【Differences Between Business Analysts and Consultants】Comparing Salaries and Required Skills

Do you have questions like “What is the difference between a business analyst and a consultant?” or “How much do their salaries differ?”

This article addresses those questions in the following order:

• Differences in job responsibilities between business analysts and consultants
• Salaries and required skills for business analysts and consultants
• How to successfully transition to a career as a business analyst or consultant

This article is useful for anyone interested in transitioning to a career as a business analyst or consultant. Please read to the end.

【Basic Knowledge】About Business Analysts and Consultants

Let’s start by reviewing the basic knowledge about business analysts and consultants respectively.

What is a Business Analyst?

A business analyst is a professional who specializes in business process analysis and supports clients in solving their challenges. Specifically, they analyze the issues a client faces, formulate requirements, and take the lead in planning and promoting measures for business improvement.

While business analyst is a well-established profession overseas, it has not yet been established as a recognized profession in Japan. In practice, there are many cases where SEs (Systems Engineers) or consultants handle business analysis tasks.

However, it is said that understanding the role of a business analyst is necessary in order to advance the development of specialized human resources.

What is a Consultant?

A consultant is a professional who identifies management and business challenges for clients and provides optimal solutions. In recent years, an increasing number of consultants handle everything from planning measures through to implementation. Since the key challenges differ by individual company and industry, there are many types of consultants.

The following article introduces the different types of consultants, so please check it out.

Differences Between Business Analysts and Consultants

We will explain the differences between business analysts and consultants by type of work.

IT System Development

In the IT system development phase, the scope of responsibilities differs. For a business analyst, the main tasks are conducting interviews with clients, analyzing business flows and issues, and defining requirements.

On the other hand, the consultant proposes system specifications necessary to solve the client’s management challenges, based on the business analyst’s analysis results.

Marketing 

In the marketing domain, the difference between a business analyst and a consultant lies in their roles within a project. The business analyst is responsible for researching sales figures and customer trends, and compiling the analysis results.

The consultant’s role, on the other hand, is to formulate a sales strategy taking into account the client’s brand image and the positioning of their products and services.

Sales

In sales, the content of proposals differs between business analysts and consultants. A business analyst analyzes the client’s competitive advantages and market, and proposes the “target” for rolling out products and services. The consultant then typically proposes a “sales strategy for the client’s own products and services” based on the business analyst’s recommendations.

Product Planning

In product planning, the key points emphasized when developing proposals differ. A business analyst researches market trends and the company’s own technologies to propose new products and services. A consultant, on the other hand, places emphasis on the client’s business plan and proposes product planning that is necessary to achieve that plan.

Salaries of Business Analysts and Consultants

How much of a difference is there between the salaries of business analysts and consultants? Below we introduce the average salary for each.

Business Analyst Salary

The average annual salary for a business analyst is approximately 7.64 million yen. However, since business analyst is a profession not yet fully established in Japan, salaries vary widely, ranging from 4.6 million to 13 million yen.

That said, compared to Japan’s overall average annual salary of 4.78 million yen, business analysts tend to earn more.

Reference: National Tax Agency “FY2024 Survey on Private Sector Wage and Salary Statistics“

Consultant Salary

A consultant’s salary varies greatly depending on the size of the consulting firm, their position, individual skills, and other factors.

The table below summarizes the approximate salary ranges by position.

Position	Average Annual Salary
Analyst	Approx. 5–6 million yen
Consultant	Approx. 6–10 million yen
Senior Consultant	Approx. 8–12 million yen
Manager	Approx. 10–15 million yen
Senior Manager	Approx. 15–20 million yen
Director / Principal	Approx. 20 million yen
Partner	Approx. 20–30 million yen

Some data puts the average annual salary for a consultant at 4.22 million yen, but it is not uncommon for skilled and experienced consultants to earn over 10 million yen even early in their careers.

Additionally, the average annual salary for freelance consultants is quite high, at approximately 12–18 million yen (in the case of IT consultants).

Skills Required for Business Analysts and Consultants

Here we summarize the skills required for business analysts and consultants.

Skills Required for Business Analysts	Skills Required for Consultants
・Business domain expertise ・Information analysis skills ・Communication skills, etc.	・Marketing skills ・Presentation skills ・Logical thinking, etc.

There is some overlap in the skills required by both, but we explain the most particularly sought-after skills below.

Skills Required for Business Analysts

Let’s first look at the skills required for business analysts.

Business Domain Expertise

Business analysts are required to have specialized knowledge of business.

For example, without being up to date on knowledge about the client company, news within the industry, and the latest trends, it is impossible to formulate strategies that match the client’s needs.

Information Analysis Skills

The role of a business analyst is to assist clients in solving their challenges as a specialist in business analysis.

Without information analysis skills, it is not possible to properly analyze data based on a hypothesis. In addition, programming knowledge may be required in some cases to interpret data.

Communication Skills

Business analysts work in collaboration with a wide variety of people.

Without communication skills, it will be difficult to facilitate smooth interactions, which can also affect the progress of a project.

Skills Required for Consultants

Next, we introduce the skills required of consultants.

Marketing Skills

It may come as a surprise, but consultants are sometimes required to have marketing skills.

For example, the ability to identify what challenges exist within an industry and how needs are evolving. Having marketing skills enables consultants to form hypotheses from a long-term perspective.

Presentation Skills

Presentation skills are necessary when making proposals to clients. No matter how high-quality the proposal content is, it will be difficult to convince the client if it cannot be communicated in a clear and understandable way.

At the same time, documentation skills to create easy-to-understand materials are also required.

Logical Thinking

Logical thinking is a skill commonly required of all consultants.

Consultants untangle complex challenges and develop logical frameworks to devise optimal solutions. Without logical thinking, it is impossible to present a sound rationale or deliver high-quality proposals.

Useful Qualifications for Business Analysts and Consultants

The qualifications useful for business analysts and consultants are as follows.

Qualifications Useful for Business Analysts	Qualifications Useful for Consultants
・CCBA ・CBAP ・Statistics Certification	・MBA ・Career Consultant ・PMP

Below we introduce an overview of each qualification.

Qualifications Useful for Business Analysts

First, we introduce qualifications useful for business analysts.

CCBA

CCBA (Certification of Competency in Business Analysis) is a certification offered by the International Institute of Business Analysis, a non-profit organization headquartered in Toronto, Canada.

It is aimed at people with several years of experience as a business analyst, and certifies that the holder has an intermediate level of skill.

Certification Name	CCBA (Certification of Competency in Business Analysis)
Administering Body	International Institute of Business Analysis
Exam Format	Online remote proctored format
Exam Fees	・Application fee: $145 ・Exam fee: $250–$405 ・Retake fee: $195–$350

CBAP

CBAP (Certified Business Analysis Professional) is a certification program also operated by the International Institute of Business Analysis, the same organization as the CCBA.

It is aimed at people with five or more years of experience as a business analyst and can be considered an advanced-level qualification. It makes it easier to be recognized as a professional with a high level of expertise in business analysis.

Certification Name	CBAP (Certified Business Analysis Professional)
Administering Body	International Institute of Business Analysis
Exam Format	Online remote proctored format
Exam Fees (tax-exclusive)	・Application fee: $145 ・Exam fee: $350–$505 ・Retake fee: $295–$450

Statistics Certification

The Statistics Certification is a qualification administered by the Japan Statistical Society Certificate.

Obtaining this certification builds knowledge of statistics and the ability to apply it, which allows business analysts to strengthen their data interpretation and analytical skills.

Certification Name	Statistics Certification
Administering Body	Japan Statistical Society Certificate
Exam Format	Essay format
Exam Fee (tax included)	6,000 yen

Qualifications Useful for Consultants

Next, we introduce qualifications useful for consultants.

MBA

An MBA (Master of Business Administration) is not a qualification in the traditional sense. It is a degree obtained upon completing a master’s program at a business school or similar institution.

Pursuing an MBA allows you to comprehensively acquire knowledge related to business management. Through group work and extracurricular activities, you can also develop practical leadership skills.

Since it provides a solid foundation as a business professional, it can also be leveraged in the work of a consultant, where advanced business skills are required.

IT-Related Certifications

Those who want to broaden their range of activities as a consultant should also obtain IT-related certifications.

Even if you are not an IT consultant, consultants are required to have IT skills and literacy. This is because IT has become an indispensable element in addressing challenges in any field.

For example, it would be beneficial to obtain certifications such as IT Strategist, IT Service Manager, or SAP Certified credentials.

PMP

PMP (Project Management Professional) is a certification program administered by the PMI Japan Chapter, an incorporated association.

It allows you to acquire the skills necessary for a project management professional. If you are aiming for a promotion from consultant to manager, obtaining this certification would be beneficial.

Certification Name	PMP (Project Management Professional)
Administering Body	PMI Japan Chapter
Exam Format	CBT format
Exam Fee (tax-exclusive)	Varies depending on region and membership pricing rules

How to Become a Business Analyst or Consultant

So, how should you go about pursuing a career as a business analyst or consultant?

How to Become a Business Analyst

No special qualifications are required to become a business analyst.

However, business analysts play a critical role in business analysis and are required to have advanced skills. For this reason, if you want to become a business analyst without prior experience, it is important to first focus on developing your skills.

For example, obtaining the Statistics Certification or strengthening your ability to interpret statistical data would be a good approach.

How to Become a Consultant

As with business analysts, no qualifications are required to become a consultant.

However, if you are aiming for a highly competitive major consulting firm or want to achieve a significant salary increase from your current position, skill development is still important.

Having a prestigious degree or high-difficulty qualification such as an MBA (Master of Business Administration) or Certified Management Consultant certification will make it easier to be evaluated highly.

Furthermore, the knowledge required varies greatly depending on the type of consultant, so it is important to clarify which area of consulting you want to pursue.

How to Successfully Transition to a Career as a Business Analyst or Consultant

Transitioning to a career as a business analyst or consultant is not easy. Below, let’s review the key points for a successful career change.

Deepen Your Understanding of the Profession

Understanding the profession is one of the most important processes in a job search.

If you change jobs based only on your image of a role without deeply understanding the profession, you may encounter situations like “I couldn’t achieve the working style I had in mind” or “the job was different from what I imagined.”

Today, many professional interviews are published online. It is also important to actually speak with people who work in the profession you are aiming for.

ConsultNext.jp publishes many interview articles, so please check them out.

Assess Your Own Aptitude

Those aiming to become a business analyst or consultant should assess their own aptitude.

What individuals are good at and their ideal working style vary greatly from person to person.

For example, for someone who is not good at communication, a career as a business analyst or consultant — which involves frequent interaction with a wide variety of people — may not be a good fit (there are other professions better suited to them, such as roles that involve working independently and quietly).

Therefore, it is important to conduct a self-analysis before starting your job search.

Gather Information About the Industry and Companies

Along with understanding the profession and conducting self-analysis, gathering information about the industry and specific companies is also an important step.

By understanding the trends in an industry and specific companies, you can clarify the type of person a company is looking for, the skills required, and the career paths available.

Specifically, it would be a good idea to check the latest news, trade publications, company websites (career pages), and career-related articles.

Utilize a Recruitment Agency

We recommend using a recruitment agency if you want to successfully transition to a career as a business analyst or consultant.

Recruitment agencies not only introduce you to job openings but also provide advice on your documents and interviews, along with comprehensive support for other job-hunting-related matters.

However, since there are various recruitment agency services available, make sure to check how many job openings they have in the field you are aiming for.

ConsultNext.jp is an agency specializing in consulting career transitions. We offer a wide range of job listings including IT consultants, strategy consultants, and management consultants, so please take a look.

FAQ About Business Analysts and Consultants

Here we introduce frequently asked questions about business analysts and consultants.

What is the difference between a business analyst and a project manager?

The difference between a business analyst and a project manager lies in their “role within a project.”

A business analyst’s primary role is “business analysis,” which involves conducting interviews with clients and compiling definitions.

A project manager’s primary role, on the other hand, is “project management.” As such, they are responsible for managing the schedule, costs, and progress from the start to the end of a project.

What are the characteristics of business analysts in Japanese companies?

Business analyst is still not an established profession in Japan. As a result, a characteristic of Japanese companies is that there are few positions that specialize in managing and transforming business processes.

However, it is said that there are many latent business analysts in Japan (people who are effectively performing the work of a business analyst).

Can I become a consultant without prior experience?

To put it simply, it is possible to pursue a career as a consultant without prior experience.

While some consulting firms are actively recruiting new graduates, mid-career hiring is also active in the consulting industry.

In particular, those who are second-year job seekers (second-jobbers) to those with around ten years of work experience are considered to have an easier path to entering consulting without experience. This is because their potential is evaluated in addition to their prior work experience.

It is not impossible for those in their 40s or 50s to pursue a career as a consultant without experience, but the barrier is higher.

Why is consulting work said to be tough?

There are many people who have the impression that consulting work is “tough” or “not worth it.” This is likely related to factors such as a tendency toward busy schedules and high levels of pressure. However, consulting is also a rewarding profession, as consultants are involved in client management and apply a wide range of skills to their work.

It is important to clarify your own career vision and priorities, and then assess your suitability for a career in consulting.

Conclusion

In this article, we explained the differences between business analysts and consultants.

There are many differences between business analysts and consultants across various aspects, but business analysts tend to have more touchpoints with system developers.

Take the time to understand each profession and consider your own career path.

If you are considering a career transition to consulting, we recommend “ConsultNext.jp,” an agent service specializing in consulting careers.

We provide broad support ranging from second-year job seekers to experienced professionals. We also have an abundance of job openings welcoming applicants without prior experience, so please feel free to reach out for a consultation.