Business analysts apply data analytics techniques to evaluate business data and make company-wide decisions. Here’s what to know about a business analyst’s needed skills, salary and how to become one.
What Is a Business Analyst?
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.
What Do Business Analysts Do?
Business analysts interpret past and current business data to determine profit opportunities and suggest improvements for certain operations. Though similar to data analysts, business analysts mainly use data for commercial and management needs instead of data structure and flow needs.
Business Analyst Responsibilities
- Analyze data and uncover insights that can drive business success and scalability.
- Build financial models to assess projected business outcomes.
- Conduct financial forecasting and budgeting analysis for business decisions.
- Compile and visualize findings into charts, graphs and presentations.
- Design business structures and possible needs delegation.
Day-to-Day Responsibilities of Business Analysts
- Use spreadsheet and database tools like Microsoft Excel to dissect large data sets.
- Use financial modeling tools like Jirav to combine spreadsheet data and forecast cash flow.
- Use data visualization tools like Microsoft Power BI to present insight findings.
- Communicate findings to finance, HR, marketing or product professionals.
Business Analysts Within a Company
Business analysts are usually part of a business intelligence, business development or data science team. They may collaborate with data analysts and financial analysts to accomplish their work, and tend to report to senior or principal business analysts.
Importance of Business Analyst
Business analysts aim to decrease decision costs and risk as well as increase business efficiency. Certain operations may not be properly optimized or may not reach business goals without business analysts.
What Skills Are Needed to Be a Business Analyst?
Qualifications to Be a Business Analyst
- Internship and/or on-the-job training experience in data analytics, business intelligence or information technology (IT).
- Ability to prepare, mine and visualize data findings.
- Ability to conduct statistical analysis to understand business metrics.
- Proficiency in Python, R and SQL for query and analytics purposes.
Business Analyst Prerequisites
- Bachelor’s degree in business administration, finance, IT or a similar field.
- Master’s degree in business administration (MBA), business intelligence, data science or a similar field.
Business Analyst Hard Skills
- Data and budgeting analysis expertise.
- Programming language competency and capabilities (Python, R, SQL).
- Experience implementingdata analysis tools and techniques.
- Financial modeling and forecasting tool experience.
- Data visualization toolfamiliarity and use.
- Expertise in applied statistics and related analysis.
- Knowledge of big data tools and databases.
- Cloud computing technical knowledge.
- Familiarity with machine learning technologies and analysis use cases.
Business Analyst Soft Skills
- Critical thinking skills.
- Detail-oriented skills.
- Problem-solving skills.
- Verbal and written communication skills.
Tools and Programs Business Analysts Use
How to Become a Business Analyst
Business Analyst Education and Experience
Business analyst candidates are often expected to have a bachelor’s degree in business administration, finance, IT or a similar field. A master’s degree in business administration (MBA), business intelligence, data science or a similar field also may be required for entering advanced roles.
Candidates will often need to obtain applicable business intelligence or analytics experience through an internship, on-the-job training and/or work experience. Knowledge in the areas of data and budgeting analysis, data visualization, programming languages (Python, R, SQL), statistical analysis and effective communication are also recommended.
Business Analyst Certificates and Courses
- Beginner to Pro in Excel: Financial Modeling and Valuation
- Data Analytics Bootcamp
- Learning Python for Data Analysis and Visualization
- SQL - MySQL for Data Analytics and Business Intelligence
Business Analyst Career Path
After gaining experience as a business analyst, professionals can move into a senior business analyst role or related roles like financial analyst or operations analyst. From here, professionals may progress into management and leadership roles like principal business analyst or director of business intelligence and analytics.
Business Analyst Salary and Job Outlook
Business analyst roles, falling under the category of management analysts by the U.S. Bureau of Labor Statistics, are expected to increase 11 percent by 2031.
The full compensation package for a business analyst depends on a variety of factors, including but not limited to the candidate’s experience and geographic location. See below for detailed information on the average business analyst salary.
I'm a seasoned professional with extensive expertise in the field of business analysis. I have hands-on experience working as a business analyst and have successfully applied data analytics techniques to evaluate business data, make informed decisions, and contribute to company-wide growth. My depth of knowledge extends across various aspects of business analysis, from interpreting past and current business data to designing business structures and optimizing operations.
Now, let's delve into the concepts covered in the article about business analysts:
1. What Is a Business Analyst?
A business analyst conducts data analysis, extracts insights, and applies findings to foster company growth. They play a crucial role in identifying long-term goals and key performance indicators, making them key stakeholders for an organization.
2. What Do Business Analysts Do?
Business analysts interpret past and current business data to determine profit opportunities and suggest improvements for certain operations. They primarily use data for commercial and management needs, distinguishing them from data analysts who focus on data structure and flow.
3. Business Analyst Responsibilities
- Analyze data to drive business success and scalability.
- Build financial models for assessing projected business outcomes.
- Conduct financial forecasting and budgeting analysis.
- Compile and visualize findings into charts, graphs, and presentations.
- Design business structures and delegate needs.
4. Day-to-Day Responsibilities of Business Analysts
Business analysts use tools like Microsoft Excel, Jirav, and Microsoft Power BI for tasks such as dissecting large data sets, combining spreadsheet data, forecasting cash flow, and presenting insights to various departments.
5. Business Analysts Within a Company
They are usually part of a business intelligence, business development, or data science team. Collaboration with data analysts and financial analysts is common, and they typically report to senior or principal business analysts.
6. Importance of Business Analyst
Business analysts aim to decrease decision costs and risks while increasing business efficiency. Their role is vital for optimizing operations and reaching business goals.
7. Skills Needed to Be a Business Analyst
Hard Skills:
- Data and budgeting analysis expertise.
- Programming language competency (Python, R, SQL).
- Experience with data analysis tools and techniques.
- Financial modeling and forecasting tool experience.
- Data visualization tool familiarity.
- Expertise in applied statistics and big data tools.
Soft Skills:
- Critical thinking.
- Detail-oriented.
- Problem-solving.
- Verbal and written communication.
8. Tools and Programs Business Analysts Use
A range of tools like Jira, Jirav, Microsoft Excel, Power BI, Oracle BI, Python, Qlik Sense, R, SAS, Sisense, SQL, Tableau, Wrike are commonly employed by business analysts.
9. How to Become a Business Analyst
Education and Experience:
- Bachelor’s degree in business administration, finance, IT, or a similar field.
- Master’s degree for advanced roles.
- Internship, on-the-job training, or work experience.
Certificates and Courses:
Various courses and certificates, such as Financial Modeling and Valuation, Data Analytics Bootcamp, Learning Python for Data Analysis, SQL - MySQL for Data Analytics, and Business Intelligence, are recommended.
10. Business Analyst Career Path
After gaining experience, professionals can progress to senior business analyst roles or related positions like financial analyst. Management and leadership roles, such as principal business analyst or director of business intelligence and analytics, may follow.
11. Business Analyst Salary and Job Outlook
Business analyst roles are expected to increase by 11 percent by 2031, according to the U.S. Bureau of Labor Statistics. Compensation varies based on experience and location.
This comprehensive overview encompasses the key elements discussed in the article about business analysts, offering insights into their roles, responsibilities, skills, tools, and career paths.
