Like many positions in the IT industry, there is no standard path to becoming a business analyst. Most people pursue analytical degrees and certifications before becoming business analysts, but it’s not obvious how difficult the path is.
In short, becoming a business analyst is harder than getting most operational jobs, but easier than getting most technical jobs. For example, it’s harder than becoming a designer but easier than becoming a developer. In fact, business analysis is often defined as the “translator” between business and technology.
Let’s take a look at some of the reasons why.
Contents
Becoming a business analyst requires a bachelor’s degree
Most job postings for a business analyst require computer science, process engineering, economics or study in a related field. That’s because these degrees are guaranteed to have immersed students in analytical processes that flow nicely into business analysis.
With that said, I have seen friends land first jobs in business analysis without a relevant degree. This is because they got experience in analytical fields through internships, side projects, and small certifications like the ones we offer on this website. In a nutshell, employers want to see that you have what it takes to analytically approach their business.
After all, the job is essentially to gather requirements through a series of questionnaires and conversations. BAs then use those requirements to help guide product developers in the right direction. They need the analytical thinking necessary to understand complex relationships and moving parts.
That’s why, especially for first jobs, junior business analysts need a diploma to prove they have what it takes, or at the very least a start. But what about for a second job? Let’s look at that now.
Several years of experience in a related field
Nevertheless, junior business analyst positions are hard to come by. Unlike with other professions, employers have a hard time extracting value from junior-level employees. The main reason for this is a BA’s critical role in cross-department and cross-hierarchical communication. Whether junior or senior, business analysts need to be able to communicate with stakeholders of all levels. It’s simply less common for employees in their first job to be able to do so.
Those with a few years of experience, even if its not directly in business analysis, have a higher chance of succeeding in this communication. They learn the subtle ways to speak and handle hierarchy and authority, as well as how to create relationships with key colleagues.
In the middle
So yes, this dynamic makes it hard to become a business analyst. I originally compared to designers and developers. A designer, for example, could easily start in a junior position and produce valuable results for his/her team. The nature of the work allows for that. Junior designers can create mockups and first drafts.
On the other hand, it’s even harder to start as a junior developer than as a junior business analyst, especially in a company where the expectations of quality in software production cycles is high. And in most companies it is. You need to work fast and you need to produce results with few to no mistakes.
It’s tough, but doable.
You Have to Speak Data
A common misconception is that business analysts are separate from data analysts. The reality is much different. BAs need to understand data to elicit requirements, quantify solutions and their results with KPIs, and be able to analyze big volumes of data to reach their goals.
To get started, you should consider getting an intro-level book. I wrote one that you can get for free because you shouldn’t pay for essentials–it’s oriented towards practical skills unlike most other you’ll find.
You have to speak the IT & business languages
One of the more intimidating challenges with the BA position is learning two departments’ worth of industry language. You need to understand business metrics like monthly active users, churn rates, unit margins, gross margins, fixed vs variable costs, and many others.
On the flip side, you need to understand tech terminology such as a functional and non-functional requirements, input vs output devices, systems administration, access points, imperative vs declarative coding, agile, and more.
Translating: a key task
Your role is to translate, which means being reasonably fluent in the jargon on both business and tech sides. This may sound tough, but I believe it can be one of the easier parts in becoming a business analyst. While many of these terms may seem complex, they’re just an official way of identifying intuitive ideas.
Function requirements just means “what something can actually do,” while non-functional requirements simply means “what goals can it reach.” We give the two names in order to make them concrete and facilitate communication, but they’re ultimately intuitive ideas. Let’s take a look at some terms from both sides.
Business terms to know to become a business analyst
First 6
Monthly active users – the number of users who perform some fundamental action (purchase, consumed x minutes of content, etc) on your website, application, or in your store
Churn rates – the amount of customers that return for a second purchase. It’s represented as a percent of the total (business people love ratios): [customers leaving after x periods/total customers in that period]
Unit margins – the amount of profit a company makes per unit. This is a calculation purely on the cost directly associated with the item. For example, if you sell cars for $10 and the cost of the plastic and paint to make those cars is $4, then you have a $6 (or 60%) unit margin. This is important because business decisions often get made on unit margins.
Gross margins – unit margins added together. This is a number on the profit & loss statement (learn more about financial statements for BA professionals on the website).
Sales conversion rate – this is the number of customers who purchase over the total number of visitors. If you have ever worked in retail, this number is why branch managers hate people who come in simply “to look.”
Opt-in rate – the number of people who actively decide to receive more information from the company, either by clicking a button online or at the time of purchase in shop
Second 6
Lifetime value – the value that a member or customer brings to the company over his/her lifetime.
Customer lifetime – a calculation of the normal “life” a customer usually has at a given store. To give some perspective, supermarkets have very high lifetime values, resorts have very low lifetime values, and e-commerce has moderate lifetime values.
Average order value – the value that one customer brings when he/she makes a purchase. This ultimately depends on the total number of items purchases.
Acquisition cost – the cost a company spends to get 1 customer
Customer profile (or persona) – the demographic explanation of a potential customer. For example, Tommy Hilfiger targets 18-24 and 25-32 year olds with average incomes who work in traditional service jobs and technology.
Elicitation – gathering requirements (very important term for BAs)
There are tons more terms to learn, and we’ve got some products coming soon. You’ll be impressing your coworkers and boss in no time.
Technical terms to know to become a business analyst
Functional requirement – behaviors a product needs to perform. For example, the wheel must role.
Non-functional requirement – non-behavioral goals a product must achieve. For example, the wheel must turn at 1 million RPM without exploding
Requirement analysis – the gathering and interpretation of, and the decision-making on requirements
User story/story mapping – the high-level path that a potential customer takes from first contact to exiting a website/shop. For example, a customer searches tires online, she sees an ad and a high-ranking article from Tires4You, she sees a simple webpage with 3 options, finds her tire, goes through a checkout portal, purchases tires, exits the window, (and receives the tire on time).
UML – Unified Modeling Language. It’s more like guidelines than a true coding language. You can learn more about it here.
Access point – a virtual place where one computer accesses a network
Network – a group of computers working together
Markup – the simplest visual representation of a future product, website, or application
Binary vs high-level – binary means “yes” or “no,” or in the computer world, “1” or “0.” It’s the lowest-level (fundamental) form of coding. Other languages are called “high-level” because they are easier for humans to understand
Object-oriented – programming in which programmers define data and the operations used to manipulate it. They define the objects.
BA positions increasingly require hard skills in data analysis
Business analysts today need hard skills in data analysis. The reason for this is that data as a topic, as well as data-gathering technologies, are more accessible every year. As some say, data is the currency of the 21st century.
At the same time, data familiarity and savvy are still quite limited. Many business analysts have trouble working with business intelligence and finance teams because they lack these technical, skills.
You should see this as an opportunity. The need for data skills may seem to make becoming a BA more difficult. I see it as an easy way to set yourself apart. You can easily learn the basics of data analysis through simple courses and move your way into a BA role.
I had a great teacher on the job in a financial analyst position. I could have gotten a certificate from a recognized institution in data analysis, but it costs $1000s for course, and you always seems like you learn very little.
That’s why I made courses on Analyst Answers affordable. It doesn’t make sense to charge $1000s for skills, especially on skills that will make the world a better place for everyone.
It’s hard to become a business analyst by internal hire
If you start at a company hoping to transfer internally into a BA role, it may prove to be harder than you think. According to the US Bureau of Labor Statistics, the majority of management analysts (another term for business analyst) typically amass a number of years of experience before moving into the role.
This is largely because once you have established yourself in an “operational” role, it’s quite difficult to make the transition into a role that must challenge the management and its requirements. Like many consultants, business analysts come in from outside to challenge the way the company works.
Conclusion
Becoming a business analyst is harder than getting an operational role, but easier than getting a technical role. One more time, the reasons are that you need:
A bachelor degree
Several years of experience
To speak two languages: business and tech
Data skills
To move companies, not be internally hired
About the Author
Noah
Noah is the founder & Editor-in-Chief at AnalystAnswers. He is a transatlantic professional and entrepreneur with 5+ years of corporate finance and data analytics experience, as well as 3+ years in consumer financial products and business software. He started AnalystAnswers to provide aspiring professionals with accessible explanations of otherwise dense finance and data concepts. Noah believes everyone can benefit from an analytical mindset in growing digital world. When he's not busy at work, Noah likes to explore new European cities, exercise, and spend time with friends and family.
To become a business analyst, you can expect to follow a relatively straightforward path that includes a bachelor's degree and a few years of professional experience. After that, you can decide whether a master's degree or a business analyst certification is the appropriate next step for your career.
They need to have good communication and negotiation skills. Good at creating interactive reports using various business intelligence tools. Having a certification offered by the International Institute of Business Analysis (IIBA) such as Certified Business Analysis Professional (CBAP) would be highly beneficial.
If you have deep experience in a specific industry, consider business analyst roles in that industry. Your understanding of the industry environment, terminology, and core processes could qualify you for specific BA roles.
This helps businesses improve the efficiency of their operations and increase profits. Business analysts use data analytics, data visualization, and data modeling techniques to make data-driven decisions.
The fastest way to become a business analyst is to earn a bachelor's degree from an accredited institution in business, finance, data analytics, or a related field. After earning a bachelor's, graduates can apply for entry-level business analyst positions. A typical bachelor's degree takes four years to complete.
I'm here to tell you, though, that you can absolutely overcome your weak or long-forgotten math skills and become a data analyst. Data analytics requires a lot of skills that aren't just math, many of which you may already possess.
Against this backdrop, statistics and linear algebra are the key building blocks of business analytics. This course examines many different types of statistics and analysis, including exploratory, associative, comparative, predictive, and prescriptive models.
The weak business analyst often fails to make use of all available resources. He may be unfamiliar with some resources as well. These resources may include industry reports, software packages or assessment tools.
Is business analyst an IT job? A business analyst role is not an IT job unless a business analyst chooses to specialize in the information technology industry. The title would then be an IT business analyst.
#1 No clear understanding of why the project is being done. #2 No clear understanding of the scope of the project. #3 No real understanding of the business itself. #4 Too much documentation.
3. ESFP – Business Analyst. Generally, ESFP types are known to be flexible, outgoing, and cheerful. If you are an ESFP, you like working with others to get things done.
What I want you to take away from this is that there's no reason that as an introvert, you shouldn't be a business analyst or you can't be a business analyst, or, really, any role that involves so much critical and analytical thinking. You have a lot of skills that are going to serve you really well in this role.
Most business analysts work in corporate offices. They may be required to travel to other local, regional or international facilities, and attend off-site conferences and meetings. Business analysts typically work a standard a 40-hour week, but flexible hours and overtime may be sometimes be required.
The reason why that is important is because you are going to talk to a lot of different stakeholders and everybody's personality is different. As a business analyst you will spend a lot of time talking to strangers so being able to strike up a conversation with people you do not know will be helpful.
Business Analyst is a good career because it offers strong salaries, plentiful job opportunities, and BAs generally report high job satisfaction and work-life balance.
Yes and no. While data analysts should have a foundational knowledge of statistics and mathematics, much of their work can be done without complex mathematics. Generally, though, data analysts should have a grasp of statistics, linear algebra, and calculus.
As with any scientific career, data analysts require a strong grounding in mathematics to succeed. It may be necessary to review and, if necessary, improve your math skills before learning how to become a data analyst. Check out the list below for a few key areas of study!
You don't need a full-blown degree to become a data analyst, but you do need a structured and formal approach to learning the necessary skills. The best (and most flexible) way to do so is through a project-based course.
The fundamental pillars of mathematics that you will use daily as a data analyst is linear algebra, probability, and statistics. Probability and statistics are the backbone of data analysis and will allow you to complete more than 70% of the daily requirements of a data analyst (position and industry dependent).
Generally considered a more senior role, a Business Intelligence Analyst can make well over six figures at major companies or in cities like New York City and San Francisco. A Business Intelligence Analyst might start as a Data Analyst or Business Analyst before being promoted.
Business analysts may not need to know multivariable calculus or linear algebra, but they need to know applied statistics. Applied statistics uses statistical methods and tools such as R and Python to interpret data and solve real-world data analysis questions.
On the other hand, business disciplines like finance and accounting are what The Washington Post refers to as “math-focused” business majors. The coursework in these programs involves more in-depth quantitative analysis and manipulation of numbers.
Business Analytics degrees require students to take classes in accounting, statistics, finance, algebra, and pre-calculus. Additionally, they'll be expected to take economics courses that will require math work.
Business majors who wish to focus on finance careers will need a strong calculus background. Knowledge of statistics and probability are also vital for finance careers, and figure prominently in the marketing field too. Algebra and geometry round out the list of college math skills business majors should have.
Lack of clarity in requirements: One of the biggest challenges faced by business analysts is the lack of clarity in requirements. This can be due to various reasons such as vague stakeholder requirements, changing priorities, or incomplete information.
Answer for “Where do you see yourself in 5 years?” “In five years, I see myself as an integral part of the company who has helped contribute to the growth and success of the organization. I would like to continue developing my skills and knowledge in order to be able to take on more responsibility within the company.
However, a typical day will consist of managing and attending team meetings, project planning, user story refinement, documentation management, and communicating proposed solutions to stakeholders based on the analysis you have undertaken.
They can work full-time, part-time, freelance, or as independent contractors across a variety of career fields. And, because much of the business analyst role includes data analysis and visualization (think: crunching numbers and creating graphs and pie charts), in many cases, their work can be done remotely.
Sometimes you will be required to work with a number of different teams and people within the company that you work for. Many business analysts value that in the business analyst role there is no typical day in the job.
Is business analysis a good career? If this question is in your mind, you're in the right place. Considering the below mentioned basic parameters, yes, business analysis, Online Certifications Courses in India is no doubt a promising career.
data analyst, which is better? The average data analyst's salary could go up to $72,250 per year. It also depends on the company, job role, and geographical location matters. A data business analyst's salary is typically higher, averaging $78,500/year.
Business analysts evaluate data quality, understand the context that produced the data, and use data to answer questions and glean insights. A good analyst also identifies trends or patterns, opportunities for improvement, causal relationships, and more.
High performing BA teams should know the business inside and out and have a great understanding of the business processes and the business goals. They should know that business better than anybody else in that business.
If you don't have some connection with the company that got you an interview and is hiring you, it's definitely a red flag. I say: If the decision is too soon they don't value your skills, too long and they don't value you. Any sensible company will at least take some time to consider their choices before hiring you.
You can answer this by stating that a business analyst must have exceptional communication and negotiation skills. Analytical thinking, problem-solving, and decision making are also vital attributes. A business analyst should have industry knowledge, business process management skills along with technical proficiency.
INFJ is the rarest personality type across the population, occurring in just 2% of the population. It is also the rarest personality type among men. INFJ stands for Introversion, Intuition, Feeling, and Judging. This unique combination is hard to find in most people.
On average, introverts and extroverts are the same in terms of intelligence. But statistics show that around 70% of gifted people are introverts. People are considered “gifted” when they exhibit above-average intelligence or a superior talent for something, such as music, art or math.
A senior business analyst has a national average salary of $94,955 per year . A senior business analyst with one year of experience in that position makes an average of $87,674 per year, while one with three to five years of experience has a national average salary of $100,861 per year.
Having both a conceptual and working understanding of tools and programming languages is important to translate data sources into tangible solutions. SQL is the coding language of databases and one of the most important tools in an analytics professional's toolkit.
A successful Business Analyst needs an analytical mind, of course, but also an appreciation of business values and goals. The Business Analyst's work also involves plenty of talking. Therefore, if you possess excellent communication skills, you will likely enjoy the job and do well.
Business analysts conduct data analysis, extract insights and help apply findings to foster company growth. They are largely responsible for identifying long-term goals and key performance indicators, making them key stakeholders for an organization.
Introduction: My name is Eusebia Nader, I am a encouraging, brainy, lively, nice, famous, healthy, clever person who loves writing and wants to share my knowledge and understanding with you.
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