  • Telehealth and digital health programme business case
  • Healthcare data infrastructure investment assessment
  • Compliance technology cost-benefit study (HIPAA, NHS Digital)

FMCG and retail technology investments — from demand forecasting platforms to omnichannel infrastructure — move fast and carry high integration complexity. A TEFS identifies integration risks and validates vendor ROI claims before they become contractual commitments.

  • Retail ERP or POS platform investment feasibility
  • E-commerce platform build-vs-buy decision analysis
  • Supply chain digitalisation programme feasibility
  • Demand forecasting and AI investment ROI assessment

Logistics technology investments typically involve WMS, TMS, and real-time tracking infrastructure — each with integration complexity that vendors consistently underestimate. A TEFS maps integration dependencies before implementation begins, not after the contract is signed.

  • WMS and TMS selection and investment feasibility
  • Last-mile technology programme business case
  • Fleet management system investment assessment
  • 3PL integration architecture and cost feasibility

Fintech technology investments must meet regulatory requirements while delivering financial returns. We assess technical feasibility against compliance requirements and model financial outcomes across regulatory scenarios.

  • Core banking or payment platform investment feasibility
  • Regulatory compliance technology business case
  • AI/ML credit scoring platform investment assessment
  • Open banking API programme feasibility and cost modelling

EdTech investments — from LMS platforms to AI tutoring systems — require validation against student outcome data and budget constraints. A TEFS models the financial case alongside the infrastructure requirements that purely financial assessments miss.

  • LMS or learning platform build-vs-buy feasibility
  • EdTech platform digitalisation programme assessment
  • AI-powered learning tool ROI and readiness assessment
  • Higher education ERP investment and selection study

What Changes When Investment Decisions Are Evidence-Based

ERP Investment

Before

The ERP vendor's ROI model shows a 2.5-year payback. The board approves $800,000. Eighteen months into implementation, integration costs alone have consumed the projected savings for Year 1. The actual payback is now estimated at six or more years. Nobody modelled the integration costs.

After

An independent TEFS financial model accounts for all integration, training, data migration, and change management costs. The board approves with a revised budget that includes a $120,000 integration reserve and a vendor performance clause. The real payback is 4.1 years — uncomfortable, but accurate. The board signed off knowing the real number.

AI Investment

Before

AI vendor demos impressive capabilities. Team recommends $300K investment. Six months in, data quality is too poor to support the model. Project paused at $180K spent, nothing deployed.

After

TEFS data readiness assessment finds 60% of historical transaction data incomplete. Recommendation: invest $45,000 in data infrastructure first, run 12-week pilot, then scale. Company spends $45,000 instead of $300,000 to reach the same point — with independent evidence that scaling will work.

Platform Build

Before

Internal team recommends custom SaaS at estimated $400,000. Month 8, scope is at $720,000 and architecture won't support multi-tenancy at scale. Product rebuilt from scratch.

After

Pre-build technical feasibility assessment identifies 3 critical scalability gaps. Revised scope with different database strategy and API-first architecture estimated at $490,000 — $90,000 more upfront, $230,000 less than the rebuild eventually required.

Bank / Investor Submission

Before

Bank requires DPR. Internal team submits business plan. Bank rejects as insufficient, requests third-party techno-economic study. Three months delay, project starts without loan.

After

TEFS report produced before bank submission. Meets DPR requirements: independent financial modelling, technical assessment, sensitivity analysis, risk-adjusted recommendation. Accepted in first review cycle.

What a Techno Economic Feasibility Study Delivers vs. the Alternatives

Criterion TEFS by Arobit Internal Business Case Vendor ROI Model Big Four
Independence Fully independent — no vendor relationship Internal bias — the team proposing the project owns the model Vendor bias — optimised to win the sale Independent, but expensive
Financial Modelling NPV, IRR, TCO, payback period, sensitivity analysis across three scenarios Usually NPV and basic ROI only — assumptions rarely documented ROI cherry-picked to support the vendor recommendation Comprehensive
Technical Assessment Architecture, integration complexity, vendor capability, risk scoring Limited — proposing team is often non-technical Limited to the vendor's own implementation experience Comprehensive
Report Format Board-ready, bankable, lender-accepted Variable quality — rarely lender-accepted Not designed for lender or board submission Board-ready
Cost $15,000–$40,000 typical engagement Internal time cost only Free — but not independent $80,000–$300,000+
Turnaround 4–6 weeks 2–4 weeks (but not rigorous) 1–2 weeks (but not independent) 8–16 weeks

A TEFS engagement that costs $80,000–$150,000 with a Big Four firm typically runs $15,000–$40,000 with Arobit — with senior consultants averaging 10+ years of IT delivery experience on every engagement.

Frameworks and Tools We Use in Every TEFS Engagement

We build all financial models in Excel or Google Sheets with fully documented assumptions, visible formulas, and built-in sensitivity tables. No proprietary financial modelling software — every model is yours to operate and update independently after the engagement ends.

  • Excel / Google Sheets — Primary financial modelling environment with open, auditable formulas
  • Monte Carlo simulation — For investments with high uncertainty in key variables
  • NIST CSF — Used to structure cost modelling for cybersecurity technology investments
  • APQC benchmarks — For validating operational cost assumptions against published industry data
  • TOGAF / ArchiMate — Enterprise architecture assessment framework
  • NIST Cybersecurity Framework — For security posture and compliance risk assessment
  • ISO/IEC 25010 — Software quality characteristics framework for technical scoring
  • AWS / Azure / GCP Well-Architected Frameworks — For cloud infrastructure feasibility
  • SonarQube — Code quality and technical debt assessment where source code access is in scope
  • Risk matrix scoring — Probability × Impact with mitigation mapping and owner assignment
  • Sensitivity analysis — Key variable stress-testing at ±10%, ±20%, ±30%
  • Decision tree modelling — For investments with multiple branching scenarios
  • PESTLE framework — For investments with regulatory or macro-environment exposure
  • Microsoft Word / Google Docs — Report authoring in formats you own and can edit independently
  • Notion — For living documents updated collaboratively during the engagement
  • Miro — Workshop facilitation and stakeholder alignment sessions
  • Loom — Async video walkthrough of report findings for distributed and international teams

Techno Economic Feasibility Study — Frequently Asked Questions

A Techno Economic Feasibility Study (TEFS) is an independent, structured assessment that evaluates whether a proposed technology investment is technically achievable, financially viable, and worth the risk. It combines a technical assessment of the proposed solution with a financial model built on independently verified assumptions — and produces a risk register and a go/no-go recommendation. A TEFS is designed to be used by boards, investors, and lenders to make investment decisions based on evidence rather than vendor projections or internal estimates.

A standard TEFS report includes an executive summary, a technical feasibility assessment, an independent financial model (TCO, ROI, NPV, IRR, payback period), a risk register with scored risks and mitigations, a scenario analysis across conservative/base/optimistic cases, a vendor evaluation scorecard where applicable, and a go/no-go recommendation with confidence scoring. Every engagement delivers the report in PDF and editable source format, along with the financial model as an open Excel or Google Sheets file.

Arobit's TEFS engagements typically run $15,000–$40,000 for mid-size technology investments. Complex multi-vendor or multi-system TEFS engagements range from $40,000–$80,000. For comparison, a Big Four feasibility study for the same scope typically costs $80,000–$300,000 and takes 8–16 weeks. Arobit engagements typically complete in 4–6 weeks with senior consultants averaging 10+ years of IT delivery experience.

A pre-feasibility scoping report takes approximately 2 weeks. A standard TEFS engagement runs 4–6 weeks from scope sign-off to final report delivery. Complex engagements covering multiple vendors, multiple systems, or multi-geography deployments typically run 8–12 weeks.

Yes — most lenders and many investor due diligence processes require a Detailed Project Report (DPR) or techno-economic feasibility assessment as a formal condition of the application. Submitting an internal business plan when a bank expects an independent techno-economic study typically results in rejection and resubmission delay. A TEFS produced by Arobit meets the DPR format requirements of commercial lenders, development banks, and government grant programmes in the US, UK, Australia, India, and most major markets.

A business case is typically produced internally by the team proposing the project — which means it reflects the assumptions and optimism of people who have already decided they want to proceed. A TEFS is conducted by an independent third party with no stake in the outcome. It uses independently sourced assumptions, validates vendor claims, and produces a go/no-go recommendation based on evidence. Lenders and boards trust TEFS reports precisely because they are not produced by the project proponents.

Yes — ERP investment feasibility is one of our most common engagement types. A feasibility study for ERP implementation covers vendor evaluation (we assess multiple vendors against a defined scorecard), independent financial modelling (TCO including integration, training, data migration, and support costs), technical architecture assessment (integration complexity, customisation risk, data model compatibility), and an implementation timeline validation. ERP implementations that skip this step routinely run 50–200% over budget.

Yes. AI investment feasibility studies are an increasingly common engagement type. Our AI feasibility assessment covers data readiness (the leading cause of AI project failure — 43% of CDOs cite data quality as the top obstacle), infrastructure maturity, vendor evaluation, AI ROI modelling, and a phased implementation recommendation. We also conduct AI readiness assessments as standalone engagements for organisations evaluating whether they are ready to scale AI beyond initial pilots.

You do — fully and without conditions. Full IP transfer is included as standard on every engagement. The report, financial model, risk register, and all source files transfer to you on delivery. There is no proprietary format, no ongoing licence requirement, and no platform dependency. The financial model is delivered in Excel or Google Sheets with all formulas visible and all assumptions documented.

Yes — build-vs-buy-vs-partner analysis is a core TEFS use case. We model all three options on the same financial basis: TCO across five years, integration complexity, vendor dependency risk, scalability implications, and time-to-value. The output is a structured recommendation with the financial evidence behind it. Research shows that 67% of failed software implementations stem from incorrect build-vs-buy decisions made without independent analysis.

Our TEFS engagements span manufacturing, healthcare, FMCG and retail, logistics, fintech, and education — across enterprise ERP, SaaS platforms, AI/automation programmes, and digital transformation initiatives. We have delivered IT investment feasibility analysis across 15+ countries, including the US, UK, Australia, India, UAE, and Southeast Asia.

Three differences matter most. First, IT-native delivery: our consultants are technology practitioners with direct ERP, SaaS, and AI implementation experience — not generalist strategy consultants. Second, cost: a TEFS engagement that costs $80,000–$150,000 with a Big Four firm typically runs $15,000–$40,000 with Arobit. Third, speed: we complete standard engagements in 4–6 weeks, versus 8–16 weeks at the Big Four.

Yes — all TEFS engagements are delivered remotely by default. Discovery interviews are conducted via video call. Document review, architecture assessment, and financial modelling are completed asynchronously. We have delivered TEFS engagements for clients across the US, UK, Australia, Canada, UAE, Singapore, and India with no requirement for on-site presence.

Start With a No-Commitment Scoping Call

We will tell you within one conversation whether a TEFS engagement is right for your investment decision, what scope would be appropriate, and what a realistic cost and timeline looks like. An NDA is signed before that call — your project details stay confidential from the first conversation.

Request a Feasibility Study Scoping Call

Senior consultant assigned to every engagement. No junior analysts. No offshore handoffs without disclosure.