Do you have questions like “What kind of work does a business analyst do?” or “What industries can business analysts thrive in, and how do I transition into the role?”
This article addresses those questions by covering the following topics in order.
- What business analysts do
- Industries where business analysts can thrive
- How to transition into a business analyst role
This article is useful for anyone considering or interested in transitioning to a business analyst role. Please read to the end.
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What is a Business Analyst?
A business analyst is a specialist who analyzes the challenges faced by organizations such as companies through business analysis, and formulates and drives solutions toward resolution.
Business analysis refers to the method of identifying and resolving challenges by leveraging information accumulated within an organization, and is also known as business analysis.
Business Analysts as the Hub of Communication
Business analysts are responsible for business analysis and formulating solutions to guide companies toward resolving their challenges. Their most important role is to step in between the people involved in a project, facilitate smooth communication, and serve as a pipeline to lead the project to success.
Even if the solution for resolving a challenge is optimal, if the intent is not accurately communicated among the people involved in the project, executing the solution may yield little or no effect.
Business analysts do not only formulate solutions—they also step between management and the front lines, and between the various departments involved in the project, accurately conveying the project’s intent, aligning the opinions of each department, and guiding the project to success.
The Difference Between a Business Analyst and a Consultant
Business analysts analyze information accumulated within organizations and formulate solutions to challenges. They then advance the project as a pipeline connecting the people involved through communication.
Consultants analyze challenges related to corporate management and business strategy, conduct market research, and formulate solutions. While the scope of work previously ended at formulating solutions, more consultants are now also executing the plans they propose.
Consultants provide consulting across various industries, requiring broad knowledge and experience. Additionally, while business analysts identify challenges from accumulated information, consultants confirm challenges through client interviews.
Consultants have specialized roles in each domain, such as “management consultant” and “IT consultant,” and the scope and variety of work for consultants exceeds that of business analysts.
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The Current State of Business Analysts in Japan
While business analysts are an established profession overseas, they have not yet been fully established as a profession in Japan. This is not because demand is low, but because in Japan, the duties of a business analyst are often handled concurrently by other roles.
Depending on the project, it is common for business analyst duties to be handled concurrently by consultants, SEs (systems engineers), corporate planning department staff, and others.
While the work of a business analyst is necessary, it is perceived as something other roles can handle concurrently.
Urgent Need to Develop Business Analysts
While the business analyst profession has not yet fully taken hold in Japan, it has been established overseas since the 2000s.
Awareness is growing regarding the importance of business analysts’ roles in business analysis, solution formulation, and serving as a pipeline between relevant parties—yet the reality in Japan is that other roles handle these duties concurrently. Problems are arising because the role exists but has not been established as a profession.
For example, issues include not being able to determine who will carry out business analyst duties, ambiguous accountability, tasks falling through the cracks, and only partial functionality.
To resolve these issues, it is necessary to establish business analyst as a profession and build a development framework where specialized knowledge can be acquired.
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What Business Analysts Do
Here we explain the work of a business analyst.
Business Process Analysis, Visualization, and Requirements Definition
The first step is to analyze and visualize business processes to understand the current situation. The identified challenges are then analyzed to define requirements.
Requirements definition refers to clearly defining the performance, functions, and conditions necessary to resolve challenges. If the requirements definition is unclear, the direction of the project also becomes unclear and risks going off course, so thorough business process analysis and visualization is essential.
Designing New Business Processes
Next, new business processes are designed. What is important here is listening to the opinions and requests of all relevant parties, including management and frontline staff, and designing a feasible business process.
Different positions lead to different expectations. Rather than only addressing the opinion of one party, it is important to align the opinions of each party and design a feasible business process.
Checking the Implementation Status of Solutions
Checking whether the implemented solution is being carried out as intended is also part of the business analyst’s job. While it is important to accurately communicate requirements during the development and selection phase and build a framework for implementing the intended solution, post-implementation checks cannot be overlooked either.
Paying close attention to every aspect of the project is also an important part of the business analyst’s role.
Serving as the Project Pipeline
To make a project successful, requirements definition and implementing optimal solutions are important, but serving as a pipeline to build a cooperative framework through smooth communication with all relevant parties involved in the project is also a critical role of the business analyst.
They are expected to function as the center of smooth communication so that the organization does not fall into dysfunction.
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Average Salary of a Business Analyst
According to the job site “Indeed,” the average annual salary of a business analyst is approximately 7.5 million yen.
Business analyst job listings span a wide range of approximately 6 million to 12 million yen, which varies depending on location, experience, and skills.
According to the National Tax Agency’s “Survey on Private Sector Salary Statistics for 2024,” the average annual salary of workers is 478,000 yen, confirming the high salary level of business analysts.
High-paying positions are concentrated in major metropolitan areas such as Tokyo and Osaka, while positions in other regions and at small and medium-sized companies tend to be lower than in major metropolitan areas.
However, some startups offer additional compensation such as stock options, and while the annual salary alone may be lower than in major metropolitan areas or large companies, there are positions where significant future rewards may be possible.
Reference: National Tax Agency “Survey on Private Sector Salary Statistics for 2024“
Skills Required of a Business Analyst
The skills required of a business analyst include the following three.
Marketing Skills
Business analysts are required to have broad knowledge across business in general, including marketing and the client’s industry and related industries.
If knowledge of marketing, the industry, and business operations is shallow, even excellent business analysis skills will not lead to effective solutions. Additionally, business analysts also serve as a pipeline between parties. From the client’s perspective, it is difficult to build a trusting relationship with someone who lacks knowledge of their industry and operations.
Broad knowledge of marketing as well as the client’s industry, operations, and related industries is required to conduct appropriate business analysis, formulate solutions, and build trust and serve as a pipeline for relevant parties.
Information Analysis Skills
Even challenges that appear obvious at first glance may have underlying root causes.
Business analysts must analyze client interviews and vast amounts of data to identify challenges and their root causes, and derive appropriate solutions for resolving them.
To do so, information analysis skills that consider various possibilities and allow for multifaceted thinking are required.
Communication Skills
Business analysts build good relationships with many people involved in a project and serve as a pipeline connecting the parties.
Communication skills are indispensable for carrying this out smoothly.
Even within the same organization, differing positions and roles can lead to opposing opinions, even when the goal of resolving challenges is shared. In such cases, business analysts are required to listen carefully to various opinions and respond thoughtfully.
High communication skills that allow you to accurately convey your own thinking to others, and accurately understand others’ thinking, are essential.
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5 Useful Certifications for Business Analysts
While certifications are not required to work as a business analyst, since it is not yet a widely established profession, certifications are effective for demonstrating knowledge and skills. Here are five certifications useful for the role.
ECBA
The ECBA is a certification accredited by IIBA, a non-profit organization that promotes business analysis awareness, and is an international credential that demonstrates the foundational knowledge and skills of business analysis.
It is an entry-level certification recommended for those aiming for employment or a career change into business analysis.
There are no prerequisites, and the exam can be taken online.
Study materials include the BABOK Guide published by IIBA, which can be purchased through the IIBA website.
CCBA
The CCBA is an intermediate-level certification for those with 2 to 3 years of practical experience as a business analyst.
The CCBA has the following eligibility requirements.
- 3,750 hours of practical experience as a business analyst within the past 7 years.
- Among the 6 knowledge areas in the BABOK Guide, at least 900 hours in 2 areas, or at least 500 hours each in 4 areas.
- At least 21 hours of professional development education within the past 4 years.
- Two reference letters from a supervisor, client, or CBAP certification holder.
The eligibility requirements are more detailed compared to the ECBA, but obtaining it leads to high recognition and career advancement.
CBAP
The CBAP is an advanced certification for those with 5 or more years of practical experience as a business analyst.
The eligibility requirements are as follows.
- 7,500 or more hours of practical experience as a business analyst within the past 10 years.
- Among the 6 knowledge areas in the BABOK Guide, at least 900 hours in 4 areas, with at least 3,600 of the 7,500 hours of practical experience attributed to those areas.
- At least 35 hours of professional development education within 4 years.
- Two reference letters from a supervisor, client, or CBAP certification holder.
The eligibility requirements are even more stringent than the CCBA, but it is an effective certification for career and income advancement, so it is recommended to attempt it once you meet the requirements.
Statistical Certification (Toukei Kentei)
This is a certification that demonstrates knowledge and skills related to statistics and probability, proving the essential knowledge and skills for business analysts who conduct data analysis.
There are levels from 1 to 4. Level 2 certifies university foundation-level knowledge, while Pre-Level 1 and above certifies knowledge and skills applicable in business settings.
Information Technology Passport / Applied Information Technology Engineer Exam
The Information Technology Engineers Examination is a national qualification certified by the Information-technology Promotion Agency (IPA).
It certifies everything from foundational IT knowledge to advanced knowledge applicable in IT engineering practice, as well as proving one’s status as a highly skilled IT professional with knowledge spanning both IT and corporate management.
With 4 levels and over 10 types of certifications available, try aiming for the certifications that demonstrate your knowledge as a business analyst and management-related knowledge.
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Career Prospects for Business Analysts
While business analysts have not yet been fully established as a profession in Japan, they are an established profession overseas. This is because the importance of business analysts as specialists in business analysis and as the pipeline of projects is well understood.
Many IT projects are said to end in failure. While the causes vary, unclear requirements definitions are often cited as the primary cause. This means that business analysts play a pivotal role in determining the success or failure of a project.
Companies that have recognized the importance of business analysts are rushing to secure them. As this trend is expected to continue, the career prospects for business analysts are high.
Industries Where Business Analysts Can Thrive
Here we explain the major industries with high demand for business analysts where they can thrive.
Healthcare Industry
The first is the healthcare industry.
By aggregating, managing, and analyzing medical data accumulated at each healthcare institution, it becomes possible to improve diagnostic accuracy, eliminate over-reliance on individual expertise, enable early disease detection, accelerate the development of new drugs and medical devices, and reduce the workload of healthcare professionals such as doctors and nurses, leading to workflow optimization and labor cost reduction.
In addition, it can also be applied to improving patient care, providing significant benefits for both healthcare professionals and patients.
Business analyst skills can be applied to contribute to healthcare in a rewarding way.
Financial Industry
Business analyst skills can also be applied in the financial industry.
Tracking market trends, credit screening and management—all of which require specialized knowledge and experience—can be improved in accuracy and risk avoidance through the use of data analysis.
In particular, delays or errors in tracking market trends can result in significant losses for companies and customers. Utilizing data analysis leads not only to risk avoidance but also to strengthening trust with customers.
In addition, developing financial products tailored to customers’ asset situations and checking and preventing fraudulent activity also enables faster detection, allowing for prompt responses.
These improvements reduce operational burdens, realizing both operational optimization and cost reduction.
Retail and E-Commerce
In retail and e-commerce, analyzing past customer data enables forecasting of foot traffic and sales. Being able to forecast the number of visitors with high accuracy—something that was previously difficult—also makes it easier to project sales.
Typically, sales are conducted over set periods, but if it becomes possible to forecast foot traffic and sales by day of the week, sales strategies tailored to the customer demographics of each day become easier to implement, enabling not only increased revenue but also the prevention of lost opportunities.
Furthermore, improved accuracy in forecasting foot traffic and sales also enables supply chain optimization, leading to cost reduction and improved customer satisfaction.
Tech Companies
Tech companies are companies that conduct business by leveraging IT technology.
Tech companies face intense competition, which makes operational efficiency a priority. As a result, business analyst knowledge and skills can be applied in areas such as improving business processes and optimizing services.
Compared to companies in other industries, tech companies have greater organizational flexibility and proactively adopt remote work and flextime systems when there is evidence of improved efficiency and productivity. This allows for proposals with greater freedom than in other industries.
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How to Transition into a Business Analyst Role
Here we explain how to transition into a business analyst role.
Gain Similar Practical Experience
Corporate planning departments and DX promotion divisions help develop knowledge of management and marketing, which can be applied to business analyst work.
Through hands-on work, you can learn real examples of challenges and solutions in management and marketing, making it valuable experience and knowledge. In addition, data analysis is essential in business analysis. Experience in data analysis and IT system development is also effective to highlight when changing careers.
Develop Your Skills
Develop the three skills essential for a business analyst: marketing, data analysis, and communication skills.
Marketing and data analysis skills can be developed with sufficient study time.
Soft skills like communication take time to develop, but none of these skills will go to waste. Take your time and develop them step by step.
Obtain Certifications
The third approach is obtaining certifications.
To obtain a certification, you must systematically acquire knowledge in that field, which increases the knowledge you can apply in practice. In addition, sustained study effort is required to obtain certifications, so your ambition may also be recognized.
Among the certifications introduced in this article, aim for those with no prerequisites: the ECBA, Statistical Certification, and the Information Technology Engineers Examination.
In particular, the ECBA is an international certification that demonstrates foundational knowledge of business analysis. If obtained, you will likely be highly regarded as someone ready to contribute from day one.
Utilize a Recruitment Agency
Utilizing a recruitment agency is also effective.
Since business analyst is not yet a widely established profession, there may be few job openings or practical experience may be required as an application condition.
Recruitment agencies may also have the same limitations in job openings and requirements, but a dedicated agent will support your job search and help you succeed in your career change, giving you a higher success rate than job listing sites alone.
Unless you have a specific reason to stick with job listing sites, recruitment agencies are recommended.
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Characteristics of People Suited to Being a Business Analyst
Here we introduce the characteristics of people suited to being a business analyst.
Even if you are not confident in the skills introduced here, there is no problem as long as you develop them gradually.
Ability to Think Logically
To extract the most appropriate data for business analysis, understand patterns and relationships within data, and formulate optimal solutions for resolving challenges, logical thinking that allows you to approach problems in an orderly manner is necessary.
Logical thinking allows you to explain things in a structured way, making it easier to convey solutions and opinions to others in an understandable manner. When problems arise, you can also grasp the causal relationship between the problem and its cause, and formulate solutions, developing your problem-solving ability.
High Analytical Ability
Business analysis is a critical part of the business analyst’s work.
Vast amounts of data accumulate within companies, but you must extract data relevant to identifying challenges and conduct data analysis.
High-precision data analysis requires large amounts of data, but including irrelevant data risks reducing the precision of the analysis.
High analytical ability to extract data suited to the purpose, such as identifying challenges, is also an indispensable skill.
High Motivation to Learn
A high motivation to learn is also a characteristic of people suited to being a business analyst.
Since business analysts work with clients from a wide range of industries, it is necessary to understand the characteristics of each industry, business type, and company for each project.
Additionally, in order to keep up with changing business and marketing trends, it is also necessary to constantly stay tuned in and gather information. Since it is also necessary to stay updated on tools and software used in business analysis, a high motivation to proactively acquire new knowledge is required.
High Communication Skills
Business analysts serve as the pipeline of projects.
High communication skills are required to build good relationships with clients, stakeholders, and the many people involved in projects.
They draw out challenges and ideas from clients, accurately convey project policies to all involved parties, and manage the alignment of opinions across departments.
People with high communication skills who can carry out all of this smoothly and without problems are well suited to being a business analyst.
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Career Paths for Business Analysts
Here we explain the career paths for business analysts.
Senior Business Analyst
A senior business analyst is a higher-level role than business analyst, with mentoring business analysts as the primary responsibility. You can aim for this role by building up a track record and getting promoted, or by transitioning to a similar company to advance your career to senior business analyst.
Data Analyst
A data analyst’s primary work is data analysis, and it is a role where the business analyst’s experience in business analysis and information analysis capabilities can be applied.
Like business analysts, data analysts can be active in healthcare, finance, and other industries, but since data utilization is advancing across many industries, they can thrive in a wide variety of fields.
Project Manager
A project manager is a role that demands high leadership and management skills, where communication skills and information analysis capabilities can be put to use.
Since this position is needed regardless of industry or company, there are opportunities to thrive in a wide range of sectors.
Business Consultant
Since the nature of the work is similar, transitioning to a business consultant is also possible.
However, since the work involves more upstream processes than a business analyst, it is necessary to develop market research and marketing skills. Other features include high flexibility in working styles, such as transitioning to a consulting firm, starting your own business, or working as a freelancer.
Frequently Asked Questions About Business Analysts
The following are two frequently asked questions about business analysts.
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Summary
While business analysts have not yet been fully established as a profession, the importance of their roles in requirements definition and as a communication pipeline for projects is recognized, and demand is expected to grow.
Business analysts are required to have a wide range of skills, which makes it a demanding profession. However, it is a role that offers rewarding work and compensation to match, with strong future prospects.
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