Business needs

From CEOpedia | Management online
Business needs
See also

Business needs are gaps between the current state of the company and its goals. Needs are the basic factors of changes in the organization, which are defined as requirements and implemented by employing people, implementing projects, transforming operations and purchasing goods[1].

The understand of understanding business needs

A very important aspect of working at the workplace is understanding the purpose of the project. It allows you to get and analyze the requirements. Knowledge about:

  • business needs
  • the reason for building a given system

It will allow you to ask yourself the right questions and to ask for the right things and set proper priorities, as a result of which it will be possible to reject requirements that do not meet your needs. Understanding and meeting key business needs and challenges for companies is crucial for developers and decision makers interested in sustainable economic development at local and regional levels. In such cases, eco-industrial signs can provide valuable information on the implementation of support and cooperation that lead to both business and social benefits. As the results show, sustainable development is the main reason why companies should not abandon the objectives of economic development[2].


Business needs are the company's needs that describe in turn:

  • Goals (business goals)
  • requirements (to be met)
  • problems (which the company is trying to solve)

For example, a private or public organization should, among others:

  • correctly register its important activities and transactions
  • preserve and audit records
  • properly delegate access to authorized parties

To define and fully understand the business needs of the project, you need to look at business factors and problems to determine whether a change or design is even needed. The first important task is to identify business needs. Business need usually defines the problem. Organizations often consider adding new or changing existing opportunities based on new market opportunities, customer feedback, newly available technologies or to meet changing legal and regulatory requirements. After defining and agreeing business needs for the project, no significant changes are expected in the project life cycle.

To define and fully understand the business needs of the project, you need to look at business factors and problems to determine whether a change or design is even needed. The project manager or business analyst, or both, are now the principal investigator, questioning business needs and assumptions to ensure that the problem or opportunity is properly addressed.

Finally, identifying business needs for a possible project activates key stakeholders on the way to a full understanding of a business problem or opportunity. Organizations must be focused on business needs as compared to reacting too quickly to problems, problems or perceived inefficiencies.

Business needs set the scenario for what will happen at the beginning of the project, such as the scope of the solution options to consider, a set of stakeholders to engage and appropriate approaches to evaluation[3].

Stages of determining business needs during project creation

There are three basic steps to determining the business needs of a potential project:

  • Verify that your business needs are in line with the goals and business objectives of your organization. This strategic information is usually found in the organization's strategic plan, ranging from the mission, vision and value of the organization. One business goal can be divided into one or more areas of interest, such as customer satisfaction, operational excellence or business development. These business goals must be spread over a set of more quantitative business goals. Business goals set predefined results to which an effort is addressed, such as achieving a strategic position or goal to achieve.
  • Make sure you clearly identify the business problem. Investigate him whether it is really worth solving this particular problem or taking advantage of the opportunity. Look at the benefits and risks of doing something and make sure you identify the cause of the problem accurately.
  • Create a well-written description of the desired result that results from satisfying your business needs. Your business need describes the problem or opportunity the organization is facing. This problem or chance exists within the organization's goals and business goals. Business needs are the first building element that you must define to meet business requirements for your project.

Business need is usually not a product or a document. Instead, the business need is a very high business requirement, which should be included in the business requirements document or business case for the proposed project[4].

The difference between business needs and business requirements

In many industries, there is a discrepancy between the need and the requirement:

  • requirement - is a condition or ability required by the stakeholder to solve the problem or achieve the goal
  • the need - is a representation of the required high level

The need is the final result or goal. He indicates the reason why we strive for something[5].


  1. Bologa A., Bologa R. (2008), s. 107
  2. Veleva V.,Todorova S., Lowitt P., Neil Angus N., Neely D. (2014), s. 7-8
  3. Subba Rao S. (2000), s. 85
  4. Cho Y., Brown C. (2013), s. 747,761
  5. Bologa A., Bologa R. (2008), s. 461


Author: Filip Piszczek