What Is a Business Analyst? 2025 Career Guide

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Business analysts use data to develop business insights and recommend changes. Business analysts can identify issues in virtually any part of an organization, including IT processes, organizational structures, or staff development.

As businesses seek to increase efficiency and reduce costs, business analytics has become an important part of their operations. Let’s take a closer look at what business analysts do and what it takes to get a job in business analytics. Afterward, build your skill set in this lucrative career by enrolling in the IBM Business Analyst Professional Certificate, where you'll learn earn essential skills in process modeling, requirements gathering, and stakeholder engagement.

What is business analysis?

Business analysis is the process of gathering and analyzing data to make recommendations that help an organization achieve its business goals. As a result, the primary goal of business analysis is to guide the decision-making process within an organization, offering suggestions for changes that can improve outcomes and overcome obstacles or shortfalls. Using their analytical skills, business professionals in the field make plans and recommendations to help increase value for both internal and external stakeholders.

A defining characteristic of business analysis is that it’s not just about making high-level recommendations. It also involves designing technical and concrete action steps to make those recommendations a reality. 

What does a business analyst do?

Business analysts identify areas where a company can increase its efficiency and strengthen business processes. They often work closely with others throughout the business hierarchy to communicate their findings and help implement changes.

Tasks and duties can include:

• Identifying and prioritizing the organization's functional and technical needs and requirements

• Using SQL and Excel to analyze large data sets

• Compiling charts, tables, and other elements of data visualization 

• Creating financial models to support business decisions

• Understanding business strategies, goals, and requirements

• Planning enterprise architecture (the structure of a business)

• Forecasting, budgeting, and performing both variance analysis and financial analysis

Business analyst: salary and job outlook

The average base salary for business analysts in the United States is $83,509, according to Glassdoor [1]. However, your earning potential will vary depending on the company, location, and amount of experience you have.

The demand for business analysts has increased in recent years and is projected to continue. The US Bureau of Labor Statistics (BLS) projects faster-than-average job growth between 2023 and 2033 for similar roles, such as management analyst, which is poised to grow by 11 percent in the next decade [2].

Learn more: IT Business Analyst: Duties, Salary, and How to Become One

Why pursue a career in business analysis?

Business analysts are in demand across industries, including finance, health care, education, IT, consulting, e-commerce, government, and manufacturing. As a business analyst, you'll have the opportunity to support your organization's success through data-driven insights. In business analytics, every day brings new challenges and new ways to put your skills into practice. If you enjoy collaborating, asking questions, solving problems, doing impactful work, and bridging business and technology, a career as a business analyst could be a good fit.

What's the difference between a business analyst and a data analyst?

Both data analysts and business analysts support data-driven decisions in their companies. Business analysts tend to focus more on recommending solutions for business needs, while data analysts work more closely with the data itself.

Read more: Data Analyst vs. Business Analyst: What’s the Difference?

How to become a business analyst

Becoming a business analyst often requires gaining skills and credentials applicable to the work and the industry you're interested in. Coursework, certifications, or degrees can each aid your path to a job as a business analyst.

1. Consider a degree.

Many employers like to see at least a bachelor’s degree on your resume, though some may prefer candidates with a master’s degree, especially as you seek to advance. According to Zippia, 70.5 percent of business analysts hold a bachelor's degree [3]. Common majors include business administration and data science.

2. Sharpen your business analyst skills.

Here are some skills you’ll typically want to have as a business analyst. 

• Business acumen: A solid understanding of finance, accounting, and business principles will help you surface what operational issues exist, and how best to address them.

• Communication: A business analyst is often expected to communicate with several different players within an organization, including upper management and other teams. Being able to present your ideas clearly and convincingly—both verbally and in writing—will be a large asset as a business analyst.

• Data analysis: Gathering, tracking, and analyzing performance metrics will be central to a business analysis role. Having a good grasp of data analysis and visualization tools like Tableau, Excel, and BI Tools can be useful. Some knowledge of a programming language like SQL may also come in handy.

• Business analysis methodologies: Depending on your industry, it could help to be familiar with specific methodologies, like Agile Business Analysis, Six Sigma, or Rational Unified Process.

• Industry expertise: Different industries have different business needs and challenges. Developing business solutions for an IT company might look different than it does for a health care company. Industry experience, even in another role, can give you a competitive edge when applying for jobs.

3. Earn a business analyst certification.

Earning a certification can expand your skill set, potentially increasing your earnings or making you more competitive for jobs. Here are some business analysis certifications to consider:

• IIBA Entry Certificate in Business Analysis (ECBA)

• IIBA Certified Business Analysis Professional (CBAP)

• IIBA Certification of Capability in Business Analysis (CCBA)

• PMI Professional in Business Analytics (PMI-PBA)

If you’re just starting out as a business analyst, the ECBA can show hiring managers you’ve received several hours of training and know the basics of business analysis. If you have some experience with business analytics, the CBAP, CCBA, and PMI-PBA can show employers your competency and experience.

4. Start with an entry-level role.

Internships and entry-level positions in accounting, finance, or business settings can build your experience before you advance to a higher-level position. In your job search, look for titles like junior business analyst. If you’re still in school, making an appointment with a career counselor can help you understand what opportunities are out there.

Who uses business analysis?

Business analysis is used within a wide range of industries. Essentially, if a business wants to use data to make informed decisions, it typically employs a business analyst. Some examples of industries that use business analysis include IT and technology companies and financial organizations.

Sharpen your business analytics skills with Coursera

If a career in business analysis sounds interesting, build your knowledge and skill set by enrolling in the IBM Business Analyst Professional Certificate. Over six courses, you'll learn essential skills in process modeling, requirements gathering, and stakeholder engagement, as well as how to apply systems analysis tools to real-world scenarios.

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