What is Business Analytics? A Complete Guide for Success

Business analytics is critical for firms to make data-driven decisions that drive growth and efficiency. What is Business Analytics? It is the application of data analysis tools and techniques to evaluate corporate data, identify patterns, and optimize operations. As industries rely more on data to guide strategy, business analytics has evolved as an important discipline with a lot of potential. In fact, according to Statista, the finance and banking sector alone accounts for over 37% of the total analytics market, worth approximately Rs. 640 crores (1). This demonstrates the enormous potential of business analytics across industries. It also provides opportunities for professionals in this discipline to promote change and innovation. Let us take a deep dive into the world of business analytics and understand everything that there is to it. 

What is Business Analytics?

What is business analytics? Fundamentally, it is the process of using data analysis to make better, more intelligent business decisions. Furthermore, business analytics helps to bridge the gap between raw data and plans that can be put into action using them. It finds patterns, forecasts trends, and offers insightful information by fusing statistical techniques, technology, and business knowledge.

Imagine a technology that assists businesses in identifying possible dangers, optimizing resources, and anticipating client needs—all before they even become apparent. That’s what business analytics is all about. At the root of it, it enables organizations to make decisions based on facts rather than conjecture.

In fact, nowadays, data-driven insights have become essential in a competitive environment where every decision counts. Businesses that use business analytics have a big advantage because they can provide clients with individualized experiences. This increases operational efficiency and adapts to changes more quickly.

When you look at the core, every facet of decision-making is impacted by business analytics. From identifying the most lucrative product to comprehending the factors that influence client loyalty, it serves as the foundation of contemporary corporate strategy. It assists companies in staying ahead of the curve and confidently handle unpredictability.

How Does Business Analytics Work?

Business analytics is a systematic way to convert raw data into useful insights. Here’s an explanation of the process of how it works and how we understand what is business analytics:

1. Data Collection

Every business analyst begins by obtaining data from a variety of sources, including sales statistics, customer feedback, social media, and also operational logs. Moreover, people utilize Excel, SQL, and web scraping software during this step.

2. Data Cleaning and Preparation

Raw data frequently includes errors, duplication, and useless information. Therefore, this phase ensures that the data is cleaned, corrected, and prepared for analysis. Also, Python and R are popular tools for data cleansing and organization.

3. Data Analysis

Business analysts use statistical approaches to interpret data. Essentially, regression analysis, clustering, and forecasting techniques are useful for identifying trends and patterns. Moreover, Tableau, Power BI, and SAS are all useful tools in this context.

4. Visualization and Reporting

Visual dashboards, graphs, and reports help stakeholders to understand complex data. In essence, visual representation breaks down complex data patterns and sets them into understandable metrics. Popular tools for this include Tableau, Power BI, and Google Data Studio.

5. Implementation and Feedback

The insights guide decisions, and we measure their effectiveness for continual improvement.

To summarize, for anyone wondering how to become a business analyst, knowing these approaches and tools is an excellent first step. Also, understanding what is business analytics will lay the foundation for you and take you a long way. 

ALSO READ: 15 Business Analytics Tools Used by Successful Professionals

4 Key Methodologies Used in Business Analysis

When exploring the question ‘what is business analytics?’, it’s important to understand the methodologies that shape business analysis. These approaches help organizations make data-driven decisions, streamline operations, and improve overall performance. Here are four prominent methodologies used in business analysis:

1. Waterfall Methodology

The waterfall methodology uses a linear and sequential approach. It is divided into several phases, including requirements gathering, design, development, testing, deployment, and maintenance. Essentially, this methodology is best suited for projects with clear needs from the start that are unlikely to change. Moreover, waterfall is commonly employed in industries that require a consistent and predictable workflow, such as building and manufacturing.

2. Agile Methodology

Agile emphasizes flexibility and adaptation. It breaks the project into smaller, more manageable parts known as “sprints”, which allow for regular feedback and iteration. This methodology is particularly useful in fast-paced contexts where requirements are likely to change over time. Moreover, it emphasizes stakeholder participation and continual improvement, which makes it attractive in software development and IT projects.

3. Scrum Framework

Scrum, a subset of Agile, is a more organized technique that prioritizes teamwork, accountability, and progress. It divides a project into short, time-boxed iterations (known as sprints), which typically run from one to four weeks. To keep the project on schedule, Scrum teams hold regular stand-up meetings, sprint reviews, and retrospectives. In fact, it is widely utilized in the technology and software development industries.

4. Lean

Lean aims to maximize value while avoiding waste. The basic premise is to optimize processes, remove inefficiencies, and guarantee that every operation contributes value to the final product or service. Moreover, it is widely utilized in manufacturing. However, it may also be used by other industries wanting to streamline operations and increase efficiency.

Business Analyst Roles and Responsibilities

A business analyst plays a key role in bridging the gap between business needs and technology solutions. So, here’s a breakdown of business analyst roles and responsibilities:

1. Requirement Gathering

One of the key roles is to collect and document business requirements. Furthermore, this entails engaging with stakeholders, determining their requirements, and translating them into clear, executable plans.

2. Process Analysis and Improvement

A business analyst examines current company processes to discover inefficiencies and opportunities for change. They then recommend strategies for streamlining procedures and increasing productivity.

3. Data Analysis

Analyzing data is critical for spotting trends, problems, and opportunities. Moreover, a business analyst employs tools and procedures to assess data and provide insights that guide decision-making.

4. Solution Design and Implementation

Once the requirements are apparent, business analysts work with technical teams to create and implement appropriate solutions. They can be new software systems or process improvements.

5. Stakeholder Communication

Business analysts serve as liaisons between business stakeholders and technological teams. Additionally, they also ensure that both parties understand the objectives and that everyone remains on the same page throughout the project’s lifecycle.

6. Testing and Quality Assurance

Another important job is to ensure that the solution satisfies the needs of the business. A business analyst assists with testing to ensure that the finished product performs as planned.

In a nutshell, what is business analytics? Solving problems and helping organizations prosper by implementing smart, data-driven solutions. Additionally, a successful business analyst is one who clearly understands these business analyst roles and responsibilities. 

ALSO READ: A Guide to Business Analysis: 7 Skills to Boost Your Analytics Career

Core Business Analyst Skills

An effective business analyst must possess both technical and soft skills. Here’s a summary of key business analyst skills that make a significant difference:

Technical Skills

• SQL: A business analyst should be able to extract, manipulate, and evaluate data from databases. Knowing how to query data is critical for delivering actionable insights
• Data visualization: Tools such as Tableau, Power BI, and Excel are essential for displaying complex data in understandable visualizations. Moreover, business analysts use these tools to generate charts, dashboards, and reports that highlight critical patterns
• Analysis tools: Understanding and working with analytics tools (such as R, Python, and SAS) is essential for data analysis and prediction. As a result, these abilities aid in the transformation of data into strategies for improved business results.

Soft Skills

• Communication: A business analyst must communicate clearly with stakeholders, transforming technical jargon into understandable language. This skill keeps everyone on the same page.
• Problem-solving: Business analysts are primarily problem solvers. As a result, they uncover business problems and suggest data-driven solutions.
• Critical thinking: Analyzing data requires more than just statistics; it also requires proper interpretation. Moreover, business analysts must apply critical thinking to identify trends, interpret data, and provide strategic suggestions.

Together, these business analyst skills define what is business analytics and empower businesses to thrive.

ALSO READ: How to Become a Business Analyst & Start a Successful Career

Business Analytics Vs. Data Science

While both business analytics and data science are concerned with data-driven decision-making, they serve distinct functions and require different techniques. Here’s a comparison to help you understand what is business analytics and how it differs from data science: 

Focus and Scope

• Business analytics: It is primarily concerned with evaluating historical data to enhance corporate processes, optimize strategies, and make decisions. Additionally, it is about using data to address immediate business issues
• Data science: Looks beyond the current business context and into the future. Predictive modeling, machine learning, and algorithm development are frequently used to identify patterns and forecast future trends.

Data Usage

• Business analytics: Uses structured data to answer questions like “What happened?” and “Why did it happen?” The purpose is to deliver actionable insights for better business performance
• Data science: Analyzes both organized and unstructured data in order to forecast future occurrences or trends. To simplify, it focuses on “What will happen?” and uses powerful algorithms and statistical models to generate insights.

Tools and Techniques

• Business analytics: Excel, Tableau, and Power BI, are popular tools for analyzing and visualizing data
• Data science: Data science uses Python, R, and machine learning frameworks such as TensorFlow or Scikit-learn for advanced data analysis and modeling.

When to Pick One Over the Other

• Business analytics: Business analytics is your best option when it comes to analyzing historical performance, optimizing current processes, or solving specific company challenges.
• Data science: Choose data science when you need to forecast future trends, create algorithms, or automate decisions based on complicated datasets.

Understanding what is business analytics and how it compares to data science can help you choose the right approach for your business needs.

How to Become a Business Analyst

If you’re curious how to become a business analyst, it’s a journey that combines the right education, skills, and experience. Here’s a roadmap to help you get started:

1. Educational Qualifications

Most business analysts have a degree in business, information technology, finance, or a similar discipline. A bachelor’s degree is often used as a foundation for a business analyst career. However, if you want to specialize in what is business analytics, pursuing a master’s or an MBA with a focus on analytics can set you apart.

2. Certifications

Certifications can help you gain an advantage in this competitive sector. Therefore, consider obtaining business analytics certificates such as:

• Certified Business Analysis Professional (CBAP): It is a worldwide recognized qualification for experienced professionals
• Certified Analytics Professional (CAP): Ideal for those who want to get into data analysis in commercial settings
• Agile credentials: Because many firms adopt Agile methodology, credentials such as Certified Scrum Master (CSM) might be useful.

Simultaneously, you can also take certifications from Emeritus business analytics courses. They will also help you kickstart your career in the field. 

3. Develop Core Skills

To be an excellent business analyst, work on developing both technical and soft skills. Learn how to analyze and visualize data using programs such as Excel, SQL, Tableau, and Power BI. Simultaneously, improve your communication, problem-solving, and critical thinking abilities. These are vital for collaborating with stakeholders and turning company needs into solutions.

4. Gain Practical Experience

Once you have a solid educational basis and skills, begin getting practical experience. Internships, entry-level positions, and freelance opportunities in business analysis or data-driven professions can help you develop your skills and expand your network.

By following these steps, you’ll be well on your way to mastering what is business analytics and successfully transitioning into a business analyst career. 

ALSO READ: How to Find the Best Business Analyst Career Path for Yourself

Business Analyst Jobs: Market Trends and Opportunities

The demand for business analyst jobs is expanding across industries as organizations rely more on data-driven insights to make decisions. Let us go more deeply into understanding what is business analytics by looking at the trends and opportunities. 

Industries Actively Hiring

• Technology: Business analysts are in high demand in the tech industry, particularly in software development, IT consulting, and data-driven organizations. In fact, companies are looking for experts to assist them build better systems and procedures
• Finance and Banking: Financial organizations seek business analysts to improve operations, maintain compliance, and evaluate financial data
• Healthcare organizations: Healthcare organizations are actively hiring business analysts to improve patient care and optimize operations 
• Retail and e-commerce: Retail companies require analysts to watch consumer behavior, manage supply chains, and optimize sales methods 

Job Roles and Titles

• Business Analyst: The role focuses on data analysis and process improvement
• Data Analyst: A more specialized profession that focuses on evaluating complicated data sets and producing actionable results
• Product analysts: They use customer feedback and market trends to influence product development. As a result, product development teams are built around them
• IT Business Analyst: Works to connect IT systems and processes with business objectives
• Business Systems Analyst: The primary responsibility of this job is to evaluate and improve the IT systems that support business operations. Furthermore, they collaborate closely with business stakeholders and IT teams to ensure that systems match business requirements
• Financial Analyst: This job overlaps with business analysis in that it uses financial data to forecast trends, manage budgets, and assist in strategic decision-making based on financial insights

As what is business analytics becomes central to business strategies, these job roles offer exciting opportunities for growth in a wide range of industries.

Business Analyst Salary: How Much Do They Earn?

In India, a business analyst salary varies based on experience, industry, and location. Here’s a breakdown of the salary range for different roles:

1. Business Analyst

Business analyst salaries in India range from ₹588,000 to ₹13,00,000 per year(2). Moreover, entry-level roles begin at the lower end of the scale, whereas experienced professionals can expect better income.

2. Data Analyst

Data analysts typically earn between ₹498,000 and ₹11,00,000 yearly(3). However, entry-level roles pay less, but as knowledge and experience increase, so does the wage.​​

3. Product Analyst

Product analysts make between ₹800,000 and ₹17,00,000 annually(4), indicating their specialized position in product development and strategy.​

4. IT Business Analyst

IT business analysts earn ₹565,000 to ₹14,00,000 per year(5). However, it depends entirely on experience and task complexity.

5. Business Systems Analyst

Professionals that evaluate business processes and IT systems earn between ₹650,000 to ₹1,50,000 annually (6).

6. Financial Analyst

In India, financial analysts make between ₹430,000 and ₹11,00,000 a year. However,  positions in big corporations or finance-related sectors pay more(7).

Salaries also differ by city, with locations like Bengaluru, Mumbai, and Delhi offering higher compensation due to demand and living costs​.

Future of a Business Analyst Career

Emerging technologies like automation, machine learning, and artificial intelligence will influence the future of a business analyst. Real-time decision-making and more complex insights are made possible by these technologies, which are revolutionizing data analysis. In fact, there are lots of chances for development and specialization in fields like advanced analytics, data visualization, and predictive analytics as long as companies continue to place a high priority on data-driven initiatives. Furthermore, positions like IT and product business analysts have become increasingly specialized, providing opportunities for career advancement in specialized fields. Moreover, by keeping up with these innovations, business analysts can stay ahead in an ever-evolving field.

In conclusion, business analytics offers exciting career prospects across industries, from finance to healthcare. The demand for skilled business analysts continues to grow as organizations seek data-driven insights to drive success. Whether you’re looking to specialize in data science, product analysis, or IT systems, the opportunities for advancement are vast. Therefore, to stay competitive in this evolving field, consider enhancing your skills with specialized business analytics courses. You can explore business analytics courses from Emeritus, it can provide you with a great place to start, offering comprehensive training to help you master key analytics techniques and tools. So, what are you waiting for? Take the next step in your career and enroll today!

By Siddhesh S

Write to us at content@emeritus.org 

Sources: 

1. Analytics market in India 
2. Salary: Business Analyst 
3. Salary: Data Analyst 
4. Salary: Product Analyst 
5. Salary: IT Business Analyst
6. Salary: Business Systems Analyst 
7. Salary: Financial Analyst