Business

Breaking down the role of a business analyst

a business analyst woman is presenting her findings to her team.

If you’re researching the job of a business analyst, you’re probably not alone. It’s one of those positions that seems straightforward, but when you start digging into it, you realize there’s more to the job than you think.

These professionals can play many different roles in many different industries, which is why the term “business analyst” is almost more of a job category than a specific job title. But if you’re curious about what a typical business analyst job description entails, keep reading for a deep dive into this important role.

What do business analysts do?

As the title suggests, these professionals gather information about the company they work for and analyze it in a variety of ways. Typically, they work closely with leadership to identify areas of improvement, establish priorities and set goals. Examples of objectives they may work toward are:

  • Streamlining processes
  • Increasing employee productivity
  • Reducing information silos
  • Growing margins or markets
  • Improving internal communication
  • Implementing new technology and/or systems
  •  

    The role of a business analyst can vary greatly depending on the company, industry, position, product, etc., but, in general, common duties include:

  • Researching and evaluating business practices
  • Compiling and presenting findings, projections, reports
  • Using software (e.g., Excel, SQL, etc.) to analyze large data sets
  • Making strategy recommendations
  • Forecasting, budgeting and performing financial analysis
  • Running workshops and training sessions
  • Working closely with partners, clients, technicians, stakeholders, leadership, etc.
  • Training staff members in new programs and/or procedures
  • Proposing new initiatives designed to reach company goals
  •  

    The ultimate goal of any business analyst is to help make smart, data-informed decisions that help move the company forward.

    Where do business analysts work?

    There are many different kinds of business analysts and they can be found in nearly every industry. Often, they work for larger companies but small- and mid-sized organizations also benefit from having these professionals on staff.

    Business analysts can find employment in all sorts of fields, including:

  • Technology and engineering
  • Government
  • Retail
  • Finance
  • Real estate
  • Banks
  • Supply chain and logistics
  • Consulting firms
  •  

    As mentioned earlier, there are several different positions that fall under the umbrella of this role. Some common business analyst job titles include:

  • Functional analyst
  • Business intelligence analyst
  • Process analyst
  • Product manager
  • Marketing analyst
  • Business solutions architect
  • Data officer
  • IT business analyst
  • Analytics manager
  •  

    How much do business analysts make?

    Business analyst salaries are influenced by many factors, including education, experience, region and industry. But if you’re looking for a better idea of how much business analysts make, consider the following information from the U.S. Bureau of Labor Statistics.

    Financial analyst

    Median annual pay: $95,570

    Job outlook: Employment of financial analysts is projected to grow 9 percent from 2021 to 2031, faster than the average for all occupations.

    Budget analyst

    Median annual pay: $79,940

    Job outlook: Employment of budget analysts is projected to grow 3 percent from 2021 to 2031, slightly lower than the national average of 5 percent.

    Management analyst

    Median annual pay: $93,000

    Job outlook: Employment of management analysts is projected to grow 11 percent from 2021 to 2031, much faster than the average for all occupations.

    Market research analyst

    Median annual pay: $63,920

    Job outlook: Employment of market research analysts is projected to grow 19 percent from 2021 to 2031, much faster than the average for all occupations.

    What skills do you need to become a business analyst?

    It’s true that the role of a business analyst depends heavily on data and technology, but it also requires extensive collaboration with co-workers. Great analysts possess a strong blend of hard and soft skills. The following transferrable skills can help you succeed in this field:

  • Negotiation: Business analysts frequently propose changes, updates or initiatives that require buy-in from both leadership and co-workers. Strong persuasion and negotiation skills are a valuable asset in this role.
  • Research: To get the full picture of a business – the good, the bad, the ugly – analysts need to use a variety of information-gathering tactics. These include qualitative research (i.e. focus groups or surveys, etc.) and quantitative, measurable research methods.
  • Communication: Analysts typically work across multiple departments within a company. They must collaborate with many stakeholders, making oral and written communication skills essential.
  • Problem solving: Much of the day-t0-day work of a business analyst revolves around finding solutions to complex issues that are keeping the company from hitting its goals. 
  •  

    In addition, it takes a lot of technical knowledge to pursue these positions. The exact skills required will vary in each business analyst job description, but most will expect some level of proficiency in the following areas:

  • Basic programming languages (Java, C++, PHP, Python, etc.)
  • Databases (SQL, Oracle, Cloud, etc.)
  • Data visualization
  • Machine learning
  • Statistical analysis
  •  

    Interested in becoming a business analyst?

    Now that you know the basics of being a business analyst, maybe you could see yourself in this role. If you’re ready to research your next steps, UMass Global has you covered. With multiple educational options built for busy adult learners, you can find a program that aligns with your life and career goals.

    Learn more by exploring our programs:

  • Bachelor of Arts in Business Administration (BBA): This well-rounded program will provide you with the business and leadership skills needed to be competitive in a variety of business analyst positions.
  • BBA in GIS and Data Analytics: Gain the foundational skills of a traditional BBA with an emphasis in geographic information systems (GIS) and data analytics.
  • MBA in Business Intelligence and Data Analytics: Build upon your existing education with this Master of Business Administration that focuses on the in-demand skills needed to be a leader in a data-driven business world.
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