For business and data analysts: what goes into a Business Requirements Document and a Functional Requirements Document, free templates, and 25 real project ideas to practise with AI.
Business analysts usually write the BRD first (why and what the business needs), then the FRD (what the system must do). Product managers write PRDs.
| BRD | FRD | PRD | |
|---|---|---|---|
| Purpose | Why the business needs it: problem, goals, scope, value | What the system must do: functions, rules, data, screens | What the product is and why users need it: problem, users, stories, metrics |
| Written by | Business analyst with business owners | Business analyst / systems analyst with tech leads | Product manager |
| Audience | Sponsors, leadership, business teams | Developers, testers, architects | Engineering, design, business, leadership |
| Level | High level, business language | Detailed, testable, system language | Medium: user-focused with requirements |
| Key contents | Objectives, stakeholders, current vs future state, business requirements, KPIs, ROI, constraints | Use cases, functional requirements, business rules, data, integrations, UI, acceptance criteria, traceability | Problem, goals, personas, stories, requirements, metrics, launch |
| Common in | Banks, insurance, IT services, ERP/CRM projects, enterprises | Same projects, after the BRD is approved | Product companies and startups |
| Section | What to write |
|---|---|
| 1. Document control | Version, author, reviewers, approvers, sign-off dates. |
| 2. Executive summary | The problem, the proposed solution and expected value in 5–6 lines. |
| 3. Business objectives | SMART objectives, e.g. 'Cut loan approval time from 5 days to 1 day by Q4'. |
| 4. Background and current state (AS-IS) | How the process works today, pain points, data, process map. |
| 5. Future state (TO-BE) | How it will work after the change, with a process map. |
| 6. Scope | In scope, out of scope, assumptions, constraints. |
| 7. Stakeholders | Stakeholder list and RACI (Responsible, Accountable, Consulted, Informed). |
| 8. Business requirements | BR-IDs with description, priority (MoSCoW), owner and rationale. |
| 9. KPIs and success criteria | Baseline, target, how and when measured. |
| 10. Cost-benefit and ROI | Costs, benefits, payback period; options considered. |
| 11. Risks, dependencies and compliance | Risks with mitigations; RBI/SEBI/IRDAI/DPDP or other rules. |
| 12. Approval | Sign-off by sponsor and business owners. |
| Section | What to write |
|---|---|
| 1. Introduction | Purpose, scope, references to the approved BRD, glossary. |
| 2. System overview | Context diagram, users and roles, systems involved. |
| 3. Use cases / user stories | Actor, preconditions, main flow, alternate flows, exceptions, postconditions. |
| 4. Functional requirements | FR-IDs: 'The system shall…', priority, linked BR-ID, acceptance criteria (Given / When / Then). |
| 5. Business rules | Calculations, validations, eligibility rules, decision tables. |
| 6. Data requirements | Data dictionary: field, type, length, mandatory, source, validation; entity diagram. |
| 7. Interfaces and integrations | APIs, file formats, third-party systems, frequency, error handling. |
| 8. UI requirements | Screens, wireframes, field behaviour, messages. |
| 9. Reports and dashboards | Report name, users, filters, metrics, refresh frequency. |
| 10. Non-functional requirements | Performance, availability, security, audit, accessibility, data retention. |
| 11. Traceability matrix (RTM) | BR-ID → FR-ID → test case ID, so nothing is missed. |
| 12. Assumptions, open issues and sign-off | Open items with owners; sign-off by business and tech. |
Digital loan origination at an NBFC. Notice how each functional requirement traces back to a business requirement and forward to a test.
| ID | Requirement | Type | Traces to |
|---|---|---|---|
| BR-01 | Eligible personal loans must be approved within 24 hours of a complete application. | Business (BRD) | Objective 1 |
| FR-01 | The system shall verify PAN and Aadhaar through e-KYC APIs and show the result within 10 seconds. | Functional (FRD) | BR-01 |
| FR-02 | The system shall auto-reject applications with a bureau score below 650 and show the reason code. | Functional (FRD) | BR-01 |
| AC-02 | Given a bureau score of 640, when the application is submitted, then status = Rejected and reason = "Low credit score". | Acceptance criteria | FR-02 → TC-014 |
Real projects business analysts work on. Write the BRD first, then the FRD, then compare with the template.
Problem: Personal-loan approval takes 5 days with paper documents
Business need (BRD): Approve eligible loans in under 24 hours; reduce document errors
Key functions (FRD): e-KYC (Aadhaar/PAN), bank-statement analysis, rules engine, e-sign, disbursal API
KPI: Approval turnaround timeProblem: Disputes are tracked over email and miss RBI timelines
Business need (BRD): Resolve disputes within regulatory timelines with full audit
Key functions (FRD): Dispute intake form, case workflow, SLA timers, chargeback integration, customer notifications
KPI: % disputes closed within SLAProblem: Motor claims need multiple surveyor visits
Business need (BRD): Settle simple claims in 48 hours
Key functions (FRD): Photo upload, damage assessment, fraud rules, garage network API, payment
KPI: Claim settlement timeProblem: 30% of policies lapse due to missed renewals
Business need (BRD): Raise renewal rate to 85%
Key functions (FRD): Reminder schedule, payment links, agent dashboard, lapse report
KPI: Renewal rateProblem: Admissions take 2 hours with repeated paperwork
Business need (BRD): Admit planned patients in 20 minutes
Key functions (FRD): Pre-admission form, insurance pre-auth, bed allocation, ABHA ID integration
KPI: Admission timeProblem: Medicines expire on shelves; stock-outs of fast movers
Business need (BRD): Cut expiry write-offs by 50%
Key functions (FRD): Batch and expiry tracking, FEFO picking, reorder alerts, supplier returns
KPI: Expiry write-off valueProblem: Billing queues are long and loyalty points are manual
Business need (BRD): Faster billing and automatic loyalty
Key functions (FRD): Barcode billing, UPI/card payments, loyalty earn/burn, GST invoice, offline mode
KPI: Avg. billing timeProblem: Refunds take 10 days and cause complaints
Business need (BRD): Refund within 48 hours of pickup
Key functions (FRD): Return reasons, pickup scheduling, quality check, refund rules by payment mode
KPI: Refund TATProblem: Orders from website, Amazon and Flipkart handled separately
Business need (BRD): One view of all orders and inventory
Key functions (FRD): Channel integrations, inventory sync, order routing, shipping labels, status updates
KPI: Order fulfilment timeProblem: Agents see customer data across 6 screens
Business need (BRD): One customer view to cut call time
Key functions (FRD): Unified profile, interaction history, next-best-action, case management
KPI: Average handle timeProblem: Weekly sales reports are built manually in Excel
Business need (BRD): Automated daily sales visibility for managers
Key functions (FRD): Data pipeline from DMS, Power BI model, drill-downs by region/SKU, row-level security
KPI: Report preparation hours savedProblem: New joiners wait a week for laptop and access
Business need (BRD): Day-1 readiness for every joiner
Key functions (FRD): Offer acceptance trigger, document upload, asset request, access provisioning, checklist
KPI: % joiners ready on day 1Problem: Payroll errors from manual attendance entry
Business need (BRD): Zero manual attendance entry for payroll
Key functions (FRD): Biometric/app attendance feed, leave rules, overtime calculation, payroll export
KPI: Payroll error rateProblem: Vendor onboarding takes 3 weeks; payments are delayed
Business need (BRD): Onboard in 3 days; pay on time
Key functions (FRD): Vendor self-registration, GST/PAN validation, approval workflow, 3-way match, payment run
KPI: Vendor onboarding timeProblem: Trucks break down from missed servicing
Business need (BRD): Reduce breakdowns by 40%
Key functions (FRD): GPS tracking, service schedule, alerts, fuel logs, driver app
KPI: Breakdowns per 1,000 kmProblem: Picking errors and slow dispatch
Business need (BRD): 99.5% pick accuracy
Key functions (FRD): Putaway, bin locations, pick lists, barcode scanning, dispatch reports
KPI: Pick accuracyProblem: Admissions and fee collection on paper and cash
Business need (BRD): Online admissions and fee collection
Key functions (FRD): Application form, document upload, merit list, fee payment, receipts, reminders
KPI: % fees collected onlineProblem: Compliance training completion is untracked
Business need (BRD): 100% completion of mandatory training
Key functions (FRD): Course assignment, progress tracking, quizzes, certificates, manager reports
KPI: Training completion rateProblem: Citizens queue to pay bills and raise complaints
Business need (BRD): Online payments and complaint tracking
Key functions (FRD): Bill fetch, payment gateway, complaint registration, SLA tracking, SMS updates
KPI: Complaints resolved in SLAProblem: Overbooking across OTAs
Business need (BRD): Zero overbooking
Key functions (FRD): Room inventory sync with OTAs, rate plans, booking engine, check-in app
KPI: Overbooking incidentsProblem: Manual invoicing and failed renewals
Business need (BRD): Automated billing and dunning
Key functions (FRD): Plans and add-ons, GST invoices, auto-debit (e-mandate), dunning emails, revenue reports
KPI: Involuntary churnProblem: Retention team calls random customers
Business need (BRD): Target the customers most likely to churn
Key functions (FRD): Data mart, churn model scoring, weekly list to CRM, campaign tracking, model monitoring
KPI: Churn rate of targeted customersProblem: Rising fraud losses on UPI
Business need (BRD): Block high-risk transactions in real time
Key functions (FRD): Real-time rules + ML score, step-up authentication, case queue, feedback loop
KPI: Fraud loss per ₹1 croreProblem: Orders get mixed up between counter, app and aggregators
Business need (BRD): One order queue for every channel
Key functions (FRD): Aggregator integration, kitchen display system, prep timers, inventory deduction
KPI: Order accuracyProblem: Support costs rise with ticket volume
Business need (BRD): Deflect 30% of repetitive tickets
Key functions (FRD): RAG on help articles, intent detection, human handoff, conversation logs, evaluation dashboard
KPI: Ticket deflection rateThe BA standard, trusted templates and the tools analysts use every day.
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