Unlocking Success: Understanding the Different Types of Business Requirements


When it comes to business analysis, requirements play a crucial role in defining the success of a project. They serve as the foundation for designing and developing the desired outcome. The International Institute of Business Analysis (IIBA) has identified various types of requirements that are essential for a project’s success. In this blog post, we will explore these different types of requirements and how they are modeled.

Functional Requirements

Functional requirements describe what the system or product must do to meet the needs of its users. These requirements specify the features, capabilities, and functionalities that are expected from the solution. They are typically documented using techniques such as use cases, user stories, or activity diagrams.

For example, if you are developing a mobile banking application, functional requirements might include features like account balance inquiries, fund transfers, and bill payments. These requirements are crucial for ensuring that the solution meets the expectations of its users and delivers the intended functionality.

Non-Functional Requirements

While functional requirements focus on what the system does, non-functional requirements focus on how the system performs. These requirements outline the quality attributes and constraints of the solution, such as performance, security, reliability, and user experience.

Non-functional requirements are often critical for the success of a project, as they define the overall user satisfaction and system performance. They are typically documented using techniques like quality attribute scenarios, performance benchmarks, or usability studies.

Business Requirements

Business requirements define the needs and objectives of the organization. They provide a high-level view of the desired outcomes and help align the project with the overall business strategy. Business requirements are often captured through interviews with key stakeholders, surveys, or workshops.

For example, if a retail company wants to expand its operations to online sales, some of the business requirements might include increasing revenue, reaching a wider customer base, and improving customer satisfaction. By clearly defining these requirements, the project team can ensure that the solution supports the business goals.


Understanding and effectively managing requirements is essential for the success of any project. By recognizing the different types of requirements, such as functional, non-functional, and business requirements, project teams can develop solutions that meet the needs of the users and align with the overall business objectives. So, whether you are embarking on a new project or looking to enhance an existing one, make sure to give the due importance to requirements and their modeling for unlocking the path to success.

Please note: That is an “agile” world that both functional and non-functional requirements are defined as User Stories

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