What does a business analyst do? Check out this article to know everything in detail.
1. Who Is a Business Analyst?
Business analysts watch how the company operates by conducting research and data analysis. These business analysts then give methods of improving the company’s products, services, software, and practices.
Business analysts have to conduct ‘requirements gathering’ to acquire information with the most depth and context possible.
1.1. Not an I.T. Job
It is not only about dealing with the I.T. department, but also sitting in the client’s office and helping them make decisions.
By explaining very technical information or high-level technical language or just monitoring performance and then making actionable suggestions to the leader of the enterprise.
These decisions are made with previous research on collected data. It is not an I.T. job until business analysts dabble in it.
Business analysts try to understand how the organization works and then foresee if the current progress is sustainable.
Business analysts compile data from leaders, stakeholders, and project team members by working closely with them. Then this information is used to adjust or tweak the organization to reach its optimum level.
People with business analyst skills will thrive in this environment. Business analysts have no prior notions and question any assumptions made by the people handling the projects.
With the data business analysts collect, they can recommend changes and give ideas to the organization. They point out problem areas of the organization like technological processes, organizational structure, or staff.
For a business, cost-cutting and increasing efficiency are always at the forefront. So, data analytics has become a core component in operations.
Read below to find out what business data analysts do.
2. What Does a Business Analyst Do?
A business analyst is seen working with anyone in the hierarchy since Business analysts can improve efficiency by monitoring the performance, and communicating how to bring about changes in cumbersome business areas.
2.1. The Tasks They Handle:
- prioritize the functional and technical needs and requirements
- Using SQL and Excel to analyze data
- charts, tables, and other elements to compile data into
- financial models/business model to support the decisions
- the structure of the business
Their capabilities as business analysts are of great help as business analysts can highlight the company’s strengths, small or large, and Cush the company forward by helping them meet its goals and objectives.
By initiating worker productivity and supporting enterprise information systems with thorough research backing them, they can provide various solutions to any department.
2.2. Job Description
The business analyst role includes linking technical information and the objectives of the organization’s stakeholders.
Business analysts have to maximize the impact of the business processes to achieve the goals it has set. This can be done by reviewing technical programs and processes.
Business analysts communicate their analysis of data to identify trends relevant to the business and gain solutions that are given to the management team. Companies rely on the recommendations and appraisals of business analysts.
Making these actionable suggestions can improve the decision-making process and reshape the goals both at the customer and internal levels.
2.3. Need for A Business Analyst
The requirement of a business analyst has improved in recent years as businesses need to constantly compete and grow to either capture their market or not get pushed out.
By hiring these business analyst skills, business analysts can solve existing business problems, set fresh goals or objectives, and achieve their desired results.
Before the massive amount of data can be made helpful to organizations, Data analysts have to sort the data generated into a legible format to be understood.
Analysis of this data could make or break the company’s foothold. The project manager may understand the business and technical side, but the degree of understanding of a data analyst is different.
Business analyst skills help them interpret the technical terms into understandable terms so that the team members can comprehend and use these terms when getting computer programmers to include them in the software framework.
Technical work has to meet business needs so that solutions can be implemented. A business analyst can also participate in system testing and manual user creation.
3. What Are the Roles?
3.1. Daily Work of a Business Analyst:
- initiatives are created to depend on the enterprise’s requirements and needs
- managing projects, monitoring performance
- internal and external stakeholders‘ collaboration
- evaluating the business operations of the enterprise and trying to identify problem areas
- Using modern project management techniques for reviewing and researching other business processes
- ideas and holes in the business processes to be presented
- staff member skill development
- Working with top management, business partners, customers, and professionals
4. Business Analyst Responsibilities
Business analysts work in project teams and may perform these activities:
- cooperate while working with project managers
- While working on more than one project, business analysts still have to fulfill their priorities and deadlines
- try to understand the relevance of the project goals to the business processes carried out
- by documenting business processes carried out, the problem of the project can be pinpointed, and using diagrams makes the work easier to understand
- the difference between policy, procedures, and protocols are figured out
- solutions to ensure knowledge is of context and has depth. To gain this depth and context, brainstorming is required
- A good understanding of the technological solutions is necessary to adhere to the details of the solution
Business Analysts are required to suggest methods according to the enterprise’s requirements.
Since the environment has become complex, businesses seek to be on top. This can be achieved if the I.T. business analyst and Management analysts continue innovating through these environmental changes.
Their key skills should keep defining, documenting, and analyzing requirements in mind. By fulfilling business needs, business analysts should manage the requirements of a project.
5. A Business Analyst’s Salary
- Operations Research Analysts – $83,390
- Management Analyst – $83,610
- IT Business Analyst – $88,740
- Information Security Analyst – $98,350
Most business analysts who are earners in this field have been on the field longer and those who are consistent performers. The average salary for these jobs as per data from 2018 is given above.
6. How to Start Your Business Analyst Job?
3 ways to become a business analyst position with proper education, training & certification
6.1. Building Business Analyst Skills
A good background in accounting, finance, and principles of business help address operational issues. With this knowledge, communicating well is essential. These issues must be presented to top-level management and stakeholders.
Good communication skills are invaluable in this field. By analyzing the performance, a business analyst will be able to put the information gathered interestingly with the help of visual tools.
Tableau, B.I., and Excel can be convenient in this field. Simple programming languages like SQL will also be of some help.
As per the industry, a methodology like Agile Business Analysis, and Rational Unified Process can be used for business analysis.
If you have experience in the industry where you are doing detailed business analysis, it can be a strength while competing in job application processes for business analysis.
6.2. Earn a Business Analyst Certification
If you wish to start as a business analyst, an ECBA certification shows hiring managers that you have received hours of training and know the basics.
Or, if you have experience with business analytics, the CCBA, CBAP, and PMI-PBA show employers your dependency and motivation.
A certificate can upgrade your business analyst skills and make a difference in your earning capabilities or make you a better fit for the job.
Below are some of the business analyst certificates you can earn:
- IIBA Entry Certificate in Business Analysis (ECBA)
- IIBA Certified Business Analysis Professional, or CBAP
- IIBA Certification of Competency in Business Analysis or CCBA
- PMI Professional in Business Analytics (PMI-PBA)
Or you can even follow the methods given below:
6.3. Enroll in A Course
If you are already working, this method is the best. Improving your abilities as a business analyst can show prospective employers that you are up to date and competent.
Whether the course for business analysis is conducted in person or online, it can provide you with the business analyst skills you’ll need to break into the profession of business analytics.
Courses in business or data analysis can help you better understand the work. Alternatively, take Tableau or Excel and MySQL courses to understand better the tools used in business analytics.
Business analytics courses are offered at many local and international institutes, including undergraduate and postgraduate levels.
6.4. Do a Degree
Employers prefer candidates with a bachelor’s degree on their resumes, though they may prefer a master’s degree.
6.4.1. Master’s degrees and MBAs
The preference for candidates with a master’s degree may be higher in this case. Getting a master’s in Business Administration (MBA) or considering several programs that offer specializations in business analytics will help you.
A Master’s degree in business analytics or administration may help advance your skills and knowledge, giving you a competitive advantage as well.
The Master in Business Analytics degree is relevant to the job of future business analysts, and it focuses on training experts who can construct business strategies based on data.
6.4.2. Bachelor’s Degrees
According to the BLS, bachelor’s degrees are commonly used for entry-level positions in analytical fields like business analysis.
A bachelor’s degree in a quantitative field such as economics, finance, computer science, data science, statistics, information management, or a related field can prepare you for business analysis jobs.
6.4.3. Start with A Basic Role
Getting an entry-level job or internship in an accounting finance setting can help you experience before proceeding to a higher level.
Look for a junior data analyst or entry-level business analyst. If you are still in school, ask your school counselor to help you with your career path to get ahead of your peers when it comes to seeking opportunities.
7. Types of Business Analyst
Data analysts do technical tasks such as sifting through data, formulating conclusions, and successfully communicating data using data visualization and verbal storytelling techniques. They use financial analysis software to carry out the job.
Business analysts analyze historical and present business data with the primary purpose of helping firms improve their business decisions.
They collaborate closely with stakeholders or business leaders to establish goals, best practices, and other active ways to obtain and evaluate data relevant to the organization’s needs.
Data scientists – Data scientists are similar to business analysts in that they focus on the procedures through which data is collected for business purposes.
8. Job Growth
As per the U.S. Bureau of Labor Statistics, employment in the business analyst field will grow by 20%, i.e. from 7% to 27% over the upcoming ten years, though it depends on the type of business analyst.
This is faster or constant compared to other occupations’ growth rates currently.
Budget and I.T. will grow by 2%, while management analyst and operations research analyst jobs will increase from 14% to 27% until 2026.
The needs of a business analyst can vary based on the firm or client. Analysts can work for a company (where they will only work on their projects) or a consulting firm.
They will usually go to a client’s workplace and stay there for the duration of the assignment.
If you have these talents, along with the education, this job may be the perfect fit for you:
- Problem-solving skills: The analyst has to apprehend the business enterprise as business analysis exists and then alternate and enhance it.
- Analytical skills: Analyzing data from a vast ocean, considering the fees and advantages of solutions, and remedying complicated enterprise problems.
- Communication skills: Business analysts must have good verbal communication to explain their analysis and guidelines during conferences and legislative committee hearings.
- Writing skills: Analysts should explain the technical facts they found with their research skills in a clear and understandable written manner for their audience.
- Detail-oriented: Creating environment-friendly commercial enterprise, and answer plans require careful evaluation of a massive wide variety of details.
- Math skills: Most analysts want math abilities and have to be comfortable with the usage of positive kinds of software, which include spreadsheets, database programs, and monetary evaluation software.
- Computer knowledge: The industrial organization analyst doesn’t have to be a computer programmer. However, they wish to grasp how technical systems work and how they are altered in business analysis. The agency analyst’s choices have to communicate what they require for the programmers.
Employers in business analysis would like their employees to have a degree in business administration, computers, economics, an MBA, or at least industry experience for a couple of years.
Having certificates from the Institute of Business Analysis, leading a successful project, and being equipped with industrial knowledge are additional needs.
So, if you have these degrees or skills, you are well fit for the business analyst’s role of a business analyst.