VED analysis, also known as the Viability, Feasibility, and Desirability analysis, is a tool used to evaluate the potential success of a project or idea. It helps to determine whether a project is worth pursuing by analyzing its viability, feasibility, and desirability.
An example of VED analysis might be a company considering the development of a new product. The company would first evaluate the viability of the product by analyzing whether it is technically possible to develop and produce the product. They would consider factors such as the availability of materials, the complexity of the manufacturing process, and the cost of production.
Next, the company would evaluate the feasibility of the product by analyzing whether it is economically viable. This would involve analyzing the potential market for the product, the projected sales and revenue, and the costs associated with marketing and distributing the product.
Finally, the company would evaluate the desirability of the product by analyzing whether it meets the needs and wants of the target market. This would involve conducting market research to understand consumer preferences and determining whether the product is likely to be successful in the market.
Overall, VED analysis is a useful tool for companies to assess the potential success of a project or idea. By carefully evaluating the viability, feasibility, and desirability of a project, companies can make informed decisions about whether to invest time and resources into its development.