What Does a Business Analyst Do? Exploring the Role

Every successful business requires someone who can bridge the gap between ideas and action. The solution is the business analyst.

Business analysts tend to be in between the needs of business and the technical solutions to problems. They assist businesses in problem identification, decision-making, and resolution, which helps them reach their objectives in a more effective manner.

In this blog, we will explore what a business analyst does, their responsibilities, required skills, and the different types of roles they can pursue. We will also provide tips on how to start your career as a business analyst, along with a case study to help you understand their work better.

Who Is a Business Analyst?

A business analyst is a professional who provides support to organisations in enhancing processes, whilst making it possible to attain goals. They act as a link between business people and technical individuals so that solutions are created to fit the business needs.

Their responsibilities are defining a problem, understanding requirements, and proposing new designs, processes, or systems. In addition, they bring knowledge to the table from data analysis and team communication.

Business analysts are champions in analysing business processes as well as strategic thinking and turning dreams into real-time activities. They ensure that the proposed changes align with the company’s vision and strategy.

Apart from resolving issues they also foresee problems and risks. This ability allows them to be part of the factors that guarantee success in the projects undertaken.

The role of a business analyst is indeed crucial in business cases. Their efforts take them all the way from need identification and requirement gathering to data evaluation and post-implementation support. Each responsibility requires attention to detail, effective communication, and analytical skills to ensure the success of organisational changes.

1. Understanding Business Needs

In order to execute systems analysis effectively, understanding the organisation’s business needs is crucial as emphasised by Business Analysts. This includes understanding an organisation’s goals, challenges, and areas that could be developed. The analysts conduct stakeholder interviews at all levels and help in understanding the problems faced by the business and what it aims to achieve.

Why This Step Is Important:

• It sets the stage for all subsequent project phases by defining what success looks like.
• Aligns the project scope with organisational goals to avoid wasted time and effort.
• Helps prioritise resources and tasks by focusing on critical business challenges.

Techniques Used for This Step:

• Stakeholder Analysis: Determine the key decision-makers and what they think.
• Workshops and Brainstorming Sessions: Group discussions, in which challenges and potential solutions are explored.
• Gap Analysis: Investigating the variance between the present situation and the desired prospect.
• Observation: Learning through watching team processes to discover inefficiencies and gaps that require improvement.

This step is aimed at preventing business analysts from solving problems that are not worth the time and resources in the future. With proper knowledge of the business background, they present customised ideas that are effective in the long run and can be measured.

2. Requirements Gathering

Requirements gathering is one of the most critical responsibilities of a business analyst. It consists of the gathering of functional information from the stakeholders such that every requirement is addressed. In the absence of appropriate requirements, a project is prone to lose direction or goal, leading to confusion and wasted resources.

Why This Step Is Important:

• This ensures all the parties involved in the project have a common understanding of the scope. Enhances understanding between the developers and the designers, thereby cutting down on the need for redoing work.
• Helps in managing stakeholder expectations by defining what will be delivered.

Techniques Used for This Step:

• Use Cases and User Stories: Develop stories to address each user’s needs.
• Focus Groups: Gathering insights from a group of stakeholders or users.
• Interviews: Face-to-face engagement with identified parties.
• Document Analysis: Reviewing existing documentation to extract relevant information.

These methods are core in enabling business analysts to come up with a comprehensive requirements list. This stage functions as the base of the project and enables the teams to focus on delivering appropriate solutions.

3. Documentation

Once requirements are collected, it is necessary to begin writing them down in an organised manner. Analysts will now develop various documents to formalise the project so that all team leaders know what they need to do and what is expected of them.

Why This Step Is Important:

• This is useful in providing a single record for everyone who is working on the project.
• Reduces miscommunication by detailing project expectations.
• Acts as a guide for future reference, especially during audits or updates.

Techniques Used for This Step:

• Business Requirement Documents (BRD): Outlining where the business stands and what needs to be accomplished in the project.
• Functional Specification Documents (FSD): Describing in detail the features and functionality of the system.
• Process Flow Diagrams: Illustrating options of process flows or sequences of steps for better understanding.
• Wireframes: Creating an image depicting the interface’s structure to assist in designing how users will use that structure.

Exemplary documentation not only makes communication easier but also maintains the path of the project. It facilitates the establishment of responsibility, standing as a protective measure against scope creep and misunderstandings. By ensuring all details are documented, business analysts enable efficient project execution.

4. Conducting Market and Competitor Analysis

Business analysts often conduct market and competitor analyses to ensure their solutions align with industry trends. By examining the external environment, they gather insights on market demands, customer preferences, and competitor strategies. This step helps businesses remain competitive and adapt to evolving market conditions.

Why This Step Is Important:

• Identifies opportunities for growth by understanding market trends.
• Helps businesses benchmark their performance against competitors.
• Reduces risks by preparing for market challenges and changes.

Techniques Used for This Step:

• SWOT Analysis: Carrying out strengths, weaknesses, opportunities, and threats analysis of both the business and its competitors.
• Market Polls: Seeking the opinion of prospective or existing customers.
• Competitor Analysis: Discovering the offer of competitors with regard to place, price, and product.
• Trend Analysis: Determining any changes in the shifting of market and customer patterns.

By conducting market and competitor analysis, business analysts provide valuable data to guide strategic decisions. This makes sure that firms do not only adhere to operational goals but also perform successfully in the competitive marketplace.

5. Bridging Communication Between Teams

One of the most important responsibilities of a business analyst is acting as a bridge between technical teams and business stakeholders. In this instance, they take complex terms from the technical side and interpret them into business ones and vice versa, so that both parties are well informed. This role clears ambiguities and enhances the spirit of teamwork.

Why This Step Is Important:

• Ensures technical teams understand business requirements clearly.
• Helps stakeholders grasp technical limitations or possibilities.
• Improves efficiency by reducing miscommunication and delays.

Techniques Used for This Step:

• Facilitation of Meetings: Ensuring both technical and non-technical teams share their perspectives.
• Visual Tools: Using diagrams, mockups, or charts to explain ideas.
• Documentation: Creating reports that balance business and technical language.
• Regular Updates: Providing status reports to all stakeholders to maintain transparency.

By bridging communication gaps, business analysts enable smooth project execution and help teams collaborate effectively to achieve goals.

6. Creating Functional Specifications

The functional specifications detail the various conditions under which a system or process can satisfy business requirements. Formulated by business analysts, these specifications aim to provide an exact framework for developers, testers, and stakeholders. Such documentation includes an orderly description of the system’s attributes, procedures and technical systems.

Why This Step Is Important:

• Communicates clear-cut requirements to the developers, which minimises the chances of misinterpretation.
• It ensures that all the parties involved agree on the expected outcomes.
• Acts as a reference document for quality assurance and testing.

Techniques Used for This Step:

• Use Case Diagrams: Graphical depiction of how users will interact with the system.
• Customer Scenarios: Specific requirements for an action or functionality provided by the user.
• Diagrams and Blueprints: Charting out the processes involved and presenting the different interfaces visually.
• Technical Requirement Specifications: Outlining system-level requirements, such as performance or security needs.

7. Facilitating Stakeholder Meetings

Stakeholder meetings provide an avenue for stating the project objectives and settling disputes that may arise in the future. Such meetings are normally organised and held by business analysts in order to seek opinions, provide feedback and status updates and keep all the stakeholders up to date regarding the progress of the project.

Why This Step Is Important:

• Encourages collaboration by bringing all relevant parties together.
• Helps resolve conflicting interests or misunderstandings.
• Provides a platform for feedback, ensuring no critical details are missed.

Techniques Used for This Step:

• Agenda Preparation: Setting clear objectives for the meeting.
• Moderation: Guiding discussions to stay focused and productive.
• Follow-Up Documentation: Summarise key points and action items after the meeting.
• Conflict Resolution: Mediating discussions to address stakeholder concerns.

Facilitating effective stakeholder meetings ensures that everyone involved in the project feels heard and aligned. This step fosters a sense of ownership and helps keep the project on track.

8. Ensuring Project Alignment with Business Goals

One of the responsibilities of a business analyst is to ensure that there is cohesion between the project and the organisation’s objectives and strategy. This means that the evolution of the project and its results should be periodically checked against the intended business goals. It avoids having efforts put into activities, which do not create value for the organisation.

Why This Step Is Important:

• Ensures that project outcomes drive measurable results for the organisation.
• Avoids misdirection by keeping focus on defined business priorities.
• Helps in securing stakeholder buy-in by demonstrating alignment with organisational goals.

Techniques Used for This Step:

• Key Performance Indicators (KPIs): Tracking specific metrics to measure project success.
• Regular Reviews: Checking project progress against defined goals.
• Stakeholder Feedback: Gathering input to ensure that expectations are met.
• Strategic Alignment Frameworks: Comparing project activities with overall business strategy.

By ensuring alignment, business analysts act as guardians of a project’s value, guaranteeing that it remains relevant to business needs and delivers the intended benefits.

9. Designing Process Improvements

Business analysts assess current processes for inefficiencies and recommend refinements. They assess the existing approach, recognise the factors impeding production, and suggest new ones that would speed up work processes at lower operational costs.

Why This Step Is Important:

• Streamlines operations by eliminating unnecessary steps.
• Improves resource utilisation and minimises waste.
• Enhances customer satisfaction by reducing delays and errors.

Techniques Used for This Step:

• Process Mapping: Representation of processes in diagram forms to assist in understanding processes.
• Root Cause Analysis: This technique deals with an investigation that establishes the reasons why something fails to meet the expected standards.
• Benchmarking: Comparing current processes with industry standards.
• Value Stream Mapping: Analysing steps in a process to maximise the value delivered.

Improving processes is core to a business analyst as better processes allow firms to maximise given resources. The cost savings resulting from these improvements directly affect the performance of the firm’s operations and its efficiency as a whole.

10. Implementation and Deployment

Implementation and deployment is the stage where the plans are actually brought into action. In the implementation phase, the business analysts’ work is invaluable as it assists the teams during this stage so that the deployed solution is operative and serves its purpose. It is also their responsibility to guarantee that the users are sufficiently equipped to use the new systems or processes.

Why This Step Is Important:

• Guarantees that the solution meets business requirements during real-world application.
• Reduces disruptions by providing smooth transitions from old to new processes.
• Ensures stakeholders are confident in using the new system.

Techniques Used for This Step:

• User Training: Organising workshops or tutorials for end-users.
• Deployment Plans: Outlining steps for a seamless implementation.
• Post-Deployment Support: Providing assistance to resolve initial issues.
• Pilot Testing: Rolling out the solution to a small group before full implementation.

The implementation phase is where the work of a business analyst comes to fruition. They assist businesses in achieving their investment aims with less investment expenditure in enhancement management by making sure that optimal implementation is done.

11. Evaluating Data for Decision-Making

When it comes to evaluating your data, it is considered one of the most important duties among all. It is necessary and it will provide you with all the important patterns inside data so that you can identify structures and patterns, trends and insights from it. Such data-driven decision-making enables better decisions than faith-based ones.

Why This Step Is Important:

• Helps in identifying opportunities for growth and improvement.
• Reduces uncertainty by providing evidence-based recommendations.
• Guides the organisation in making informed, strategic choices.

Techniques Used for This Step:

• Data Analysis Tools: You can use different graphical tools like Excel, Tableau or Power BI, which boosts your visualisation power through data insights.
• Statistical Analysis: Identifying relationships and testing hypotheses, among regression and other techniques for this purpose.
• KPIs and Metrics: Tracking relevant performance indicators to assess business health.

Business analysts also allow organisations to remain competitive, as well as responsive to the market through thorough data evaluation. Such a step turns raw data into usable information, essential in making decisions.

12. Identifying and Mitigating Risks

When you seek success for any of your particular projects, you must seek risk identification and risk mitigation tools. These tools provide you with all the business analytical advantages, along with identifying any potential risk, which can disrupt your project in a long time. They then develop strategies to address or minimise these risks before they become critical issues.

Why This Step Is Important:

• Prevents costly project delays or failures.
• Ensures stakeholder confidence by demonstrating preparedness.
• Improves project outcomes by addressing challenges early.

Techniques Used for This Step:

• Risk Assessment Matrix: Categorising risks based on their impact and likelihood.
• SWOT Analysis: Determining weaknesses and threats of the external environment.
• Scenario planning: Formulating action plans for at worst situations.
• Contingency planning: Formulating action plans for extreme critical risks.

Business analysts play a critical role in the projects’ success with regard to risk management. Consequently, the organisation is better positioned in such a way that they do not suffer unexpected shocks and are more prepared to deal with such risks.

13. Providing Post-Implementation Support

After a project is implemented, business analysts continue to provide support to ensure the solution meets expectations. This involves monitoring system performance, gathering user feedback, and resolving any issues that arise during the initial phases of adoption.

Why This Step Is Important:

• Confirms that a solution implemented produces the intended impact.
• Aims at resolving issues of major concern to stakeholders and end-users, thereby enhancing their confidence and assurance.
• Provides scope on where further optimisation or further improvements are required.

Techniques Used for This Step:

• User Feedback Collection: Conducting surveys or interviews to assess satisfaction.
• Performance Monitoring: Analysing how the solution works in practice.
• Support Documentation: Creation of user manuals and troubleshooting guides.
• Continuous Improvement: Suggesting improvements and optimisation based on feedback provided at the earlier stages.

This process of providing post-implementation support to your project is a highly important step because it can bring you a lot of sustained success through seamless project delivery.

Also Read: Business Analyst Course Syllabus

Case Study: Improving Customer Retention Through Data Analysis

Step 1: Problem Identification

In recent times, a retail firm has been losing a lot of its customers due to them switching and going to other competitors. The executives wished to get answers to such queries, which are the reasons why the consumers were switching from them and what steps they needed to take for customer retention.

Step 2: Role of the Business Analyst

A business analyst was brought in to identify the root causes of customer churn and recommend actionable solutions. The analyst worked with customer support, the centre for Marketing, and IT professionals to obtain the relevant data.

Step 3: Data Collection and Analysis

• Customer Feedback: Surveys and feedback forms were analysed to understand common complaints.
• Purchase History: Transactional data was reviewed to identify patterns in customer behaviour.
• Market Trends: Competitor offerings were studied to pinpoint areas where the company lagged.

There is a clear difference seen among the data collection and analysis from your side because the customers are dissatisfied with the lack of loyalty programs and delayed outcomes.

Step 4: Developing Recommendations

The business analyst recommended:

• Optimising the supply chain to reduce delivery times.
• Introducing a tiered loyalty program to reward repeat customers.
• Enhancing customer support with quicker response times and more channels.

Step 5: Implementation

The recommendations were implemented in phases:

1. A new logistics partner was on board to improve delivery times.
2. A loyalty program was launched with exclusive discounts for returning customers.
3. A chatbot was introduced to provide instant customer support.

Step 6: Measuring Results

Post-implementation metrics showed:

• A 20% decrease in customer churn within six months.
• A 15% increase in repeat purchases due to the loyalty program.
• Improved customer satisfaction ratings based on feedback surveys.

Various Types of Business Analyst Roles

Business analysts work in diverse roles across industries. Here are the main types of business analyst roles and their focus areas:

IT Business Analyst

• Focuses on improving IT systems and infrastructure.
• Acts as a bridge between IT teams and business stakeholders.
• Defines system requirements and ensures alignment with business needs.

Functional Analyst

• Focuses on specific business processes, such as finance, HR, or supply chain.
• Works closely with functional teams to optimise workflows.
• Documents and communicates functional requirements for software or process changes.

Systems Analyst

• Analyse current IT systems to identify areas for improvement.
• Design solutions to enhance system efficiency and functionality.
• Works closely with developers to ensure system changes meet technical requirements.

Process Analyst

• Specialises in identifying and improving inefficient business processes.
• Uses techniques like process mapping and root cause analysis.
• Aims to enhance operational efficiency and reduce costs.

Business Intelligence Analyst

• Focuses on developing dashboards and reports for strategic decision-making.
• Uses BI tools like Power BI or Tableau to visualise data.
• Helps executives understand performance metrics and trends.

Agile Business Analyst

• Works in Agile environments to support iterative development processes.
• Creates user stories and ensures requirements are met during sprints.
• Facilitates collaboration between product owners and development teams.

Financial Analyst

• Focuses on financial data to guide investment and budgeting decisions.
• Prepares financial reports and projections for stakeholders.
• Ensures financial alignment with strategic goals.

Skills Required to Become a Business Analyst

Business analysts need a combination of interpersonal and technical competencies in order to carry out their tasks. Below is a list of essential skills:

Technical Skills

• Data Analysis: The ability to analyse large amounts of data and provide actionable insights for the company based on those findings. Experience with software such as Excel, SQL, or Tableau is usually necessary.
• Business Process Modeling: Compose simple and precise diagrams that depict the sequence of operations and the components of the business processes. For this, BPMN or Visio diagrams are frequently used.
• Requirements Gathering and Documentation: The ability to perform requirement elicitation and documentation, such as business requirement documents (BRD) and functional requirement specifications FRS.
• Technical Proficiency: Knowledge of such tools and platforms as JIRA, Confluence, various CRM, and database management systems.
• Knowledge of Data Visualisation: Comprehension of tools such as Power BI or Tableau in order to communicate insights based on the data to relevant parties in an effective manner.

Soft Skills

• Communication Skills: Highly developed oral and communication skills that facilitate the articulation of advanced ideas and enable teamwork and communication between stakeholders.
• Problem-Solving Skills: Tactically advanced analytical thinking that enables comprehension of the problem and addresses its cause for feasible solutions that are viable within the business operations.
• Critical Thinking: Analysing the situation logically so that their needs and concerns can be resolved in the most effective way while working with limited resources.
• Time Management: Achieving all tasks within set timelines, without compromising on the quality of the outputs produced.
• Interpersonal Skills: Capable of developing healthy working relationships among team members and stakeholders, while dealing with opposing views and expectations.

Behavioral Skills

• Attention to Detail: Ensuring all requirements and documentation are accurate and thorough to avoid project errors.
• Adaptability: The capability to cope with new levels of the project’s objectives, new stakeholder’s needs and the wider business context.
• Decision-Making Skills: Relating insights and inputs from stakeholders in the business to make decisions that are effective and productive in furthering the business objectives.

Also Read: Business Analyst Job Description

How to Become a Business Analyst

Here is a step-by-step guide to help you start and grow as a business analyst:

Step 1: Understand the Role of a Business Analyst

• Research the role of a business analyst and the sectors in which they operate.
• Learn about their functions, which include collecting and reviewing requirements, evaluating business needs, and assisting teams in communication.

Step 2: Obtain a Relevant Educational Background

• Obtain degrees in fields, such as Business Management, Computer Science, or Information Systems.
• Line up your studies toward courses focusing on data, project management, and business-oriented communication.

Step 3: Develop Core Skills

• Work on technical skills such as data analysis, process modelling, and documentation.
• The key goals are to improve soft skills such as communication, problem-solving, and teamwork.

Step 4: Gain Practical Experience

• Search for internships or entry-level positions in the fields of IT, operations, or data analysis.
• Offer to assist on projects that do requirements gathering or process improvement.

Step 5: Learn Tools and Techniques

• Learn to use JIRA, Confluence, SQL, or Tableau amongst others.
• Understand modelling and diagrams such as UML diagrams, process maps, and use case analysis.

Step 6: Earn Certifications

• Take appropriate certifications such as those offered by Herovired.
• Consider acquiring Agile-oriented certifications like PMI-ACP or Scrum Master to widen your skill set.

Step 7: Build a Strong Portfolio

• Document projects that demonstrate your ability to solve business problems and deliver value.
• You should add case studies, diagrams, and copies of requirements documents to your portfolio.

Step 8: Network with Industry Professionals

• Participate in business analysis conferences, online events and training sessions.
• Become a member of the International Institute of Business Analysis (IIBA) and other relevant professional groups.

Step 9: Apply for Entry-Level Positions

• Apply for jobs with titles such as junior business analyst, systems analyst, or data analyst.
• Target your CV to emphasise the skills and experience which are relevant to the role in question.

Step 10: Focus on Continuous Learning

• Stay updated on industry trends, tools, and methodologies.
• Aim for advanced certifications and attend training programs while advancing your skills through self-learning as well.

Following these steps will set you on the right path to becoming a successful business analyst.

Also Read: Top Business Analyst Interview Questions and Answers

Conclusion

A business analyst is a highly important role which fills the gap between business goals and technical solutions. Proper skills and the right tools will enable business analysts to assist organisations in making decisions that are effective, enhancing process improvements, and gaining measurable success.

Whether you are just starting your journey as a business analyst or looking for an upgrade, focusing on gaining proper knowledge, practical experience, and certifications will set you off on the right path. In the end, with various roles available, your career as a business analyst will offer opportunities for growth and impact in every industry. Pursue the Accelerator Program in Business Analytics and Data Science with Nasscom by Hero Vired and gain the skills required to become a business analyst.