Business Analyst · Terminology
Business Analyst Terms Explained for Absolute Beginners
Quick summary — business analyst terms for beginners
Core business analyst terms fall into four groups: requirements terms such as functional and non-functional requirements and BRD; people terms such as stakeholders and RACI; process terms such as as-is, to-be and gap analysis; and agile terms such as user stories, acceptance criteria, backlog and sprint. KPIs connect them to business value.
In this guide you will learn:
- Requirements terms — and how to write them.
- Stakeholder terms — including RACI.
- Process terms — as-is, to-be and gap analysis.
- Agile and metric terms — with templates.
- Interview questions — that test BA vocabulary.
SECTION 01Requirements terms
Requirements describe what a business needs from a solution. Business analysts gather, write, organise and confirm them, so these are the words you will hear most often. Beginners often mix up a business need with a solution idea, or forget non-functional requirements such as speed and security. Learn these terms first:
| Term | Plain English meaning | Example | Common mistake |
|---|---|---|---|
| Business requirement | The high-level goal the business wants | Reduce loan approval time | Writing a solution instead of a goal |
| Functional requirement | What the system must do | System sends an SMS when a loan is approved | Vague words like 'fast' or 'easy' |
| Non-functional requirement | How well the system must work | Page loads within 3 seconds | Forgetting them entirely |
| BRD / FRD | Documents that record business and functional requirements | A BRD for a new onboarding flow | Very long documents nobody reads |
VAGUE: The app should be fast and user-friendly.
BETTER (functional):
FR-01 The system shall let a customer upload a PAN card image
in JPG, PNG or PDF format up to 5 MB.
FR-02 The system shall show an error message if the file
type or size is not allowed.
BETTER (non-functional):
NFR-01 The upload page shall load within 3 seconds on a
4G connection for 95% of requests.import re
VAGUE = ["fast", "easy", "user-friendly", "etc", "as needed", "quickly"]
reqs = [
"FR-01 The system shall send an SMS within 1 minute of approval.",
"FR-02 The dashboard should be user-friendly and fast.",
]
for r in reqs:
found = [w for w in VAGUE if re.search(rf"\b{w}\b", r.lower())]
print(r[:6], "vague words:" if found else "ok", ", ".join(found))SECTION 02Stakeholder and process terms
Business analysts spend much of their time with people and processes. Stakeholders are the people affected by or involved in a change, and process terms describe how work happens today and how it should happen in future. The gap between the two is often where a BA adds most value, because it shows exactly what needs to change:
| Term | Plain English meaning | Example | Why it matters |
|---|---|---|---|
| Stakeholder | Anyone affected by or influencing the change | Customers, branch staff, compliance team | Missing one causes late surprises |
| RACI | Who is Responsible, Accountable, Consulted, Informed | Product owner is Accountable for sign-off | Clarifies roles and approvals |
| As-is / to-be | Current process vs desired future process | Paper form today, online form tomorrow | Shows what must change |
| Gap analysis | Comparing as-is and to-be to list differences | Online form needs document upload | Turns into requirements |
Activity | Product Owner | BA | Dev Lead | Compliance
-------------------------|---------------|----|----------|-----------
Define requirements | A | R | C | C
Approve requirements | R/A | C | I | C
Build solution | I | C | R/A | I
Compliance review | I | C | I | R/A
R = Responsible A = Accountable C = Consulted I = Informed
Rule: exactly one A per activity.as_is = {"application": "paper form", "documents": "photocopies",
"status": "phone call", "approval": "manager signature"}
to_be = {"application": "online form", "documents": "upload",
"status": "SMS and app", "approval": "manager signature"}
print(f"{'Step':12} {'As-is':18} {'To-be':16} Gap?")
for step in as_is:
gap = "YES" if as_is[step] != to_be[step] else "no"
print(f"{step:12} {as_is[step]:18} {to_be[step]:16} {gap}")SECTION 03Agile and metrics terms
Many teams now work in agile ways, so business analysts often write user stories rather than long documents, and work closely with product owners. Metrics terms connect the work to business results, because every change should improve something measurable. These terms appear in most BA job descriptions:
| Term | Plain English meaning | Example | Group |
|---|---|---|---|
| User story | A need written from a user's point of view | As a customer, I want to upload documents online so I avoid a branch visit | Agile |
| Acceptance criteria | Conditions a story must meet to be done | Given a 6 MB file, when I upload, then I see a size error | Agile |
| Backlog and sprint | Ordered list of work; a short fixed work cycle | Two-week sprint with top backlog items | Agile |
| KPI | Key measure of success | Average approval time in days | Metrics |
Title: Upload KYC documents online
As a new customer,
I want to upload my PAN and address proof in the app,
so that I can open an account without visiting a branch.
Acceptance criteria:
Given I am on the upload screen
When I upload a JPG, PNG or PDF under 5 MB
Then I see 'Document received' and the status changes to 'In review'
Given I upload a file larger than 5 MB
When I press Submit
Then I see 'File too large (max 5 MB)'from datetime import date
applications = [
(date(2026, 10, 1), date(2026, 10, 6)),
(date(2026, 10, 2), date(2026, 10, 4)),
(date(2026, 10, 3), date(2026, 10, 9)),
]
days = [(done - start).days for start, done in applications]
print("average approval time:", round(sum(days) / len(days), 1), "days")
print("longest:", max(days), "days")SECTION 04Business analyst glossary templates
Build your own glossary as you learn, using these templates:
Term: Gap analysis
Plain meaning: List the differences between how work happens now
and how it should happen
Example: Paper form today -> online form with upload
Where used: Process improvement, system projects
Related: As-is, to-be, requirementsRequirements: business req, functional, non-functional, BRD, FRD
People: stakeholder, RACI, SME, sign-off, elicitation
Process: as-is, to-be, gap analysis, process map, SOP
Agile: user story, acceptance criteria, backlog, sprint, MVPExplain each in one sentence, without notes:
1. Functional vs non-functional requirement
2. What RACI stands for and why one 'A' matters
3. As-is vs to-be
4. User story format
5. A KPI you would track for an online formSECTION 05Tips for learning BA terminology
These habits help the vocabulary stick:
- Learn terms with examples — attach a real-life example to every term.
- Practise writing — turn vague sentences into testable requirements.
- Map a daily process — draw as-is and to-be for something you do.
- Read job descriptions — notice which terms appear most often.
- Revise weekly — test yourself on your glossary each week.
SECTION 06Interview Q&A — BA terms
Q1What is the difference between functional and non-functional requirements?
Functional requirements say what the system must do. Non-functional requirements say how well it must do it, such as speed, security or availability.
Q2What is a stakeholder, and how do you identify them?
Anyone affected by or influencing a change. Identify them by mapping who uses, approves, supports, funds or is regulated by the process.
Q3What is gap analysis?
Comparing the current process with the desired future process to list the changes needed, which then become requirements.
Q4How do you write a good user story?
Use 'As a ..., I want ..., so that ...', keep it small and valuable, and add clear, testable acceptance criteria.
Q5What is a KPI? Give an example.
A key measure of success, such as average loan approval time or form completion rate.
SECTION 07Test yourself — BA terms quiz
Five questions. No sign-up.
0 / 5Pick an answer to see why it is right or wrong.
SECTION 08Frequently asked questions
What are the basic terms every business analyst should know?
Business, functional and non-functional requirements, stakeholder, RACI, as-is, to-be, gap analysis, user story, acceptance criteria, backlog, sprint and KPI.
What is a BRD in business analysis?
A Business Requirements Document records the business goals, scope and high-level requirements for a project.
Do business analysts need to know agile terms?
Yes, in many teams. User stories, acceptance criteria, backlog, sprint and product owner appear in many BA job descriptions.
Is business analysis a technical job?
It mixes business and technical understanding. Many BA roles need SQL or data skills, but communication and requirements skills are central.
How can a beginner practise business analysis terms?
Map a familiar process, write requirements and user stories for an improvement, build a RACI for it and define one KPI to measure success.
SECTION 09Related reads
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