6 Career Paths for In-Demand Business Analysts in 2022 and Mistakes to Avoid

Business analysts are crucial in assisting organizations in becoming the best they can be. Companies that wish to stay competitive in this era of pandemics, political unpredictability, fierce competition, and quickly developing technology resort to business analysts. Do you want to know how to create a career path for a business analyst, or more specifically, the best career path for a business analyst?  

A qualified business analyst could make the difference between excellence and mediocrity. Every advantage counts.

Continue reading if you wish to join the growing popularity of business analysts. Let's start by discussing what a business analyst is, and then move on to discussing how to become one.

What is a Business Analyst?

Business analysts study a company’s processes, operating procedures, and large data sets to find ways to enhance an organization’s operational efficiency while achieving better performance. Although business analysts are also known as management analysts, please don’t confuse them with data analysts.

Business analysts work with management to reduce costs, eliminate, or reduce inefficiencies, and boost the company’s competitiveness in the modern business world. They use their analytical skills to understand and apply data-focused strategies best suited to increase a company’s bottom line.

What Does a Business Analyst Do?

The main responsibility of a business analyst is to find those areas for a business where it needs more efficiency as well as those that can be improved to bring better revenues. This job is an extensive research role where business analysts across the hierarchy work together to share their reports and find better avenues for a business to improve from.  

Here are some of the important responsibilities of a business analyst career path:

• Researching, analyzing and assessing the functional and technical requirements in business
• Finding better ways to improve efficiency and boost the personnel effectiveness
• Analyze extensive data sets through Excel and SQL
• Combining graphics and visuals like tables, etc. to visualize data
• Furnishing and improving the operation efficiency to ensure smoother performance
• Curating financial models that adapt to an organization’s revenues
• Assessing business strategies as well as future plans
• Framing the structure of an organization, internally and externally
• Foreseeing, forecasting and predicting analysis for budgets

Business Analyst's Educational Qualifications

Here are the qualifications you need to follow a business analyst career path:

• A graduate business degree is the starting point as it will cover some important subjects: business administration, business acumen, operational management, human resources, logistics, finance, accounting and business management.
• A master’s degree in Business such as MBA can also provide you with the knowledge you need to take up this role.  
• Other than these, it is recommended to take up a certification course to apply for an entry level business analyst job. These certifications are:  

• Certified Business Analyst Professional (CBAP)
• Certified Management Consultant

• Industry exposure is also required to apply for an entry level business analyst job. This can mean any internship or industrial training you can do while pursuing your bachelor’s or master’s.

Is Business Analyst a Good Career?

To best answer that question, let’s look at what the position entails to ascertain the best business analyst career path. A business analyst:

• Works with the company to identify improvement opportunities in business operations and processes
• Helps with the design or modification of existing business systems and IT systems
• Interacts with business stakeholders and subject matter experts (SMEs) to better understand their needs and problems
• Gathers, documents, and analyzes the company’s needs and requirements
• Resolves business problems and designs technical solutions
• Documents the functional and technical designs of the company’ systems
• Collaborates with system architects and developers to make sure that the system is properly implemented
• Creates system testing and creating system documentation and user manuals

We live, work, and play in a society where data is everywhere. Large data sets contain information essential for making reliable, data-driven business decisions. Companies that want that extra competitive advantage need someone to collect, analyze, and apply data sets in constructive ways.

That is what the business analyst does. The business analyst functions as an in-house liaison that collects, manages and distributes relevant data between departments.

We find business analysts in all kinds of industries, including businesses of all types, government agencies, and nonprofits. While any industry can benefit from business analyst expertise, management consulting firms and IT-related firms make up the largest share. Companies that specialize in accounting, finance, investment banking, and market research also offer significant opportunities for business analysts.

Summing it up, data is the currency the commercial sector uses to buy success. Business analysts work with data and the in-house departments, making intelligent, informed, data-driven decisions that will boost profits and strengthen the company. Any business that wants to succeed today should either hire a third-party business analyst as a consultant or recruit one for an in-house position.

6 Best Business Analyst Career Paths

Before you get moving on your business analyst career path, you need to do the prep work. You need either a good business background or solid knowledge of information technology. Most entry-level business analyst positions require a minimum of a bachelor’s degree, usually in accounting, finance, management, or IT.

These are the 6 most in-demand business analyst career paths:

• Business Analyst Manager
• Data Business Analyst
• Data Analysis Scientist
• Information Security Analyst
• IT Business Analyst
• Quantitative Analyst

Business Analyst Manager

These managers recruit and hire business analyst team members, oversee new hire training, define best practices, and execute organizational goals.

Data Business Analyst

These analysts work with large data sets to identify trends, develop charts, and create visual presentations to aid in business-making decisions.

Data Analysis Scientist

This career path is extremely challenging since data analyst scientists must extract meaning from collected data, interpret it, and use it to create actionable insights. You need to be familiar with machine learning and statistics to be effective in this position.

Information Security Analyst

Cybercrime is a hot topic, and cyber security professionals are in huge demand. Information security analysts protect organizations from cybercriminals by interpreting security data and monitoring IT networks and systems. If you’re interested in ethical hacking, you’ll like this position, as it usually entails finding weaknesses in systems and eliminating them.

IT Business Analyst

This role requires working on multiple projects and operating systems while simultaneously developing more substantial business process roles. This career is a good fit for people who love crunching numbers.

Quantitative Analyst

This specialist creates, implements, and presents mathematical models supporting financial decisions that affect risk management, investments, and pricing structures.

The journey on your preferred business analyst career path will be smoother if you have the following qualities and skills:

• Being a good listener and communicator
• Willing to consider change
• Being able to multitask effectively
• Knowing how to prioritize, based on multiple stakeholders’ needs
• Being a good negotiator who can get timely buy-ins on crucial decisions from stakeholders
• Identifying opportunities to improves processes which could lead to efficiency and output improvements
• Working as part of a team, including collaborating with individuals and groups outside of the team

A Step-by-Step Guide on Pursuing a Business Analyst Career Path

Let’s break down the steps with bullet points.

• Earn your degree (accounting, finance, IT, etc.)
• Gain an entry-level job as a developer, industry expert, or quality assurance engineer. Any of these would be considered a junior business analyst position. Securing this job will most likely involve interviewing for a business analyst position, so you may want to brush up on interview questions
• Become a subject matter expert (SME) within a few years of employment
• Accumulate several years of hands-on work experience in the previously mentioned positions
• Improve your skillset by pursuing certifications in business analyst-related courses
• Move up into a more senior position, such as IT Business Analyst, Senior/Lead Business Analyst, or Product Manager. Note that most organizations looking for senior-level candidates want to see an MBA or other relevant business degrees

After ten years or so, aim for Chief Technology Officer (CTO), or an independent consultant!

What Pitfalls Could You Encounter on Your Business Analyst Career Path?

Unfortunately, the road to being the best business analyst is littered with obstacles, and some of them can trip you up and hinder your career advancement. The three most common pitfalls are:

Focusing Only on Developing Technical Skills

While technical skills are imperative for a good business analyst, they are just one component in the complete professional. You need to expand your skillset and become proficient in communication, business knowledge needs analysis and problem identification.

Not Acquiring Expertise in a Specific Business Analyst Role

Generic business analysts aren’t equipped to handle the diverse challenges of specialized projects. The best business analysts don’t settle for knowing only broad, generalist skills.

Not Paying Enough Attention to Collaboration

Business analysis is a team effort, and the team functions best when people can train with each other or share best practices. Therefore, communication skills are mandatory. Good business analysts make it a point to set aside time and create opportunities for everyone to get together, compare notes, and learn from each other.

Knowing When to Involve Senior Management

Sometimes, the smart strategy seems to involve taking the path of least resistance. However, much like the previous pitfall point, communication is essential. If senior management isn’t brought into the analysis process, you will have less support. If you’re trying to take on more significant projects (and improve your skills in the process), you will need to convince senior management that it’s a good idea. Only then will you get the backing you need. Keep communication channels open, either directly or via mid-level management, with what’s going on.

FAQs

1. Is business analyst a good career?

Business analyst is a career that’s full of exciting opportunities to use your acumen and business intelligence. It pays a higher salary than other business roles as well as perks and work-life balance. With more entrepreneurial ventures coming up these days, every business needs a business analyst who can streamline operational, internal and revenue processes.

2. Is being a business analyst a difficult job?

Business analyst isn’t a difficult job to pursue but can be slightly more difficult than usual business opportunities. This is because it needs extensive patience in terms of research and analysis. Business analyst work on operational efficiency for months to come up with reports that can optimize the overall performance as well as profitability.

3. Is business analyst a stressful job?

Many job research studies including Forbes’ have said that business analyst is actually not a stressful job because finance jobs are comparatively more stressful. It would depend on your company ethics and its working hours to figure out if your job will be stressful or not.

4. What does a business analyst do?

A Business Analyst focuses on accentuating the overall efficiency and operational performance by researching how the organization can become more streamlined and smoother in its functions. Moreover, a business analyst also works on observing large data sets to find effective ways to improve the profitability of a venture too.

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