Chapter 3 of the document outlines system requirement specifications and analysis, focusing on the importance of requirement determination, which transforms high-level business requirements into detailed system functionalities. It covers the differences between business requirements, user requirements, functional requirements, and non-functional requirements, emphasizing the need for a collaborative approach among analysts and stakeholders to gather, analyze, and prioritize these requirements effectively. Additionally, the document discusses various techniques for gathering requirements, such as interviews and questionnaires, highlighting the significance of both functional and non-functional specifications in system design.