What is a Product Requirements Document? Complete Guide

What is a Product Requirements Document (PRD)?

A product requirements document (PRD) is a comprehensive document that defines everything a product needs to be successful. It outlines the product's purpose, detailing why the product exists and what problem it aims to solve.

The PRD also specifies the key features and functionalities that the product must have to meet user needs and business objectives. Additionally, it describes the expected behavior of the product in different scenarios, ensuring that the product performs as intended.

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Importance of PRDs in Product Development

PRD is essential in product development because it aligns all stakeholders and creates a shared understanding of the product. It ensures that engineering, design, sales, and marketing teams work together toward a common goal.

The PRD guides the product release, keeping everyone in sync to deliver what customers want on time. It also serves as the starting point for other teams to create documents like functional specifications, wireframes, and mockups, helping them plan their actions.

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What Should a Product Requirements Document Contain?

Apart from knowing what a product requirements document is, let's break down what it should contain:

Comprehensive List of Features

A PRD should list all the features the product needs for its release. Each feature should be explained with a use case, showing how users will interact with it. This helps the team understand the requirements and create a test plan to ensure the product works as expected.

Granularity for Complex Features

The PRD should break them down into smaller parts for more complicated features. Each part should be detailed and include its own use case if needed. This helps the technical teams better understand how to build each feature part.

Overview and Purpose

The PRD should provide an overview of the release and explain what the product team is trying to achieve with this specific version. This should be different from the market requirements document (MRD), which covers multiple product releases. The PRD should focus on the goals for the current release.

System, Environmental, and Usability Requirements

Besides the features, the PRD should also include system requirements, such as which operating systems or browsers the product should work on, and usability requirements, such as easy navigation for mobile apps. These ensure the product works well technically and provides a good user experience.

Specify Assumptions, Constraints, and Dependencies

The PRD has to specify the following:

• Assumptions: Expectations the team has but cannot be assured, such as users having access to the internet. 
• Constraints: All the limiting factors, such as cost or time.
• Dependencies: What the product relies on, including services or integrations provided by other companies. 

Specifying the assumptions, constraints, and dependencies enables teams to identify all possible challenges or external influences in relation to the product and its development.

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How to Write a Product Requirements Document?

More than simply  knowing a PRD's meaning, importance, and contents is required. You must also know how to frame one. Here are the key steps to follow when writing a product requirements document:

Keep Your PRD Simple and Collaborative

A PRD doesn't need to be long or complicated. It can be as short as one page for small features, while larger projects may need more detail. For instance, if you're developing a feature for a mobile app that adds a notification system, the PRD could focus only on the essential features and the user flow. 

It's crucial that all stakeholders, including engineers, designers, and product managers, collaborate on the PRD as it evolves, making sure everyone is on the same page and contributing to its development.

Choose the Right Tool

Using the right tool is important for maintaining an up-to-date PRD. In the past, Microsoft Word was often used, but this led to confusion among the team, with outdated versions circulating. 

Today, platforms like Google Docs are much better because they allow real-time collaboration. For example, when multiple team members are working on a fitness app feature, using Google Docs enables everyone to edit the document at the same time and ensures that everyone is always working with the most current version.

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Define the Purpose

The product's or feature's purpose should be clearly stated in the PRD, helping all stakeholders understand why the product is being built. This section should answer what problem the product solves, who will use it, and why it is essential. 

For a fitness app's new workout tracker feature, the purpose could be to help users track their daily exercise routines to improve health. This clarity ensures that everyone understands the goals of the feature from the design phase through to launch.

Outline the Features

A detailed description of the product's features, including their functions and applications, should be included in the PRD. Every feature should be in line with the goal of the product, and the design should be illustrated with the use of visual aids such as wireframes or mockups. 

For the workout tracker in the fitness app, the feature could include logging different types of exercises, such as running or cycling, with input fields for duration and intensity. These specifics help developers understand what needs to be built and ensure that the feature meets user needs.

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List the Release Criteria

It is important that the release objectives be specified in the PRD, which outlines the criteria that need to be fulfilled before the product is released to the market. These comprise operational criteria, user friendliness evaluation and performance benchmarks. 

In the case of a fitness application, the release criteria can be defined as counting steps, providing intuitive functionality, and fast response times. The team avoids running into the risk of overlooking testing requirements and the criteria for the release of the product, by defining them at the very beginning of the project.

Establish a Rough Timeline

Even if dates are not sanctioned, a rough schedule allows better organization of the development process on a larger scale by defining main goals and time limits. For instance, in a fitness app where the timeline for the design stage is set for March 1 making a mockup, March 15 implementing the concept into action, March 30, testing the system on the internal user, and April 10, the time for the user. 

In the case when the AGM is in the PRD, a rough plan shows who is responsible for what and when and helps manage the project while providing scope for variations.

Define Success Metrics

Before development begins, defining the success metrics for the product or feature is essential. These metrics should be measurable and help evaluate the feature's effectiveness after launch. 

Success for a fitness app's workout tracker could be measured by user engagement, with a goal of 60% of users logging at least one workout per week. Additionally, retention goals might include 40% of users continuing to use the app after one month. Setting these clear metrics helps track the impact of the new feature and guides future improvements.

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Benefits of a PRD

A well-drafted and comprehensive PRD offers many advantages. 

• It helps everyone on the team understand the product's purpose and features, keeping things clear and focused. 
• It reduces confusion and miscommunication by aligning all stakeholders. With clear instructions, developers can work faster and more efficiently. 
• The PRD also makes it easy to track progress and check if the product is meeting goals. 
• It helps spot potential risks early so the team can deal with them before they become problems.

Key Mistakes to Avoid When Writing a PRD

Since finalizing an all-encompassing PRD is necessary for your project's success, avoiding a few common mistakes is important. This will ensure the document is clear and effective.

Here are a few mistakes you must avoid when writing a PRD:

Not Involving Stakeholders Early

A PRD should reflect the input of all key stakeholders, including developers, designers, and clients. Leaving them out early in the process can lead to misalignment and costly revisions later. By involving everyone from the start, you ensure that the PRD accurately represents all perspectives and is aligned with the team's expectations.

Overloading the PRD With Features

Including too many features in the PRD can result in a bloated product that takes longer to develop and doesn't focus on what matters most. It's better to prioritize core features that deliver the greatest value to users and leave secondary features for later versions. This helps maintain focus and prevents unnecessary delays.

Lack of Clear Prioritization

Not prioritizing features properly can lead to wasted time and effort on less critical tasks. To avoid this, use a method like MoSCoW (Must have, Should have, Could have, Won't have) to rank features based on their importance. This ensures that the team focuses on what is essential and delivers the most valuable features first.

Failing to Update the PRD

A PRD should be a living document that evolves with the project. Failing to update it regularly as the project progresses can result in outdated information, leading to confusion and delays. Ensure the PRD is reviewed and updated frequently to align with any changes and ensure the development team has the most current guidelines.

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Examples of Product Requirements Document

Here's an example of a PRD for an e-commerce website:

• Product: e-Commerce website
• Product Overview: A website that lets people browse, buy, and manage products online.
• User Requirements: Users should be able to create accounts, add products to their cart, complete secure purchases, and track order status.
• Functional Requirements: The website must feature product search functionality, user accounts, a secure payment gateway, and a shopping cart system.
• Non-Functional Requirements: The website should be responsive to mobile devices, load in 3 seconds, and support up to 50,000 users at once.
• Use Cases: Example scenarios include 'user adds an item to their cart' and 'user completes a purchase.'
• Wireframes: Visual mockups of the website's homepage, product pages, and checkout process.
• Technical Specifications: What the website is all about, the type of payment integrated into the site, and the security measures.
• Dependencies: Third-party services for payment processing and inventory management.
• Timeline and Milestones: Development phases, testing periods, and expected launch dates.

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Conclusion 

In conclusion, a strong product requirements document (PRD) is key to successful product development. It keeps teams aligned, sets clear goals, and ensures the product meets both user needs and business objectives. By avoiding common mistakes and providing clear details, you can improve the development process and reduce risks.

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FAQs

1. What is the difference between a PRD and an MRD (Market Requirements Document)?

PRD focuses on product features, while MRD focuses on market needs, business goals, and customer requirements.

2. Who writes the PRD?

The product manager writes the PRD, often with input from stakeholders like developers, designers, and marketing teams.

3. How detailed should a PRD be?

A PRD should be detailed enough to guide development without being overly complex, offering clarity for all stakeholders.

4. What is the difference between PRD and SRS?

PRD defines product features and user needs, while SRS outlines detailed technical specifications and system requirements.