Business analysts are those who direct businesses to improve processes, products, services, and software through data analysis. They bridge the gap between IT and the business to improve efficiency. Let’s explore more what does a business analyst do in the organisation and how they contribute to Business-IT efficiency.
What is a Business Analyst?
Business analysts are mainly liable for bridging the void between IT and business through data analytics, examining processes, identifying resources, and providing data-based suggestions and reports to higher authorities and project members.
Business analysts interact with leaders and users to know how data-driven alterations to procedures, services, products, hardware, and software can boost efficiencies and create value. They must convey those ideas but ensure the shift is technologically, financially, and functionally feasible. Depending on the role, a business analyst may work with datasets to improve tools, services, software, processes, and products.
International Institute of Business Analysis regards a business analyst as a change agent. It states that business analysis is a structured way to introduce and manage change within entities, whether they are government, non-profit, or private businesses.
What Does a Business Analyst Do?
Business Analysts are accountable for creating new models that back business decisions. They collaborate with finance and IT teams to create projects and strategies targeting revenue improvement and cost optimisation. Business analysts need comprehensive knowledge of regulatory and reporting requirements, forecasting, budgeting, and fiscal analysis. They also need an understanding of key performance metrics.
Robert Half explained what does a business analyst do. These are the responsibilities:
Developing a detailed business analysis to find issues, opportunities, and business solutions
- Budgeting and forecasting
- Monitoring and planning
- Variance analysis
- Pricing
- Reporting
- Determining business requirements and reporting them back to stakeholders
Business analysts are also responsible for technical and functional requirements. They find the clients’ needs and determine the project’s feasibility to deliver. It needs a deep understanding of the systems, the way they function, involvement of the people, and the requisite steps to get everyone on the same page.
What does a business analyst do is continuously evolving and changing, mainly because of the dependence of companies on data to decide on business operations. Every organisation has a different set of problems that the business analyst addresses, whether it is managing outdated infrastructure, changing technologies, broken processes, poor customer satisfaction, or a flawed organisation.
Skills of a Business Analyst
A business analyst role needs both hard and soft skills. They need to understand how to obtain, analyse, and report data patterns. They need to share information with others and apply it to the business objectives and requirements. Not all business analysts have a technical background, but they should understand how systems, tools, and products work. Else, some business analysts have a strong IT background and less expertise in business. However, they remain interested in shifting away from IT into this hybrid role. Hence, having sufficient experience in any area can be fruitful for the business analyst.
As per the IIBA, some of the crucial skills and expertise required in a business analyst are:
- Oral and written communication skills
- Interpersonal and consultative skills
- Facilitation skillsanalytical thinking and problem solving
- Organisational skills
- Knowledge of business structure
- Stakeholder analysis
- Requirements engineering
- Cost-benefit analysis
- Processes modeling
- Knowledge of networks, databases, and other technologies
Pay Scale of a Business Analyst
Based on what does a business analyst do, we can estimate average salary of business analyst. On average, the IT business analyst earns $73,655 annually. The highest-paid business analysts are from New York, where the average salary is 16% more than the national average. Washington holds the second position and Houston is in third.
The table below shows the average salaries for the business analyst roles:
| Job title | Average salary |
| Business management analyst | $72,401 |
| Business performance analyst | $60,678 |
| Business analyst II | $64,886 |
| Junior IT business analyst | $63,809 |
| Application business analyst | $79,925 |
| Business intelligence analyst | $73,167 |
| Technical business analyst | $71,531 |
| IT business analyst | $78,700 |
| Business solutions analyst | $73,655 |
| Systems business analyst | $75,394 |
| Business analyst III | $78,095 |
| Senior IT business analyst | $89,290 |
The skills that are in high demand can push your salary. Here are the skills that boost the business analyst’s wages.
| Skills | Salary Hike |
| Oracle eBusiness Suite | 46% |
| Supply Chain | 39% |
| SAP Master Data Management | 36% |
| Cybersecurity | 35% |
| Scrum master | 30% |
| Product support | 30% |
| Microsoft Dynamics GP | 29% |
| SAP Quality Management | 29% |
| Identity Management | 25% |
| User Experience Design | 23% |
Business Analyst Certifications
Now that it is clear what does a business analyst do, we need to understand how you can become a business analyst. A number of institutions offer certifications to help improve your resume and prove your skills as an analyst. The institutions like IIBA, IQBBA, IREB, and PMI offer their own personalised programs for business analysts. The top programs include:
- IIBA Entry Certificate in Business Analysis
- IIBA Certification of Competency in Business Analysis
- IIBA Certified Business Analysis Professional
- IIBA Agile Analysis Certification
- IQBBA Certified Foundation Level Business Analyst
- IRED Certified Professional for Requirements Engineering
- PMI Professional in Business Analysis
- Certified Analytics and Professional
Business Analyst Training
Although there are multiple ways to train aspiring business analysts, two recognised ways are business analyst boot camps and master’s programs. Unlike the certification programs that are developed to prove the competencies that you already have, boot camps are developed to make you learn new skills or improve your present skillset. Boot camps can be anything, ranging from conventional workshops or full-fledged courses. Regardless of the preferred learning style, you can find a boot camp that caters to your needs.
The programs are generally offered both face-to-face and online. Otherwise, the organisation may bring a boot camp to the company to run a workshop.
Top Business Analytics Tools and Software
There are some tools and software that can complement what does a business analyst do. The tools include Microsoft Excel, Microsoft Powerpoint, SQL, Tableau, Google Analytics, and Microsoft Access. These tools help business analysts to obtain and filter out data, generate graphs, document, and design visualisations to explain the outcomes. There is no need for programming or database skills for this position.
Wrapping Up
Now that you know what does a business analyst do, you must try to upskill yourself and gain the required knowledge to become a successful business analyst. The certifications can help you to land a higher position as a business analyst with a handsome salary package.
Also Read:
Business Intelligence Analyst Salary: What Cities Pay the Most?
