Understanding Business Requirements For Project Execution

Business Requirements for projects

Understanding Business Requirements For Project Execution

 

 

In my previous article, I have talked about all that you need to know about different types of requirements for projects. In this article, I want to look at all that you need to know about business requirements. Follow me as we are going to look at this together on this article.

 

Business Requirements for projects l

Definition

Business Requirements are the pressing organisational needs or market stimuli that drive decision makers to sponsor projects and prioritised competing projects. They may also be referred to as problems or opportunities.

 

Business Requirements for projects force management to make critical choices about which project to authorise and when. Business Requirements are typically recorded In a formal business requirements document.

 

Typical example:

These are the business requirements for a project to develop an e-commerce capability on a large firm’s existing website.

  • The desired business result is a 10 percent improvement on gross sales in the short term, and a 25 percent annual improvement over the stated management horizon of three years
  •  The New VP of Sales and Marketing estimated that a 30 percent improvement in the productivity of the sales team will result in an improvement of 10percent in gross revenue within 90 days and a long term improvement of 25 percent annually for the next three years.
  • Given that the company currently has a topline of $50million improvement in the first 90days. $12.5millon in the first year. $15.6million in the second year, and $19,5million in the third year. The project cost of $27.5milloon will be spread over the next three years . Within a three year cost of $27.5 million and a three year benefit of $47.6million , the project will provide a 173 percent return.

 

Business Requirement Document and Project Concept Definition

 

During the creation of the project concept definition, the current state and the desired state are established. Much of the information contained in the desired future state and the first two elements of a business requirements document will be similar.

 

In fact, I’d the project concept definition contains this information , it can be plugged directly into the business requirements document. However, the expected cost/benefit or ROI and the strategic context for the project will be new information.

 

It is important to remember that the information contained in this document will serve as the framework for evaluating the relevance of the functional requirements created later in the process.

 

 

Now your take on this article…

I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.

 

 

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About Adeniyi Salau 788 Articles
I am an IT enthusiast and a man of many parts. I am a Certified Digital Marketer, Project Manager and a Real Estate Consultant. I love writing because that's what keeps me going. I am running this blog to share what I know with others. I am also a Superlife Stem Cell Distributor. Our Stem Cell Products can cure many ailments.

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