What is a Business Analyst? What Does a Business Analyst Do?

Nowadays, companies possess a substantial amount of data. However according to McKinsey, up to nearly 40% of the reports generated from this data add very little or no value to the company.

Actually, the problem is the lack of sufficient knowledge on how to manage this data.

Companies should use this data to tell the right story. This is exactly what business analysts who derive actionable insights from large amounts of data do. 🧮

When you hear the term Business Analyst (BA), you might receive very different reactions:

• "Isn't this the project manager's job?"
• "Aren't they just the people who ask questions to understand our needs?"
• "I thought business analysts were only needed in IT projects."
• "Our projects aren't big enough to require a business analyst."
• "Business analysts only work in large companies."
• "Can't the project manager determine the needs already?"
• "Are you saying system analyst, or business architect, enterprise analyst, product owner... or project manager?"

😳 It seems that in many cases, what a business analyst actually does is not well understood. 

So, who is a business analyst and what value do they bring to your company?

A business analyst is responsible for bridging the gap between software teams and the company by using data analytics to evaluate processes, identify needs, and provide data-driven recommendations and reports to managers.

In short, they are the person who uses data to solve existing business problems. 

A business analyst can work in almost any sector. They can perform roles in areas such as quality assurance, requirements gathering, documentation, or customer support. 

To summarize a day and the tasks of a business analyst 👇;

• Analyzing business needs
• Gathering information from stakeholders
• Collecting and analyzing data
• Collecting user stories
• Evaluating business processes
• Outlining areas for improvement
• Providing guidance and advice on potential solutions
• Being a bridge between the customer and the technology team
• Conducting quality tests

What Exactly Does a Business Analyst Do?

Of course, what a business analyst does varies depending on the industry, type of business, and the project they are working on. However, to generalize, a business analyst helps a business achieve its goals by understanding how it operates.

Below, we have tried to summarize what a business analyst does. 👇

Project Initiation and Clarifying the Problem

A business analyst involved in a project first focuses on understanding the business processes and the project's objectives. 

Then, they detail the problem the project aims to solve. In this process, they analyze procedures to provide a clear definition of the problem. 

Such in-depth work is essential for making business processes more efficient. This analysis plays a critical role in interpreting data, identifying possible solutions, making the right business decisions, and guiding the decision-making processes.

Managing the Solution Development Process

In the next stage, the business analyst brings the project team together to brainstorm solutions that align with the requirements gathered from stakeholders. 

They work closely with stakeholders and experts throughout the project. 

They regularly inform the team about the requirements and manage changes within the project scope. Effective use of data analysis tools and techniques is crucial in this process.

User Acceptance Testing

In the final stage of the project, user acceptance tests are conducted to verify that the developed software meets business needs. 

During this stage, the quality control process is crucial to ensure that the final product complies with all requirements. 

The business analyst ensures both the solution meets expectations and integrates into business processes through these tests.

What Are the Responsibilities of a Business Analyst?

1. Evaluation

Among the primary responsibilities of a business analyst is to evaluate ways to improve the organization's efficiency and profitability.

2. Business Analysis

A business analyst should analyze and examine all data and information collected using statistical programming languages like Python or R. Needless to say, business analysts also make extensive use of Excel. 

3. Reporting

After a business analyst has thoroughly defined and analyzed an existing business problem, they must present the results in an understandable manner. 

4. Project Management

Once a solution to the existing business problem is determined, they must work with the client, project managers, and team members to implement and oversee the project.

What Skills Should You Have to Become a Business Analyst? 

First and foremost, a business analyst must know how to extract, analyze, and report data, and then how to share this information with others and apply it to business needs. 

Do you need to know software to be a business analyst is one of the most frequently asked questions on this topic. 👩‍💻

A business analyst is the only person who will establish communication between the customer and the developers. Therefore, a business analyst must have enough business knowledge to understand all the end user's requests when a product is requested and be familiar with the capabilities of the development environment used by the developer. 

They should understand how software works, be able to identify areas that could cause errors, and have knowledge of how to test development. 

In other words, you don't need to know software to be a business analyst, but of course, knowing software is beneficial. This way, you can write APIs or test automation and speed up some processes.

IIBA, a resource in this field, summarizes the skills that business analysts should have as follows: 

• Strong verbal and written communication skills.
• Ability to understand complex business problems and develop effective solutions.
• Ability to communicate effectively with both technical and non-technical teams.
• Ability to thoroughly document business processes, requirements, and solutions.
• Attention to detail and the ability to identify potential gaps in requirements are highly valuable for developing accurate solutions.
• Knowledge of the industry they work in and understanding of business processes.
• Ability to perform cost-benefit analysis and process modeling.
• Knowledge of data analysis tools (Excel, SQL, Tableau) is essential.
• Knowledge of business process modeling tools (Visio, Lucidchart) is necessary
• and of course JIRA, Trello and Asana such project management tools should be proficient in using.

Is Business Analysis Right for Me?

We'll ask just a few questions for this and expect you to ask yourself as well: 

1. Are You Curious About How Things Are Made?

Today, it's almost impossible for one person to produce something alone. For example, designing a car, building a house, or creating software. 

Even making a simple bulk needle requires a group of people working together.

The expertise areas of these people vary, leading to the concept we call division of labor. These people follow certain steps and sequences to achieve a product or goal. We call these steps and sequences a process.

Let's say you go to your favorite restaurant and want to eat that amazing pasta. What happens? 🍝

• The waiter greets you warmly, takes you to the table, and gives you the menu.
• After a while, the waiter comes and takes your order, then communicates it to the kitchen.
• The chef cooks the meal or delegates parts of it to other cooks.
• When the meal is ready, the waiter brings your plate, and you enjoy your meal.

Even if you go to a different restaurant, the process generally works the same way.

So what does this have to do with business analysis? 

You don’t need to know the answer, but are you curious about such things? If you are, then maybe business analysis could be an option for you.

2. Are You Curious About Technology?

Now let's add technology to the concepts of division of labor and processes. In the last century, technology has advanced significantly and has been used to make the workforce and processes more efficient.

Are you curious about how technology has changed the way we do business? Do you have a desire to learn more about a specific technology?

In the world of business analysis, you work closely with a business or client that wants to achieve something through machines and technologies. Here, you need to understand what they want to achieve.

3. Do You Enjoy Trying to Understand What People Want?

With the combination of division of labor, processes, and technology, we have created a very complex world. In this system, people are trying to figure out how to get what they want.

Sometimes people express what they want clearly, and sometimes it is ambiguous. 

Sometimes, the desires they express on the surface are actually different from their true needs. Understanding the real desire is a very challenging process. 

In summary, business analysis sits at the intersection of people's desires, technological changes, and processes. If these topics naturally intrigue you, then business analysis might be your career path. 

All you need to do is create your profile for free on Coderspace and wait for us to find the perfect job for you.