During analysis on the Meridian payroll upgrade, a business analyst records the statement: 'The organisation needs to cut month-end payroll processing time by 40 percent to reduce overtime costs.' Using the requirement types in The PMI Guide to Business Analysis, how should this statement be classified?
- AA stakeholder requirement, because it describes what a specific group of users needs from the solution
- BA functional solution requirement, because it specifies a behaviour the new system must perform
- CA transition requirement, because it addresses moving from the current payroll process to the new one
- DA business requirement, because it states a high-level goal and the value the organisation expects to gain Correct
Why A is wrong: Tempting because payroll staff are stakeholders, but stakeholder requirements describe a particular group's needs of the solution, whereas this statement is an organisation-level goal with no named user group.
Why B is wrong: Tempting because it mentions processing, but a functional requirement states a specific behaviour or capability the solution must provide, not an organisational objective expressed as a percentage improvement.
Why C is wrong: Tempting because an upgrade implies change, but transition requirements cover temporary capabilities such as data migration or training needed only during cutover, not an ongoing business goal.
Why D is correct: Correct. A business requirement expresses the higher-level need, goal, or objective of the organisation and the value it seeks, which is exactly what a 40 percent time reduction to cut costs describes.