
Today’s organizations generate massive amounts of data. Business analysts help companies analyze data to develop actionable insights that enhance outputs and improve system efficiency. Some of the most common types of data businesses collect include:
- Customer data: Demographic information, behavioral data, feedback and reviews
- Sales data: Transaction records, sales trends
- Financial data: Revenue and expenses, cost analysis
- Operational data: Supply chain data, production data
- Marketing data: Campaign metrics, social media analytics
- Employee data: Performance metrics, HR data
- Website and digital data: Traffic analytics, conversion data
- Market data: Industry trends, economic indicators
If you’re interested in starting or advancing a career in business analytics, you may be curious about the career path and progression for the role. In this guide, we’ll cover ways you can break into the industry and position yourself for long-term career growth.
What is a business analyst?
Business analysts — often called business intelligence (BI) analysts — are responsible for collecting, analyzing, and reporting on the data collected by their organization. While the specific responsibilities will vary based on their industry and organization, BI analysts generally perform the following duties:
- Requirements gathering: Interviewing stakeholders to understand business goals, facilitating meetings to gather requirements, and documenting those requirements.
- Data analysis: Collecting and organizing data from various sources, identifying insights to drive business decisions, and creating visual reports to present findings to stakeholders.
- Process improvement: Mapping existing business processes, identifying areas for improvement, and developing solutions to optimize productivity.
- Solution design: Collaborating with technical teams, creating use cases and system specifications, and ensuring that solutions align with business goals and requirements.
- Project management support: Assisting in project planning and coordination, defining project scope and deliverables, and monitoring the project process.
- Stakeholder communication: Liaising between stakeholders and technical teams, communicating project progress, and managing stakeholder expectations.
- Testing and validation: Developing test plans to ensure solutions meet business requirements, coordinating and executing system testing, and working with development teams to resolve defects.
- Documentation: Preparing and maintaining comprehensive documentation and ensuring it is up-to-date and accessible to stakeholders.
- Change management: Assessing the impact of business changes, developing training materials, and assisting in implementing new processes.
- Performance monitoring: Monitoring and evaluating the performance of implemented solutions, analyzing performance metrics, and recommending adjustments based on performance data.
- Marketing and competitive analysis: Conducting research on market trends and competitor strategies, analyzing the impact of external factors on business, and providing recommendations based on market insights.
- Strategic planning: Analyzing business needs and aligning them with organizational goals, and contributing to developing business strategies and initiatives.
Business analysts often collaborate with other team members, such as project managers, development teams, and data architects. Effective communication skills ensure that collaboration runs smoothly and any issues are addressed quickly.
Business Analyst Job Titles
There are many different roles associated with business analytics. The position you pursue will depend on your education, interests, and skills. Here is a brief overview of some of the common business intelligence analyst roles, including their salary and growth projections, as reported by the U.S. Bureau of Labor Statistics (BLS):
Some other job titles appropriate for business analyst roles include:
- Operations Research Analyst
- Business Systems Analyst
- Information Security Analyst
- Process Analyst
AI tools used in business analysis
Artificial intelligence (AI) has a significant influence over business analytics, enhancing data analysis, streamlining processes, and providing deeper insights that drive organizational growth. AI-powered tools help analysts develop actionable insights more efficiently, and their application is increasingly widespread across industries. Below are some of the most prominent AI tools currently shaping the business analytics landscape.
Predictive analytics tools
AI-powered predictive analytics tools use machine learning algorithms to analyze historical data and forecast future trends. These tools can help businesses anticipate customer behavior, market shifts, and potential risks. Tools include:
- Google Cloud AI: Offers machine learning solutions for predicting future trends and enhancing decision-making.
- H2O.ai: A popular open-source platform known for its advanced predictive analytics capabilities, including AutoML and time-series forecasting.
- DataRobot: Automates machine learning and predictive analytics, providing tools to build and deploy models faster.
Data Visualization Tools
Data visualization is essential for communicating complex data insights. AI-powered data visualization tools help users create intuitive, interactive visualizations that reveal trends and patterns in data. Tools include:
- Microsoft Power BI: Continues to lead with AI-enhanced features like natural language queries (Q&A) and AI-driven insights for better decision-making.
- Tableau: Uses AI-powered features like "Explain Data," which automatically provides insights and helps users understand visualized data trends.
- Qlik Sense: Incorporates AI-driven visual analytics, enhancing its traditional capabilities with smart visualizations and intuitive data exploration.
Natural language processing (NLP) tools
NLP tools allow computers to understand and process human language. These tools enable analysts to extract valuable insights from unstructured text data, such as customer reviews, emails, and social media. Tools include:
- OpenAI GPT-3: Advanced NLP capabilities for generating human-like text and processing large volumes of unstructured data.
- Google Cloud Natural Language: Analyzes text for sentiment analysis, entity recognition, and syntax analysis, helping businesses gain insights from customer feedback and reviews.
- IBM Watson Natural Language Understanding: Extracts meaning from text by understanding sentiment, emotions, and intent at scale.
Automated data preparation tools
Data preparation, a critical step in analytics, involves cleaning and transforming raw data into usable formats. AI tools streamline this process, automating data wrangling and making data ready for analysis faster and more accurately. Tools include:
- Trifacta (by Alteryx): Known for automating data wrangling and offering predictive transformations to optimize data preparation workflows.
- DataRobot: Provides a suite of tools to automate data cleaning and preparation alongside its predictive analytics features.
- Talend: Integrates data integration, data quality, and data governance capabilities, powered by machine learning to automate data transformation.
Advanced data analytics platforms
These platforms combine various types of analytics (descriptive, predictive, and prescriptive) to provide deeper, more actionable insights. They support data-driven decision-making by leveraging AI for complex analysis. Tools include:
- Alteryx: Known for its AI and machine learning capabilities, it enables data analysts to integrate multiple data sources and perform complex analysis efficiently.
- RapidMiner: An open-source data science platform that incorporates AI to automate machine learning processes and enhance decision-making.
- Databricks: A unified data analytics platform powered by Apache Spark, using AI to perform large-scale data processing, predictive analytics, and real-time analytics.
BI tools
Business intelligence tools use AI to deliver in-depth analysis and support strategic business decisions by aggregating and visualizing data insights across various platforms. Tools include:
- Looker (Google Cloud): Provides data exploration capabilities with integrated AI features for customized analytics.
- Power BI: Offers advanced AI and machine learning integration, like automated insights, to enhance decision-making processes across business units.
- Sisense: Uses AI and machine learning to integrate data from multiple sources and create custom analytics, improving business intelligence across departments.
Robotic process automation (RPA) and AI integration
RPA tools automate routine business processes, while AI is integrated to enhance decision-making and predict workflow improvements. Tools include:
- UiPath: Leverages AI alongside RPA to optimize business processes, analyze workflows, and improve automation outcomes.
- Automation Anywhere: Uses AI-powered bots to automate repetitive tasks, analyze operations, and offer actionable insights.
It’s essential to understand all the pathways available toward this growing career in a diverse business analytics landscape. Mapping out your career progression in business analysis involves gaining experience, acquiring advanced skills, and moving into roles with greater responsibility. In the following sections, we will delve deeper into the career path of a business analyst and how you can prepare for every step.
Emerging AI trends in business analytics
The continued integration of AI into business analytics tools is reshaping the way organizations extract, process, and interpret data. Emerging trends, such as the use of explainable AI (XAI) in analytics, are helping professionals understand the decision-making process behind AI models. Additionally, the incorporation of edge computing with AI analytics will allow businesses to process data faster and make real-time decisions in industries like manufacturing, logistics, and healthcare.
These advancements are streamlining processes, improving data accuracy, and enhancing the overall efficiency of business operations. By mastering these cutting-edge AI tools, business analysts can not only improve their workflows but also provide more impactful insights that drive strategic decisions and foster business growth.
Entry-level business analyst roles
If you’re just breaking into business analytics, you may seek entry-level roles, such as a junior or business analyst intern. These positions can provide valuable foundational experience that can further your career. Let’s explore these options in more detail.
Junior business analyst
Junior business analysts typically support the business analytics team, helping with requirements gathering and documentation, data analysis and reporting on data, and learn the general business processes and systems involved in business analytics work.
Key requirements:
- Educational background: A bachelor’s degree in business, information systems, or a related field is typically required.
- Technical skills: Proficiency in basic data analysis tools such as Excel, Microsoft Power BI, or Tableau.
- Soft skills: Strong communication, teamwork, and analytical skills are essential for collaborating with both technical and non-technical teams.
Junior business analysts often work under the supervision of senior analysts, providing a structured learning environment that allows them to develop specialized skills for advancing to mid-level positions.
Business analyst intern
If you’re not ready to start applying for formal business analyst roles, becoming a business analyst intern can provide exposure to industry tools and opportunities to practice your skills in a professional environment. Internships are a great way to gain hands-on experience and make valuable connections in the business analytics field.
Key requirements:
- Educational background: Typically for students nearing graduation or recent graduates who are pursuing business analytics as a career path.
- Skills: Basic understanding of data handling, business processes, and analytical tools.
- Mindset: Eagerness to learn, along with problem-solving and organizational skills, is important for success in an internship.
Responsibilities may include supporting senior analysts with various tasks, assisting with documentation and report preparation, and participating in general business analytics practices. This is a great starting point for students nearing the completion of their degree or those who have recently graduated or completed an online program, such as our Business Analytics Certificate Course.
Mid-level business analyst roles
After a few years in an entry-level business analyst role, you may be ready to progress to a more advanced position, such as a business analyst or senior business analyst. This step will depend on your experience and comfort level with common BI practices and whether you decide to specialize further into focused roles such as a financial analyst or marketing analyst.
Business analyst
As a business analyst, you will have more responsibilities in overseeing teams and tasks. You may lead requirements gathering and analysis, designing and implementing business solutions, and creating detailed reports and presentations for stakeholders.
Key requirements:
- Experience: Several years of experience in business analysis or related fields.
- Education: A bachelor’s degree is typically required, and certifications such as Certified Business Analysis Professional (CBAP) or PMI Professional in Business Analysis (PMI-PBA) can enhance your qualifications.
- Skills: Proficiency in business analysis tools like Tableau, Power BI, and SQL, along with excellent project management and stakeholder communication abilities.
Senior business analyst
Senior business analysts have extensive experience in the field. They typically have a leadership role that oversees business analysis projects and teams, develops and implements strategies for process improvement, and manages relationships with key stakeholders and clients.
Key requirements:
- Experience: Significant experience (5+ years) in business analysis, with experience leading cross-functional teams and managing complex projects.
- Education: Advanced certifications such as Certified Business Analysis Thought Leader (CBATL) or a master’s degree in business analytics or a related field can be beneficial.
- Skills: Strong analytical, problem-solving, and leadership skills, along with expertise in business process modeling and change management.
Advanced business analyst roles
As you advance in your business analytics career, you may step into more specialized and leadership-focused roles. Let’s explore two key positions: lead business analyst and business analysis manager.
Lead business analyst
Lead business analysts are at the forefront of managing complex business analysis projects. They oversee multiple projects simultaneously, ensuring they align with organizational goals and deliver strategic value. In this role, you may lead requirements gathering sessions, develop business solutions, and provide high-level strategic recommendations to senior management.
Key requirements:
- Experience: Extensive experience in both business analysis and project management (7+ years).
- Education: A relevant bachelor’s or master’s degree and certifications in both business analysis and project management (e.g., PMI Project Management Professional (PMP)).
- Skills: Advanced skills in data analysis, solution design, strategic thinking, and team leadership.
Business analysis manager
Business analysis managers are vital to an organization’s business analysis department. These individuals are responsible for managing teams of business analysts, overseeing project portfolios, and aligning business analysis activities with their company’s strategic goals.
Key requirements:
- Experience: Significant leadership experience in business analysis (8+ years), including team management and project portfolio oversight.
- Education: A bachelor’s or master’s degree in business analytics or related field, along with certifications in management and business analysis.
- Skills: Strong organizational, leadership, and communication skills, as well as expertise in managing project portfolios, resource allocation, and cross-department collaboration.
Senior/Director-Level Business Analyst Roles
The final step on the career path in business analytics is becoming a senior manager or director. These roles demand strategic vision, exceptional leadership skills, and comprehensive industry knowledge.
Director of Business Analysis
As a director of business analysis, you’ll set the strategic direction for the business analysis function within your organization. You will likely oversee the development and implementation of business solutions, manage budgets, and lead cross-functional teams. You’ll also work closely with senior management to ensure your efforts align with organizational goals and drive business performance.
Key requirements:
- Experience: Extensive experience in senior business analysis roles, with a proven track record of leading complex projects and driving organizational change.
- Skills: Advanced strategic planning, leadership, and organizational transformation capabilities.
Chief Business Analyst (or equivalent C-suite role)
As a Chief Business Analyst, you’ll report directly to the executive team. Professionals in this role or other C-suite business analysis roles are responsible for leading the business analysis department. It involves driving innovation, influencing company-wide strategies, providing executive-level insights that shape business decisions, and achieving organizational goals.
Key requirements:
- Experience: Significant experience in senior or C-suite roles, with a strong background in leading business analysis functions at the highest level.
- Skills: Executive presence, advanced strategic planning, and the ability to influence company-wide decision-making.
Start your business analytics career today
With promising job growth across various industries, business analytics can offer a rewarding, long-term career for anyone interested in using company data to achieve organizational goals.
Earning a business analyst certification can significantly enhance your credibility and open up new opportunities for advancement in the field. Whether new to business analysis or pursuing new certifications, our online Business Analytics Certificate Course can provide the knowledge and experience you need to start or advance your career.