What Is a Business Analyst? Job Description, Salary, and Skills

So, you’ve been thinking you might love to be a business analyst. But you’re not completely sure what a business analyst is exactly. That’s understandable. The term “business analyst” covers a variety of roles and responsibilities.

You’ve likely heard the job title attached to several different analyst jobs, and that’s because several niches fall under the umbrella of business analyst jobs. They all blend elements of data expertise, business acumen, and technical proficiency but focus on different aspects of business beyond those traits.

Now, you may be wondering how to determine if a future as a business analyst is the right career fit for you. Well, if you love a good puzzle and creative thinking, it’s worth diving into. We’ve gathered the essential information about working as a business analyst to help you determine if you want to dig into more research in this career field or move on to other steps in the career discovery process.

Key Takeaways

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What Is a Business Analyst?

A unique job in the business world, a business analyst is the bridge between business needs and solutions. Business analysts are problem-solvers. Regardless of the niche, you’ll analyze business processes and workflows to find ways they can be improved or automated.

It’s not all data and spreadsheets, though. To excel as a business analyst, you’ll need a blend of soft skills and technical knowledge. Communication, negotiation, and leadership skills are just as important as data analysis and a fundamental understanding of technology platforms.

Sound intriguing? Then it’s worth taking a closer look and answering some key career questions.

What Does a Business Analyst Do? (Business Analyst Job Description)

Companies post business analyst jobs to help them get from where they are to where they want to be. Often interchanged with the role of a business consultant, business analysts use data to evaluate processes and procedures, determine what needs to change and how to change it, and present their findings to the company.

Business analysts realize, however, that parameters such as cost constraints and technical feasibility affect what actions an organization can take. In determining recommendations, business analysts often perform duties such as:

Talking to people to understand goals and gain information on current operations
Questioning assumptions about why problems exist and why things are done in certain ways
Outlining findings and possible solutions
Making data-driven recommendations
Budgeting and forecasting
Monitoring progress and presenting reports

10 Types of Business Analysts

The field of business analysis is diverse. The various business analyst specializations cater to different aspects of business and technology. Understanding the focus of each specialization can help you find your ideal career.

To help clarify the roles, let’s consider a fictional tech company. This company is facing a challenge in improving the efficiency and effectiveness of its product development cycle while enhancing customer satisfaction. Consider how each business analyst role might approach the problem below.

1. Business Intelligence Analyst

Unlike business analysts who may focus on processes, systems, or functional analysis, business intelligence analysts are deeply entrenched in data. They specialize in interpreting complex data sets to provide clear, actionable insights.

To support a tech company, a business intelligence analyst might analyze customer data and market research to provide insights into which features are most desired by the target market and help prioritize development efforts.

2. Business Process Analyst

A business process analyst specializes in the examination and improvement of business processes. This role involves deep-diving into the workflows and procedures within an organization to identify inefficiencies, redundancies, or areas that can be optimized for better performance.

Rather than focus on the external data, a business process analyst will review and optimize the internal processes of the tech company. That might include the software development lifecycle and suggestions on how to streamline operations and reduce time-to-market.

3. Business Systems Analyst

The business systems analyst role primarily focuses on the integration and optimization of technology solutions. Unlike other business analysts who might concentrate on broader strategic analysis or specific business functions, the systems analyst dives deep into understanding how technology can be utilized to improve business processes and outcomes.

When the business systems analyst considers the tech company’s issue, they’ll focus on the IT systems and software used in product development and delivery. They’ll ultimately suggest improvements or new tools to increase efficiency.

4. Data Analyst

The primary goal of a data analyst is to help organizations make more informed decisions. They do this by identifying trends, patterns, and insights hidden in raw data. Unlike other business analysts who may focus on broader business processes and systems, data analyst jobs are more concentrated on handling data and gaining insights from it.

The data analyst will dive into the tech company’s product performance data to identify patterns and insights, focusing on product enhancements and bug fixes.

5. Enterprise Analyst

An enterprise analyst plays a pivotal role in aligning a company’s strategies with its operational execution. Unlike other business analysts, enterprise analysts take a bird’s-eye view of the organization. They are more involved in strategic planning and often work on a higher organizational level.

Looking at the broader strategic goals of the tech company, the enterprise analyst will align product development initiatives with the company’s long-term objectives.

6. Functional Analyst

Functional analysts specialize in a specific business function, such as finance, marketing, HR, or operations. Unlike other types of analysts who work across several aspects of a business, functional analysts are experts in their field and support organizations by analyzing, modeling, and designing systems within that specialty.

When the functional analyst works on the tech company’s issue, they’ll concentrate on specific departments, such as development or marketing, and make recommendations to improve that department’s output and efficiency.

7. IT Business Analyst

An IT business analyst primarily focuses on understanding and addressing technological needs within a business context. They act as a bridge between the IT department and the business units.

The IT business analyst will work closely with the IT department and software developers of the tech company to ensure that the technology infrastructure supports efficient product development.

8. Management Analyst

With less of a technical focus, management analysts streamline the people side of operations, frequently working with top-level management. Management analysts accomplish that through a macro, strategic lens, focusing on organizational effectiveness and executive-level advice.

The management analyst will advise the senior management at the tech company on major organizational changes and long-term strategic planning.

9. Product Analyst

A product analyst is a specialized type of business analyst who primarily focuses on analyzing market research, customer needs, and product performance. Their primary goal is to inform and guide product development and enhancement strategies to ensure the product meets market demands and customer expectations.

Perhaps the tech company is struggling with bad reviews. The product analyst will study market feedback and customer reviews to suggest feature enhancements or new product ideas that align better with consumer needs.

10. Systems Analyst

A systems analyst specializes in examining and designing complex systems. The primary focus is on the IT infrastructure of an organization. They work closely with both the technology and business teams to ensure that the software, hardware, and network solutions meet the business’s needs.

Supporting the tech company, the systems analyst might assess and improve the software systems and databases used in product development. Along the way, they’ll ensure systems are robust, scalable, and effective.

Business Analyst Career Path: How to Become a Business Analyst

While there are distinct specializations within the business analyst field, the career journey typically follows a similar path, regardless of the specific area of focus. Whether your interests lean toward data analysis, process improvement, or IT solutions, the foundational steps share common elements.

Step 1: Pursue a Degree

Most business analyst positions require at least a bachelor’s degree. There isn’t one specific business degree that you require, but these are the most common:

Business Administration
Computer Science
Economics
Finance
Information Technology

These programs provide a solid foundation in business principles or technical know-how. Some organizations prefer analysts to have an MBA, but a solid portfolio can open many doors without one.

Step 2: Acquire Required Business Analysis Skills

Your technical skills are just one part of the equation. You’ll also need to show that you have soft skills, like time management, problem-solving, and effective communication. Develop a solid understanding of business structure through coursework, workshops, and self-study. Familiarity with data analysis tools and techniques for your chosen specialty is also crucial.

Step 3: Obtain Certifications

Certifications are crucial to boosting your credentials as a business analyst. Obtaining business analytics certification will validate your skills to employers and help you stand out as a top candidate in a competitive job market.

Step 4: Network

In this field, networking can lead to mentorship opportunities. Those mentors are invaluable sources of information about unpublished job openings and industry trends. Be intentional about attending industry conferences, joining professional groups on LinkedIn, and connecting with peers as well.

Step 5: Gain Real-World Experience

Hands-on experience is invaluable. Start with internships or entry-level positions related to business analysis. Consider freelancing to work on projects where you can apply your analytical skills and business knowledge.

Step 6: Build a Portfolio

Companies that post remote analyst jobs are going to be looking for a robust portfolio. Include case studies, project summaries, and examples of your problem-solving skills. Ensure that you showcase the results you achieved and relate the impact to your ideal role.

10 Top Business Analyst Skills

Inquisitive problem-solvers who ask hard questions make good business analysts. Gathering information, however, is only part of the skill set required to thrive as a business analyst.

1. Adaptability

The business landscape is constantly evolving, making adaptability a crucial skill. As a business analyst, you’ll need to be flexible in your approach and ready to respond to changing market conditions, technologies, and business needs.

2. Analytical Thinking

Analytical thinking is the foundation of business analysis. You’ll be dissecting complex data and processes to discover underlying issues and potential solutions. Develop your ability to interpret various types of information. From market trends to internal business processes, you’ll need to make informed decisions based on that data.

3. Attention to Detail

Unsurprisingly, you’ll need to ensure accuracy in your data analysis and recommendations. To maintain the quality and integrity of your work, you’ll need to be meticulous in the insights you offer.

4. Business Knowledge

Understanding the intricacies of business operations is essential. This includes knowledge of your target industry, the business models you’re supporting, and their internal processes. Strong business acumen can ensure you align solutions with the organization’s goals and strategies.

5. Communication

As a business analyst, you’ll often be working in tandem with or reporting to nontechnical stakeholders. Find ways to articulate complex ideas in simple terms, ensuring clarity in reports, presentations, and meetings. Otherwise, it’s going to be challenging to get others on board to make the necessary changes.

6. Complex Problem-Solving

Many of your daily tasks will revolve around thinking creatively to address various issues in the organizations you’re supporting. Problem-solving to offer practical and innovative solutions is vital.

7. Diplomatic Persuasion

Business analysts often find themselves in positions where negotiation and persuasion are necessary. Whether it’s advocating for a specific course of action or aligning diverse viewpoints, honing these skills will make it easier to achieve a consensus and drive projects forward.

8. Project Management

Core project management skills will benefit you in organizing and planning a project. From managing resources to ensuring timely delivery, the ability to keep multiple facets of a project running simultaneously is vital.

9. Technical Proficiency

In today’s data-driven world, technical proficiency is a must to thrive as a business analyst. Familiarity with data analysis tools, software development, and an understanding of technological trends will enable you to provide more effective and efficient solutions.

10. Relationship Management

Managing relationships with stakeholders will be a key aspect of your role. You’ll need to effortlessly navigate differing perspectives, manage their expectations, and ensure that all voices are heard. Developing your indirect leadership skills will help you uncover more successful project outcomes and higher overall satisfaction.

Business Analyst Qualifications

Despite not having a specific business analyst course of study, a formal degree is still considered the first step. Adding on specialized business analysis certification and real-world training will set you up for a successful career path.

1. Business Analyst Degrees

There is flexibility in the field you study, but degrees that blend business knowledge with analytical skills are particularly beneficial. Popular choices include degrees in:

Business
Computer Science
Economics
Finance
Information Technology

These programs provide a foundational understanding of business processes, analytical methods, and technological applications. You’ll also gain many of the soft skills you need, such as critical thinking skills and a comprehensive understanding of how businesses operate.

2. Business Analyst Certification

Industry-recognized business analyst certification can enhance career opportunities. The International Institute of Business Analysis (IIBA) awards several certifications to candidates who pass an exam and demonstrate a work history that meets the criteria.

Explore the following options to find one that fits your career goals:

Agile Analysis Certification (IIBA-AAC)
Business Data Analytics Certification (IIBA-CBDA)
Certified Business Analysis Professional (CBAP)
Certification of Capability in Business Analysis (CCBA)
Cybersecurity Analysis Certification (IIBA-CCA)
Entry Certificate in Business Analysis (ECBA)

3. Business Analyst Training

Beyond academic qualifications, specialized training plays a crucial role in the development of a business analyst. Training programs, workshops, and courses (both online and in-person) offer practical skills and up-to-date knowledge in your chosen niche.

Training can be specific to certain methodologies, like Agile or Six Sigma, which are increasingly relevant in today’s business environments. Keep in mind that training isn’t a one-time event. As a business analyst, training will be an essential component of your ongoing career development.

Business Analyst Salary: How Much Do Business Analysts Make?

Like any career exploration, considering a career as a business analyst involves answering the question, “How much do business analysts make?” According to the Bureau of Labor Statistics (BLS), business analyst salaries vary based on the specialty. For example, market research analysts show a median of $68,230 annually, while computer systems analysts are quite a bit higher, at $102,240 annually.

However, these figures are just a starting point. The salary of a business analyst has a wide range based on factors such as experience, industry, and geographical location. As you gain expertise, you’ll find opportunities for advancement into senior-level roles. Higher salaries and more comprehensive compensation packages reflect the increased responsibility and expertise required.

Your Career as a Business Analyst

Since so many organizations can benefit from the services of a business analyst, job opportunities exist in the private sector for traditional companies and nonprofits, as well as the government sector. Newcomers often begin as junior analysts and progress into specialized roles or take on larger, more complex projects.

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