Difference Between Business Requirements and Functional Requirements

The key difference between business requirements and functional requirements is that the business requirements define business objectives while functional requirements define the functionalities of the system. 

Requirements are the main aspect of the software since the entire software is based on them. The first step of software development process is requirement gathering and analyzing. There are two types of requirements namely, business requirements and functional requirements. Business requirements focus on business perspective while functional requirements focuses on system’s perspective.

CONTENTS

1. Overview and Key Difference
2. What are Business Requirements
3. What are Functional Requirements
4. Side by Side Comparison – Business Requirements vs Functional Requirements in Tabular Form
5. Summary

What are Business Requirements?

Business requirements provide the scope, business needs, or problems that need to be addressed through a specific activity or a project. Moreover, it should be clear and defined well. Further, one main objective of an organization is to promote their services. Therefore, there might be a requirement to organize a campaign to increase awareness. And this becomes the part of the business requirement.

It is necessary to understand the business needs, objectives, organisation information clearly to define business requirements. These requirements provide the information to ensure that the project achieves the identified goals. Business requirements can be related to the business in general or focus on a stakeholder, group, customer, employees or any other.

What are Functional Requirements?

Functional requirements define the functional aspects of a software. These requirements vary from one to another. They describe the functionalities of the system and subsystems.  For example, the functional requirements of a library management system are different from a hospital management system.

A library management system should add, update, delete member details. It should add, edit and delete book details.  Furthermore, it should indicate the fee for late returns. A library management system should also view member details and book details. Those are some functional requirements of a library management system.  The hospital management system should add, update, delete patient and doctor details. It should schedule, reschedule and delete appointments. It should generate bills. Those are some functional requirements of a hospital management system.

What is the Difference Between Business Requirements and Functional Requirements?

Business Requirements vs Functional Requirements

Business Requirements are the requirements that define business objectives, vision, and goals. Functional Requirements are the requirements that define functions of a system or its subsystems.
 Main Focus
Focuses on business viewpoint. Focuses on system viewpoint.
Characteristics
Business requirements should be wide and high level. Functional requirements should be specific and detailed.
 Usage
Helps to identify business goals. Helps to identify the functionalities of a system.

Summary – Business Requirements vs Functional Requirements

This article discussed the difference between two requirement types which are business requirements and functional requirements. The difference between business requirements and functional requirements is that business requirements define business objectives while functional requirements define the functionalities of the system.

Reference:

1.“Software Requirements.”, Tutorials Point, 8 Jan. 2018. Available here  

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1.’913320′ (Public Domain) via pixhere