Business requirement

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Business requirement (sometimes called a business need; hereinafter, the Requirement) is a high-level business rationale that, when addressed, will permit the organization to increase revenue, avoid costs, improve service, or meet regulatory requirements. The plural term, business requirements, refers to a business requirements document (BRD).


Definitions

According to the BABOK Guide (3rd edition),

Business requirement. A representation of goals, objectives and outcomes that describe why a change has been initiated and how success will be assessed.

Draft descriptions

Business Requirements are high-level statements that describe the goals and objectives of the business and the enterprise level. A few key points are:

   Business Requirements define WHAT the business is trying to achieve
   In turn, Business Requirements define WHY a project should be undertaken or a solution implemented
   Business Requirements define the metrics that will be used to measure success
   Business Requirements are at the enterprise level and do not define requirements that are specific to any particular group of stakeholders within the organization

Business requirements represent business objectives, stated by the customer.

As per BABOK guide, the business requirement is defined as:

   Statements of goals, objectives, and outcomes that describe why a change has been initiated. They can apply to the whole of an enterprise, a business area, or a specific initiative.

Every software application, conceptualised and initiated by an organisation is meant to achieve a business goal like improving customer service, increasing revenue by 10% every month etc.

Business requirements are typically high level business goals and objectives. An example of business requirement

A typical business requirement example is shown for a large private sector bank could be as shown below:

   We would like to automate our customer relationship management system so that we can offer better customer services so that the customer response time improves by 70% in the next 6 months. 

It’s important that business requirements objectively state the objectives of what does the business need?

Business requirement takes needs as input to describe the business requirements. Business requirements does not include details about screens or business rules.

business requirements are the highest level of requirements and are developed during Enterprise Analysis activities. They define the high-level goals, objectives and needs of the organization. Business requirements are progressively elaborated into the next level of detail, the stakeholder requirements.

Business requirements : statements of goals, objectives, and outcomes that describe why a change has been initiated. They can apply to the whole of an enterprise, a business area, or a specific initiative.

Related concepts

  • Solution requirement. A characteristic of a solution that meets the business and stakeholder requirements. May be subdivided into functional and non-functional requirements.

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