We once considered capital as the major facet of starting and running a business. However, the contemporary world is revealing something else! The brains behind a business are what enable it to succeed. There are many entrepreneurs who had the capital and resources but suffered dimensionally due to poor decision-making.
Capital alone can’t guarantee a business’s success or survival! For that matter, we shouldn’t be surprised when we see a new trend of leveraging data, data analytics, business analytics, and business analysts.
Many businesses currently hire business analysts to bridge the gap between data analytics and other business departments. To substantiate, the field of data and business analysis is among the fastest-growing sectors according to the US Bureau of Labour Statistics. At this juncture, we will explore the work of business analysts and why the modern business world is investing in them.
Business analysts are professionals concerned with analyzing and assessing business strategies, operations, products, services, and investments. These professionals think about every aspect of a business in order to guide its growth and development. Unlike business analytics professionals, business analysts have less to do with data. However, deal more with critical thinking.
Business analysts must have ideal critical thinking skills. The process of reflecting on business models, strategies, partnerships, and drawing meaning from business data all require exceptional critical thinking abilities. In the real sense, besides data, business analysts are key drivers of business success.
Critical thinking is the ability to analyze and form a proper judgment depending on the available data and evidence. Data and its proper application are now becoming a tool to sustain businesses in the marketplace. With data, business managers can make informed decisions, predict future trends and stay upfront with technological advancements. Precisely, harnessing the power of data and analytics offers a competitive edge.
Business analysts can at times work with data analysts and other business departments to effectively implement strategies and practices. The ability to think critically, and assess the pros and cons of the possible decision by leveraging data prevents or minimizes costly mistakes. That’s why business analysts must be critical thinkers. Other reasons why business analysts require critical thinking skills are;
The ability to make things a reality all lies in the power of decision-making. Good business analysts must know how to make reliable decisions just like those who want to become better leaders. That’s where critical thinking skills come into play. Critical thinking is a core skill of business analysts and allows them to function optimally.
Here, the skill helps them to be objective and avoid relying on emotions to make decisions. When this is followed, they are able to remain open-minded, assess the evidence, and alternatives, reflect upon the possible outcomes and then make quality decisions.
Professional business analysts are supposed to guide a company throughout its processes and operations. Modern business analysts are even tasked to assess a company’s potential in new areas of investments for example in cryptocurrency or when it comes to partnering with foreign companies.
Having good business analysts who are critical thinkers can help save a business from losing millions of dollars in wrong partnerships and unprecedented times.
Helps Understand The Latest Business Trends
Business analysts must be up to date with the latest trends and technologies that businesses utilize to stay afloat. For example, when it comes to the introduction of new technologies like VR in a company, business analysts must assess its impact on both the company and the customers. Precisely, business analysts play a key role in the change management process, by reflecting on every aspect of the process as well as its long-term effects on stakeholders.
Business analysts must think critically and logically about the consequences of the new policies and also help in conducting user acceptance tests. Change is an intricate process and can at times result in unintended consequences that may affect every facet of a business like profits. That’s why it’s essential to have business analysts with quality critical thinking skills.
Helps Take Possible Consequences into Consideration
When businesses make informed decisions, they are better positioned to handle undesirable consequences. Besides, they may take on possible risks with the assurance that they are associated with positive outcomes down the line. Good business analysts use their critical thinking capabilities to analyze decisions and assess risks.
They guide a business on the possible risks they can take and ones that they can’t even consider at any one point. In this, they help businesses prevent losses and changes that may hinder business progress.
Helps Take into Account All Stakeholders’ Interests
Businesses can operate effectively when they focus on cultivating quality relationships with their stakeholders. Stakeholders are parties with a connection or interest in a company. These include shareholders, employees, suppliers, customers, and investors. All stakeholders have different expectations from the company. For example, customers expect quality products or services from a company. However, the business must ensure that the products or services are priced at the best rate, i.e one that helps it earn some percentage of profits.
Here, business analysts are tasked with forming a common platform where stakeholders’ interests are met without costing the company in the long run. They are supposed to think about the stakeholders’ demands and analyze whether they are also in the best interest of the company. They must analyze the different business KPIs (key performance indicators) and help a business succeed.
Helps Realize Business Opportunities & Threats
Analyzing business opportunities is very crucial in guiding a company to succeed, although many times the facet of threats isn’t assessed excellently. Business analysts are supposed to carry out a SWOT analysis to help a business seize opportunities and eliminate threats. They analyze the market, stakeholders’ interests, and possible threats in conjunction with the business strengths and weaknesses.
It’s business analysts who think critically and emphasize how given changes might impact the business in the short and long run. They engage in data visualization to produce data-backed ideas, not just personal opinions before making decisions.
Business analysts are among the top in-demand business professionals today. That’s because they provide insights into business operations, guide decision-making processes, and help businesses stay afloat. Besides, they help businesses transform and become technologically adept since the world is becoming more and more technologically driven.
About The Author
Jessica Robinson loves to write interesting and knowledgeable blogs regarding business management, education and life to satiate the curiosity of her lovely readers. Currently, she is serving as a content manager at the ‘Speaking Polymath’. Every piece of content that she writes demonstrates her immense love and passion for her profession.