There are simple definitions for business requirements and the functional requirement but what makes the difference is to accentuate it in terms of the understanding of what it actually means from a business perspective.

What is the business requirement? OR What does business requirement do?
Business requirement is the answer to the question of “WHAT?”, “What does the customer want?”, any business requirement can be translated into an answer for the response to the question of what does the customer want.
For example, your customer wants an application which should control various equipment available at customer’s location.
So, an application which should control the equipment is the business requirement of your customer.

Now, What is functional requirement?
Business requirements are the high-level detail of an application which only gives the overview of the application as a whole whereas the functional requirements are much more in details they contain in depth view of all the aspects, the functionality of the application and the functional requirements also answers the question like “HOW?”, How do you get, what does the customer wants?

Following are few examples of the details which can be included in functional requirements –

  • How the application is going to take care of the processing of the user(s) credentials (username & password).
  • How the application is going to check the status of the enabled and disabled equipment.
  • How the application is going to take care of the equipment’s maintenance.

Having said that, knowing about the simple but the effective answers and understanding about the two – “Business Requirement and Functional Requirement” will make you stand apart from the people getting confused between Business Requirement and Functional Requirement.

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