A concise articulation of the problems, gaps, or opportunities that an organization must address to achieve its strategic objectives. These statements are specific, measurable descriptions of required capabilities or outcomes, providing the foundation for project justification and resource allocation. For instance, a company might determine a requirement to enhance its customer relationship management system to improve customer retention rates by 15% within the next fiscal year.
Understanding such prerequisites is critical for efficient project selection, ensuring that efforts are aligned with organizational goals and resources are allocated where they will have the greatest impact. This understanding prevents wasted investment in initiatives that do not contribute to overall success. Historically, a lack of clarity in this area has often led to project failures and inefficient resource utilization, highlighting the importance of a well-defined and documented process.
