What are the two main types of requirements in business analysis?

In business analysis, requirements are essential for understanding what a project needs to deliver. The two main types of requirements are functional and non-functional.

Functional requirements describe what a system, service, or product must do. They specify the actions or functions that are needed, such as the processes a system must support or the tasks it needs to perform. For example, in a banking application, a functional requirement might state that users must be able to transfer money between accounts.

Non-functional requirements, on the other hand, define how a system should perform a certain function, focusing on the quality, usability, performance, and security aspects. These might include criteria like system reliability, response time, or compliance with regulatory standards. Continuing with the banking application example, a non-functional requirement could be that the system should be able to handle 1000 concurrent users without a decrease in performance.

This distinction is crucial for successful business analysis, project planning, and implementation, as it helps teams prioritize both what needs to be built and the standards it must meet. Understanding both types ensures that the resulting product not only functions correctly but also meets user expectations and quality standards.