Defining Business Requirements

All projects start with an idea solving a particular business problem or requirement. This idea then has to be transformed into a specific, measurable framework and realized by someone. The process of transforming an idea into measurable form can be called the defining of business requirements. This results in a document that can serve as the basis for an official or unofficial tender procedure, during which suppliers prepare their project realization offers.

In Latvia, organizations typically reach an agreement with a specific supplier through one of several approaches:

An idea is discussed within the company and search begins for a supplier that can carry out deeper analysis of the idea and offer a solution.

An idea is described in a certain way in line with the organizational management’s interpretation of correctness, and then provided to potential suppliers for the preparation of offers (for a tender). Offers are usually very different, since they are based on each supplier’s interpretation of the requirements. This is often done on purpose.

An idea is described in sufficient detail and measurability, allowing suppliers to immediately assess their competence in the field in question and to prepare an accurate offer, while the client can measure the correspondence of the supplied result to the requirements.

We offer to help you prepare the final draft, allowing you to assess the supplier's suitability and project budget before signing an agreement. Research indicates that 24% of projects exceed the allocated budget due to a lack of clearly defined requirements at the time of budgeting. Suppliers often take advantage of this on purpose, preparing an offer in line with the cheapest possible interpretation, knowing that this will likely be insufficient for the client and the client will be forced to expand the budget in order to satisfy their requirements.

This process also enables you to understand the scope and level of complexity of your requirements, which will in turn allow you to have a much more professional interaction with suppliers. The supplier will normally want to carry out even deeper analysis of requirements in order to determine the best way to install their particular system.

CONTACT US and we will tell you more about how we can help you define your business requirements.

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