A business analyst (BA) is a person who processes, interprets and documents

business process A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...

es, products, services and

software Software is a set of computer programs and associated software documentation, documentation and data (computing), data. This is in contrast to Computer hardware, hardware, from which the system is built and which actually performs the work. ...

through analysis of

data In the pursuit of knowledge, data (; ) is a collection of discrete values that convey information, describing quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpret ...

. The

role A role (also rôle or social role) is a set of connected behaviors, rights, obligations, beliefs, and norms as conceptualized by people in a social situation. It is an expected or free or continuously changing behavior and may have a given indivi ...

of a business analyst is to ensure business efficiency increases through their knowledge of both IT and

business function A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...

. Some tasks of a business analyst include creating detailed

business analysis Business analysis is a professional discipline of identifying business needs and determining solutions to business problems. Solutions often include a software-systems development component, but may also consist of process improvements, organiz ...

budgeting A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environme ...

and

forecasting Forecasting is the process of making predictions based on past and present data. Later these can be compared (resolved) against what happens. For example, a company might estimate their revenue in the next year, then compare it against the actual ...

, planning and monitoring,

variance analysis Analysis of variance (ANOVA) is a collection of statistical models and their associated estimation procedures (such as the "variation" among and between groups) used to analyze the differences among means. ANOVA was developed by the statistician ...

, pricing, reporting and defining business requirements for stakeholders. The business analyst role is applicable to four key areas/levels of business functions – operational, project, enterprise and competitive focuses. Each of these areas of business analysis have a significant impact on

business performance Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...

, and assist in enhancing

profitability In economics, profit is the difference between the revenue that an economic entity has received from its outputs and the total cost of its inputs. It is equal to total revenue minus total cost, including both explicit and implicit costs. It ...

and efficiency in all stages of the business process, and across all business functions.

Role

Business analysis is defined by th
International Institute of Business Analysis (IIAB)
as "a disciplined approach for introducing change to organisation" through

management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities ...

, processing, and

interpretation Interpretation may refer to: Culture * Aesthetic interpretation, an explanation of the meaning of a work of art * Allegorical interpretation, an approach that assumes a text should not be interpreted literally * Dramatic Interpretation, an event ...

of data in order to "identify and define the solution that will maximise the value delivered by an organisation to its stakeholders". A business analyst's job description tends to include "creating detailed business analysis, outlining problems, opportunities and solutions for a business, budgeting and forecasting, planning and monitoring, variance and analysis, pricing, reporting, and defining business requirements and reporting back to stakeholders". There are many business activities which the business analyst is involved in. Some areas in which business analysts can have an important role are in

financial analysis Financial analysis (also known as financial statement analysis, accounting analysis, or analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. It is performed by profe ...

, quality assurance,

training Training is teaching, or developing in oneself or others, any skills and knowledge or fitness that relate to specific useful competencies. Training has specific goals of improving one's capability, capacity, productivity and performance. I ...

, business policy and procedures, organisational development and solution testing. More specifically, business analysts are required to use the data which is gathered for the purpose of analysis and interpret greater meaning for the business. This can then be used to improve business performance through identifying areas for potential growth,

cost reduction Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or products, the strategies can vary. Every decision in the product development process affects cost: desig ...

, understanding

customer behaviour Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with the Purchasing, purchase, Utility, use and disposal of goods and services. Consumer behaviour consists of how the consumer's emotio ...

, and observing economic trends and forecasts, and then reacting appropriately. Successful business analysts should influence the business environment by providing reliable guidance in decision making for the future through observing data which reflects the

behaviour Behavior (American English) or behaviour ( British English) is the range of actions and mannerisms made by individuals, organisms, systems or artificial entities in some environment. These systems can include other systems or organisms as w ...

of the business in the past. Business analysts are essential at all levels of a business, as both tactical and

strategic Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the " ar ...

planning require analysts who help with "incremental improvements to products, business processes, and application". Business analysts have an increasing need to provide a business with

sustainable Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livin ...

solutions. The Business Analyst "plays a key role in making sustainable choices, providing direction to business and influencing demand for specific

technologies Technology is the application of knowledge to reach practical goals in a specifiable and reproducible way. The word ''technology'' may also mean the product of such an endeavor. The use of technology is widely prevalent in medicine, science, ...

". Business analysis practices have the opportunity to use business data in a positive way, which can lead to the transition of a sustainable world.

Areas of business analysis

Business focuses

Due to the range of applications a business analyst can have, there are specific areas in which they can function. Kathleen B. Haas describes the requirement of business analysts in four areas of business – operations focus, project focus, enterprise focus, and competitive focus. # Operations focus – business analyst are able to use big data to analyse the way in which a business's operations are impacting the ability of the business to generate

business value In management, business value is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run. Business value expands concept of value of the firm beyond economic value (also known as econom ...

. Business analysts add value to the operational level of a business by enabling efficiency to be maximised through cost cuts,

investing Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

in better equipment, improving employee efficiency, and increasing production of popular products. # Project focus – when a business analyst takes charge of a project, areas that are historically overlooked are more likely to be considered carefully. The business analyst has an essential role in projects, which includes "integrating strategic planning with

portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a type of briefcase Collections * Portfolio (finance), a collection of assets held by an institution or a private individual * Artist's portfolio, a sample of an artist's work or a ...

planning for Information Systems and technology", inclusion of the possible effects of business decisions on future performance, and the use of modelling tools to demonstrate the "as-is" and "to-be" business to all employees across various levels of the business. # Enterprise focus – a business analyst who works in this area of a business helps to "optimise development of

innovative Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed enti ...

solutions" through the use of technology. Activities involved in an enterprise-focused business analyst's job include building current and future

business architecture In the business sector, business architecture is a discipline that "represents holistic, multidimensional business views of: capabilities, end‐to‐end value delivery, information, and organizational structure; and the relationships among these ...

, conducting analyses of opportunities, problems and feasibility, proposing new projects to build solutions, validating forecasts and assumptions being made, conducting solution assessments and validation, comparing planned and actual results of

business plan A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on ...

s. # Competitive focus – the competitive environment is analysed by business analysts "in order to develop a meaningful strategy" for all areas of a business. One of the main functions of business which this is relevant in is

marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...

. By observing consumer behaviour when interacting with a business's products and the products of its competitors, as well as the

distinctiveness Trademark distinctiveness is an important concept in the law governing trademarks and service marks. A trademark may be eligible for registration, or registrable, if it performs the essential trademark function, and has distinctive character. ...

brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create a ...

s in the consumer space, information about

substitutability The Liskov substitution principle (LSP) is a particular definition of a subtyping relation, called strong behavioral subtyping, that was initially introduced by Barbara Liskov in a 1988 conference keynote address titled ''Data abstraction and hi ...

and product performance can be determined.

Specific business analyst roles

Business analyst skills can be applied to a variety of roles within business processes. Th
IIBA
describes a large number of job titles which business analysts can work in, which include:
Business analyst
*

Business systems analyst A business analyst (BA) is a person who processes, interprets and documents business processes, products, services and software through analysis of data. The role of a business analyst is to ensure business efficiency increases through their ...

Systems analyst A systems analyst, also known as business technology analyst, is an information technology (IT) professional who specializes in analyzing, designing and implementing information systems. Systems analysts assess the suitability of information syst ...

* Requirements engineer * Process analyst * Product analyst *

Product manager A product manager (PM) is a professional role that is responsible for the development of products for an organization, known as the practice of product management. Product managers own the product strategy behind a product (physical or digital), ...

* Product owner * Enterprise analyst *

Business architect In the business sector, business architecture is a discipline that "represents holistic, multidimensional business views of: capabilities, end‐to‐end value delivery, information, and organizational structure; and the relationships among these ...

Management consultant Management consulting is the practice of providing consulting services to organizations to improve their performance or in any way to assist in achieving organizational objectives. Organizations may draw upon the services of management consultants ...

* Business

intelligence analyst Intelligence analysis is the application of individual and collective cognitive methods to weigh data and test hypotheses within a secret socio-cultural context. The descriptions are drawn from what may only be available in the form of deliberate ...

Data scientist Data science is an interdisciplinary field that uses scientific methods, processes, algorithms and systems to extract or extrapolate knowledge and insights from noisy, structured and unstructured data, and apply knowledge from data across a bro ...

Business analysts can also work in areas relating to project management, product management, software development, quality assurance and interaction design.

Skills and Qualifications

Skills

According to the IIAB, the basic skills most important for a business analyst include: *

Oral The word oral may refer to: Relating to the mouth * Relating to the mouth, the first portion of the alimentary canal that primarily receives food and liquid **Oral administration of medicines ** Oral examination (also known as an oral exam or ora ...

and

written communication Writing is a medium of human communication which involves the representation of a language through a system of physically inscribed, mechanically transferred, or digitally represented symbols. Writing systems do not themselves constitute ...

skills * Facilitation, and

interpersonal The concept of interpersonal relationship involves social associations, connections, or affiliations between two or more people. Interpersonal relationships vary in their degree of intimacy or self-disclosure, but also in their duration, in t ...

and consultative skills * Analytical thinking and

problem solving Problem solving is the process of achieving a goal by overcoming obstacles, a frequent part of most activities. Problems in need of solutions range from simple personal tasks (e.g. how to turn on an appliance) to complex issues in business an ...

* Being detail-oriented and capable of delivering high level

accuracy Accuracy and precision are two measures of '' observational error''. ''Accuracy'' is how close a given set of measurements (observations or readings) are to their '' true value'', while ''precision'' is how close the measurements are to each ot ...

* Organisational skills * Knowledge of

business structure Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not sepa ...

* Stakeholder analysis *

Requirements engineering Requirements engineering (RE) is the process of defining, documenting, and maintaining requirements in the engineering design process. It is a common role in systems engineering and software engineering. The first use of the term ''requirem ...

Cost benefit analysis In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in whic ...

* Processes modelling * Understanding of

networks Network, networking and networked may refer to: Science and technology * Network theory, the study of graphs as a representation of relations between discrete objects * Network science, an academic field that studies complex networks Mathematics ...

, databases and other technology These skills are a combination of hard skills and

soft skills Soft skills, also known as power skills, common skills or core skills, are skills applicable to all professions. These include critical thinking, problem solving, public speaking, professional writing, teamwork, digital literacy, leadership, pr ...

. A business analyst should have knowledge in IT and/or business, but the combination of both of these fields is what makes a business analyst such a valuable asset to the business environment. As a minimum standard, a business analyst should have a "general understanding of how systems, products and tools work" in the business environment. Some IT employees may transfer from the area of IT into a business analyst role, as their skills are often applicable in both. There are broader categorised skill sets which business analysts require in the work place. #

Mediation Mediation is a structured, interactive process where an impartial third party neutral assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are ...

- business analysts are a useful "

liaison Liaison means communication between two or more groups, or co-operation or working together. Liaison or liaisons may refer to: General usage * Affair, an unfaithful sexual relationship * Collaboration * Co-operation Arts and entertainment * L ...

support role" between business professionals and IT professionals in the

workplace A workplace is a location where someone works, for their employer or themselves, a place of employment. Such a place can range from a home office to a large office building or factory. For industrialized societies, the workplace is one of ...

. The business analyst role is an overlap of these two

profession A profession is a field of Work (human activity), work that has been successfully ''professionalized''. It can be defined as a disciplined group of individuals, ''Professional, professionals'', who adhere to ethical standards and who hold the ...

s, and therefore the business analyst plays an essential role in

communication Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inqu ...

and understanding between these two groups. #

Requirements elicitation In requirements engineering, requirements elicitation is the practice of researching and discovering the requirements of a system from users, customers, and other stakeholders. The practice is also sometimes referred to as "requirement gathering". ...

- this refers to "analysing and gathering the needs of both computer-based systems as well as the business". Successful requirements elicitation can help to improve and eliminate quality and defective requirements respectively at an early point in the

product lifecycle In industry, Product Lifecycle Management (PLM) is the process of managing the entire lifecycle of a product from its inception through the engineering, design and manufacture, as well as the service and disposal of manufactured products. ...

, and can therefore minimise

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