Introduction

Simply put, to become a business analyst involves the analysis of business needs and processes to come up with solutions that add value to the organisation. A good business analysis should help resolve gaps between IT and business by helping business people define their needs, which the IT team can convert into technical solutions.

What Are the Main Types of Business Analysts?

Functional Business Analysts

Role and Key Responsibilities:

A functional business analyst focuses on business functions or processes; for instance, an FA focused on the ‘purchase to pay’ process will look at all the stages involved in processing an invoice and the methods used to inform and communicate with managers, buyers, and suppliers. Working with stakeholders on the ground, an FA gains in-depth knowledge of current activities and requirements and then goes on to evaluate business processes in terms of efficiencies and output.

Technical Business Analysts

Role and Key Responsibilities:

The technical business analyst role is a type of intermediate role that focuses on the gap between business and IT. A technical business analyst interfaces with the IT department to bridge the social and technical divides between business needs and the ultimate IT technical implementation.

Process Business Analysts

Role and Key Responsibilities:

Process business analysts look at business processes and ways to make them more efficient. They identify inefficiencies, develop process maps, and recommend changes to reduce the cost of doing business.

Systems Business Analysts

Role and Key Responsibilities:

Systems business analysts focus on implementing and maintaining business systems. They capture requirements, design system specifications, and oversee the deployment and maintenance of business systems.

What Does a Business Analyst Do?

Identifying Business Needs and Opportunities

Business analysts identify business needs and opportunities for improvement by doing research and analysis. They work with stakeholders to elicit requirements and understand the environment in which the business operates.

Analysing and Documenting Business Processes

They map the processes of businesses, understand them, and spot improvement opportunities by creating process maps, a foundation to build other solutions and technologies.

Facilitating Communication Between Stakeholders

Business analysts mediate communications between stakeholders, ensuring that business requirements are discussed in plain and understandable terms before they are translated into technical specifications. They are the point person between business and IT teams.

Developing and Implementing Business Solutions

They devise and undertake business solutions to meet already-defined needs and opportunities, such as designing a process, implementing a software solution, or optimising a system.

Conducting Cost-Benefit Analysis and Risk Assessment

Business analysts conduct a cost-benefit analysis and risk assessment to establish if a proposed solution is feasible and has the intended impact. They will recommend a solution.

Monitoring and Evaluating the Effectiveness of Implemented Solutions

They work by tracking what has been implemented and the degree to which it is working towards achieving the business objectives and delivering its promised benefits, and then modify what is implemented as necessary to optimise performance.

Average Business Analyst Salary

Salary Ranges Based on Experience and Location

Salary ranges for business analysts differ depending on their experience level, location, and industry. In the UK, starting salaries range between £25,000 and £35,000 per year, while in the US they range between $50,000 and $70,000. Experienced mid-level business analysts can expect to earn £35,000 to £50,000 in the UK and $70,000 to $90,000 in the US. Senior roles or specialised roles will earn around £50,000–£70,000 or more in the UK. In the US, this equates to $90,000-$120,000 or more per year.

Comparison of Salaries in Different Regions and Industries

Wages on average might be higher for business analysts who work somewhere in a city or in a state or region that is more dense with businesses and industries than elsewhere. Also, a business analyst in the medicine or healthcare sector, technology, or finance realm might earn more than one who works in another sector.

Factors Influencing Business Analyst Salaries

Several factors can influence business analyst salaries:

• Experience: Analysts with longer contracts get paid more as they are more skilled and have more tasks.
• Higher Levels of Education and Professional Certifications: Higher levels of education and professional certifications can augment an analyst’s credibility and ability to command high salaries. Education and Certifications: Areas of Specialization Education and certifications are among the most important considerations for one’s analytical career.
• Industry: The industry in which a business analyst works can significantly impact salary levels.

Business Analyst Skills

Technical Skills

• Analyse Data and Present Visually: The objective of a business analyst is not only to be able to work with and obtain data but to also pull insights that can be communicated back to owners and decision-makers.
• Fluency in Business Analysis Tools and Software: Fundamental knowledge of business analysis tools and software (e.g., SQL, Excel, and BI platforms).

Soft Skills

• Communication: Ability to communicate details both verbally and in writing to all stakeholders and interpret detailed requirements.
• Critical Thinking: Critical thinking skills help analysts assess complex problems and develop effective solutions.
• Problem-Solving: Effective problem-solving skills enable analysts to address challenges and implement improvements.
• Stakeholder Management: The depict stakeholder involvement as well as the roles relationship managers play in engaging with them and ensuring requirements are met for successful project completion.

Business Analyst Tips

• Learning what’s trending and best practices in BA: This approach can also help you stay up-to-date with current business analysis trends. John Tassou, a BCS member and currently a business analyst at Transversal, agrees, having come from a career in engineering. He says, ‘All the technology you studied has changed and might not be relevant anymore, but because it gives you an overall understanding of systems, it serves as a great foundation for you to read and learn what’s trending and best practices in BA.
• Networking via professional organisations and industry events: membership in professional associations provides you with avenues for networking, and industry events provide access to key resources.
• Working Internships and Entry-Level Job Experience: Practical knowledge from internships and entry-level jobs is essential to developing your skills and cultivating your reputation.
• Mastering these core responsibilities: Mastering these core responsibilities will tremendously enhance one’s technical and analytical skills, which must be continuously improved upon to become an effective business analyst.

Business Analyst Requirements

Educational Requirements

• Bachelor’s Degree in Business Administration, Finance, or Related Field: At least a bachelor’s degree in business administration, finance, or a related field is required; a graduate degree in one of those areas is often necessary to advance into management roles. At least a bachelor’s degree is needed for most positions.
• Salient Coursework or Certification Programs: Engagement in salient coursework or certification programmes offers crucial competencies and knowledge.

Certification Requirements

Certifications such as the Certified Business Analysis Professional (CBAP) or Certification of Competency in Business Analysis (CCBA) from the International Institute of Business Analysis (IIBA) might be worth listing to demonstrate competency and commitment to professional standards.

• C-level: Positions held at the executive or board level.
• Board: Membership in any board, ideally with more than one position held.
• The General Manager and Owner: Important but limited clubs for startup founders.

Experience Requirements

• Internships/entry-level positions: An essential part of the process of writing world-class scholarship and securing professional positions of high prestige, competence, and quality is an apprenticeship that often involves collecting practical experience based on entry-level positions and internships.

How to Become a Business Analyst

Completing Relevant Education

• Bachelor of Business Administration, Finance, or a Related Field: Complete a bachelor’s degree in business administration, finance, or a related field.
• Dedicated Courses and Certificate Programmes: Take advantage of dedicated certificate programmes and courses to obtain hands-on experience.

Gaining Practical Experience

• Internships and/or Entry-level Positions: either option can give hands-on experience and help to develop skills and a portfolio.

Obtaining Certification

• CBAP, CCBA, or Otherwise Relevant Certifications: Show that you have the right competence and commitment to professional standards.

Continuing Professional Development

• Workshops, Seminars, and Webinars: Engage in continuous professional development through various training opportunities.
• Advanced Training and Specialisations: Pursue advanced training and specialisations to further develop your expertise.

Networking

• Professional Associations: Join professional organisations such as the International Institute of Business Analysis (IIBA) and network with your peers. Allow these organisations to keep you current on industry trends.
• Attend Business Analysis Events and Conferences: Join business analysis events and conferences. Doing so can help you network with other business analysis professionals.

Get Qualified as a Business Analyst

Business Management Certificate, Business Development

Frequently Asked Questions (FAQ)

Why should you be a business analyst?

Being a business analyst is an exciting and dynamic career path. You will work across many different industries, help solve business problems, and contribute towards business objectives. You will be an integral part of an IT and business bridge, giving you the opportunity for long-term job security and the continual opportunity to develop your career. You will also get the personal satisfaction of successful improvements and efficiency gains.

Is business analysis a good career choice for you?

So, if you have a solid interest in business processes, love to analyse the minutiae of data, and are natural at communicating and problem-solving, business analysis might be for you. This means that you’re detail-oriented, a good multi-tasker, not afraid of new challenges, and like working with other people. If that’s the case, there’s no doubt that a career in business analysis can be extremely rewarding for you.

Business analyst salaries

How much business analysts earn depends on their experience level as well as their location and the sector or industry they work in. Annual salaries range from £25,000 to £35,000 in the UK and $50,000 to $70,000 in the US for entry-level business analysts. Mid-level analysts can earn between £35,000 and £50,000 per year in the UK and $70,000 to $90,000 per year in the US. Senior analysts or specialised roles can earn £50,000 to £70,000 or more per year in the UK and $90,000 to $120,000 or more per year in the US.

Which qualifications can help with a career in business analysis?

If you aspire to become a business analyst, completing a four-year bachelor’s degree in business administration, finance, or a related discipline is required. Similarly, the ability and knowledge required to carry out the job are learned through other specialty courses and certification programmes, such as CBAP or CCBA.

Also, due to the nature of BA work, it is always advisable to secure relevant work experience through internships or entry-level jobs to hone one’s skills as well as market reputation before embarking on a career in this field.

Finally, judicious and consistent use of market-prevailing standards to ensure that one has all the requisites to handle the job also goes a long way in ensuring one has the qualifications and market acceptability needed to consider a career in business analysis.

Do I need to be experienced to get started? 

No. It takes a lot of experience to become a good business analyst, but not to start in that profession. People are qualified to work as business analysts if (a) they are graduates with a bachelor’s degree and therefore can set foot inside a workplace; (b) they have enthusiasm, eagerness to learn, and a zest for business processes.

Business Analyst Career Outlook

The demand for business analysts is expected to remain steady or perhaps slightly improve, with a high number of products, services, systems, and internal procedures expected to be designed and changed as business continues to embrace technology. Business analysts often navigate their way to further career success into specialist product, service, or system design roles or higher up the management ladder into assistant product, service, or system manager positions. Job security looks bright, with a steady demand for BA talent in every business vertical as well as great salaries to attract talented new graduates into the profession.

Business Analyst Hierarchy and Progressing Within the Role

As for the business analyst’s career progression, it normally begins as a junior analyst or business analysis associate, and after some years on the job, gaining work experience, and taking additional training, one usually works their way up to the mid-level roles of senior business analyst or lead analyst. Further career levels are designated as business analysis manager, project manager, or director of business analysis. An advanced business analyst tool. Career advancement is generally facilitated by acquiring the necessary inside knowledge and skills, as well as additional relevant certifications.

Business Analyst Exit Options and Opportunities

Business analysts have many possible exit opportunities and points in their life cycle. Depending on the needs of the organisation and the analysts, business analysts may transition to key roles in project management, consulting, strategic planning, and so on. Analysts with more experience may move on to roles such as product manager, IT project manager, or enterprise architect. Others may progress to higher education in the field of business analysis, eventually becoming researchers and educators, thus expanding what might be referred to as the ‘analyst ecosystem’.