Business analysts help maximize a business's effectiveness through data-driven decisions. Learn about what business analysts do and what it takes to become one.
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Business analysts use data to develop business insights and recommend changes. Business analysts can identify issues in virtually any part of an organization, including IT processes, organizational structures, or staff development.
As businesses seek to increase efficiency and reduce costs, business analytics has become an important part of their operations. Let’s take a closer look at what business analysts do and what it takes to get a job in business analytics. Afterward, build your skill set in this lucrative career by enrolling in the IBM Business Analyst Professional Certificate, where you'll learn earn essential skills in process modeling, requirements gathering, and stakeholder engagement.
Business analysts identify areas where a company can increase its efficiency and strengthen business processes. They often work closely with others throughout the business hierarchy to communicate their findings and help implement changes.
Tasks and duties can include:
Identifying and prioritizing the organization's functional and technical needs and requirements
Compiling charts, tables, and other elements of data visualization
Creating financial models to support business decisions
Understanding business strategies, goals, and requirements
Planning enterprise architecture (the structure of a business)
Forecasting, budgeting, and performing both variance analysis and financial analysis
The average base salary for business analysts in the United States is $93,669, according to Glassdoor [1]. However, your earning potential will vary depending on the company, location, and amount of experience you have.
The demand for business analysts has increased in recent years and is projected to continue. The US Bureau of Labor Statistics (BLS) projects faster-than-average job growth between 2023 and 2033 for similar roles, such as management analyst, which is poised to grow by 11 percent in the next decade [2].
Learn more: IT Business Analyst: Duties, Salary, and How to Become One
Business analysts are in demand across industries, including finance, health care, education, IT, consulting, e-commerce, government, and manufacturing. As a business analyst, you'll have the opportunity to support your organization's success through data-driven insights. In business analytics, every day brings new challenges and new ways to put your skills into practice. If you enjoy collaborating, asking questions, solving problems, doing impactful work, and bridging business and technology, a career as a business analyst could be a good fit.
Both data analysts and business analysts support data-driven decisions in their companies. Business analysts tend to focus more on recommending solutions for business needs, while data analysts work more closely with the data itself.
Read more: Data Analyst vs. Business Analyst: What’s the Difference?
Becoming a business analyst often requires gaining skills and credentials applicable to the work and the industry you're interested in. Coursework, certifications, or degrees can each aid your path to a job as a business analyst.
Many employers like to see at least a bachelor’s degree on your resume, though some may prefer candidates with a master’s degree, especially as you seek to advance. According to Zippia, 70.5 percent of business analysts hold a bachelor's degree [3]. Common majors include business administration and data science.
Here are some skills you’ll typically want to have as a business analyst.
Business acumen: A solid understanding of finance, accounting, and business principles will help you surface what operational issues exist, and how best to address them.
Communication: A business analyst is often expected to communicate with several different players within an organization, including upper management and other teams. Being able to present your ideas clearly and convincingly—both verbally and in writing—will be a large asset as a business analyst.
Data analysis: Gathering, tracking, and analyzing performance metrics will be central to a business analysis role. Having a good grasp of data analysis and visualization tools like Tableau, Excel, and BI Tools can be useful. Some knowledge of a programming language like SQL may also come in handy.
Business analysis methodologies: Depending on your industry, it could help to be familiar with specific methodologies, like Agile Business Analysis, Six Sigma, or Rational Unified Process.
Industry expertise: Different industries have different business needs and challenges. Developing business solutions for an IT company might look different than it does for a health care company. Industry experience, even in another role, can give you a competitive edge when applying for jobs.
Earning a certification can expand your skill set, potentially increasing your earnings or making you more competitive for jobs. Here are some business analysis certifications to consider:
If you’re just starting out as a business analyst, the ECBA can show hiring managers you’ve received several hours of training and know the basics of business analysis. If you have some experience with business analytics, the CBAP, CCBA, and PMI-PBA can show employers your competency and experience.
Internships and entry-level positions in accounting, finance, or business settings can build your experience before you advance to a higher-level position. In your job search, look for titles like junior business analyst. If you’re still in school, making an appointment with a career counselor can help you understand what opportunities are out there.
If a career in business analysis sounds interesting, build your knowledge and skill set by enrolling in the IBM Business Analyst Professional Certificate. Over six courses, you'll learn essential skills in process modeling, requirements gathering, and stakeholder engagement, as well as how to apply systems analysis tools to real-world scenarios.
A business intelligence analyst, or BI analyst, is a hybrid role somewhere between data analyst and business analyst. BI analysts analyze, model, and visualize data on industry trends and the competitive landscape to help businesses drive profits.
Not all business analysts work for a company's IT department. If you're interested in both data analysis and IT, consider a role as an IT business analyst. In this job, you'd analyze the needs and pain points of the IT department, as well as recommend technology and business solutions.
Business analytics might be a better fit if you're more business minded. If you enjoy working with numbers and excel in mathematics and statistics, then consider data analysis as a career path. Many of the skills overlap, so it's possible to start as a business analyst and move into a role as a data analyst (or vice versa).
A business intelligence analyst, or BI analyst, is a hybrid role somewhere between data analyst and business analyst. BI analysts analyze, model, and visualize data on industry trends and the competitive landscape to help businesses drive profits.
Glassdoor. "Business Analyst Overview, https://www.glassdoor.com/Career/business-analyst-career_KO0,16.htm." Accessed January 23, 2025.
US Bureau of Labor Statistics. "Management Analysts, https://www.bls.gov/ooh/business-and-financial/management-analysts.htm." Accessed January 23, 2025.
3. Zippia. "What Is a Business Analyst and How to Become One, https://www.zippia.com/business-analyst-jobs/." Accessed January 23, 2025.
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