Business Analyst play a vital role in connecting IT and the business by utilizing data analytics to evaluate operations, identify needs, and provide data-based suggestions and reports to top management and interested parties.
The role of Business Analysts involves collaborating with business leaders and users to gain insight into how implementing data-driven modifications in various aspects such as processes, products, services, software, and hardware can enhance efficiency and deliver added benefits.
Business analysts (BAs) are responsible for expressing and evaluating ideas in terms of technology, financial feasibility, and functional reasonableness. They may work with data sets to improve various aspects of a business, such as products, tools, software, services, or processes.
The International Institute of Business Analysis (IIBA) defines a business analyst as someone who helps organizations implement change. This can be done in for-profit companies, government agencies, and non-profit organizations.
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Description of a business analyst job
Business analysts (BAs) play a crucial role in developing new models that help businesses make informed decisions. They collaborate closely with finance and IT teams to develop strategies and initiatives that focus on enhancing revenue and reducing costs.
BAs should possess in-depth knowledge of regulatory and reporting requirements, along with extensive experience in forecasting, budgeting, financial analysis, and understanding key performance indicators. This information is provided by Robert Half Technology.
As per Robert Half, the duties and responsibilities of a business analyst generally encompass the following tasks:
- Business analysis includes identifying problems, opportunities, and solutions for a business
- Budgeting and forecasting are important aspects of business analysis
- Planning and monitoring are key activities in business analysis
- Variance analysis helps in understanding and addressing deviations from planned outcomes
- Pricing strategies are considered in business analysis
- Reporting on business analysis findings is crucial
Business analysts are responsible for prioritizing technical and functional requirements, understanding client needs, and determining realistic deliverables. They must have a strong understanding of systems, how they work, the stakeholders involved, and the necessary steps to ensure alignment.
The role of a business analyst is constantly evolving due to the growing reliance on data in business operations. They assist companies in solving various challenges, including outdated systems, evolving technologies, inefficient processes, low client satisfaction, and the isolation of large organizations.
Business analyst skills
The role of a business analyst requires a combination of technical and interpersonal skills. Business analysts are responsible for extracting, analyzing, and presenting data trends, and then using that information to align with the goals and needs of the business.
While not all business analysts need a background in IT, having a general understanding of how systems, products, and tools function is essential. On the other hand, some business analysts may have a strong IT background but less experience in business, yet they are interested in transitioning into this hybrid role.
The business analyst often serves as a liaison between the business and IT departments within the organization, so having significant experience in either field can be advantageous for these professionals.
- Strong oral and written communication skills
- Ability to effectively communicate and interact with others
- Skilled in facilitating discussions and meetings
- Proficient in analytical thinking and problem solving
- Detail-oriented with a high level of accuracy
- Strong organizational skills
- Knowledgeable about business structure
- Ability to analyze stakeholders
- Skilled in requirements engineering
- Proficient in cost-benefit analysis
- Capable of modeling processes
- Understanding of networks, databases, and technology
Salary for business analysts
Based on data from PayScale, IT business analysts earn an average salary of $73,655 per year. The highest salaries for BAs can be found in New York, where they are 16% higher than the national average. Washington, D.C. follows with reported salaries 12% higher than the national average, while Houston ranks third with a 4% higher annual pay.
PayScale provides information on job titles that are similar to the role of a business analyst. The data showcases the average salaries for different positions within the business analyst category.
| 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 |
| Agile business analyst | $78,700 |
| IT business analyst | $73,655 |
| Business solutions analyst | $75,394 |
| Systems business analyst | $78,095 |
| Business analyst III | $78,107 |
| Senior IT business analyst | $89,290 |
Certain skills have a greater demand in the job market and have the potential to increase your salary. Payscale has identified specific skills that are linked to higher salaries for business analysts. These skills have the ability to significantly raise your salary and include:
| 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 |
| Agile business analyst | $78,700 |
| IT business analyst | $73,655 |
| Business solutions analyst | $75,394 |
| Systems business analyst | $78,095 |
| Business analyst III | $78,107 |
| Senior IT business analyst | $89,290 |
Certifications for business analysts
Even though business analysis is a relatively recent field in the IT industry, there are already a few organizations that provide certifications to enhance your resume and demonstrate your skills as an analyst. The IIBA, IQBBA, IREB, and PMI are some of the organizations that offer specialized certifications for business analysis. These certifications are designed to cater to the specific needs of individuals in this field.
- IIBA Entry Certificate in Business Analysis (ECBA)
- IIBA Certification of Competency in Business Analysis (CCBA)
- IIBA Certified Business Analysis Professional (CBAP)
- IIBA Agile Analysis Certification (AAC)
- IQBBA Certified Foundation Level Business Analyst (CFLBA)
- IREB Certified Professional for Requirements Engineering (CPRE)
- PMI Professional in Business Analysis (PBA)
- Certified Analytics Professional (CAP)
Training for individuals interested
There are various methods for individuals interested in becoming business analysts to receive training in the field. Two commonly chosen paths are attending business analyst boot camps or enrolling in business analyst master’s programs.
Boot camps are educational programs that aim to teach or improve skills, rather than certify existing skills. They can range from short workshops to longer courses and are designed to cater to individual learning preferences.
Courses are commonly available in two formats: in-person and online. Another option is for your organization to host a boot camp, which would involve a four-day workshop conducted within the company premises.
While certain boot camps are free, others may require a subscription fee or a one-time payment ranging from $100 to $2,500, depending on the specific program. The primary goal of these courses is to provide practical experience and assist individuals in enhancing their resumes and portfolios. Some boot camps even offer career guidance and mentorship opportunities.
If you have completed a degree in computer science or business, you may be interested in pursuing a master’s degree in business analysis. The specific degree you choose will depend on the specific area of business analysis or information technology you wish to work in. However, there are numerous programs available that offer a comprehensive education in business analysis.
Tools and software used for analyzing business
Business analysts usually use a variety of software to perform their tasks, including Microsoft Excel, Microsoft PowerPoint, Microsoft Access, SQL, Google Analytics, and Tableau. These tools assist business analysts in gathering and organizing data, creating graphs and visualizations, and documenting their findings.
Although programming or database skills are not always required for a business analyst role, having these skills can be beneficial. The specific software and tools used will vary depending on the job title and the organization’s requirements.
