Creating a Business Requirements Document (BRD)

📑 Creating a Business Requirements Document (BRD)

A Business Requirements Document (BRD) is a formal document that outlines the business needs, goals, and expectations for a new project, product, or solution. It serves as a communication bridge between stakeholders and the technical team, ensuring everyone understands what is needed and why.

Below is a step-by-step guide to creating an effective BRD, including key sections, purpose, and tips.

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✅ 1. What is a Business Requirements Document (BRD)?

• Definition: A BRD defines high-level business needs and requirements for a system, product, or process improvement.

• Purpose:

  • Align stakeholders on business goals.

  • Set clear expectations for deliverables.

  • Serve as a foundation for project scope and development.

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✅ 2. Importance of a BRD

Why It's Important	Impact
Clarifies business goals and needs	Ensures all stakeholders understand the purpose.
Guides solution design and development	Keeps technical teams focused on business value.
Manages scope and expectations	Prevents scope creep and misalignment.
Facilitates communication	Acts as a common reference document.

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✅ 3. Key Components of a BRD

Here are essential sections typically included in a BRD:

1. Executive Summary / Introduction

• Brief overview of the project and its objectives.

• Purpose of the BRD.

Example: "This document defines the business requirements for implementing an online booking system for XYZ Company."

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2. Business Objectives and Goals

• Specific business problems to solve.

• Strategic goals to achieve.

Example: "To improve customer satisfaction by reducing booking time from 30 minutes to 5 minutes."

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3. Project Scope

• In-Scope: What will be delivered.

• Out-of-Scope: What is excluded.

Example (In-Scope): "Development of mobile-friendly booking portal." Example (Out-of-Scope): "Payment system integration (handled separately)."

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4. Stakeholder Identification

• List of key stakeholders, including roles and responsibilities.

Name	Role	Responsibility
John Doe	Project Sponsor	Approve budget and final deliverables
Jane Smith	Business Owner	Define business needs

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5. Business Requirements

• High-level requirements tied to business needs.

• Should be clear, specific, and measurable.

Example: "The system shall allow users to cancel bookings with at least 24 hours' notice."

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6. Functional Requirements (Optional in BRD, detailed in FRD)

• High-level system features that support business requirements.

Example: "The system shall allow user login and authentication."

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7. Non-Functional Requirements (Optional/High-Level)

• Performance, security, usability, reliability.

Example: "System uptime shall be 99.9% monthly."

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8. Assumptions and Constraints

• Assumptions: Factors accepted as true for planning.

• Constraints: Limitations like budget, time, technology.

Example: "Assumption: All users will have internet access." Example: "Constraint: Must be implemented within six months."

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9. Risks and Mitigation

• Potential project risks and how to address them.

Risk	Mitigation
Delay in stakeholder approvals	Schedule regular review meetings

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10. Success Criteria / Acceptance Criteria

• How success will be measured.

• KPIs (Key Performance Indicators) or targets.

Example: "At least 90% of users can book successfully on the first attempt."

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11. Glossary (Optional but useful)

• Definitions of key terms, acronyms.

Example: "SLA - Service Level Agreement."

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✅ 4. BRD Template (Sample Layout)

Section	Content
1. Executive Summary	Purpose and overview of the project.
2. Business Objectives	Business goals and problem statements.
3. Project Scope	In-scope and out-of-scope items.
4. Stakeholder Identification	List of key stakeholders and their roles.
5. Business Requirements	List of business-level requirements.
6. Functional Requirements (Optional)	High-level functionalities.
7. Non-Functional Requirements (Optional)	Performance, usability, security expectations.
8. Assumptions and Constraints	Planning assumptions and limitations.
9. Risks and Mitigation	Risks and management strategies.
10. Success Criteria	KPIs and how success will be measured.
11. Glossary (Optional)	Definitions of key terms.

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✅ 5. Best Practices for Writing a BRD

Practice	Why Important
Be Clear and Concise	Avoid ambiguity that can confuse teams.
Use Simple Language	Ensure non-technical stakeholders understand.
Prioritize Requirements	Focus on high-value and critical needs.
Align with Stakeholders	Get feedback and agreement before finalizing.
Use Visuals (Diagrams, Charts)	Help clarify complex processes or needs.
Review and Validate Regularly	Keep the BRD updated as understanding evolves.

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✅ 6. Tools for Creating BRDs

Tool	Use Case
Microsoft Word/Google Docs	Standard document creation.
Confluence	Collaborative documentation.
Lucidchart, Visio	Process flows, diagrams.
JIRA (Requirement Plugin)	Managing linked requirements.
Excel/Google Sheets	Tabular requirements listing.

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✅ 7. Finalizing and Approving the BRD

Step	Purpose
Draft BRD	Initial creation for review.
Stakeholder Review	Collect feedback from key parties.
Revision and Updates	Address feedback, improve clarity.
Formal Sign-Off	Final approval to proceed to development.

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✅ 8. Summary

Aspect	Takeaway
Purpose of BRD	Define clear business needs and goals.
Who uses BRD	Stakeholders, BAs, project managers, developers.
Key to success	Clear, validated, and well-structured document.