What is the Difference Between Functional vs Technical Requirement

Whether a system or a software project will succeed or not is determined by requirements analysis. It is a very crucial aspect of software development. This analysis is further divided into two segments, functional and non-functional requirements.

Key Differences Between Functional vs Technical Requirements

Despite their similarities, they play very distinct roles in software development. Understanding their difference is essential to bridge the gap between business requirements and technical execution. This blog aims to provide complete clarity on functional vs technical requirements​ and how to utilize them to your advantage.

What are Functional Requirements?

Functional requirements help the development team understand the business objective by assigning actionable tasks. These requirements describe the actions of the solution, its goals, and the deliverables to meet user needs. Simply put, it answers one very important question, “What to expect from this system.”?

Now these tasks work with non-functional requirements to set quality attributes, limits, and performance standards. Here is a generic breakdown of how functional requirement handles user interactions, processes, and outcomes.

• User authentication: Allowing users to log in using a unique username and password.
• Data validation: Ensuring accurate data entry by implementing field constraints.
• Reporting: Generating detailed reports on user activity.

Who is Responsible for Functional Requirements?

The functional requirements are often assigned by a collaborative team with multiple analysts, product managers, and stakeholders. These professionals are well-versed in the business goals and understand everything from the market’s objectives to user expectations. 

The responsible personnel presents functional requirements in the form of input to be given into the system, operation to be performed, and expected output. Unlike non-functional requirements, they are also stated by the user which can be observed in the final product.

By helping the development team to understand what users are looking for in a specific product they ensure the functional requirements are aligned with the project goal.

Table of contents

Types of Functional Requirements

Functional requirements can be further categorized on the basis of how they are documented. Let’s discuss them all:

Input Requirements

Functional requirements are often shared in the form of unstructured natural language without a formal structure. For instance, while developing a travel development application, the input requirements may mention statements like:

“This system requires user login credentials, API integration, or a secure payment gateway.” 

While it may look like an efficient way of sharing information, it’s not precise.

Output Requirements

These requirements are based primarily on tests and performance outputs. It defines the expected result from the program for the end user. For example, while booking accommodation from a hotel portal the customer should be able to access or modify the result under the manage section.

Process Requirements

These outline the specific workflows or steps the system must execute to achieve its intended functionalities. For example, in an order management system, process requirements could include verifying inventory levels, processing payments, and generating shipping labels in a defined sequence.

What are the Technical Requirements?

Technical requirements come into the picture only after all necessary functions are completed. These requirements are used to outline all attributes and limitations of the solution. By focusing on the underlying technologies, frameworks, and architectures of the solution, technical requirements help in creating an operational pipeline.

As mentioned previously, functional requirements primarily focus only on incoming and outgoing data for a product or system. Technical requirements, on the other hand, refer to the process of building a product. They reflect the needs of developers, things they need to consider, and necessary guidance to build a scalable application with a robust foundation.

Who is Responsible for Technical requirements?

Every stage of the software development life cycle requires specific technical requirements. To ensure all the deliverables are met leads at every stage take responsibility for assigning technical requirements.

Let’s take a quick glance at this procedure:

1. Starting off, the design stage is calibrated by a software architect. Their role is to carefully analyze the main programming languages and the technologies to be used. Based on this assessment, technical requirements are assigned.
2. In the next step, the business analyst creates the product backlog. It contains all the technical details in the form of user stories with the help of a technical lead, solutions architect, and QA specialists. 
3. Once the user stories are formulated, BA initiates a meeting with dedicated developers and testers to create a sprint backlog. Here, they understand the user stories to finalize the plan of implementation.
4. At last, the technical requirements are created by the lead software engineer or tech lead who is responsible for the design elements. This document should contain all the technical specifications and must be attached to the task in backlog or in case of complex features.

Examples of Functional and Technical Requirements

Functional and technical requirements differ widely from each other. To understand their implementation, let’s discuss a few sectors highlighting scenarios where these requirements work together to achieve desired outcomes.

1. E-commerce Sector

Functional Requirements:

• Users should be able to browse products based on various categories, prices, and ratings.
• Once items are added to the cart, users should be able to proceed to checkout.
• Secure payment options like debit cards, credit cards, digital wallets, and net banking should be provided.

Technical Requirements:

• To manage the product catalogs and user sessions effectively, a NoSQL database must be used.
• Implement SSL/TLS encryption to ensure secure payment transactions.
• SSL/TLS encryption should be implemented to ensure secure payment transactions.
• To handle high traffic during sales events a load-balancing server architecture should be deployed.

2. Healthcare Sector

Functional Requirements:

• Doctors should be able to access and update electronic health records (EHRs) for patients.
• Patients should be able to schedule appointments online and receive reminders.
• Wearable devices should provide real-time monitoring of critical health parameters.

Technical Requirements:

• To safeguard patient information HIPAA-compliant data storage should be utilized.
• Wearable devices with centralized healthcare systems must be equipped with scalable APIs.
• Data should be accessible by healthcare professionals from cloud infrastructure in real-time.

3. Retail Sector

Functional Requirements:

• Customers should be able to check product availability at specific store locations.
• Automate stock replenishment and inventory management for retailers.
• Loyalty programs should be provided for regular customers with rewards tracking and redemption features.

Technical Requirements:

• The inventory management database should be integrated with a point-of-sale (POS) system.
• For accurate stock updates and real-time inventory tracking RFID technology must be used.
• Mobile app compatibility of the program/software must be provided.

How Functional and Technical Requirements Work Together

It is abundantly clear from the examples mentioned above, that both functional and technical requirements play a crucial role in the software development life cycle. However, both of these factors should work in harmony to develop user-friendly and technically sound software. Let’s explore how these requirements collaborate through every phase of software development. 

Requirement Gathering Phase

This phase is pretty simple and straightforward. Here the teams create an outline of the ultimate goal of the software and technical aspects of how the system will achieve this target. Suppose, there is a functional requirement for user authentication, the technical team will have to integrate a secure medium into the system.

Design Phase

This phase particularly targets user interfaces, workflows, and interactions. With suitable functional requirements, the technical team begins the architectural design that includes database schema, server configurations, and technology stack decisions.

Development Phase

This is the phase where the developers work towards meeting user expectations. Here the functional requirements are clearly described to ensure the software meets the user expectations. Once that is done, the technical requirements are outlined for the developers to create code that is optimized, scalable, and secure.

Testing Phase

During testing, functional requirements are used to validate if the system is responding as it was supposed to. The technical requirements take the system’s stability, security, and performance into account under different circumstances to ensure the system is working properly.

Deployment and Maintenance Phase

Once all the marks are cleared the functional requirements guide the user experience post-deployment, ensuring the system meets the intended business goals. Meanwhile, technical requirements ensure that the system can handle real-world conditions, such as high traffic or cybersecurity threats, and facilitate future scalability.

Common Challenges in Defining Functional Requirements vs Technical Requirements​

Effectively managing functional and technical requirements is critical but often fraught with challenges. Here are some common pitfalls organizations face:

Managing functional and technical requirements is not easy as there are many challenges faced by organizations. Such as:

• Misalignment between teams can be caused due to miscommunication leading to errors and gaps in projects. However, this can be easily rectified with a streamlined communication channel that allows the teams to avoid delays and be on the same page.
• Requirements should be clear and concise. Irregularities in technical or functional requirements can cause confusion among the teams. Only by adopting proper documentation and organizing regular reviews, this problem can be addressed.
• Ever-changing requirements can sometimes pose a challenge among teams. However, with agile methodologies like iterative planning and feedback loops, organizations can be prepared for the future.
• Organizations sometimes do not pay much attention to the technical aspects of the project. This can result in a poor-performing system. As a result, companies to equally weigh both functional and technical requirements for the best possible results.
• Limited budgets are yet another challenge leading to compromises and underwhelming projects. However, with prioritization frameworks like MoSCoW, companies can balance functionality and technical feasibility within resource limits.

Building Bridges Between Ideas and Execution

It’s safe to assume that without balancing functional and technical requirements software cannot deliver exceptional quality. These factors provide an effective roadmap to understand user needs and business goals. To figure out “what” and “how” functional and technical requirements are necessary.

By fostering open communication between business and technical teams, leveraging modern tools, and regularly revisiting requirements, organizations can build software that delights users while standing the test of time.

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