Requirement and Requirement Document

What is a Requirement

Whenever we do software testing for any project, then we need to understand that what do we test actually in a Software.

We generally do testing of functionalities of the Software.

These functionalities are documented in a document and the document is called Requirement Document.

So, these functionalities are also called Requirement, So we can say that Functionalities of a Software is called Requirement.

If we want to understand Requirement in normal English word, then it is nothing but the demand, need etc..

Let’s understand this with an example

Let’s take an example of an Ecommerce Website, where we place Orders using Credit Card Payment Type and let’s say that We are not able to place Order using Credit Card, and there is no other payment type in the Website, then what would happen that the Customers will not be able to place Orders, and the Company will have big losses due to this, So we would need that there should be some other type of payment method as well on the Ecommerce Website, So that Business will not face this problem again and the Company will not face losses.

Then a new demand for adding a new payment method such as Cash on Delivery or PayPal is raised and then the Business Team will have to understand this demand and they need to create Requirement for this demand.

So, this is called as Requirement.

Requirement can also be defined as a solution to an existing problem.

What is Requirement Document

As we have discussed in the earlier example about the Requirement, So this Requirement needs to be documented somewhere, wherever the Requirements are documented, is called Requirement Document.

So, A Document that captures and describes all the requirements of a Project, is called Requirement Document.

So, there are 2 Types of Requirement Document where this requirement will be documented.

1. Business Requirement Document (BRD)
2. Functional Requirement Document (FRD)

What is a Business Requirement Document (BRD)

Business Requirement Document is a Document where Business Requirements are documented. That means any formal Document that captures and describes all the Business requirements of a Project, is called Business Requirement Document.

Then the question comes.

What is a Business Requirement

Any Requirement that is related to the Business of the Organization or Company is called Business Requirement.

Example of a Business Requirement

Let’s understand this with an example.

Let’s take an example of a Bank, which doesn’t have any online access directly to customer.

That means, Bank is operating completely in offline mode, So, If you have to 

1. Account Opening – Customer has to go to the Bank and fill an offline form, submit the xerox of Photo ID and Address Proof and then only, the Account can be opened.
2. Transfer funds – Customer has to go to the Bank and submit a request for transfer offline and the Bank employee will do the fund transfer.
3. Money Withdrawal – Customer has to go to the Bank and submit a request for Withdrawal and the Cashier will give money to the Customer.
4. Bank Statement – Customer has to go to the Bank along with the Passbook and hand it over to the Bank Employee to print the Bank Statement.
5. Cheque Deposit – Customer has to go to the Bank and deposit the cheque to the Bank Employee to get the Cash or the money to be transferred to his/her account.

So, Here are some common disadvantages of offline banking:

1. Limited Access: When the Bank is operating in Offline Mode, then Customer has to visit a bank branch and that too during business hours only, which is not always convenient or accessible.
2. Long Wait Times: When you visit a bank branch, then you have to wait for a very long time to get your task done with bank employee.
3. Limited Services: Offline banking does not offer all of the services which are available in online banking, check balance online on it’s own, Fund Transfer on it’s own, Get the Bank Statement on it’s own, Pay Bills Online such Electricity Bills, and many other online services.
4. Security Risks: If suppose, We have lost one of the cheques from our cheque book, and if any of the transaction is done by someone else by copying our signature, then we might loose our money, and this is a Big Security Risk.
5. Inconvenient Location: Banks may not have branches in all locations, making it difficult for customers in certain areas to access banking services.
6. Limited Support: Offline banking may not offer a robust customer support such as 24/7 Call Center Support, and it becomes very difficult to get help with banking issues or questions.

Bank might have losses in it’s business because of all of the above disadvantages, and in order to sustain in the market, the Bank will try to improve it’s process and will try to overcome all the above limitations, and will adopt a new business model.

Bank will try to overcome all the above limitations, in the new business model and will come up with some new points.

1. Long Wait Times should be reduced or removed in the Services of New Business Model.
2. Customer should not have Limited Access, but should have access to all the important information. Important Information such check balance, check Account Statement, Fund Transfer, etc..
3. Customer should be provided online services. Services which are operating in offline mode should go to online mode.
4. Customer should be provided more services.
5. Customer’s dependency on the Bank Employees and the Branches should be reduced.
6. Customer should get 24/7 Support.

These all the Points are called Business Requirements, and when we document all these in a document, then that document is called Business Requirement Document.

So, By Seeing above example, We can say that Business Requirement is about why and what. What means, What do We need, So we would need new features and Why means, Why do we need these new features.

And the answer of the What and Why could be explain using this example, We want a new feature, So that we can reduce the long wait times of Customers and the work load on the Bank employees should be reduced, when customer comes to Bank for any deposit, withdrawal, Cheque deposits and Bank Statement request.

What is a Functional Requirement Document (FRD)

Functional Requirement Document is a Document where Functional Requirements are documented. That means any formal Document that captures and describes all the Functional requirements of a Project, is called Functional Requirement Document.

Then the question comes.

What is Functional Requirement

Now, As we have all the Business Requirements with us, then We need to find out that how should we implement these business Requirement to the Business and then comes the role of Functional Requirements. So, Functional Requirements are the Implementation of Business Requirement. So, We can say that Business Requirement is all about What and Why but Functional Requirement is all about How. So, a Functional Requirement is, How to implement the Business Requirement. So Functional Requirement is How of a Project.

Example of a Functional Requirement

Now, If we want to see the examples of Functional Requirement, then we can derive them from the examples of Business Requirements.

1. Reduce Long Wait Times – In Order to implement this, We can provide some online services to the customer such as Account Information Online, Fund Transfer Online, Account Statement Online, ATM for Cash withdrawal, Online Payment Systems like Credit Card, Debit Card, Online Banking and UPI. So that Customer doesn’t need to come to Bank and wait in long queues.
2. Remove Limited Access Issue – In Order to implement this, We can provide some online services to the customer such as Account Information Online, Fund Transfer Online, Account Statement Online, ATM for Cash withdrawal, Online Payment Systems like Credit Card, Debit Card, Online Banking and UPI. So that Customer will have more access to Services provided by Bank.
3. Provide Online Services – Customers face a lot’s of issue when the Bank operates in offline mode, So Customers should be provided online services in order to reduce the issues that Customers face.
4. Reduce dependency on the Bank – Customer’s dependency on the Bank Employees and the Branches should be reduced. In Order to implement this, Bank will provide 24/7 ATM Withdrawal, Online Bank Statement, Online Fund Transfer etc..
5. Customer should get 24/7 Support – In Order to provide 24/7 support to the Customer, Bank will provide 24/7 Call Center services, and Customer can reach out to the call center representatives of the Bank just by calling them at any point of time in a day, Customers don’t need to visit a call center, They just have to call them. All the Online Services provided by Bank such as Account Information Online, Fund Transfer Online, Account Statement Online, ATM for Cash withdrawal, Online Payment Systems like Credit Card, Debit Card, Online Banking and UPI are available 24/7.

So, in Order to implement the above business Requirements, We can introduce below functional requirements

1. Providing Account Information Online – Providing Account Information Online, So that Customer doesn’t have to come to Bank and need to wait for long time just to get the Account Information. This way, the dependency on the
2. Providing, Fund Transfer Online – Providing, Fund Transfer Online, So that Customer can transfer funds himself to any of his friend’s or relative accounts.
3. Providing Account Statement Online – Providing Account Statement Online, So that the Customer doesn’t have to visit the Bank, just to get the Account Statement.
4. Cash Withdrawal using ATM – Providing ATM, So that the Customer can withdraw Cash without coming to Bank.
5. Providing Online Payment systems – Providing Online Payment systems using Credit Cards, Debit Cards, Online Banking and UPI, So that Customer don’t need to carry Cash for Shopping.
6. Bill Payment Online : You can pay your bills online, like electricity bills directly from your bank account. No need to visit the electricity department for Bill Payment and no need to withdraw cash before paying the bills.
7. Alerts and Notifications: You can set up alerts and notifications to receive updates on your account balance, transaction activity, and other important information.
8. Setting up Auto Payments : You can set up automatic payments, for your electricity bills, credit card bills.
9. 24/7 Customer Support: You can access customer support through online chat, email, or phone, to get help with any issues related to your account.

Difference between Functional and Business Requirement

Here are the main Difference between Functional and Business Requirement

Business Requirement	Functional Requirement
Business Requirement deals with “What” and “Why” of a Project.	Functional Requirement deals with “How” of a Project.
Business Requirement covers high level objective and goals of a Project from Business Point of View	Functional Requirement specify the features and functionalities to meet the Business Requirement
Business Requirements are non technical and focus on providing solution to Customer’s Problems	Functional Requirement are technical and focus on how the Solution will be provided

Why should we create a Requirement Document

Creating a requirement document is very important for the successful development and implementation of a project. Here are some benefits of Creating Requirement Document.

1. Requirement Document helps in providing a clear Communication between all the Project Teams like Business Analayst, Client, Tester, Developers and keeps all of them in the same page.
2. Requirement Document list out all the Challenges being faced by the Customer.
3. Requirement Document list out all the Solution to the Challenges being faced by the Customer.
4. Requirement Document is always created for a New Project, So the Solutions that we document in the Document are the New Functionalities for the New Project, So we might have some risk while implementing these new features, So Requirement Document consist of all the Risks that might be there in the New Project.
5. We don’t have only requirement or only 1 feature when we implement a new project, there will be many requirements need to be implemented, So we need to document them, So that we can track them whenever we need them.

Summary

We have covered below topics in this session

1. What is a Requirement
2. What is Requirement Document
3. What is a Business Requirement Document (BRD)
4. What is a Business Requirement
5. What is a Functional Requirement
6. What is a Functional Requirement Document (FRD)
7. Difference between Functional and Business Requirement
8. Why should we create a Requirement Document

Question

Let’s take a Scenario for a Retail Store of Grocery and the Grocery Store is becoming famous day by day and it is very difficult for the Owner of the Store to handle all the Customer using a Single Store, then what do you suggest, the Retail Store Owner should do in order to increase it’s business.

What should be the Business Requirement and Functional Requirement if the Owner wants to opt for a New Business Model.