What is impact analysis?

Every action has either a positive or negative impact on the system. For this reason, impact analysis is important to test the solution before implementing it.

The impact analysis helps to give an overall view of what may happen in each domain and its cost, in order to implement, modify or alternate the proposed action or solution.

Impact analysis process:

1. Define the situation clearly:

A clear definition of the situation will help to determine which domains will be affected by the solution.

2. Identify the objectives:

It is important that the problem-solving team understand the cause of the assessment, which will help to select the most suitable solution. These can include:

• Project cost
  • Development schedule
  • Risks to the project or domain
  • Functional requirements.

3. Identify the areas of impact:

Identify the related domains to the situation and the potential areas where the solution will affect.

4.  Gather information:

Collect relevant information from all aspects (Team members, stakeholders, front-line workers, and management). It is important to collect as much data as possible, which will help to have a clear vision of the situation.

5. Evaluate the outcomes:

In this step, you will evaluate the pro and cons of the proposed solution and its impact on each aspect of the system

6. Select the optimum solution:

At the end of this process, summarize the outcomes and identify the optimum solution.

If a solution meets all the project requirement objectives, but also increases development costs, blows the schedule beyond acceptable limits, and introduces new risks, it might not be the one with the least or most favorable impact.

Example: (Analyzing a Proposed Solution)

This analysis is being conducted in order to assess the impact of a proposed solution to the issues with the application of a new delivery processing system. The results of the analysis will be used as part of the solution evaluation criteria.

Impact Analysis Summary:

The overall impact of the proposed solution to the delivery process issues has large positive impact in terms of credibility and customer satisfaction due to the application of the new system; however, an immediate action has to be taken to increase the number or deliverymen or compensate the current deliverymen for working overtime.

Case study Recommendation:

In conclusion, based on the summary assessment of the impacts presented by this proposed solution to the application of a new delivery processing system, the team conducting the analysis recommends that this option be applied as a fundamental solution on this project. With considering increasing the number of deliverymen in correspondence with the expected raise of daily orders.

Impact Analysis Example: (Analyzing multiple areas of impact/ options)