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Functional Requirements Document FRD – Template & Examples

functional requirements document FRD FRS

The Functional Requirements Document (FRD) is a formal statement of an application’s functional requirements. When clearly defined, requirements lead to successful project outcomes. Approved requirements establish an agreement between the customer (internal or external) and a provider to reach the same goal. In this article, we explain the need for a functional requirements document, its structure, contents, and offer a sample template format for your work.

What is a Functional Requirements Document (FRD)?

An FRD or Functional Requirements Document serves as a contract for formal statement, between the business stakeholders and the technology team, on an application’s functional requirements.  The FRD is produced by business analysts or sometimes the technical team in response to the business requirements (captured in a BRD – Business Requirements Document).

The key purpose of an FRD is to translate business needs into technological functions in a system.  It’s where project stakeholders and the technical development team meet.  The creation of the FRD facilitates and ensures collaboration between business and technical stakeholders:

  • Business – it restates the business requirements in terms of functional features and capabilities to be supported by the new system or platform.  This ensures the project team understands the business requirements and are on their way to implement a solution which addresses the business needs or problems.
  • Technology – it captures key technical constraints and commitments as well key interfaces to external systems

While created by the solution team comprising business analysts, the FRD should be solution independent (in general) and it should express what the application should do and not how it should do it.  The FRD should not commit the technical team to a specific design. It is for the technical team to develop the actual design and implementation tactics.

The Functional Requirements Document (FRD) is one of the most popular ways to express functional specifications and define the requirements and functional solutions.

What are requirements in software development?

The Business Analysis Body of Knowledge (BABOK) acknowledges requirements as a usable representation of a need. Unambiguous, and detailed requirements help reduce cost and schedule risks and keeps the project on track.

Examples of functional requirements:

The following are some uncategorized examples of software requirements:

  • The system should have the capability to store and retrieve employee information.
  • A dashboard should be made available on demand with charts and tables (details to follow) depicting organizational statuses in real time.
  • The system should integrate with AWS SageMaker endpoints to retrieve predictions made on user input data for loan categorization.
  • All user interfaces should load in under 3 seconds, even under a load of 100 concurrent users.
  • Website traffic to and from the server should be secured using a 256-bit SSL.

The need for a functional requirements document

While the list of requirements above may suffice on smaller projects, large software development needs a more steady and structured approach. The FRD is a derivative and expanded version of the business requirement document BRD.

Functional requirements capture the intended behavior of the system and hence are tailored to fit the project’s need. This behavior may be expressed as services, tasks or functions the system is required to perform. The functional requirements are designed for the readership of a general audience to understand the system. Business as well as technical stakeholders should comprehend the same details in the FRD. Hence, no technical knowledge is required to understand this document.

The Functional Requirements Document (FRD) serves the following purpose:

  • Demonstrates that the application provides value in terms of the business objectives and business processes.
  • Contains a complete set of requirements for the application. It leaves no room for anyone to assume anything which is not stated in the FRD.
  • Is solution independent. The FRD is a statement of what the application is to do. The FRD does not instruct designs or implementation details to the technical team. Hence, references to the use of a specific technology is entirely inappropriate in an FRD. Technical implementation details are confined to a Technical Specification (TS) or the Software Requirements Specification (SRS).

Types of functional requirements

Functional requirements are classified in a variety of ways. Commonly these are broken down in to functions as such:

  • User authentication into the system
  • Access authorization levels
  • User interfaces
  • Compliance to laws or regulations features
  • Database transactions processing
  • APIs for systems integration
  • Report generation and visualization
  • Business / organization specific logic

Functional requirements document FRD / specification FRS template sections

Both functional and nonfunctional requirements can be formalized in the Functional Requirements Document. FRD / FRS’s contain descriptions of features, functions and abilities that the software product must provide. The document also defines constraints and assumptions. These can be a single document communicating functional requirements or it may accompany other software documentation like user stories and use cases.

The FRD is created for the entire solution or a part of it, and is usually an iterative process of consultations with business and technical stakeholders. Every feature must be documented before actually developing it. It is not uncommon for the FRD to undergo a series of revisions as the product is developed over multiple releases. This is because as newer information and client feedback is received, the development team gains greater clarity of the objectives. Everyone understands the importance of features, which can be accordingly prioritized.


The FRD / FRS includes all or part of the following sections:

  1. Introduction
    1.1 Purpose of Document
    1.2 Project Summary
    1.3 Background
    1.4 Project Scope
    1.5 System Purpose
    1.5.1 Users
    1.5.2 Location
    1.5.3 Responsibilities
    1.5.4 Need
    1.6 Overview of Document
  2. Functional Objectives
    2.1 High Priority
    2.2 Medium Priority
    2.3 Low Priority
  3. Non-Functional Objectives
    3.1 Reliability
    3.2 Usability
    3.3 Performance
    3.4 Security
    3.5 Supportability
    3.6 Online user Documentation and Help
    3.7 Purchased Components
    3.8 Interfaces
  4. The Context Model
    4.1 Goal Statement
    4.2 Context Diagram
    4.3 System Externals
  5. The Use Case Model
    5.1 System Use Case Diagram
    5.2 Use Case Descriptions (for selected cases)
  6. User Stories
  7. Appendix

This list of sections is meant to be representative and a guide, not a hard and fast rule. Every project is different, and you will need to determine the level of detail required for your FRD. For free support with your FRD, use the chat box to chat with our support team or send an email to

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Use Cases Model and Use Cases

Use cases describe the interaction between the system and external users that leads to achieving particular goals.

Each use case includes three main elements:

  • Actors: These are the external users that interact with the system.
  • System: The system is described as functional requirements that define an intended behavior of the product.
  • Goals: The purposes of the interaction between the users and the system are outlined as goals.

There are two formats to represent use cases:

  • Use case description
  • Use case model (diagram)

use case specification represents the sequence of events along with other information that relates to this use case. A typical use case specification template includes the following information:

  • Use Case Name
  • Summary
  • Basic Flow
  • Alternative Flows
  • Extension Points
  • Preconditions
  • Postconditions
  • Business Rules
Use case description example and template in a functional requirements document FRD by Savio Education Global
Use case description example and template

use case diagram doesn’t contain a lot of details. It shows a high-level overview of the relationships between actors, different use cases, and the system.

The use case diagram includes the following main elements:

  • Use cases. Usually drawn with ovals, use cases represent different interaction scenarios that actors might have with the system (log in, make a purchase, view items, etc.).
  • System boundaries.  Boundaries are outlined as boxes that groups various use cases in a system.
  • Actors. These are the figures that depict external users (people or systems) that interact with the system.
  • Associations. Associations are drawn with lines showing different types of relationships between actors and use cases.


Use case model diagram example and template in a functional requirements document FRD by Savio Education Global
Use case model diagram (Source: Wikimedia Commons)

User Stories – What are they, and the need for it

The Agile Alliance describes user stories as work that is divided up into functional increments. User stories are developed and represented in a format that emphasizes the value to the end user of the system. A typical user story describes three components:

  1. The end goal for the user to use the system. This is the most important factor when it comes to developing functional requirements. Always begin with the end in mind; the value being delivered to the user. For example, the ability to order products (ecommerce like Amazon), track deliveries (ecommerce like Flipkart, Alibaba), enjoy relevant content (streaming like Netflix, Spotify, Zee or social media like Instagram, TikTok), interact with people (messaging or social media apps like Twitter, Facebook, Whatsapp), etc.
  2. The action that the user intends to perform, which when performed will lead to the goals being achieved (point #1). For example, placing an order, making payments, reviewing products, navigating pages, etc.
  3. The user role or type of user. For example, user roles may be customers, prospects, administrative users, etc.

Format of a user story

User stories are modelled on the following lines:

As a (role) I want to do (something) so that I can (benefit).

INVEST in a good user story

INVEST in an acronym that serves as a guideline for us to generate clear and useful user stories, and functional requirements in general.

The INVEST for a good user story stands for:

  • “I” – Independent (of all other user stories)
  • “N” – Negotiable (not a specific contract for features; the user story can be modified without much ado)
  • “V” – Valuable (its creation should add value to the user)
  • “E” – Estimable (to a good approximation)
  • “S” – Small or Size Appropriate (so as to fit within an iteration or sprint)
  • “T” – Testable (the user story should create something tangible that can be tested / verified, even if there isn’t a test for it yet)
  • The INVEST checklist for evaluating user stories originated in Bill Wake’s 2003 article, which also utilized acronym SMART (Specific, Measurable, Achievable, Relevant, Time-boxed) for deliverables resulting from the decomposition of user stories.
  • The INVEST acronym was one among the techniques recommended in Mike Cohn’s “User Stories applied“, which discusses the concept at length in Chapter 2.
What does INVEST for good user stories stand for? Functional requirements and user stories are evaluated quickly using the INVEST criteria.
What does INVEST for good user stories stand for?

Difference between functional and nonfunctional requirements

Functional requirements are product features or functions that developers must implement to enable users to accomplish their tasks. So, it’s important to make them clear both for the development team and the stakeholders. Generally, functional requirements describe system behavior under specific conditions. For example, the system should:

  • Authentic a user login attempt after the user enters personal information.
  • Feature a search box which allows users to discover products related to their search inputs among various products on the platform.
  • Send a order confirmation email when a new order is placed upon successful payment.

Non-functional requirements in an FRD

Nonfunctional requirements define how the system should perform. Some examples are:

  • The website pages should load in 3 seconds with up to 1000 concurrent users.
  • The system should be able to handle 1 million users in a month without performance deterioration.

Here’s a brief comparison and then we’ll proceed to a more in-depth explanation of each group.

ParameterFunctional requirementsNonfunctional requirements
ObjectiveDescribe what the product doesDescribe how the product works
End resultDefine product featuresDefine product properties
FocusUser requirementsUser expectations
DocumentationCaptured in use caseCaptured as a quality attribute
EssentialityThey are mandatoryThey are not mandatory, but desirable
Origin typeUsually user definedUsually developer defined or other tech experts
Testing PrecedenceTested before nonfunctional testingTested after functional testing.
Examples– User interface,
– authentication,
– authorization levels,
– business rules, etc.
– Performance,
– usability,
– security
– testing, etc.

Non-functional requirements detailed examples

Nonfunctional requirements describe how a system must behave and establish constraints of its functionality. The following are the most typical nonfunctional requirements utilized in most functional requirements documents FRD.


Usability defines how difficult it will be for a user to learn and operate the system. Here’s how usability can be evaluated:

  • Efficiency of use: the average time it takes to accomplish a user’s goals, how many tasks a user can complete without any help, the number of transactions completed without errors, etc.
  • Intuitiveness: how simple it is to understand the interface, buttons, headings, etc.
  • Low perceived workload: how many attempts users need to accomplish a particular task.

Example: Usability requirements can consider language barriers and localization tasks: People with no understanding of French must be able to use the product. Or you may set accessibility requirements: Keyboard users who navigate a website using <tab>, must be able to reach the “Add to cart” button from a product page within 15 <tab> clicks.


Security requirements ensure that the software is protected from unauthorized access to the system and its stored data. It considers different levels of authorization and authentication across different users roles. For instance, data privacy is a security characteristic that describes who can create, see, copy, change, or delete information. Security also includes protection against viruses and malware attacks.

Example: Access permissions for the particular system information may only be changed by the system’s data administrator.


Reliability defines how likely it is for the software to work without failure for a given period of time. It decreases because of bugs in the code, hardware failures, or problems with other system components. To measure software reliability, you can count the percentage of operations that are completed correctly or track the average period of time the system runs before failing.

Example: The database update process must roll back all related updates when any update fails.


Performance is a quality attribute that describes the responsiveness of the system to various user interactions with it. Poor performance leads to negative user experience. It also jeopardizes system safety when it’s overloaded.

Example: The front-page load time must be no more than 2 seconds for users that access the website using an LTE mobile connection.


Availability is gauged in terms of time that the system’s functionality and services are available for use with all operations. So, scheduled maintenance periods directly influence this parameter. And it’s important to define how the impact of maintenance can be minimized. When writing the availability requirements, the team has to define the most critical components of the system that must be available at all times. You should also prepare user notifications in case the system or one of its parts becomes unavailable.

Example: New module deployment mustn’t impact front page, product pages, and check out pages availability and mustn’t take longer than one hour. The rest of the pages that may experience problems must display a notification with a timer showing when the system is going to be up again.


Scalability requirements describe how the system must grow without negative influence on its performance. This means serving more users, processing more data, and doing more transactions. Scalability has both hardware and software implications. For instance, you can add memory, servers, or disk space to increase scalability. On the other hand, you can compress data, use optimizing algorithms, etc.

Example: The website attendance limit must be scalable enough to support 200,000 users at a time.

Functional Requirements Document FRD Template

Click the button to download the example FRD template format for your work.

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Software prototypes and wireframes

Prototypes are meant to be inexpensive and quickly developed visual representations of requirements. Wireframes are low-detail illustrations of a website or an app. To break it down, wireframes are low-fidelity, basic layout and structural guidelines of your web product’s layout and prototypes are an advanced wireframe with more visual detail and interaction.

File:Profilewireframe.png - Wikimedia Commons
An example of a Wireframe (Source: Wikimedia Commons)

Wireframes serve as the foundation of a website or app’s visual layout, and it is at this stage that you will arrange elements on the page or screen. The purpose is to map out the priority of the content on the screen. A good rule of thumb is to keep your wireframes simple, with details that represent the core structure of your site / app only.

Best practices while creating the functional requirements document FRD

Creating documentation is an integral part of any software development project. Well-documented requirements ensure that stakeholders and developers are on the same page and also help define project scope and budget. Here are a few useful tips on how to make great documentation.

Requirements have to be clear and understandable. Make sure your requirements are stated in a concise manner that doesn’t contain ambiguity or allow different interpretations. Also, try to avoid technological jargon. Remember that each audience is different and stakeholders might not be familiar with specialized tech terminology. Instead, enrich your documents with visuals, diagrams, and graphs to support the information and make it easier to perceive. Adding glossaries and cross-links is also helpful.

Requirements have to be specific, accurate, and complete. When writing your documentation, be consistent with the language and make sure that your requirements are accurate. They should cover every scenario, but never contradict each other. Avoid vagueness and weak phrases such as “system has to be fast” or “when something happens.” Be specific and quantify the terms so that all the readers can understand them in the same way.

Requirements have to be testable. Write requirements in such a way that after the product is created, testing can show whether they are delivered successfully.

Requirements have to be feasible and sensible. Focus on the functionality and quality attributes that users actually need. Remember that requirements have to reflect higher-level business objectives.

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Frequently Asked Questions about the Functional Requirements Documents (FRD)

  1. Who creates the functional requirements documents (FRD)?

    The business analyst (BA) usually is the one who creates the FRD. The BA is best suited to propose a functional solution because of their deep understanding of the domain and the business needs.

  2. When is the functional requirements documents (FRD) created?

    The development of the functional requirements document (FRD) generally occurs after the finalization of the business requirements in the form of the BRD.

  3. What is the use of the functional requirements documents (FRD) for downstream processes?

    The FRD serves as a basis for all subsequent project development activities including the development of detailed system designs, technical specifications, and test cases.

  4. How can the functional requirements documents (FRD) be used in software testing?

    The development of test cases primarily relies on the FRD as the best source of information. This is applicable for system integration testing (SIT) and user acceptance testing (UAT). Expected behaviors of the system, along with impact implications are derived from the FRD.

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Prof. Savio Saldanha will mentor you in this business analyst certification program. Learn from the best; be the best!
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How to draw business process models? BPMN examples in 3 easy steps

One of the tasks of a business analyst (BA) is to map out the current state and future states of the organization or processes. To clearly illustrate these states, BAs frequently use business process models. These process models utilize specific shapes that convey meaning in terms of processes and tasks.

What is BPMN (business process modelling notations) for business analysts?

Business process modelling notations (BPMN) are a suit of symbols and shapes used to represent business processes. Visually representing a business process offers business analysts the ability to communicate clearly with business as well as technical stakeholders.

Following a uniform Business Process Model and Notation (BPMN) provides organizations with the capability of understanding their business procedures graphically and will give them the ability to communicate these procedures in a standardized way; a way that all stakeholders can understand.

In this article, we’ll learn to draw business process models using a process mapping / modelling tool. Note that there are several visual modelling tools available and most are well suited for the job including MS Visio.

Business Process Modelling Notation – BPMN Examples

Business analyst make frequent use of BPMN diagrams to ensure that the diverse teams they work with are on the same page. These diagrams are usually incorporated into the business requirements document (BRD), functional requirements document, and / or specifications.

Let’s work to develop a business process model for the following example scenario:

Once the boarding pass has been received, passengers proceed to the security check. Here they need to pass the personal security screening and the luggage screening. Afterwards, they can proceed to the departure level.

Time Needed : 1 hours

I'll advise you to first have an understanding of business needs and the proposed solution. A business process model is usually made for solutions that are envisioned for implementation. Once you have that ready and clearly defined in a business requirements document (BRD), you may then proceed to follow the steps enlisted below. Lets take an example and develop the process model:

  1. Explore available BPMN shapes that are frequently used

    BPMN diagrams frequently make use of shapes to represent events, activities and gates. You can get started quickly by mastering these symbols and shapes that are frequently used.

  2. Order the activities and events

    In the context of the example provided above, the following will be the order of activities: boarding pass received > proceed to the security check > pass the personal security screening and the luggage screening > proceed to the departure level > departure level reached.

  3. Use and connect the appropriate BPMN symbols

    Use gates, in this context, parallel gates to demonstrate the two activities that will be conducted in parallel. Converge the two paths with the same gate.

  • Any BPMN tool.
  • Analytical thinking, BPMN shapes.

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How to start a career as a business analyst?

Most students and academicians aren’t familiar with the role of the business analyst. This leads to a mismatch of expectations between industry needs and academic deliverables. While many may have heard of it, few understand the role. In this post, I’ll offer you step by step instructions on what you will need to begin your career as a business analyst.

Time Needed : 30 days

A business analyst is a problem solver, and helps find ways to quickly deliver solutions and products to market, leads change, and makes organizations effective. Business analysts focus on achieving business needs and requirements by bridging the gap between an organization’s current position and the one it desires to reach.

  1. Know the responsibilities of a business analyst:

    The Project Management Institute observes that the career duties of a business analyst include gathering information about problems to be solved or procedures to be improved, interviewing personnel and conducting onsite observations to determine the methods, equipment, and personnel that will be needed, finding root causes for problems and proposing solutions that many include new systems, procedures, or personnel changes, and presenting findings to decision makers.

  2. Understand the documents created by a business analyst:

    The career of a business analyst involves developing several documents critical the the business objective including but not limited to Business Requirement Document (learn more), User stories, Use cases, Functional requirement specification (FRS) / Functional Requirement Document (FRD) (learn more), Requirement traceability matrix (RTM), and Test cases.

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Business requirement document (BRD) – Examples and Template

Every successful project has a detailed and well developed business requirement document (BRD). The BRD describes the problems the project is trying to solve or the opportunities the project is attempting to benefit from, and the required outcomes necessary to deliver value. The business analyst is usually the person who develops the BRD.

When done well, the business requirements document directs the project and keeps everyone on the same page. However, requirements documentation can easily become unclear and disorganized, which can quickly send a project off track.

What is a business requirement document (BRD)?

Definition: A business requirements document describes the business solution for a project (i.e., what a new or updated product, service or result should do), including the user’s needs and expectations, the purpose behind this solution, and any high-level constraints that could impact a successful deployment.

Business requirements document also emphasizes on the needs and expectations of the customer. In simpler terms, BRD indicates what the business wants to achieve.  The BRD indicates all the project deliverables at a high level. Essentially, a BRD acts as the guideline for stakeholders to make decisions regarding project priorities, design, and structure to ensure the project remains aligned with the overall goals of the business.

In outsourced projects, it also represents a basic contract between the customer and the vendor outlining the expectations and deliverables for the project. The BRD sets the standards for determining when a project has reached a successful completion.

Objectives of a business requirement document:

Project utilize BRDs for the following objectives:

  • To build consensus among stakeholders.
  • To communicate the business needs, the customer needs, and the end result of the solution that must satisfy business and customer needs.
  • To determine the input to the next phase of the project.

Sections in a Business Requirement Document BRD

Most businesses follow a template for all their project requirements documentation. This is helpful for keeping documentation standard across the organization.

The structure may vary but a basic business requirement document BRD will include the following sections and components:

  • Executive Summary
  • Project overview (including vision, and context)
  • SWOT analysis
  • Success factors
  • Project scope
  • Desired goals and project objectives
  • Stakeholder identification
  • Current state
  • Future state
  • Business requirements and corresponding priority
  • Assumptions, Limitations, Constraints

Additionally, depending on the organization’s documentation process, sections for feature analysis, competitive analysis, benchmarking results, functional and non-functional requirements may also be included in a BRD rather than in separate requirements documents.

Steps to Create a Business Requirement Document

  1. Project scope: The project scope draws the boundaries of the project and helps managers decide what is included in the project and what isn’t. Having a clear scope helps keep the team aligned and avoids unnecessary wastage of resources. All project functionalities or special requests need to be included here.
  2. Goals and Objectives: In this section, describe the high-level goals and objectives of the project. What will the project ultimately achieve? Who’s it for? How does the project goals tie up to the overall business objective and mission? Describe in detail what success will look like.
  3. Need for the project: Provide a rationale for the project. Having a needs statement in your document helps convey the importance of the project and how it will impact the company’s bottom line in the long run. This helps gain stakeholders’ and employees’ trust and confidence in the project and ensures smooth implementation.
  4. Identify Stakeholders: Identify key stakeholders to elicit requirements from. You can include each person’s name, department, and their role in making the project a success.
  5. Conduct a SWOT analysis: A flawless business requirements document (BRD) should contain a SWOT analysis of the project and how it fits in the big picture. The analysis should carefully articulate the strengths, weaknesses, opportunities, and threats that the project has. Adding this section to your BRD helps boost your credibility with upper management and external partners as it shows how aware you are of the project’s limitations and scope.
  6. Requirements: The next step is gathering requirements from stakeholder and documenting them. Read more about elicitation techniques.
  7. Assumptions, Limitations, Constraints: The team working on the project should be made aware of the possible assumptions, limitations and constraints in creating this document, and its contents.
  8. Executive Summary: The executive summary summarizes the entire document, outlining the need for the project, its requirements, and how does it tie up to your overall business goals. Develop this section after completing other sections, and place it at the top of the business requirement document BRD.

How to write the perfect BRD

Now that you have a grasp on what a business requirements document should accomplish, you can follow these guidelines to make sure that you write an exceptional one.

1. Practice effective requirements elicitation

Even if you write an impressive BRD, it won’t be effective if you haven’t identified and documented all the requirements necessary. To ensure your BRD is complete and cohesive, you’ll need to apply proper elicitation methods.

A Guide to the Business Analysis Body of Knowledge (more commonly known as the BABOK Guide) lists nine primary elicitation methods:

  • Brainstorming
  • Document analysis
  • Interface analysis
  • Focus groups
  • Prototyping
  • Requirements workshops
  • Interviews
  • Observation
  • Surveys

You could use all nine or a select few, but you will certainly need to incorporate multiple approaches to gather a comprehensive set of requirements.

Whatever methods you use, consider the following tips for improving your elicitation process.

Continually gather requirements

While most requirements gathering occurs early on in the project lifecycle, the business analyst should always be open to identifying and documenting new requirements as needed. It can be tempting to sweep new information under the rug if you’ve already progressed past the initial stages of the project. However, the end product will be better if you have fleshed out all the requirements necessary—even if they were added later in the game.

Get to know your stakeholders

Build a rapport with your stakeholders and learn how they operate. Tailor your elicitation methods to their style or preferred method. While some people work best in interviews, others might prefer to prepare written answers. By adapting your methods to the person, you will be more efficient and effective in gathering requirements.

Always be prepared

Come to stakeholder meetings prepared with questions and even answers. The right questions are often enough to get the ball rolling, but if the team is struggling to find an answer, propose one yourself. Offering options can get the group brainstorming and thinking through the problem more strategically.  

2. Use clear language without jargon

Requirements documents are often long and text-heavy. To prevent confusion or misinterpretations, use clear language without jargon. Keep in mind that multiple stakeholders will be using this document, and not all of them will be technically-minded. By keeping your language clear, you can ensure everyone can understand it.

When you do need to include jargon or other technical terms, be sure to add those to a project dictionary section in the document. This section can serve as a useful reference of all uncommon terms found throughout the document so no one misunderstands the requirements.  

3. Research past projects

A great way to jump-start your documentation process is to research similar projects your organization has completed in the past.

Review the documentation for those projects and use those insights to help you identify requirements and other key points to include in your own BRD. These projects can also help your team justify certain requirements based on successful past results.

4. Validate the documentation

Once you’ve finished writing the requirements document, have a subject matter expert and the project stakeholders review it. This is the time for everyone to validate the information and offer feedback or corrections.

This step is crucial to a creating a successful BRD. Without it, you risk missing key requirements or leaving critical errors that could set your project off track.

5. Include visuals

Although BRDs tend to be text-heavy in nature, visuals play an important role in presenting and clarifying information and making the document more user-friendly. Break up walls of text with data visualizations such as process flows and scope models.

One of the most common diagrams for a BRD is the business process diagram. This diagram visualizes a workflow process and how it relates to your business requirements. Depending on how complex your documentation is, you can use the process diagram to present high-level processes or drill down into more comprehensive and detailed processes for multiple requirements sections.

Get the business requirement template here.

Business requirements vs. functional requirements

Although the terms are often used interchangeably, business requirements are not the same as the functional requirements for a project. The business requirements describe what the deliverables are needed, but not how to accomplish them.

That information (the “how”) should be documented in a project’s functional requirements document FRD. These are typically outlined within the software requirements documentation for development projects, but some organizations include a functional requirements section in their BRD. These functional requirements detail how a system should operate to fulfill the business requirements.  

Business requirements are the means to fulfilling the organization’s objectives. They should be high-level, detail-oriented, and written from the client’s perspective.

In contrast, functional requirements are much more specific and narrowly focused and written from the system’s perspective. Functional requirements are the means for delivering an effective solution that meets the business requirements and client’s expectations for that project.

Though the distinction is subtle, it’s important to know the difference between business and functional requirements to ensure effective requirements elicitation, documentation, and implementation. Understanding the difference also helps you keep the project properly focused and aligned so that your team can meet both the user needs and the business objectives at the end of the project.

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Typical Job Description of a Business Analyst

Typical job description of a business analyst

While different industries require industry specific skills, our research shows that most business analyst jobs vacancies tend to require the following skillsets:

  • Bachelor’s Degree or related experience (preferred in IT, technology, business, marketing, or a industry related field).
  • 0-5 years experience.
  • Data visualization (Tableau / Power BI) & SQL skills and experience.
  • Advanced MS Excel skills including formulas, pivot tables, data filters/sorts.
  • Works collaboratively with stakeholders and business leaders to understand, review, analyze and evaluate business needs.
  • Responsible for business requirements: definition and documentation for new and changed application deliverables.
  • Act as a liaison between business partners and IT development team.
  • Scope, elicit, analyze and document business requirements – BRD for both new and existing applications using a variety of techniques and tools.
  • Translate business requirements in to functional requirements through the use of a functional requirement document FRD.
  • Define and manage the scope of projects anticipating issues and proactively recommending solutions.
  • Construct workflow charts, process diagrams and models.
  • Self-motivated, willing to learn new technologies and able to work independently & cross-functionally
  • Goal-oriented, passionate, high-energy professional with a “no excuses” attitude
  • Excellent oral and written communication skills
  • Must be comfortable and competent in communications with senior stakeholders both internally & externally 
  • Possesses the drive to participate and succeed in the growth of the company
  • Strong computer skills with experience using MS Office, and Google applications

Our Business Analyst Work Experiences help students and candidates master these specific skills needed to succeed in interviews and jobs as business analysts.

These critical skills are also useful in a wide variety of allied job roles as well including Data Analyst, Project Manager, Financial Analyst, Data Scientist, and many more. Read more about related roles here.

Join the Business Analyst Work Experience today!

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Top 5 Tools and Technologies for Business Analysis

Here we recommend the top 5 tools and technologies for business analysis that you should master. In increasing order of technical ability:

Tools and Technologies for Business Analysis

  1. MS Excel of the MS Office suite:
    Let’s face it. A majority of us who have worked a job in the past 10 years have definitely (at least) heard of MS Excel. It’s simple sandbox styled interface, a plethora of features, functions, and easy to understand layout have made it an indispensable tool for many. Statistical modelling and analysis can be easily achieved by the using the Data Analysis Toolpak. And complex optimization scenarios can be explored and achieved with the Solver add-in.
  1. MS Visio or yEd:
    A BA is frequently required to represent the current state and future state of organizational processes or programmatic workflows. This is accomplished through the use of a framework called the business process modelling notation. It is a set of guidelines that help creating notations that are easily understood and interpreted by people in the same field. MS Visio or yEd are commonly used tools and technologies for this purpose.
  2. Tableau:
    The Tableau Software has seen tremendous growth over recent years. This is thanks in part to the thrust to infuse analytics in business intelligence. This growth is also due to the fact that it is one of the easiest tools to master visualization. Tableau’s features truly surpass many of its competitors. And its no surprise that companies are increasingly dependent on Tableau Software products for their business intelligence and visual analytics needs.


While some roles do not expect programming from business analysts, it is increasingly evident from current job profiles and company expectations that some form of programming experience is desired, and preferably the ones discussed below.

  1. Structured Query Language (SQL):
    SQL is a programming language used specifically to interact with relational databases. There are several flavours of SQL with every relational database vendor attempting to create a unique or stylized version of it for their systems. Think of MS SQL Server, Oracle’s PLSQL, MySQL (acquired by Oracle, etc.). But the core abilities and language constructs – syntax (think of grammar) remain the same across databases. A BA is frequently required to interact with data and databases for their work. This is truer for business analysts in technologically intensive industries.

Gain Real World Business Analyst Experiences

Join our Business Analyst Experience Simulator to gain the skills you need, be evaluated, and excel as a business analyst!
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  1. Python programming:
    While many companies depend on Python programmers to build websites, apps, and other technologies, a BA also would do well to learn this language. Companies increasingly rely on statistical models for decision making. Python has a huge collection of community driven packages that make even complex algorithms available for your use with a few lines of code. Don’t be afraid; Python is also one of the easiest languages you could learn. It’s meant to be English-like. So if you’re reading this article, you probably can also learn Python quickly!

I wish you the best in life.

Warm regards,
Savio Saldanha

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Top 5 Business Analyst Skills to Succeed

Here are the top 5 Business Analyst Skills that are High in Demand and that will help you succeed!

  1. Business Process Modelling:
    One of the roles of a Business Analyst (BA) is to understand the organization’s current operational processes so as to devise improvements that enhance or incorporate into existing work. Doing this requires an understanding of business processes and the ability to visualize them. BAs frequently use tool such as Unified Modelling Language (UML) and Business Process Modelling Notation (BPMN). Representing complex processes helps uncover opportunities for improvement and prevent problem that can be foreseen.
  1. Data Extraction (SQL – Structured Query Language):
    A BA is also frequently required to work with data. but can only analyze data once data is extracted. This data extraction is usually performed through the use of SQL. SQL is a programming language used specifically to extract structured data from relational databases. New systems store data in structured as well as unstructured formats. Hence it may be helpful for a BA to be conversant in such systems as MongoDB, Cassandra, Google BigTable, HBase, etc.
  2. Requirements Gathering:
    We’ve discussed in the earlier post that a BA is an agent of change. Transforming an organization or its component(s) requires that the BA understand exactly what is needed to be accomplished to achieve this change. BAs on their own seldom define the future state of the organization, process or component. A BA usually attempts to elicit these change requirements from senior stakeholders, managers, SMEs and engineers. Once elicited, these are documented which may take the form of:
    Business requirements.
    Functional requirements.
    – System requirements.
    – Technical requirements.
    – Test requirements, etc.

Join our BA experience simulator and work as a BA in team to develop skills in:

  • Tableau
  • SQL
  • Requirements documentation
  • MS Excel
  • and much more!
  1. Testing and Quality Assurance (QA):
    While teams exist to test and evaluate the creations, deliverables as a result of the changes initiated, the BA is the person with the most intimate understanding of what these changes should look like. Hence, it is not uncommon for BAs to be part of testing teams. Their involvement and approval that the end result is indeed what was expected is of great solace to the organization. BAs may be required to create and / or review documentation such as test plans, test cases and test scripts.
  2. Documentation, Reporting and Presentation:
    Performing these involves documenting requirements, use cases, modelling diagrams, developing progress and closure reports, plans, and various presentations of analysis details. A BA skilled in MS Excel and Tableau is equipped to make convincing, informative and interactive documentation and presentations that communicate and impress.

General Business Analyst Skills

In addition to the specific skills needed to excel as a business analyst, general business skills are a pre-requisite to any role in a global business environment.

  • Written and Verbal Communication
    Communication as a skill is needed in any high-functioning job profile. However, since the job of an analyst is to analyze the business, the results have to be communicated to the people in higher authority. Out of all skills for business analysts, communication holds the biggest ground.
  • Observation and Listening Skills
    Listening skills are one of the key cornerstones of becoming a good business analyst. A good business analyst listens to and absorbs information. This helps the analyst to analyze the information thoroughly so that they can specify the requirements. Also, it’s important that the listener not only understands what is being said but also the context behind it, such as the objective, the main motivation and the circumstances for which it is being said. The business analyst should ideally observe the voice, the tone and the body language of the speaker to understand the message clearly.
  • Being able to Run Meetings with Stakeholders
    Using email to communicate effectively and professionally with a client has been a standard protocol until now. However, at times, it is not the most effective way. Therefore, discussing issues with the client face to face can work wonders and even help in solving issues pretty quickly. In fact, many times executives will know better about a project or an issue due to a simple reason that people are more open in their interactions with the other party. However, if an audit trail is a necessity, the business analyst can always set up a meeting with the client through a written confirmation.
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12 Job Roles that need Business Analysis Skills

business analyst job roles

The Business Analyst is an agent of change. Business Analysis is a disciplined approach for introducing and managing change to organizations, whether they are for-profit businesses, governments, or non-profits. It involves understanding and determining how organizations work so that their full potential can be realized.

The profession of Business Analysis is used to identify and articulate the need for change in how organizations work, and to facilitate that change. Business analysts identify and define the solutions that will maximize the value delivered by an organization to its stakeholders. They work across all levels of an organization and may be involved in everything including:

  • defining strategy.
  • creating the enterprise architecture.
  • taking on a leadership role by defining the goals and requirements for programs and projects.
  • supporting continuous improvement an organization’s technology and processes.

Gain the experience you need to work as a business analyst and any of the allied roles by joining the Business Analyst Experience Simulator adjacent.
Job titles for business analysis practitioners include:

  • business analyst,
  • business systems analyst,
  • systems analyst,
  • requirements engineer,
  • process analyst,
  • product manager,
  • product owner,
  • enterprise analyst,
  • business architect,
  • management consultant,
  • business intelligence analyst,
  • data scientist,
  • and more.

Business analysts have the specialized knowledge and skills to act as a guide and lead the business through unknown or unmapped territory, to get it to its desired destination. The value of business analysis is in realization of benefits, avoidance of cost, identification of new opportunities, understanding of required capabilities and modeling the organization. Through the effective use of business analysis, we can ensure an organization realizes these benefits, ultimately improving the way they do business.

Many other jobs, such as project management, product management, software development, quality assurance and interaction design rely heavily on business analysis skills for success.

International Institute for Business Analysis