While information is gathered and preliminary specifications are being developed in a project's Research Phase, the client's technical developer may recommend that a feasibility study be performed to narrow certain choices, answer some non-obvious questions, and refine the specs further.

Typically, a feasibility study covers the technologies - established and new - that may be involved in development. The intended markets and the existing offerings in that market are examined. Questions that came up during research are asked and the answers to them evaluated. The new offering is placed in context of its intended market, and a feasibility determination is made. Feasibility study deliverables include a more refined specification based on the additional research, a corresponding budget, and a schedule as best as can be determined at this stage.

At the end of the study, the developer writes an extensive report and then reviews its conclusions with the client, after which some important decisions are made. If the determination is favorable, the focus then shifts to an analysis of the critical path, items that limit the development schedule, and other limitations and considerations.

As can happen during any technical development, new concepts, methods and processes may be discovered or invented which enables the client to seek intellectual property protection in the form of trade secrets or patents and to consider a future of licensing them. A good feasibility study will identify potential areas of intellectual property and make appropriate recommendations to follow during the Design Phase.

It is not uncommon for the client, upon review of the study, to change some of the project's parameters which then affects some of the report's conclusions. In response, the developer issues an addendum containing notes, additional comments, and any adjustments to the specification, budget and schedule. Upon client approval, the developer transitions into the Planning Phase of the timeline.