Interested in becoming a business analyst? Wonder what they do on a day-to-day basis? This article will review why business analysts are important, what they do, and where they work. This will give you some insight into whether you want to become a business analyst. Either way, the first step on a path to a career as a business analyst is completing the Associate of Arts or Bachelor of Science in Business Administration at Florida National University (FNU). Let us prepare you with the knowledge and skills to succeed in an industry you are passionate about.
Why are Business Analysts Important?
Business analysts (BAs) are crucial to the success of organizations because they bridge the gap between business needs and technical solutions. Here is why business analysts are important:
Translate Business Needs into Actionable Solutions
Many organizations struggle to align their business goals with technology or operational changes. Business analysts act as intermediaries, ensuring that technical teams understand business requirements and vice versa. For example, in a retail company, a business analyst may gather requirements from store managers about slow inventory processes and work with IT to implement an automated tracking system.
Enhance Efficiency and Reduce Costs
Business analysts identify inefficiencies in workflows, systems, and processes and propose solutions to streamline operations, saving time and money. For instance, a business analyst at a manufacturing firm may spot delays in the supply chain and recommend a new logistics system, cutting delivery times by 20%.
Ensure Successful Project Outcomes
Projects can fail due to unclear requirements or miscommunication. Business analysts ensure that stakeholders’ expectations are clearly documented and addressed throughout the project lifecycle. For example, a business analyst may ensure that a new e-commerce platform delivers on promised features like mobile compatibility and payment options, preventing costly redesigns.
Support Strategic Decision-Making
By analyzing data, market trends, and business performance, business analysts provide insights that help leadership make informed decisions. This can be seen in a telecom company where a business analyst analyzes customer churn data and identifies pricing adjustments that could improve retention rates.
Facilitate Communication Between Teams
Effective communication is vital, especially in cross-functional projects. Business analysts act as liaisons between technical teams, management, and end-users. For example, a business analyst at a healthcare company may ensure the IT team understands the specific needs of doctors and nurses when designing an electronic health record (EHR) system.
Drive Digital Transformation
In a rapidly changing technological landscape, organizations rely on business analysts to implement tools and processes that keep them competitive. To stay competitive, a business analyst may help a financial institution migrate from legacy systems to a cloud-based platform, improving scalability and reducing operational costs.
Manage Change and Mitigate Risks
Changes in processes or systems can disrupt operations. Business analysts ensure smooth transitions by identifying risks, preparing teams, and providing training. For example, a business analyst in a government agency may oversee the rollout of a new citizen services portal, addressing concerns about data privacy and user adoption.
Align Business Goals with Market Needs
Organizations must stay aligned with customer demands and market trends to remain competitive. Business analysts ensure that products and services meet these expectations. To do this, a business analyst in a SaaS company collects user feedback to prioritize features for the next software update, improving customer satisfaction.
Support Compliance and Regulatory Requirements
Organizations must comply with industry regulations, and business analysts ensure processes and systems align with these requirements. For example, a business analyst at a bank may help implement changes to comply with new anti-money laundering (AML) regulations.
Add Long-Term Value
By fostering continuous improvement, business analysts contribute to an organization’s ability to adapt and thrive in a competitive environment. In particular, a business analyst at an energy company may introduce sustainability-focused metrics into operations, reducing environmental impact while improving efficiency.
What Does a Business Analyst Do?
A business analyst analyzes processes, identifies opportunities for improvement, and helps organizations implement changes that drive efficiency, innovation, and growth. Here is a breakdown of what a business analyst does:
Understanding Business Needs
Business analysts collaborate with stakeholders (e.g., executives, managers, and teams) to understand the organization’s goals, challenges, and needs. To do this, they conduct workshops, interviews, or surveys to gather insights.
Analyzing Data and Processes
An organization needs to examine existing workflows, systems, and data to identify inefficiencies or areas for improvement. Business analysts do this with the help of tools like flowcharts, diagrams, and data analysis software to map out and evaluate processes.
Defining Solutions
Business analysts propose solutions that align with business objectives, whether through process changes, technology implementation, or strategic adjustments. They prioritize requirements based on impact and feasibility.
Developing Requirements
Business needs need to be translated into detailed technical and functional requirements for developers, project teams, or vendors. Business analysts do this with the use of tools like user stories, requirements documentation, or business requirement documents (BRDs).
Facilitating Communication
Business analysts act as liaisons between business stakeholders and technical teams, ensuring clear understanding and alignment. They resolve misunderstandings or conflicts during the project lifecycle.
Supporting Project Implementation
As a business analyst, you will work closely with project teams during the implementation of solutions, ensuring requirements are met. You will conduct testing, quality assurance, and troubleshooting to validate the solution’s effectiveness.
Monitoring and Evaluating Results
It is important to assess the effectiveness of implemented changes and ensure they deliver the expected business value. Business analysts do this by providing feedback for ongoing improvements.
Where Do Business Analysts Work?
Business analysts work in a variety of industries and organizations. Below is an overview of where business analysts typically work, with examples for each setting:
Information Technology (IT) and Software Development
In IT, business analysts work with developers to define requirements for software or systems. For example, they may analyze user needs for a new app or software tool or may support digital transformation projects in non-tech companies.
Finance and Banking
Business analysts optimize financial processes, improve compliance, and implement financial technologies. At a bank, they may analyze the implementation of new loan-processing software. At an insurance company, they may improve the claims processing workflows.
Healthcare
In healthcare, there needs to be a focus on enhancing patient care and operational efficiency through technology and process improvements. In a hospital, the business analyst may assist in deploying patient scheduling systems.
Retail and E-Commerce
It is important in retail and e-commerce to enhance customer experience, streamline inventory management, or support online sales platforms. Working for a retail chain, the business analyst may optimize the supply chain and logistics. Or, with an e-commerce platform, the business analyst may work to improve the user interface (UI) of online shopping platforms.
Government and Public Sector
Business analysts in government need to support policy implementation, public service projects, or systems modernization. For example, a federal agency may analyze and improve program efficiency. On a local government level, they may help implement citizen-facing platforms.
Manufacturing and Supply Chain
A business analyst in manufacturing may improve production processes, logistics, and inventory management systems. This helps the organization support the integration of new production management software or analyze workflows to reduce shipping errors.
Education
In education, it is important for business analysts to support the implementation of learning management systems (LMS) and data-driven decision-making. They may optimize student enrollment systems or develop solutions for virtual learning platforms.
Energy and Utilities
A business analyst in the energy sector, working to assist in energy management projects, regulatory compliance, or operational improvements. This may involve streamlining billing systems or implementing smart grid technologies.
Consulting Firms
Business analysts at a consulting firm provide expertise to clients across industries, helping them solve business challenges. They may deliver strategic recommendations or support tech-driven transformations.
Nonprofits
Business analysts who work at nonprofits support mission-driven initiatives by improving operational efficiency and donor management systems. This can include implementing donor tracking software or optimizing resource allocation for sustainability projects.
What are the Different Types of Business Analysts?
Business analysts can specialize in different roles depending on the industry, organization, or project type. Each type of business analyst focuses on their unique responsibilities. Here is an overview of the different types of business analysts:
IT Business Analyst
In IT, a business analyst works closely with the IT team to design, implement, or improve technology solutions. They may help translate business needs into technical requirements, collaborate with developers, testers, and stakeholders, and support system implementation and troubleshooting. For example, an IT business analyst at a software company may gather requirements for a customer relationship management (CRM) tool and ensure its development aligns with client expectations.
Data Analyst / Business Intelligence Analyst
Data analysts analyze data to provide insights for better business decisions. They do this by collecting and interpreting large datasets, creating dashboards and reports using tools like Power BI, Tableau, or SQL, and identifying trends, opportunities, and risks based on data.
Functional Analyst
Functional analysts specialize in specific business functions such as finance, HR, or supply chain. They understand and optimize workflows within a particular domain, and act as a liaison between domain experts and IT teams. For example, a functional analyst for HR systems works with HR managers to implement a new payroll platform that automates tax calculations.
Systems Analyst
A systems analyst concentrates on designing and maintaining information systems. This involves evaluating existing systems, recommending improvements, defining system specifications and workflows, testing system performance, and resolving issues.
Process Analyst
A process analyst works to improve business processes and workflows for better efficiency and effectiveness. They do this by conducting process mapping and analysis, recommending process automation or redesigns, and monitoring and measuring process performance. For example, A process analyst at a logistics company identifies inefficiencies in shipping workflows and recommends a new automated sorting system.
Strategic Business Analyst
A strategic business analyst focuses on high-level strategic goals and initiatives of an organization. This is done by analyzing market trends and business performance, identifying opportunities for growth or competitive advantage, and collaborating with executives to define long-term strategies.
Financial Analyst
A financial analyst examines financial data and processes to support organizational financial health. They help their organization by analyzing budgets, forecasts, and financial performance, and providing recommendations for cost reduction or investment opportunities. For example, a financial analyst at an investment firm evaluates the feasibility of expanding into international markets.
Regulatory / Compliance Analyst
A regulatory analyst ensures that processes, systems, and projects comply with industry standards and regulations. They do this for their organization by interpreting regulatory requirements, integrating them into business processes, and preparing organizations for audits and compliance checks. A compliance analyst at a bank may ensure systems adhere to GDPR and anti-money laundering (AML) regulations.
Marketing Analyst
A marketing analyst supports a marketing team by analyzing campaigns and customer behavior. They may evaluate campaign performance and ROI and use analytics tools to track customer engagement. For example, a marketing analyst at a fashion brand analyzes website traffic and recommends strategies to boost conversions.
Final Thoughts
Business analysts come in many forms, each specializing in a unique aspect of the business or industry. Their expertise ensures that processes, systems, and strategies align with organizational goals and customer needs. Ready to become a business analyst? The time is now. The door is open at FNU.
Eager to Learn More?
The fundamental advantage of obtaining a degree in business administration is that it provides a solid basis for pursuing a bachelor’s degree and gaining practical work experience. FNU provides an easy transition from associate courses to the Business Bachelor, MBA and the Master in
Operations Research Analyst program.
The Business Administration Associate Degree program is designed for students planning to pursue a higher-level degree in business administration. It offers key introductory courses within the field of business management. The program includes a thirty-nine credit-hour component of general education/liberal arts courses.
The purpose of this Business Administration Bachelor’s Degree program is to contribute to the education of its students with a general knowledge of business and the skills necessary for employment to be effective leaders in today’s business world. The program also provides a foundation for successful admission into graduate programs.
Contact us today to delve deeper into our Business Administration Degree program.
