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Business requirements is the concept of eliciting and documenting business requirements of business users such as customers, employees, and vendors in the early stage of software development cycle to guide the design of the future system. Business requirements are often captured by business analyst who is responsible for analysis of business activities and business processes. Business analysts also study AS-IS process to define a target TO-BE process.

Business requirements are often listed in a Business Requirement Document (BRD).  BRD is the document of the requirement provided by client, business owners or by stakeholders. BRD includes,

  • Business context, scope and background
  • Key business stakeholders that have requirements
  • Success factors for a future state
  • Business process models and analysis such as AS-IS and TO-BE business processes
  • Logical data model and data flow diagrams to illustrate how data flows through the information system.

BRD contains the business requirements that are to be met & fulfilled by the system under development. These requirements specify what the system must do in order to fulfil the requirements of the system.

A functional requirement document is a document that specifies the functions that a system or a component of a system must perform. This document typically describes what is needed by the system user as well as requested inputs and outputs of the software system. The process to reach the expectancy of the BRD is a FRD. FRD contains the process such as how to develop the expected requirement, what are the features and functionalities used and what sort of inter-dependencies they have.

Functional requirement specification document defines how the system will accomplish the requirements by outlining the functionality and features that will be supported by the system. This gives the testers and developers more understanding in making development and design decisions about the physical design of the system.

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