Domain Analysis is often the first step in attempting to design a new piece of software, whether it be an addition to an existing software, a new application, a new subsystem or a whole new system. Assuming that the developers (including the analysts) are not sufficiently knowledgeable in the subject area of the new software, the first task is to investigate the so-called "domain" of the software. The more knowledgeable they are about the domain already, the less work required. Another objective of this work is to make the analysts, who will later try to elicit and gather the requirements from the area experts, speak with them in the domain's own terminology, facilitating a better understanding of what is being said by these experts. If the analyst does not use the proper terminology it is likely that they will not be taken seriously, thus this phase is an important prelude to extracting and gathering the requirements. If an analyst hasn't done the appropriate work confusion may ensue: "I know you believe you understood what you think I said, but I am not sure you realize what you heard is not what I meant."

Specification is the task of precisely describing the software to be written, possibly in a rigorous way. In practice, most successful specifications are written to understand and fine-tune applications that were already well-developed, although safety-critical software systems are often carefully specified prior to application development. Specifications are most important for external interfaces that must remain stable. A good way to determine whether the specifications are sufficiently precise is to have a third party review the documents making sure that the requirements and Use Cases are logically sound.