What Is a Business Analyst? A comprehensive guide

What Is a Business Analyst?

Business analysts are instrumental in the development of a business through data-driven decisions. This blog will discuss a comprehensive guide on what business analysts do and how to step into this career, providing all the information you need in one place. 

As a business analyst, you will find yourself in a dynamic role, primarily focusing on extracting meaningful insights from vast datasets and proposing changes necessary for the organization's growth. You will also identify and resolve issues across various departments, including employee relations, IT processes, and organizational networks.

Some of the crucial steps taken by the business analyst to reduce costs and increase business efficiency include:

Improving profitability by optimizing operations and eliminating waste.

Enhancing competitiveness through cost savings and operational efficiency.

Preparing the business for growth by identifying and addressing inefficiencies early

What does a business analyst do?

Analysts determine where businesses need to focus on development and can increase their strength for effective processing. Business analysts work closely with the Supply Chain Managers, Operations Managers, IT/Data Teams, Cross-Functional Teams, Executive Leadership, Customers, and Suppliers and communicate with them to implement new findings in the organization. 

Roles and responsibilities of Business Analyst:

Collect, integrate, and analyze data from various sources to identify patterns, trends, and insights that inform decision-making.

Prior experience in preparing Documents such as BRD, FRD, SRS, etc

Experience in reviewing and responding to RFPs/RFQs.

Utilize CRM (Customer Relationship Management) tools to manage and track proposal activities.

We should derive insightful data from large data sets with Excel sheets and SQL.

They should prioritize the importance of technical and functional needs and requirements. 

 Preparing detailed documentation, such as business requirements documents (BRD), functional specifications, use cases, and process flow diagrams.

Evaluating potential solutions, ensuring they meet business requirements, and validating the effectiveness of the implemented solutions.

Enabling better production planning and reduced stockouts.

Assisting in developing project budgets by estimating costs for required resources, including labor, software, hardware, and other project expenses.

Why business analysis is a demanding career path?

Business analysis is an ever-booming career path for freshers and professionals because of its demand across various industries, from healthcare, education, Information technology, e-commerce, and government to manufacturing. The global supply chain analytics market is projected to reach $16.82 billion by 2027, up from $4.53 billion in 2019, indicating strong growth in this field. 

Across industries, businesses seek to gain a competitive advantage by using supply chain analytics to improve visibility, enable better decision-making, and drive cost savings and operational efficiency. This is fueling the demand for business analysts with these specialized skills. If you intend to start your career path in this field, consider joining the Business analyst certification course. The training program provides hands-on training and real-time experience with popular tools like  Power BI and Microsoft Excel.

So, those interested in puzzle-solving and problem-solving and enjoying taking challenges can trace their foot in the business analyst field. 

Business analyst salary

According to Glassdoor, the average salary for business analysts in March 2024 in the United States is $90,937 per year. Your earning potential will vary depending on the company, location, and amount of experience you have. In summary, the average salary for a business analyst in the USA is around $68,500 per year, with significant variations based on experience, industry, location, and skills.

Job Outlook of Business Analyst

According to the U.S. Bureau of Labor Statistics, employment of business analysts is projected to grow 11% from 2021 to 2031, faster than the average for all occupations. The increasing use of big data and business intelligence software will drive this growth. Demand is robust in major metropolitan areas like San Francisco, New York, and Chicago, where business analysts can earn average salaries of $105,000, $90,000, and $70,000, respectively. 

How to become a business analyst

To become a business analyst, you should have specific skills, qualifications, and certifications. The criteria we discuss will help you to obtain jobs across various industries. 

Education and Training

Earn a bachelor's degree in a relevant field such as business, computer science, information systems, or analytics. Coursework in data analysis, business processes, and project management is valuable.

Consider pursuing a master's degree in business administration (MBA), data analytics, or a related field to enhance your skills and knowledge.

Obtain certifications such as Certified Business Analysis Professional (CBAP), Certified Analytics Professional (CAP), or PMI Professional in Business Analysis (PMI-PBA) to demonstrate your expertise.

Sharpen your business analyst skills

Here are the key steps to becoming a business analyst:

Business acumen: A profound understanding of accounting, business principles, and finance will aid you in understanding operational issues and finance to handle them.

Communication: As a business analyst, you will be responsible for communicating with teams across the organization, including supply chain managers, operations, IT, and leadership, to align supply chain strategies with overall business objectives

Data analysis: You should gather, track, and analyze performance metrics to understand data analysis better. Most importantly, having a good grasp of visualization tools like Tableau, Excel, and BI Tools can be helpful. The programming language of SQL is mandatory. 

Depending on the industry, you can choose a methodology. If you intend to become a business analyst in the IT sector, you can select the agile approach and Waterfall Methodology.

Creating business solutions for an IT company will vary from those needed for a healthcare company, as each industry has unique needs and challenges. Experience in a particular industry, even in a different capacity, can provide a competitive advantage when seeking job opportunities.

Join a course:

Beyond educational qualifications, obtaining training certification validates your skills and knowledge. Moreover, certification showcases employer your skills up to date.  Coursework, either in person or online, can offer you a structured way to build skills employers value most. So, those who are interested can choose the business analysis course and also tools like Tableau, Excel, and MySQL.

Business analyst certification

There are several certifications available for business analysts to demonstrate their expertise and advance their careers:

Certified Business Analysis Professional (CBAP)

IIBA - Entry Certificate in Business Analysis (ECBA)

IIBA - Certification of Capability in Business Analysis (CCBA)

Advanced Business Analysis

PMI Professional in Business Analytics (PMI-PBA)

Those intending to commence their business analyst career can join the ECBA( IIBA - Entry Certificate in Business Analysis) certification course. Those with certifications like IIBA - Certified Business Analysis Professional (CBAP), IIBA - Certification of Capability in Business Analysis (CCBA), and PMI - Professionals in Business Analysis (PBA)  demonstrate to employers experienced. 

The degree you can pursue to become a business analyst:

Many organizations expect an employer with a Master's degree, but a bachelor's degree in this field is valued most. 

Bachelor’s degrees:

The Indeed.com article confirms, "The first step to becoming a business analyst is to earn a bachelor's degree." Studying a quantitative discipline such as finance, computer science, statistics,  data science, information management, economics,  or related fields at the bachelor's level can equip you with the necessary skills for roles in business analysis.

Master’s degrees and MBAs: 

Most top companies prefer Master's degree holders; those specific about their career can specialize in Master of Business Administration (MBA) or business analytics. So, taking any of these specializations will enhance your resume and job possibilities. 

Start with an entry-level role:

When seeking employment opportunities, keep an eye out for positions such as junior or entry-level business analyst.

Network and Build Connections:

Attend local business analysis conferences or join professional organizations to network with experienced professionals.

Leverage your connections to learn about job opportunities and get your foot in the door.

Tailor Your Resume and Interview:

Highlight your relevant coursework, skills, and applicable experience on your resume.

During the interview process, prepare to discuss your analytical abilities, problem-solving approach, and passion for business improvement.

Upskill with us:

Select Sulekha's business analyst certification program, which has collaborated with numerous course providers, allowing you to choose the best options that suit your needs.

In conclusion, to succeed as a business analyst in 2024 and beyond, professionals must continuously develop a diverse skillset encompassing business understanding, data analysis, communication, and industry expertise. Obtaining relevant certifications and staying abreast of industry trends will also be crucial.