business requirements vs functional requirements

Guri Bee

2 min read

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21-10-2024

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Business Requirements vs. Functional Requirements: Unlocking Your Project's Success

Building a successful software project requires a clear understanding of what needs to be achieved. This understanding is often broken down into two key components: business requirements and functional requirements. While they are closely intertwined, understanding their distinct roles is crucial for a seamless development process.

What are Business Requirements?

Think of business requirements as the "why" behind your project. They define the overarching goals and objectives that your software is intended to address.

• From the Github community: “Business requirements define the business problems that the software will solve. They are written from the perspective of the business user and describe the desired outcome of the software.” - Source: GitHub Discussion

For example, a business requirement for an e-commerce platform might be: “Increase customer satisfaction by providing a user-friendly and efficient online shopping experience.”

Key characteristics of business requirements:

• High-level: They focus on the big picture and the overall business goals.
• Stakeholder-centric: They are defined by the business stakeholders, like executives, marketing teams, or sales representatives.
• Non-technical: They are written in plain language, understandable to everyone involved in the project.

What are Functional Requirements?

Functional requirements delve into the "how" of your project. They outline the specific functionalities and features that your software needs to have to achieve the business objectives.

• From the Github community: “Functional requirements describe what the system should do. They are written from the perspective of the user and describe the desired behavior of the software.” - Source: GitHub Discussion

Continuing our e-commerce example, a functional requirement could be: “Allow users to add items to their cart and proceed to checkout with a secure payment gateway.”

Key characteristics of functional requirements:

• Specific: They are detailed and define the exact behavior of the system.
• User-centric: They are written from the perspective of the end-user, describing their interactions with the software.
• Technical: They use technical language and might involve specific technical specifications.

Why is this distinction important?

Understanding the difference between business and functional requirements is essential for several reasons:

• Clear communication: It helps everyone involved in the project understand the overall purpose and specific features of the software.
• Effective planning: By clearly defining both types of requirements, developers can accurately estimate the time and resources needed for development.
• Reduced risk: A thorough understanding of requirements helps mitigate potential issues and ensure the software meets the desired objectives.

Practical example:

Imagine you are building a mobile application for a food delivery service.

• Business requirement: “Improve customer experience and increase order frequency by providing a fast and reliable delivery service.”
• Functional requirement: “Enable users to track their orders in real-time through a map interface with estimated delivery time updates.”

In conclusion:

Business and functional requirements are two sides of the same coin, working together to ensure a successful software development process. By clearly defining these requirements and understanding their distinct roles, you can effectively communicate project objectives, facilitate efficient planning, and ultimately deliver a software product that meets the needs of your business and its users.