Business analysts help organizations connect their goals with the right solutions. This is why they are essential to the success of any modern business. These professionals are in demand across nearly every industry, helping companies improve efficiency, adapt to change, and stay competitive.

If you are curious about what a business analyst does, the skills they need, and how to start this career path, this guide has you covered. We will explore their responsibilities, the industries they work in, and the different types of analysts. You will also see how Florida National University (FNU) can prepare you to pursue a business analyst career through our Business Administration programs.

What Does a Business Analyst Do?

A business analyst evaluates how an organization operates, identifies areas for improvement, and develops solutions that make the business more effective. Their goal is to help companies work smarter by streamlining processes, adopting new technologies, and improving overall performance.

They also act as a bridge between business leaders and technical teams, translating goals into clear requirements. By doing so, they ensure projects are completed on time, within budget, and deliver the results stakeholders expect.

Why are Business Analysts Important?

Business analysts are vital to the success of organizations because they connect business goals with practical solutions. Their work ensures companies stay efficient, innovative, and competitive. Here are the main ways they add value:

  • Bridge business and technology: Translate organizational needs into clear requirements for technical teams.
  • Improve efficiency: Identify inefficiencies and recommend cost-saving solutions.
  • Keep projects on track: Document requirements and monitor progress to ensure successful outcomes.
  • Guide decision-making: Analyze data and trends to help leaders make informed choices.
  • Facilitate collaboration: Serve as liaisons between departments to ensure alignment.
  • Support digital transformation: Help organizations adopt modern tools and systems.
  • Manage change and risks: Prepare teams for new processes while minimizing disruption.
  • Ensure compliance: Align business operations with industry regulations.
  • Drive long-term growth: Promote continuous improvement and adaptability.

Business analysts help organizations make smarter decisions, improve performance, and stay competitive in a changing marketplace.

Salary and Job Outlook for Business Analysts

One of the reasons business analysis is such an attractive career path is the strong job outlook and earning potential. According to the U.S. Bureau of Labor Statistics (BLS), management analysts, which includes business analysts, had a median annual wage of $101,190 in May 2024. Salaries vary depending on industry, geographic location, and level of experience, with entry-level analysts earning less and senior analysts or consultants earning significantly more.

Job demand is also expected to grow faster than average. The BLS projects employment of management analysts to increase by 9 percent from 2024 to 2034, which means more than 90,000 new jobs nationwide. Growth is driven by organizations looking to improve efficiency, adopt new technologies, and stay competitive in a global marketplace.

Why Pursue a Career in Business Analysis?

Business analysis is a rewarding career for people who enjoy solving problems, working with data, and helping organizations succeed. It offers the chance to make a real impact while building a versatile skill set that can be applied across many industries. Here are a few key reasons to consider this path:

  • High demand: Organizations of all sizes need business analysts to improve performance and guide decision-making.
  • Career flexibility: Skills in business analysis are valued in technology, healthcare, finance, government, education, and more.
  • Strong earning potential: Business analysts earn competitive salaries with opportunities for advancement into senior or specialized roles.
  • Growth opportunities: The role can lead to careers in management, consulting, or data analysis.
  • Meaningful work: Business analysts help companies solve challenges, adopt new tools, and create better outcomes for employees and customers.

Choosing a career in business analysis means entering a field with strong job security, opportunities to grow, and the satisfaction of making a measurable difference.

Key Responsibilities of a Business Analyst

Business analysts focus on improving how organizations operate and making sure projects deliver real results. Their main responsibilities include:

  • Identify needs: Understand goals and challenges.
  • Analyze processes: Review systems and data for improvements.
  • Recommend solutions: Suggest better tools, strategies, or workflows.
  • Define requirements: Turn needs into clear instructions for teams.
  • Facilitate communication: Keep departments aligned and informed.
  • Support implementation: Help test and launch new solutions.
  • Evaluate outcomes: Measure results and suggest next steps.

Business analysts combine problem-solving skills with clear communication to guide organizations through change. By making processes more efficient and aligning projects with business goals, they help companies grow and adapt in a competitive environment.

How to Become a Business Analyst

There is no single path to becoming a business analyst, but most careers in this field follow a few common steps:

1. Earn a degree in business or a related field

Most business analysts start with a foundation in business administration, finance, information systems, or a similar area. A degree provides the essential knowledge of business processes and organizational strategy.

2. Build analytical and technical skills

Skills in data analysis, problem-solving, and tools like Excel, SQL, or visualization software are highly valued. Strong communication and collaboration skills are also critical.

3. Gain experience

Entry-level roles such as research assistant, operations coordinator, or junior analyst can provide practical experience that leads to business analysis positions.

4. Pursue professional certifications

Certifications such as the Certified Business Analysis Professional (CBAP), Entry Certificate in Business Analysis (ECBA), or PMI Professional in Business Analysis (PMI-PBA) can boost credibility and open more career opportunities.

5. Continue learning and growing

Business analysis is a dynamic field. Staying current with industry trends, tools, and best practices helps professionals advance in their careers.

By following these steps, aspiring analysts can develop the knowledge, skills, and experience needed to succeed in the field.

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 achieve this through 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.

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 effective employment as 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.

Frequently Asked Questions About Business Analysts

Do I need a degree to become a business analyst?

While some employers may hire candidates with strong experience, most business analyst positions require at least a bachelor’s degree in business, finance, information systems, or a related field.

Is business analysis a good career?

Yes. Business analysis is a growing field with strong salaries, career flexibility, and opportunities to work across many industries. It is a great choice for people who enjoy problem-solving and collaboration.

What industries hire business analysts?

Business analysts are needed in nearly every industry, including technology, finance, healthcare, retail, government, education, and consulting.

What skills are most important for business analysts?

Key skills include critical thinking, data analysis, communication, problem-solving, and the ability to work with both business leaders and technical teams.

What is the average salary for a business analyst?

According to the U.S. Bureau of Labor Statistics, management analysts, which includes business analysts, earned a median annual wage of $99,410 in 2023.