A bridge between business systems to functional implementation of technical solutions. Sounds tough? That’s exactly what business analysts do. But if you’re struggling with combining business needs with technology, they may be the ones to help.
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The modern business world is fast-paced, and rapid change is something that all businesses must be able to deal with in order to seamlessly abandon outdated practices and move toward new-age technologies, which are essential for releasing competitive digital products. An important part of dealing with change is the ability to leverage existing technology capabilities to achieve a variety of business objectives, and that is where business analysts come in.
A business analyst’s job description includes responsibilities such as creating new models, prioritizing technical and functional requirements, addressing various business issues, and using data to influence decision-making.
Business analysis is a research discipline focused on identifying business needs and determining solutions to business problems. Often described as an information conduit, a Business Analyst (BA) is someone whose main focus is to help a business deal with change by practicing business analysis. Understanding business analysis concepts, as outlined in the globally recognized International Institute of Business Analysis (IIBA) BABOK Guide, is crucial for effective business analysis.
While business analysis focuses on identifying business needs and determining solutions, business analytics involves using data, statistical analysis, and modeling to drive strategic decision-making.
Business analysis is centered on understanding and defining business needs, then developing solutions that address these needs to drive change and improvement within an organization. In contrast, business analytics focuses on leveraging data, statistical methods, and advanced modeling techniques to analyze trends, forecast outcomes, and inform both strategic planning and decision-making, enabling businesses to make data-driven decisions and gain a competitive edge.
The International Institute of Business Analysis (IIBA), a non-profit professional association formed with the purpose of supporting and promoting the discipline of business analysis, defines business analysis as:
“A disciplined approach for introducing and managing change to organizations, whether they are for-profit businesses, governments, or non-profits.”
A business analyst must be a skilled problem solver with:
The primary role of a business analyst, is to act as a bridge between business stakeholders and the IT department. They ensure that business requirements are accurately translated into functional specifications for technology solutions.
"Strong communication and facilitation skills are necessary for collecting requirements from various stakeholders." - The Knowledge Academy
A successful senior business analyst must be adept at handling large amounts of data, managing analytical resources, and effectively communicating results to external parties. These skills ensure that the analyst can not only process and interpret data accurately but also present actionable insights in a way that is understandable and valuable to stakeholders.
Business analysts also need to be well-versed in the techniques for eliciting, documenting, and managing business requirements. This expertise is essential for translating business needs into clear, actionable specifications that guide the development of effective solutions.
Among the technical skills necessary for a business analyst's role, are the ability to analyze data to identify trends, patterns, and insights, as well as the capability to create comprehensive reports and presentations based on this data. These skills are crucial for deriving meaningful conclusions and communicating them in a way that drives decision-making.
Project management skills are also crucial for experienced business analysts, enabling them to manage various aspects of project execution efficiently. Additionally, familiarity with an agile mindset, agile practices, and understanding roles within a Scrum framework are increasingly important as organizations adopt agile methodologies to enhance flexibility and collaboration.
Business analysts must possess a robust set of soft analytical skills. Critical thinking is essential for analyzing problems, identifying viable solutions, and evaluating their potential impacts on business operations. Additionally, an understanding of basic statistical methods and their application in business contexts, coupled with the ability to approach complex business problems and develop feasible solutions, is vital for success in this role.
"They are tasked with identifying problem areas within a business process and devising appropriate solutions. Their analytical skills are instrumental in identifying the root causes of issues and determining the most suitable methods for resolution." - The Knowledge Academy
"Business analysts play a key role in helping the business make the most of its technology investments and their skill in using data to prove the value of IT." - HBS Online
Their skill in using data to demonstrate the value of IT is crucial. They deal with facts and data, not wishful thinking or unsupported assumptions.
A good Business Analyst is a visionary business architect who:
The question, “What is a Business Analyst?” is fairly easy to answer, but how much does a Business Analyst make? To find out, we have analyzed data from Glassdoor, a provider of information about salary and benefits.
According to Glassdoor, the national average salary for a Business Analyst is $69,163 in the United States, and the information is based on 52,098 salaries submitted anonymously to Glassdoor by business analyst employees. Senior Business Analysts have it even better because they earn $88,436 on average.
The average salary for an IT business analyst can be higher due to the specialized skills required in information technology, which can significantly boost a business analyst's salary.
Compare the two figures with the average junior developer salary, which is just $65,951, and it is easy to see why so many people-oriented critical thinkers want to become Business Analysts instead of pursuing a career in software development.
"I usually describe what a BA does by telling people I am a bridge between business systems from the end user to functional implementation of technical solutions,” says Jay Michael, a business analyst for Colfax. “But when you tell somebody that, they look at you like ‘OK, what do you really do?’"
According to the BABOK Guide produced by the IIBA, a Business Analyst seeks to understand how a business functions to help it accomplish its business objectives.
Once assigned to a project, the Business Analyst first dives into understanding the relevant business processes and the project’s goals. They then refine the problem the project aims to solve by creating detailed documentation and comparing it with existing policies, procedures, and protocols. This thorough analysis is vital for ensuring business efficiency, as it helps interpret data, identify solutions, make business decisions, and guide decision-making.
The next step involves gathering the project team to brainstorm solutions that meet all the requirements collected from stakeholders. Throughout the project, the business analyst remains in close contact with stakeholders and subject matter experts, continuously educating the team on requirements and managing any changes to the project scope. In this context, the use of data analysis tools and techniques is indispensable.
Finally, when the software product is ready, the Business Analyst conducts user acceptance testing to ensure the solution aligns with business needs. Quality assurance during this phase is crucial to confirming that the final product meets all required standards.
A business analyst (BA) plays a crucial role in software development by acting as the bridge between business goals and technical execution.
BAs focus on translating business needs into clear, actionable specifications that guide the development team. For example, they gather and analyze requirements from stakeholders, ensuring that the final software solution aligns with the organization's objectives. This ensures that the development team understands what needs to be built, reducing the risk of miscommunication and ensuring that the project stays on track.
BAs also enhance collaboration within the team by facilitating stakeholder communication between developers, testers, and business stakeholders. By participating in key meetings and agile ceremonies, they help prioritize tasks and keep everyone aligned on project goals. This role is critical in maintaining the project’s momentum and ensuring that the software delivers real business value.
Moreover, BAs contribute significantly to quality assurance through activities like User Acceptance Testing (UAT). They validate that the software meets the business requirements and is ready for deployment, reducing the likelihood of post-launch issues. Additionally, they manage any changes in project scope, ensuring that updates are smoothly integrated without disrupting timelines.
In this article, we’ve explored the question, “What is a Business Analyst?” and provided insight into the critical role they play within organizations. Business Analysts (BAs) are the key players who help companies stay ahead of the curve in rapidly changing markets. They dive deep into business analysis, pinpointing specific needs and devising strategic solutions to address them.
In software development teams, BAs are indispensable. They bridge the gap between business objectives and technical execution, ensuring that the final product not only meets but exceeds expectations. By gathering requirements, facilitating communication, and guiding the development process, they help create software solutions that are aligned with business goals.
Considering the attractive salary potential and the dynamic, impactful nature of the business analysts work, it’s no surprise that more people-oriented critical thinkers are drawn to this career path. For those who enjoy solving complex problems and playing a pivotal role in shaping successful software projects, a career as a Business Analyst offers not just a job, but an exciting journey filled with opportunities.
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Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.
Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.
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