What does a business analyst do?

Business analysts serve as the connection between stakeholders and tech teams, ensuring that organisations can harness technology to meet their evolving needs and drive meaningful improvements.

By exploring the roles and responsibilities of a business analyst, you’ll discover the essential skills needed to thrive in this field. From requirements elicitation and process modeling to stakeholder management and solution design, the journey of a business analyst is both challenging and rewarding, paving the way for impactful contributions across industries.

Ultimately, this guide will help you explore the tools, skills, and pathways you need to successfully launch your own career as a business analyst. 

What does a business analyst do?

A business analyst acts as a bridge between business stakeholders and tech teams, ensuring that technology solutions effectively address business needs. They are problem-solvers, strategists, and communicators, working to improve efficiency and achieve organisational goals. Analysts play a crucial role throughout the lifecycle of a project, from initial concept to final implementation and evaluation.

Their responsibilities can include:

• Requirements elicitation (gathering stakeholder needs) and analysis through interviews, workshops, surveys, and document analysis to understand business needs and translate them into clear, concise requirements.
• Process modelling to identify inefficiencies and areas for improvement. Common tools include flowcharts, swim lane diagrams, and BPMN notation.
• Solution designs that meet the identified business requirements. This might involve specifying system functionality, data models, user interfaces, or workflows.
• Testing and validation ensure that the developed solution meets the requirements and works as intended. This includes creating test cases, executing tests, and documenting results.
• Stakeholder management at all levels of the organisation to manage expectations, communicate progress, and resolve conflicts.
• Documentation throughout the project lifecycle, including requirements specifications, design documents, test plans, and user manuals.

What skills does a business analyst need?

Becoming a business analyst requires a blend of hard and soft skills. While technical skills are valuable, strong communication and interpersonal skills are often considered even more critical.

Hard skills

Analytical skills: Being able to analyse complex information, identify patterns, and draw meaningful conclusions is fundamental to a business analyst’s role. Data analysis skills, including statistical analysis and data visualisation, are becoming increasingly important.

Technical proficiency: While not required for all business analyst roles, a basic understanding of technology, databases, and software development methodologies is often helpful. Familiarity with specific technologies will depend on the industry and project.

Modelling skills: The ability to create clear, concise, and accurate models of business processes using various diagramming techniques.

Requirement gathering techniques: Being skilled at understanding and recording what’s needed for a project by talking to people, running workshops, and analysing documents.

Soft skills

Communication skills: Excellent written and verbal communication skills are essential for effectively communicating with stakeholders at all levels of an organisation. The ability to tailor communication to different audiences is crucial.

Problem-solving skills: Business analysts must be able to identify and solve problems effectively, often under pressure and with limited information.

Interpersonal skills: Building strong relationships with stakeholders, fostering collaboration, and managing conflicts effectively are vital for success.

Stakeholder management: The ability to identify, analyse, and manage the needs and expectations of diverse stakeholders.

Time management and organisational skills: Juggling multiple tasks and prioritising effectively are essential skills in a fast-paced environment.

Types of business analyst roles

The field of business analytics is diverse, with roles varying across industries and organisational structures. Here are some common types of business analyst roles.

IT business analyst: Focuses on technology-related projects, working with software development teams to translate business needs into technical specifications.

Financial business analyst: Specialises in financial projects, analysing financial data, developing financial models, and supporting financial decision-making.

Marketing business analyst: Focuses on marketing projects, analysing market data, developing marketing strategies, and improving marketing campaigns.

Data analyst: A specialised type of business analyst focusing on analysing large datasets to extract insights and support business decision-making.

Senior business analyst: Leads projects, mentors junior business analysts, and often has broader responsibilities, including project management and stakeholder management.

Business systems analyst: Focuses on the design, implementation, and maintenance of business systems.

A business analyst’s career path

A career as a business analyst can be both rewarding and challenging, offering opportunities for professional growth and advancement.  

Entry-level: This role typically involves gathering, processing, and analysing data to help the organisation make informed decisions. Entry-level analysts often work with spreadsheets, databases, and reporting tools to create visualisations and summaries of data findings.

Senior analyst: Senior analysts take on more responsibility by leading projects from start to finish. They are expected to handle complex data sets, perform in-depth analysis, and derive insights that influence business strategy. They often mentor entry-level analysts and help them develop their skills. 

Management roles: Business analysts with strong leadership skills can transition into management positions where they are responsible for overseeing broader business initiatives. Their role may include setting strategic goals, managing teams, and driving organisational change.

Why should you become a business analyst?

There are several reasons why you should consider a career as a business analyst. 

High demand: Business analysts are in high demand across industries due to the increasing reliance on technology and data-driven decision making. This translates to job security and choice in a competitive job market.

Intellectual stimulation: The work is intellectually challenging, requiring problem-solving, critical thinking, and continuous learning.

Career growth: The field offers ample opportunities for career advancement, with various specialisation options and leadership roles available.

Impactful work: Business analysts make a tangible difference in organisations by improving processes, enhancing efficiency, and supporting innovation.

Competitive salaries: Business analyst salaries are generally competitive, reflecting the high demand and specialised skillset required.

Business analyst salary and demand

Salaries for business analysts vary widely depending on factors such as experience, location, industry, and company size. In the UK, entry-level analysts will typically earn £23,000 – £55,000 while experienced business analysts can earn significantly more. The field consistently shows high demand, making it a stable and rewarding career path.

What tools do you need to become a business analyst?

While specific tools vary by role and industry, familiarity with the following tools will put you at an advantage.

Microsoft Office Suite: Proficiency in Excel, Word, and PowerPoint is essential for creating reports, presentations, and other documents.

Process modelling tools: Explore Visio, Lucidchart, or draw.io, which are used to create visual representations of business processes.

Requirements management tools: Learn tools like Jira, Confluence, or Jama Software are used to manage and track requirements throughout the project lifecycle.

Data analysis tools: Analyse with SQL, Tableau, or Power BI as they’re becoming increasingly important for crunching data and creating reports.

Project management software: Tools such as Jira, Asana, or Trello are helpful for managing projects and tracking progress.

How to become a business analyst

Education: A bachelor’s degree in a related field (e.g. business administration, information systems, computer science) is often a prerequisite. A Master’s degree can also enhance career prospects.

Experience: Gaining relevant experience through internships, entry-level roles, or volunteer projects is invaluable.

Certifications: Professional certifications, such as the Certified Business Analysis Professional (CBAP) or the Entry Certificate in Business Analysis (ECBA), can demonstrate competency and boost career prospects.

Networking: Building a professional network through attending industry events and connecting with other business analysts can help with job searching and career development.

Continuous learning: The field of business analytics is constantly evolving, so continuous learning and skill development are essential for remaining competitive.

In conclusion…

A career as a business analyst offers a unique opportunity to be at the forefront of innovation and transformation within organisations. By bridging the gap between business needs and technological solutions, business analysts play a pivotal role in driving efficiency and fostering organisational success.

With a diverse range of responsibilities that include requirements elicitation, process modeling, and stakeholder management, business analysts are equipped with a robust skill set that empowers them to tackle complex challenges head on. As you consider this career path, remember that your ability to analyse data and communicate insights effectively will be your greatest asset in shaping strategies that lead to successful outcomes.

Don’t be afraid to pursue a career as a business analyst, embrace the learning opportunities, seek mentorship, and cultivate a network within the industry. By doing so, you’ll not only position yourself as a valuable contributor within your organisation but you’ll also embark on a fulfilling career path that promises growth, intellectual stimulation, and the chance to make a meaningful difference in the world of business.