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Business analysts, also known as management analysts, work for all kinds of businesses, nonprofit organizations, and government agencies. While job functions can vary depending on the position, the work of business analysts involves studying business processes and operating procedures in search of ways to improve an organization’s operational efficiency and achieve better performance.
Key Takeaways
- Business analysts are responsible for working with management to improve operating procedures, reduce costs and inefficiencies, and achieve better performance.
- All kinds of businesses, organizations, nonprofits, and government agencies employ business analysts.
- Most entry-level business analyst jobs require at least a bachelor’s degree.
- Employers looking for a senior business analyst frequently require candidates to have a master of business administration (MBA) degree or additional certification.
Understanding the Role of Business Analyst
Business analysts work with management to devise new or enhanced systems and work processes designed to reduce or eliminate inefficiencies, reduce costs, and improve the firm’s competitive position in the market. Business analysts are key in marketing organizations as well, to optimize the effectiveness of marketing and sales.
In addition to requirement gathering, business analysts play a part in evaluating potential solutions and conducting cost-benefit or feasibility analyses to determine the best course of action. They often create detailed reports, process diagrams, and documentation to support decision-making and ensure clarity. Business analysts may also be involved in testing new systems, training users, and monitoring performance post-implementation.
Who Employs Business Analysts?
Many large organizations have business analysts on staff who continuously monitor operations and devise and implement process improvements. Business analysts also work as external consultants, providing targeted analysis and recommendations to organizations on a short-term contractual basis.
Business analysts who work in consulting firms often specialize in an industry, such as healthcare or manufacturing, or develop expertise in a specific business area, such as supply chain management or information systems management. Organizations also hire business analysts for assistance in planning and executing a major business project, such as moving into a foreign market or developing an e-commerce strategy.
Fast Fact
Accordin to Glassdoor, a business analyst usually makes between $81,000 and $134,000. The median total pay for a business analyst as of 2025 was $104,000.
Specific Industry Tracks for Business Analysts
While the core skills of a business analyst are broadly applicable, the role often varies significantly depending on the industry. Specializations allow business analysts to apply their expertise in certain contexts where niche knowledge is needed. Examples of those types of roles include:
- IT Business Analyst: These analysts bridge the gap between business needs and technology solutions. They work closely with software developers, system architects, and end-users to ensure that IT systems align with business objectives.
- Financial Business Analyst: In finance, business analysts focus on budgeting, forecasting, financial modeling, and investment analysis. They assess financial data to inform strategic decisions such as mergers and acquisitions, capital investments, or cost-saving initiatives.
- Healthcare Business Analyst: Working in healthcare settings, these analysts aim to improve patient care and operational efficiency. They analyze workflows in hospitals or clinics, evaluate the effectiveness of electronic health record systems, even help implement compliance measures aligned with regulations such as HIPAA.
- Marketing or Digital Business Analyst: Marketing analysts specialize in consumer data, marketing performance, and digital engagement. They use analytics tools to track campaign effectiveness, customer segmentation, and conversion metrics.
- Supply Chain Business Analyst: Analysts that specialize in supply chain focus on optimizing logistics, procurement, and inventory management. They analyze supply chain data to identify bottlenecks, forecast demand, and reduce operational costs.
- Manufacturing Business Analyst: In manufacturing, analysts examine production data, machinery performance, and quality control processes to boost efficiency and reduce waste. They may work on implementing lean manufacturing practices or integrating new technologies like IoT sensors and automation tools to enhance productivity.
Government or Public Sector Business Analyst: Government or public analysts work within government agencies or nonprofit organizations to improve policy implementation, public service delivery, and compliance. They assess program effectiveness, streamline bureaucratic processes, and ensure taxpayer-funded initiatives achieve measurable outcomes.
A Business Analyst’s Career Path
Many business analysts begin their careers working in entry-level business positions related to their undergraduate degrees. Work experience provides young professionals with a better understanding of how businesses operate from the inside, which is invaluable to the work of analyzing and improving business processes. With sufficient experience and good performance, a young professional can move into a junior business analyst position. Some choose instead to return to school to get a master’s degree before beginning work as a business analyst in a large organization or consultancy.
With more experience and expertise, business analysts can move into more senior positions with greater responsibility and influence. A senior analyst may be responsible for a team of professionals planning and executing a business process redesign (BPR) or another complicated project. The best-qualified, top-performing business analysts can move into high-level management positions in companies and other organizations. High-performing consultants may rise into leadership positions in their firms or strike out on their own to start new consultancies.
A Business Analyst’s Educational Qualifications
Most entry-level business analyst positions require at least a bachelor’s degree. However, since there are few undergraduate programs in the United States designed specifically to train business analysts, most employers look for job candidates with degrees in business disciplines. Subjects such as business administration, business analytics, and business information systems are good options for jobs in this field, as are business degrees in operations management, human resources, logistics, finance, accounting, math, and marketing.
Many employers hiring a senior analyst or consultant position—or looking to promote within the organization—look for candidates who hold a master of business administration (MBA) degree or another relevant business degree. It’s not uncommon for junior analysts to return to school for master’s degrees after several years of experience working in the field. However, a master’s degree is not generally an absolute requirement for advancement. Sufficient work experience, specialized knowledge, and a record of high performance may suffice for a job candidate who does not hold a master’s degree.
Important
The U.S. Department of Labor projects demand for business and management analysts will grow 11% from 2023 to 2033, much faster than average for all occupations due to the need for organizations to control costs and improve efficiency.
Other Certifications
Two major certifications figure prominently in the business analyst profession: the certified business analysis professional (CBAP) and the certified management consultant (CMC).
Certified Business Analysis Professional (CBAP)
The International Institute of Business Analysis offers the certified business analysis professional (CBAP) designation to analysts with at least 7,500 hours of qualifying work experience in the previous 10 years.
To obtain the CBAP designation, candidates must also complete at least 35 hours of professional development training in the last four years and pass a written exam. As this certification is designed specifically for experienced professionals, it is generally considered a qualification for career advancement into more senior positions in the field.
Certified Management Consultant (CMC)
The Institute of Management Consultants USA administers the certified management consultant (CMC) designation, a professional certification for experienced business analysts who work as consultants. Basic certification is available to candidates who have a bachelor’s degree, three to nine years of qualifying management consulting experience, and at least five satisfactory evaluations from past consulting clients.
To obtain the CMC designation, candidates must pass an oral exam and a written exam. This certification is considered a qualification for senior analyst positions in consulting companies and other organizations. Independent consultants also pursue the certification as a marker of professionalism and experience.
What Does a Business Analyst Do?
Business analysts analyze what a business needs to function optimally and how it can improve. They do this by analyzing the processes and functions of the business they work for—either as an employee or as a consultant. They may take on the role of technical project manager to help design and implement a new service or product and make certain that it is solving the problem it is intended to fix.
What Skills Are Required to Be a Business Analyst?
Good communication skills are paramount for a business analyst. Active listening and good written and verbal communication are required work with clients, developers, and organization leaders, and to convey information about projects, solutions, and other aspects related to improving a company’s productivity. Other skills include:
- In-depth understanding of IT systems
- Critical thinking to make informed decision
- Problem-solving
- Negotiation to find solutions
- Research
- Cost-benefit analysis
- Teamwork and collaboration
What’s the Difference Between a Business Analyst and a Business Analytics Professional?
The primary difference is that a business analyst focuses on analyzing business functions to improve them, while a business analytics professional focuses on data and statistical analysis to improve business performance. The insights the latter looks for come from data, rather than analyzing processes and functions. A business analytics professional needs a lot of technical skills and familiarity with tools like SQL, the coding language of databases, and programming languages like R and Python.
The Bottom Line
Business analysts, or management analysts, are expected to be in demand over the next nine years, according to the U.S. Bureau of Labor Statistics. They can be hired by businesses, nonprofit organizations, and government agencies to recommend ways in which an organization can improve its efficiency. They can also work as consultants. An advanced degree like an MBA is not always required for advancement in the field, but it can help, as can certification from one of the professional organizations that grant it.
