The document discusses modeling system requirements using events and things during the analysis phase. It explains that events are occurrences that trigger system activities, while things are objects or data that the system needs to store information about. Events and things help define functional requirements. Events are identified and categorized as external, temporal, or state events. Things become data entities in traditional models or objects in object-oriented models. The analysis phase involves creating event tables and entity-relationship diagrams or class diagrams to document events, things, and their relationships.