What is a business analyst and what do they do?
Business analysts use their data analysis capabilities to make business processes more efficient. To do this, they evaluate systems and operations to determine how the organization can improve productivity, efficiency and profitability.
Business analysts work with internal collaborators, determine organizational requirements and bring attention to issues that may be impacting a company’s bottom line. As market conditions change, business analysts also identify opportunities for increasing market share. With a skilled BA, it’s possible to create a competitive advantage, making your organization more successful.
Business analyst role and responsibilities
Requirements management is one of the most important business analyst duties, as it affects the outcome of every project. Business analysts participate in requirements management by collecting data and using it to identify stakeholder needs. Setting expectations early on makes it more likely that a project will succeed.
Business analysts also perform the following duties:
- Data analysis
- Tech research
- Presentation of findings
- Project development
- Change management
Data analysis
Data analysis involves examining data to validate an idea or answer a question. For example, if you want to know if your latest training program is effective, you can analyze employee test scores or collect data related to their job performance.
BAs analyze data to identify problems with existing processes. They also use their skills to identify potential solutions to these problems, saving their organizations time and money. Many businesses require their BAs to summarize data for other employees, enabling other team members to make informed decisions.
Tech research
Successful business analysts research technology advancements to modernize business systems and processes. They also use emerging technology and tools to solve pressing problems within your organization, minimizing compliance risks and protecting confidential data against a variety of security risks.
Presentation of findings
Business analysts present their findings to employees, vendors, investors and other collaborators. During each presentation, a BA uses data to visualize and tell a compelling story, helping audience members understand why changes need to occur.
Project development
One of the many roles of a business analyst is to develop projects, which involves creating initiatives to help businesses meet the challenges of the modern world. To do this, they collaborate with, train and coach other staff members while working closely with senior management, partners, technicians and clients.
Change management
Business analysts work as change agents, which means they support new, innovative ways of doing things. To promote change without confusion, a BA must be proficient at change management, a process to help other employees adjust to the idea of change, making it easier for organizations to adopt streamlined processes.
Business analyst skills
To succeed as a business analyst, an individual must have a combination of technical skills and soft skills.
Analytical and inquisitive thinking skills
Business analysts must be able to examine and solve complex problems, recognize patterns and discover insights within large datasets. When hiring for this position, look for candidates with demonstrable reason and logic. These individuals tend to take a structured approach to challenges, using critical thinking to understand every side of an issue before acting or reacting.
“Analysis skills” is the #2 most commonly listed skill in business analyst jobs posted on Indeed (after communication). ¹
Strong communication and people skills
A business analyst’s job involves gathering a vast array of requirements from multiple collaborators, so potential candidates need strong communication skills. In fact, communication is the #1 most commonly listed top skill for business analyst jobs posted on Indeed.¹
Likewise, business analysts need to deliver their recommendations to diverse crowds, so look for candidates who can lay out complex ideas in layperson’s terms. Excellent people skills are also a must, as they help business analysts build better relationships with coworkers.
Business acumen
For your organization to benefit from having a business analyst, the person you hire must understand the nuances of each process. A strong background in business, including marketing, finance and strategy, helps BAs align their work with your company’s long-term goals.
Excellent technical skills
Since modern businesses require modern solutions, the business analyst you hire must have excellent technical skills. These are some of the most common technical skills in Indeed business analyst job postings:¹
- Microsoft Excel (Included in 29.54% of business analyst job postings on Indeed)
- SQL (Included in 22.9% of business analyst job postings on Indeed)
- PowerBI (Included in 8.42% of business analyst job postings on Indeed)
- Tableau (Included in 7.30% of business analyst job postings on Indeed)
Problem-solving skills
The BA role involves solving problems for organizations of all sizes. A business analyst must be able to combine analytical thinking with creativity to identify novel solutions to complex problems. Seek out candidates who view challenges from multiple angles.
Flexibility and the ability to learn
Constantly evolving processes require business analysts to pivot quickly and learn from mistakes. When hiring a BA, look for someone committed to continuous improvement. Candidates should also stay updated on best practices and industry trends.
Independent yet a strong team player
Due to the nature of the job, the business analyst you hire should be able to naturally work autonomously. However, BAs have to collaborate with cross-functional teams and management, so they also need to be team players.
The candidate you hire should work well with others and have the ability to nurture collaborator relationships. These teamwork skills enable business analysts to influence change and persuade collaborators to adopt their suggestions.
Techniques business analysts use
Business analysts use several techniques to help them analyze business processes, identify inefficiencies, find innovative solutions and obtain desired results. Some of these techniques include:
- SWOT analysis: This tool assesses an organization’s strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal factors, while opportunities and threats are external factors. Performing a SWOT analysis helps BAs and other team members determine the best way to solve business challenges and prepare for the future.
- MOST analysis: Mission, objective, strategy and tactics, or MOST analysis, is a simple tool to analyze and plan the details of what an organization does or should do.
- Mind mapping: This tool makes it possible to visualize new ideas and identify connections between seemingly unrelated concepts.
- PESTLE analysis: Used to identify what drives change in a business, PESTLE stands for political, economic, social, technological, legal and environmental factors. Performing a PESTLE analysis helps BAs understand the market factors at play in your industry. For example, companies in the AI industry need to be aware of legal changes related to copyright and trademark protections.
- Brainstorming: This technique is used to solve problems, find facts and generate ideas, either alone or within close teams.
Hiring a business analyst
If you’re interested in hiring a business analyst, consider your company’s needs carefully. Look for applicants who would be capable of streamlining inefficient processes and helping your organization reach its goals. Check out these tips for writing a business analyst job description.
While some interview questions for business analysts are industry-specific, there are a few questions you can ask during the initial screening process:
- How do you handle difficult collaborators?
- What is your business analysis process when you work on a project?
- What tools do you think a business analyst needs to do their job well?
- Which diagrams do you prefer to use in your role as a business analyst?
- Describe your experience with SQL queries.
FAQs about business analysts
What are the requirements for business analysts?
Requirements for business analysts vary from company to company. Here are some common requirements for business analysts:
- Bachelor’s degree in business, accounting, finance or a related field
- On-the-job experience via internships or entry-level jobs in business, finance or IT, working with senior-level decision-makers
- Demonstrated analytical background
- Optional Institute of Business Analysis (IIBA) certification
- Knowledge of end-to-end systems
- Excellent industry knowledge and expertise
- Ability to serve as a change agent
- Strong presentation skills
Is a business analyst an IT job?
A business analyst role is not strictly an IT job unless a business analyst chooses to specialize in the information technology industry. Business analysts for other industries are expected to have some knowledge about IT and key business software, but they’re not typically classified as IT employees. Firms involved in accounting, finance and market research frequently hire business analysts to help them reach their goals.
¹Indeed data (US), January 2023 – Dec 2023
