Now begin the process of turning the requirements into functional models • Models are logical; i.e., independent of how they are implemented (manual or computerized) • Develop use-cases from the requirements • Use-case: how a business system interacts with its environment • Includes a diagram and a description to depict the discrete activities that the users perform • Develop activity diagrams from the use-cases • These model the business processes or how a business operates • Used to illustrate the movement of objects (data) between activities