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 performed by people or equipment in which a specific sequence produces a service or product (that serves a particular business g ...

es, products, services and

software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...

through analysis of

data Data ( , ) are a collection of discrete or continuous values that convey information, describing the quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted for ...

. 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 indi ...

of a business analyst is to ensure business

efficiency Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. ...

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 performed by people or equipment in which a specific sequence produces a service or product (that serves a particular business g ...

. Some tasks of a business analyst include creating detailed business analysis,

budgeting A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...

and

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

, business strategising, planning and monitoring, variance analysis, 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, and assist in enhancing

profitability In economics, profit is the difference between revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. It is equal to total revenue minus total cost, including both Explicit co ...

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

Role

Business analysis has been defined as "a disciplined approach for introducing change to organization" through

management Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a Government agency, government bodies through business administration, Nonprofit studies, nonprofit management, or the political s ...

, processing, and interpretation of data in order to "identify and define the solution that will maximize the value delivered by an organization 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". Business analysts are involved in various business activities.. 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, project or investment. It is per ...

quality assurance Quality assurance (QA) is the term used in both manufacturing and service industries to describe the systematic efforts taken to assure that the product(s) delivered to customer(s) meet with the contractual and other agreed upon performance, design ...

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, market analysis,

organizational development Organization development (OD) is the study and implementation of practices, systems, and techniques that affect organizational change. The goal of which is to modify a group's/organization's performance and/or culture. The organizational chan ...

and solution testing. More specifically, business analysts analyze collected data to derive meaningful insights 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 organisations aiming to reduce their costs and increase their profits, or to accommodate reduced income. Depending on a company’s services or products, the strategies can vary. Every decision in the produ ...

, understanding

customer behavior Consumer behaviour is the study of individuals, groups, or organisations and all activities associated with the Purchasing, purchase, Utility, use and disposal of goods and services. It encompasses how the consumer's emotions, Attitude (psy ...

, 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 of Individual, individuals, organisms, systems or Artificial intelligence, artificial entities in some environment. These systems can include other systems or or ...

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'', "troop leadership; 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 "art o ...

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 Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...

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 Conceptual model, conceptual knowledge to achieve practical goals, especially in a reproducible way. The word ''technology'' can also mean the products resulting from such efforts, including both tangible too ...

". 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 Big data primarily refers to data sets that are too large or complex to be dealt with by traditional data processing, data-processing application software, software. Data with many entries (rows) offer greater statistical power, while data with ...

to analyze 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 (economics), 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 (a ...

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

investing Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

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 "optimize 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 ent ...

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 analyzed 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 act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...

. By observing consumer behavior 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. Re ...

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

s in the consumer space, information about substitutability and product performance can be determined.

Specific business analyst roles

Business analyst skills can be applied to a variety of roles within business processes. * Business analyst * Business systems analyst *

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 *

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 consultant ...

* 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 delibera ...

Data scientist Data science is an interdisciplinary academic field that uses statistics, scientific computing, scientific methods, processing, scientific visualization, algorithms and systems to extract or extrapolate knowledge from potentially noisy, struct ...

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

Skills and qualifications

Skills

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 the act of creating a persistent representation of language. A writing system includes a particular set of symbols called a ''script'', as well as the rules by which they encode a particular spoken language. Every written language ...

skills * Facilitation, and

interpersonal In social psychology, an interpersonal relation (or interpersonal relationship) describes a social association, connection, or affiliation between two or more people. It overlaps significantly with the concept of social relations, which are ...

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''. ''Precision'' is how close the measurements are to each other. The ...

* 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." A business entity is not necessari ...

* 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 ''requiremen ...

Cost benefit analysis 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 which case the amount of money expended to acquire it is ...

* 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, essential skills, or core skills, are psychosocial skills generally applicable to all professions. These include critical thinking, problem solving, public speaking, professional writing, t ...

. 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 categorized skill sets which business analysts require in the work place. #

Mediation Mediation is a structured, voluntary process for resolving disputes, facilitated by a neutral third party known as the mediator. It is a structured, interactive process where an independent third party, the mediator, assists disputing parties ...

- business analysts are a useful "liaison 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 ...

. 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, professionals, who adhere to ethical standards and who hold themselves out as, and are ...

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

communication Communication is commonly defined as the transmission of information. Its precise definition is disputed and there are disagreements about whether Intention, unintentional or failed transmissions are included and whether communication not onl ...

and understanding between these two groups. # Requirements elicitation - this refers to "analyzing 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 (economics), industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its inception through the Product engineering, engineering, Product design, design, and Manufacturing, ma ...

, and can therefore minimize wastage and maximize business success simultaneously. # Solution designer - business analysts can contribute to the design of business functions and processes through the analysis of past performance and certain areas for improvement. # Business modelling - forecasting, modelling and analyzing current and future business performance, functions and processes are essential to the business analyst role. These skills enable the business analyst to make educated business decisions. # Business

problem analysis 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 ...

- a business analyst must be able to analyze the issues a business is facing in order to determine how they impact business performance, and how the business can overcome these problems with maximum efficiency. # Information System (IS) strategy evaluation - business analysts are required to continually monitor and control the strategic plans of a business, so that it is able to best meet its needs and goals. Part of this involves comparison with competitors and industry trends.

Qualifications

There are a number of qualifications that can lead to a career as a business analyst. * Completing a

bachelor's degree A bachelor's degree (from Medieval Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate degree awarded by colleges and universities upon completion of a course of study lasting three to six years ...

- this could be in information technology,

business administration Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising the business operations of an organization. Overview The administration of a business includes the performance o ...

economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ...

. * Completing a

master's degree A master's degree (from Latin ) is a postgraduate academic degree awarded by universities or colleges upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional prac ...

- masters degrees "help add more skills and significantly increase your

salary A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. ...

". Examples of masters degrees which are relevant to business analysts include

business analytics Business analytics (BA) refers to the skills, technologies, and practices for iterative exploration and investigation of past business performance to gain insight and drive business planning. Business analytics focuses on developing new insights ...

, business informatics, business intelligence & analytics,

data science Data science is an interdisciplinary academic field that uses statistics, scientific computing, scientific methods, processing, scientific visualization, algorithms and systems to extract or extrapolate knowledge from potentially noisy, stru ...

management information system A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. The study of the management information systems involves peo ...

s or

information technology Information technology (IT) is a set of related fields within information and communications technology (ICT), that encompass computer systems, software, programming languages, data processing, data and information processing, and storage. Inf ...

. The combination of all these skills and qualifications provides the business environment with deeper understanding into the behaviour of markets, products, competitors,

economies An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with ...

, and operations within and around a business.

Challenges

A successful business analyst requires access to large amounts of

, and in the process of using this data they must be aware of challenges relating to

data privacy Information privacy is the relationship between the collection and dissemination of data, technology, the public expectation of privacy, contextual information norms, and the legal and political issues surrounding them. It is also known as data ...

, careful management of analytical resources, team success, and effective

of results to external parties. Considering all these factors into their tasks reduces the risk of inaccurate conclusions being drawn. Data privacy is an increasingly common issue, as

social media Social media are interactive technologies that facilitate the Content creation, creation, information exchange, sharing and news aggregator, aggregation of Content (media), content (such as ideas, interests, and other forms of expression) amongs ...

and

Big Data Big data primarily refers to data sets that are too large or complex to be dealt with by traditional data processing, data-processing application software, software. Data with many entries (rows) offer greater statistical power, while data with ...

are becoming more prominent, and hence it is important for businesses to ensure that they handle and distribute only the necessary data to the appropriate

employees Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...

. Management of analytical resources is necessary for business analysts to consider, as there are many ways in which a business can implement high

initial In a written or published work, an initial is a letter at the beginning of a word, a chapter (books), chapter, or a paragraph that is larger than the rest of the text. The word is ultimately derived from the Latin ''initiālis'', which means '' ...

costs in the process of analysis of data, and hence

resource ''Resource'' refers to all the materials available in our environment which are Technology, technologically accessible, Economics, economically feasible and Culture, culturally Sustainability, sustainable and help us to satisfy our needs and want ...

s should be carefully managed so as to not lose business profits. Team functionality and success is important in all areas of business, and business analytics is no different. Business analysts work best in environments where

group dynamics Group dynamics is a system of behaviors and psychological processes occurring within a social group (''intra''group dynamics), or between social groups ( ''inter''group dynamics). The study of group dynamics can be useful in understanding decision ...

are balanced and teamwork is maximised to ensure the best conclusions are drawn from the data. Effectively communicating with external parties is a key challenge for business analysts. The terminology used in a business analyst’s day-to-day work can often be complex or difficult for other departments or external stakeholders to understand. Therefore, it is essential for businesses to carefully consider how their findings and conclusions are communicated to ensure clarity and alignment.

References

{{reflist, 2 Business analysis Business terms Systems analysis Business occupations Computer occupations