What is a Business Analysis and What does Business Analyst Do (2023)

It’s a competitive market out there, and businesses that want to succeed need to take advantage of every tool and resource within their reach. Smart decisions help businesses thrive, and reliable information is the key to intelligent decisions.

Enter business analysis. You are about to get a primer on business analysts—learning what they are, why they are needed, what they do, and how to become one. If you’re running a business, you may realize why you need one in your organization, while those of you who are looking for a good career may have just found one!

Let’s take our first steps into a business analyst’s world by first understanding what is business analysis.

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What is Business Analysis?

Business analysis is a combination of gaining insight from data using specific techniques, and performing tasks to identify the needs of a business—then, recommending changes and providing solutions that produce value for the stakeholders. Many of the solutions potentially have software and digital data-based components, but can also incorporate organizational changes, like improving processes, developing new policies, and engaging in strategic planning.

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What is a Business Analysis and What does Business Analyst Do (1)

(Video) What is Business Analysis? And what is a Business Analyst?

What Does a Business Analyst Do?

Business analysts are agents of change—professionals who analyze a business or organization, by documenting its systems and processes, assessing its business model, identifying vulnerabilities, and devising solutions.

Business analysts go by many other job titles, including:

  • Business Architect
  • Business Intelligence Analyst
  • Business Systems Analyst
  • Data Scientist
  • Enterprise Analyst
  • Management Consultant
  • Process Analyst
  • Product Manager
  • Product Owner
  • Requirements Engineer
  • Systems Analyst

Bear in mind that some organizations also use the term “IT Business Analyst.” Although there seems to be no clear consensus regarding the differences between the two positions (and, in fact, many organizations use them interchangeably), some circles note that the IT Business Analyst works more with software methodologies.

Once the business analysis definition is locked down, the more curiosity-driven reader may follow up by asking, “In that case, what is business impact analysis?” Business impact analysis is a practice that’s of particular relevance in these days of pandemic-induced business shutdowns. Business impact analysis, or BIA, aims to predict and identify the financial and operational impacts of business disruption. You can be sure that before many businesses closed temporarily due to the coronavirus, they launched business impact analysis studies.

Now that we have gone through to understand what is business analysis, let us next look at the difference between business analysis and business analytics.

Difference Between Business Analysis and Business Analytics

We should take a moment and clarify the distinction between these two concepts. Business analysis is more concerned with functions and processes, while business analytics covers data and reporting. Still, many organizations use the terms interchangeably.

As we have learned what a business analyst is, let us understand business analysis uses.

Why Use Business Analysis?

Thanks mostly to the breathtaking pace of today’s technological advancements, the 21st century’s business world is one of rapid, constant change. Innovations change the way we live and work, and businesses must be able to adapt to these changes or get left behind.

Business analysts are the ideal professionals to shepherd any organization through the tricky terrain of change. Once they navigate through those changes, businesses emerge more robust, more competitive, and better equipped to handle the ever-evolving world of digital-based business.

(Video) Who Is A Business Analyst?| What Does A Business Analyst Do? - Roles & Responsibilities |Simplilearn

After having understood what is a business analyst, let us next look at the business analysis process.

What is the Business Analysis Process?

These are the widely accepted steps in the business analysis process. Each company’s needs and situations are different, however, so there may be some variance.

  1. Get orientedMake sure to clarify the business analyst’s role, determine the stakeholders’ perspective, and get familiar with the project’s history.
  2. Name the primary business objectives. Identify the primary stakeholders’ expectations, reconcile conflicting expectations, and make sure the objectives are clear and actionable.
  3. Define the project’s scope. You need a clear and complete statement of the project’s scope—a rough roadmap of all the steps the project participants must follow.
  4. Create a business analysis plan. List timelines, steps, and deliverables.
  5. Define requirements. You need concise, clear, and actionable requirements, based on analyzing the information gathered so far.
  6. Support the technical implementation. Since many solutions require using software, the business analyst needs to work closely with IT teams.
  7. Help implement the solution. This step involves creating clear documentation and training end-users.
  8. Assess value. Did the project work? How much progress did the organization make? Are there any needed follow-ups?

While looking into the various aspects of business analysis, we have learned what is business analysis so let us next learn its various techniques.

What are the Different Techniques of Business Analysis?

Countless hurdles and obstacles face any company that wants to stay on top of the heap. Fortunately, there are also a handful of varying business analysis techniques—brace yourself for a flood of acronyms.

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  • CATWOE (Customers, Actors, Transformation Process, World View, Owner, and Environmental Constraints). This technique identifies the main parties and processes potentially affected by any action the business undertakes. This technique helps business analysts to thoroughly evaluate how a proposed action will affect a collection of different parties and elements.
  • MoSCoW (Must or Should, Could or Would). This process prioritizes requirements by presenting a framework where every single demand is evaluated compared to other requirements. Is it a must-have or a should-have? Is it something that could improve the product or something that would be an ideal future element?
  • MOST (Mission, Objectives, Strategies, and Tactics). Business analysts use these elements to conduct a detailed and complete internal analysis of an organization’s goals and how to handle each one.
  • PESTLE (Political, Economic, Sociological, Technological, Legal, and Environmental). Business analysts use the PESTLE model to evaluate the various external factors that can potentially affect their company and how best to address them.
  • SWOT (Strengths, Weaknesses, Opportunities, and Threats). This technique identifies a corporate structure’s areas of strength and weakness, translating them into opportunities and threats. The knowledge gained helps determine proper resource allocation.
  • Six Thinking Hats. This analysis process directs a group’s line of thinking by brainstorming alternate perspectives and ideas. The ‘six hats’ in question are White (focus on your data, logic), Red (uses gut feelings, emotions, intuition), Black (potential negative results, what can go wrong), Yellow (focus on positives, optimistic), Green (creativity), and Blue (process control, the big-picture overview).
  • The 5 Whys. Commonly found in Six Sigma and business analysis techniques, this series of leading questions, all posed with “Why?”, helps business analysts identify a problem’s origin by asking why a situation exists, then raising another “why?” question to the answer, and so on.

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What is a Business Analysis and What does Business Analyst Do (3)

We have understood so much about business analysis, beginning from what is business analysis, the process, uses, and more. Let us next look at the benefits.

How Does a Company Benefit from Business Analysis?

Business analysts bring a disciplined approach to creating and managing change within an organization. They identify vulnerabilities, define needs based on feedback and stakeholder communication, organize and implement solutions, and monitor the results.

In today’s competitive environment, businesses of all sizes need every possible advantage that they can get, and the business analyst is a valuable resource for identifying the best moves to make, on both a tactical and strategic scale. Furthermore, business analysts make ideal project managers.

By employing a business analyst, companies gain a better understanding of themselves and their needs, and how best to meet them. As we have learned what is a business analyst, the various techniques, the business analysis process, and more let us look into the benefits of getting certified.

(Video) What Does a Business Analyst Do Day to Day

The Benefits of Certification

The certification process yields advantages to the professional and organization alike. For the individual, certification imparts skills and training that any good business analyst needs to succeed. Business analysis is not a career where you can mostly learn as you go! Entering a new position with a complete and robust skillset is the only way you will succeed.

Certification also grants you a tangible milestone, an easily measured achievement that tells prospective employers, “I know what I’m doing.” When you sit down for that interview, your certification is a verification of your qualifications. Certification helps you open the door to a better, more lucrative career in business analytics.

For the organization, certification assures the business that they have the right choice for the position. The interview process can be tricky, fraught with uncertainty. It’s also time-consuming and costly, so the organization should strive to make the right choice the first time by ensuring a mutually beneficial fit. Certification assures the candidate’s competency in the subject matter.

We have learned what is business analysis, next, let us look at the skills and qualifications of a business analyst.

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What Skills and Qualifications Does a Business Analyst Need?

When we talk about what is business analysis and what makes a good business analyst, we must focus on the relevant necessary skills. Business analysts required a range of soft and hard skills, including experience in either IT or business-related backgrounds. For the IT side, that means knowing how to pull, analyze, and report on data trends, as well as sharing that information in a clear way. For the business side, you need to have at least a basic understanding of how systems, tools, and products work.

Business analysts should have a bachelor’s degree in Business or a related field, or alternately, an MBA. Furthermore, most businesses want the candidate to have some work-related experience in business analysis or a related field, usually about five years’ worth.

According to the Institute of Business Analysis, a good analyst needs the following skills and knowledge:

  • Analytical thinking and problem solving
  • Communication skills (oral and written)
  • Interpersonal and consultative skills
  • Costs benefit analysis
  • Facilitation skills
  • Detail-oriented and able to deliver at a high level of accuracy
  • Organizational skills
  • Processes modeling
  • Knowledge of business structures
  • Stakeholder analysis
  • Requirements engineering
  • Understanding of how networks, databases and other technologies work

How Would You Like to Become a Business Analyst?

Business analysts are in high demand and fetch excellent compensation. Salary.com reports an annual average of USD 75,400. If this sounds like a smart career move to you, then check out Simplilearn’s new Post Graduate Program in Business Analysis in partnership with Purdue University.

The program is designed to hone your expertise in the latest business analytics tools and techniques, including planning and monitoring, data analysis and statistics, visualizations, Agile Scrum methodologies, and SQL databases.

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On the other hand, if you wish to become a pro business analyst, and add a shining name, i.e., Carlson School of Management certification to your resume, you must join umn business analytics course. Leverage the UMN edge today, explore more and enroll right away!

FAQs

What exactly does a business analyst do? ›

Business analysts assess how organisations are performing and help them improve their processes and systems. They conduct research and analysis in order to come up with solutions to business problems and help to introduce these solutions to businesses and their clients.

Is business analyst and business analysis same? ›

The BA Times explained the primary way business analytics professionals differ from business analysts: “A business analyst doesn't work with data and is mostly concerned about processes and functions. On the contrary, reporting and data are the key components of a business analytics professional's job.”

What is business analyst in simple words? ›

Business analysts are agents of change—professionals who analyze a business or organization, by documenting its systems and processes, assessing its business model, identifying vulnerabilities, and devising solutions. Business analysts go by many other job titles, including: Business Architect.

What skills does a business analyst need? ›

Top Business Analyst Skills
  • Understanding the Business Objective. ...
  • Analytical and Critical Thinking. ...
  • Communication and Interpersonal Skills. ...
  • Negotiation and Cost-Benefit Analysis. ...
  • Decision-Making Skills. ...
  • Programming Languages. ...
  • Creation of Reports and Dashboards. ...
  • Database and SQL.
21 Sept 2022

What are the three main roles of a business analyst? ›

Business analyst job description

Creating a detailed business analysis, outlining problems, opportunities and solutions for a business. Budgeting and forecasting. Planning and monitoring.

Does a business analyst need IT skills? ›

While business analysts are generally not required to write code, it is often helpful for them to have a foundational understanding of basic programming languages, such as Java, C++, Visual Basic and PHP. You'll be able to apply this working knowledge as you identify company challenges and develop solutions.

What is another title for business analyst? ›

What are job titles that can be used to describe a Business Analyst? Jobs related to a Business Analyst are Information Technology Business Analyst, Technical Business Analyst, Business Process Analyst, Business System Analyst, Business Consultant and Business Intelligence Analyst.

Does business analyst use Excel? ›

Although those working in this field rely on many tools, platforms, and applications to handle data, one constant that nearly every Business Analyst uses is Excel. It's essential for Business Analysts to be adept at creating, formatting, and manipulating spreadsheets.

Which field is best for business analyst? ›

6 Best Business Analyst Career Paths
  • Business Analyst Manager.
  • Data Business Analyst.
  • Data Analysis Scientist.
  • Information Security Analyst.
  • IT Business Analyst.
  • Quantitative Analyst.
1 Sept 2022

What does a business analyst do on a daily basis? ›

A business analyst's daily job duties include identifying business issues, collecting and recording data, analyzing data, and evaluating and presenting data solutions. They work with several groups including customer service management, product development, business operations, and business clients.

Is coding required for business analyst? ›

While the ability to program is helpful for a career in analytics, being able to write code isn't necessarily required to work as an analytics professional. Apart from the above languages, statistical software such as SPSS, SAS, Sage, Mathematica, and even Excel can be used when managing and analyzing data.

Is business analyst a IT job? ›

IT business analysts are experts in both business administration and information technology. Their primary responsibilities include liaising between IT and the executive branch, improving the quality of IT services, and analyzing business needs.

Is SQL required for business analyst? ›

With big data and relational databases being the new norm for most companies, SQL knowledge is a prerequisite for almost any business analyst job.

Is business analyst a stressful job? ›

Business analysis could become stressful in some way at some point in time. But it doesn't mean, only your job is stressful and other jobs are easy to do. Every job could lead to a stressful situation but it is up to the person, how he/she handles it.

Is python required for business analytics? ›

Python is one of the most popular languages for business analytics today and continues to grow at an astonishing rate. It's commonly considered one of the easier programming languages to read and learn—its programming syntax is simple and its commands mimic the English language.

What is an entry level business analyst? ›

What Does an Entry-Level Business Analyst Do? Entry-level business analysts, or junior business analysts, support the collection and analysis of data for a business or organization, providing better solutions, technology integration, or systems improvements.

What software do Business analysts use? ›

There are multiple excellent options for creating data visualizations as well. Microsoft's Visio is perhaps the most popular with Business Analysts, but Data Analysts might also recommend Tableau, PowerBI, Bokeh, Plotly, or Infogram.

Can a non it person learn business analyst? ›

It is irrespective of whether they are looking to get into business analysis roles in the IT or Non-IT space. We offer an ECBA Certification Training program to help non-IT professionals clear ECBA certification. The transition to a business analyst role without having an IT background.

Can a non it person learn business analytics? ›

A non-tech graduate such as commerce student's approach to analytics may be quite unique. Having understood the concepts of finance and management as a part of their course makes it easy for them to have an understanding of the business and helps them make better decisions.

Can I be a business analyst without experience? ›

Can You Become a Business Analyst With No Experience? In short, yes. While many organizations seek candidates who have at least some experience in a business analyst role, there are ways to work around this requirement by developing and demonstrating the skills needed to do the job of BA.

Why is IT called business analyst? ›

Often described as an information conduit, a Business Analyst, also called a BA, is someone whose main focus is to help a business deal with change by practicing business analysis, a research discipline that involves identifying business needs and determining solutions to business problems.

What are the levels of business analyst? ›

Essentially, you perform business analysis at four main levels within a company: the enterprise level, the organizational level, the operational level, and the project level.

Is MBA a business analyst? ›

After completing your MBA Business Analytics degree, you can apply to jobs like business analyst, data analyst, data engineer, predictive modeler, etc. This article talks about why you should pursue an MBA in business analytics, its career options, and salary outcome.

Do business analysts use a lot of math? ›

Contrary to popular belief, business analytics does not involve extensive coding, math, or knowledge of computer science.

Do business analysts collect data? ›

Business analysts also collect data. However, they use the data to strategically find and propose ways to improve processes, procedures, products, software, and services. For example, a business analyst might take data from a data analyst and use it to figure out where money should be spent.

How can I learn SQL for business analyst? ›

5 Online SQL Courses for Business Analysts
  1. Learn Business Data Analysis with SQL and Tableau (Udemy) Source: Udemy.com. ...
  2. SQL for Business Analysts (DataCamp) ...
  3. Excel to MySQL: Analytic Techniques for Business Specialization (Coursera) ...
  4. Introduction to Data Analytics for Managers (edX) ...
  5. LearnSQL.com SQL Reporting.
8 Oct 2020

What are the disadvantages of being a business analyst? ›

The challenges facing Business Analysts
  • Misconception of BA's scope of work. ...
  • Created specifications do not satisfy the needs of the development team. ...
  • Changing requirements or business needs. ...
  • Conflicts with stakeholders. ...
  • Undocumented processes.

What is the most difficult part of being a business analyst? ›

One of the biggest challenges that business analysts face is knowing the project scope. The project scope is the “what” and “why” of a project. It is the foundation of a business analyst's job. Answering the “what” and “why” gives us a clear picture of our role in the project and how we will be involved.

Is business analyst high paying job? ›

Business Analysts are paid well since they are in high-demand. An entry-level analyst may earn anywhere between ₹350,000 p.a. to ₹400,000.

Is business analyst a hard job? ›

Being a business analyst can be tough. Being a business analyst can be tough because, at one point in your career, you'll have to deliver inputs or outputs for a project despite encountering many problems and roadblocks that make being a business analyst a tough job.

What a business analyst should expect? ›

Typically, some typical responsibilities of a business analyst are: Analyzing the structure of a business, how it uses technology and what its goals are. Identifying problems within a business using data modeling techniques. Communicating with senior people in organizations to find out what they hope to achieve.

What does a typical day of a business analyst look like? ›

A typical day for a Business Analyst

However, a typical day will consist of managing and attending team meetings, project planning, user story refinement, documentation management, and communicating proposed solutions to stakeholders based on the analysis you have undertaken.

Do business analysts work from home? ›

They can work full-time, part-time, freelance, or as independent contractors across a variety of career fields. And, because much of the business analyst role includes data analysis and visualization (think: crunching numbers and creating graphs and pie charts), in many cases, their work can be done remotely.

Can anyone be a business analyst? ›

While it may be difficult to become a Business Analyst without a degree at all, there is no specific degree you need to be a Business Analyst. If you're looking to pursue a business analysis career, it might help if you have a bachelor's degree in a related field like: Business administration. Computer science.

What is above a business analyst? ›

Those who wish to move higher up in the profession typically begin to make a move after three to five years in the career. At that point, it's possible to move into project management, IT roles such as senior/lead business analyst, product manager, and consulting roles.

What is a business analyst called? ›

Job titles for business analysis practitioners include not only business analyst, but also business systems analyst, systems analyst, requirements engineer, process analyst, product manager, product owner, enterprise analyst, business architect, management consultant, business intelligence analyst, data scientist, and ...

What questions do business analysts ask? ›

8 Questions Every Business Analyst Should Ask
  • What problem is this business having that you hope to solve by developing this project? ...
  • What is the business doing at present to alleviate or solve the issue? ...
  • What inside resources will this project be utilizing? ...
  • Have you determined a vision for the project?

Should I learn Python or SQL first? ›

One thing to remember is that SQL is a big first step to some more complex languages (Python, R, JavaScript, etc.). Once you understand how a computer thinks, it is easy to learn a new programming language to analyze your data.

Which one is better business analyst or data analyst? ›

Data analysts tend to work more closely with the data itself, while business analysts tend to be more involved in addressing business needs and recommending solutions. Both are highly sought-after roles that are typically well-compensated.

Can a shy person be a business analyst? ›

Not every introverted individual tends to have difficulty in adjusting to social situations. If you are an introvert like me (accidental confession) and are contemplating the career switch to a business analyst, congratulations! This is one of the best career paths suitable for your personality type.

Is business analyst a finance job? ›

Business Analysts work in the operations and management sector while Financial Analysts work in the finance sector. A Business Analyst works on the overall development of the business while a Financial Analyst works for the improvement of financial processes.

Is business analyst a low paying job? ›

This capital city of Karnataka has one of the highest numbers of job listings for various IT professions, including those for business analysts. For this reason, business analysts are also of the highest-paid IT professionals in the city. Business analysts earn an average annual income of ₹660,000 in Bangalore.

Do business analysts have a future? ›

Once a Business Analyst gain's knowledge he/she can become a Project manager, Functional consultant, a product owner/analyst, Pre-sales consultant, or can even become IT PMO in the organization since the exposure is more across SDLC.

What math is required for business analytics? ›

Mathematics: Calculus I, II, and III as well as Linear Algebra; 3. Probability and Statistics: Intermediate Probability and Statistics; 4.

How long does it take to learn Python for business analytics? ›

In general, it takes around two to six months to learn the fundamentals of Python. But you can learn enough to write your first short program in a matter of minutes. Developing mastery of Python's vast array of libraries can take months or years.

What does a business analyst do on a daily basis? ›

A business analyst's daily job duties include identifying business issues, collecting and recording data, analyzing data, and evaluating and presenting data solutions. They work with several groups including customer service management, product development, business operations, and business clients.

Is business analyst a stressful job? ›

Is Business Analyst Job Stressful? . According to Forbes, a business analyst job is “typically less stressful than high-demand finance jobs” and can provide great flexible work options. A lot will depend on the industry and sector in which you work and perhaps where you are on your career journey.

Is business analysis a hard skill? ›

Business analyst skills are a combination of hard skills and soft skills. If you want to be a successful business analyst, it will always help you to work on your people skills as well as bettering your technical capabilities.

Is business analyst a high paying job? ›

Depending on your years of experience, the average Business Analyst salary may range between 3,50,000-5,00,000. The lower end is the salary at an entry-level with less than one year of work experience, and the higher end is the salary for those having 1-4 years of work experience.

Does business analyst require coding? ›

While the ability to program is helpful for a career in analytics, being able to write code isn't necessarily required to work as an analytics professional. Apart from the above languages, statistical software such as SPSS, SAS, Sage, Mathematica, and even Excel can be used when managing and analyzing data.

What a business analyst should expect? ›

Typically, some typical responsibilities of a business analyst are: Analyzing the structure of a business, how it uses technology and what its goals are. Identifying problems within a business using data modeling techniques. Communicating with senior people in organizations to find out what they hope to achieve.

What is a typical day for a BA? ›

A typical day might see you in an early morning team meeting, discussing their needs and objectives. Later on, working out what is required for them to achieve their goals. All the while, you will be accurately documenting your findings and tracking the progress of recommended implementations.

Is business analyst a IT job? ›

IT business analysts are experts in both business administration and information technology. Their primary responsibilities include liaising between IT and the executive branch, improving the quality of IT services, and analyzing business needs.

Can a shy person be a business analyst? ›

Not every introverted individual tends to have difficulty in adjusting to social situations. If you are an introvert like me (accidental confession) and are contemplating the career switch to a business analyst, congratulations! This is one of the best career paths suitable for your personality type.

Which field is best for business analyst? ›

6 Best Business Analyst Career Paths
  • Business Analyst Manager.
  • Data Business Analyst.
  • Data Analysis Scientist.
  • Information Security Analyst.
  • IT Business Analyst.
  • Quantitative Analyst.
1 Sept 2022

What are the disadvantages of being a business analyst? ›

The challenges facing Business Analysts
  • Misconception of BA's scope of work. ...
  • Created specifications do not satisfy the needs of the development team. ...
  • Changing requirements or business needs. ...
  • Conflicts with stakeholders. ...
  • Undocumented processes.

What challenges do business analyst face? ›

Conflicts with Stakeholders

One of the common challenges faced by the Business Analyst is resolving conflicts. These conflicts could arise due to various factors such as team members proposing a new idea for the project, arguing over its implementation, timelines and more.

What is the most difficult part of being a business analyst? ›

One of the biggest challenges that business analysts face is knowing the project scope. The project scope is the “what” and “why” of a project. It is the foundation of a business analyst's job. Answering the “what” and “why” gives us a clear picture of our role in the project and how we will be involved.

Which IT field has highest salary? ›

Let's Check on the Top 15 Best Paying IT Jobs in Technology for 2023.
  • Cloud Architect - $107,000.
  • DevOps Engineer - $140,000.
  • Blockchain Engineer - $150,000.
  • Software Architect - $114,000.
  • Big Data Engineer - $140,000.
  • Internet of Things (IoT) Solutions Architect - $130,000.
  • Data Scientist - $150,000.
11 Oct 2022

What is the next job after business analyst? ›

After eight to 10 years in various business analysis positions, you could advance to chief technology officer, chief operating officer, project management office director, or work as a consultant.

How many hours does a business analyst work a day? ›

Business analysts typically work a standard a 40-hour week, but flexible hours and overtime may be sometimes be required.

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