What Is a Business Intelligence Analyst? A Complete Guide

We operate in an intensely competitive and data-driven world, requiring businesses to have a high level of intelligence to make good decisions and outsmart their competitors. Organizations also need access to up-to-date information to improve processes, take advantage of opportunities, and solve varied problems.

This is where business intelligence analysts provide expertise, helping business stakeholders make sense of data and take informed actions. Among other roles, these professionals analyze data and extract actionable insights. They go further to oversee the integration of various initiatives in the workplace.

But to perform all these roles, a business intelligence analyst requires the right combination of soft and hard skills. Hands-on experience, including knowing how to collect and analyze data, is also essential. Excellent communication, analytical, collaboration, and problem-solving skills enable these experts to work with others to solve widely varying issues effectively.

This guide explains the role and skills of a BI analyst. It also highlights the salaries these professionals earn and lays out steps to follow to become a business intelligence analyst.

Table of contents:

• Role and job description of a BI analyst
• Skills of a successful BI analyst
• Business intelligence analyst salaries
• 7 steps to become a BI analyst

Business intelligence analyst role and job description

A BI analyst plays a multifaceted role that revolves around collecting and analyzing data and providing organizations with valuable information to facilitate effective decision-making. They serve as a linchpin between raw data and actionable business insights.

• Data collection. BI analysts collect information from multiple data sources including customer surveys, loyalty programs, sales records, social media platforms, and internal tools like databases and spreadsheets.
• Data preparation. The collected data usually isn’t ready for analysis immediately. BI analysts clean and transform this data into suitable formats to ensure it’s ready for analysis.
• Data analysis. Once the data is clean, BI analysts jump into the analysis process, using different statistical tools like Microsoft Excel and Tableau to identify patterns, trends, and relationships in data.
• Reporting. With the data analysis complete, BI analysts create interactive dashboards and visualizations to present their findings to relevant business stakeholders. For example, they may use bar charts and graphs to illustrate how the company has been performing compared to its rivals.
• Recommendations. Based on the findings, BI analysts use their expertise to provide improvement or optimization tips. For instance, they can advise how a business can exploit new opportunities, boost revenues, and save costs.
• Monitoring. BI analysts may also analyze and monitor business performance. They collaborate with other stakeholders to track key performance indicators (KPIs) and ensure the business will achieve its objectives.

What business intelligence analysts do

A BI analyst’s day-to-day tasks involve meeting with the senior management team to discuss key priorities and data needs. In these meetings, managers can lay out the issues they’re experiencing with the hope of finding the causes and solutions.

After the meeting, the BI analyst examines the issues identified by the management team and establishes a plan to find the root causes. For example, a manager might complain that the organization is performing poorly despite implementing various corrective measures regularly. In this case, a BI analyst might seek to establish why the business is consistently posting bad results.

With the problems laid out, a BI analyst collects data from different sources and analyzes it to identify factors contributing to a particular issue. To report findings, the BI analyst can create a dashboard using Microsoft Power BI or Tableau. These visualizations make it easier for nontechnical stakeholders to understand the findings.

With the root causes identified, a business intelligence analyst can collaborate with other business stakeholders to look for solutions, implement them, as well as monitor and determine their effectiveness.

A BI analyst’s daily tasks generally revolve around data and resolving business problems. As a result, proper data management practices ensure decisions are made based on quality and reliable information. For instance, only authenticated individuals should be allowed to access and store data to maintain the integrity of data warehouses.

Difference between related roles

BI analysts, data analysts, and data scientists all operate in the realm of data science. They all collect, analyze, and extract actionable insights from data. However, there are distinct differences that set them apart.

A BI analyst primarily focuses on helping organizations make sense of data and take informed actions. They can create dashboards and visualizations to enable business stakeholders to interpret results and find new insights easily.

A data scientist analyzes data to find complex patterns and create machine learning models and algorithms. Data scientists also use their mathematical understanding and technical prowess to design and develop data modeling tools and run experiments. So, a BI analyst is business-focused, while a data scientist is more flexible, operating in different fields and industries.

BI analysts also differ from data analysts. A BI analyst focuses on analyzing historical and current data to help managers understand their past and present situation. BI analysts also pay attention to reports and visualizations to enable stakeholders to understand findings quickly.

On the other hand, a data analyst has a broader scope, working with both structured and unstructured data to find new patterns and relationships. Data analysts also use their knowledge of programming languages like Python and R to analyze data at a deeper level.

Importance in business processes

A business intelligence analyst shapes business strategies by providing valuable insights that lead to actionable initiatives to drive company growth and efficiency.

For example, BI analysts can help identify new opportunities touching on emerging market trends and customer needs. Organizations can then move to exploit these opportunities before their competitors do—and solidify their market dominance.

BI analysts can also detect areas or processes that need improvements. They analyze products and services and determine how they can be enhanced to satisfy more clients.

For example, a BI analyst working for an e-commerce company can identify factors that cause customers to abandon carts and help the business fix this issue. Similarly, a BI analyst working in a manufacturing company can analyze data and identify wasteful areas in the workplace. The analyst can then assist the management team in formulating appropriate solutions.

BI analysts use a wide range of business intelligence tools.

• Microsoft Excel. This Microsoft-owned spreadsheet software helps with data entry and storage. It also features formulas for various calculations, including accounting, forecasting, and budgeting. Excel offers charts and graphs to aid with data presentation and visualization.
• RapidMiner. This data mining tool allows BI analysts to collect large amounts of information on the internet quickly.
• SPSS. This statistical software helps BI analysts analyze and discover hidden insights from data.
• Tableau. This visualization tool enables BI analysts to communicate their findings.
• Microsoft Power BI. Microsoft Power BI enables BI analysts to explain their findings to nontechnical stakeholders using appealing charts and graphs.

Skills of a successful BI analyst

A successful BI analyst requires a good blend of hard and soft skills. You’ll want to know how to analyze data and use visualization tools to present your findings. At the same time, you must be able to communicate and collaborate with stakeholders to deal with issues effectively.

Technical skills

BI analysts need several technical skills to succeed. They should have a good understanding of structured query language (SQL) and Excel.

SQL helps in performing different queries on data stored in databases. For instance, BI analysts can use SQL to store, retrieve, and edit data in relational databases. Excel helps with data entry and storage, data analysis, and presentation. A solid grasp of visualization tools like Tableau and Microsoft Power BI is essential when communicating insights to stakeholders.

Data mining helps BI analysts extract valuable insights during the data collection process, which saves time and effort. Since the amount of data generated keeps growing, an understanding of big data fundamentals, including how to store and process it effectively, is important.

Some knowledge in programming, particularly Python, helps BI analysts perform their roles well. Python comes with numerous data analysis libraries like pandas, NumPy, and SciPy, which allows BI analysts to extract valuable information from large data sets faster.

BI analysts should also be familiar with specialized tools and platforms like SAS and Amazon’s data services. And since machine learning technology is increasingly used in data analysis, an understanding of how it works and how to use machine learning frameworks can boost their productivity.

Soft skills

BI analysts also require an array of soft skills to be effective. One primary responsibility is to help managers identify problems and find solutions.

As a result, BI analysts should have excellent problem-solving and critical thinking skills to navigate complex and dynamic data landscapes. They should be able to analyze a problem from different perspectives and determine possible fixes.

Since BI analysts work with upper management on various issues, they need effective communication skills (both written and spoken) to discuss various topics and report their findings. Good communication skills also enable them to bridge the gap between technical data insights and nontechnical stakeholders.

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Business intelligence analyst salaries

Business intelligence analysts have an expected total annual pay of about $100,000 and have hourly rates of between $25 and $55.

However, the annual salary and hourly rates may vary depending on a range of factors, including level of work experience, educational qualifications, and professional certifications earned.

7 steps to become a BI analyst

From pursuing relevant education to using the right platforms to find jobs, we lay out the steps you should follow to become a BI analyst.

7 steps to become a BI analyst:

1. Pursue relevant education
2. Acquire technical proficiency
3. Gain practical experience
4. Obtain relevant certifications
5. Develop soft skills
6. Stay updated with industry trends
7. Use the right platforms to find opportunities

1. Pursue relevant education

The educational background needed as a BI analyst may vary between employers. However, you’ll typically need at least a bachelor’s degree in business administration, computer science, information technology, data science, statistics, or related disciplines.

These academic paths equip you with the foundational knowledge and skills to perform well in a BI analyst role. Plus, you’re introduced to different data mining, analysis, and visualization tools and how they fit into data analysis and other business processes.

Once you’ve earned a degree, you can further your education by getting a master’s degree in business analytics, business administration, or a related field. This allows you to work with more clients (those who require a master’s degree as a job qualification) and access more career advancement opportunities.

A master’s degree may also introduce you to advanced data science concepts, increasing your proficiency.

2. Acquire technical proficiency

To become a BI analyst, you’ll want to be proficient in certain technical skills.

For example, you’ll want to be familiar with visualization tools like Tableau, Microsoft Power BI, and Excel. You’ll also need a good understanding of SQL and Excel since you’ll interact with these technologies.

Online platforms like Udemy, Coursera, and Udacity offer courses to enhance your technical proficiency. As you learn, consider building real-world applications to improve your hands-on experience.

3. Gain practical experience

Since a BI analyst is a hands-on job, you’ll need relevant experience to perform your roles well. Practical experience allows you to figure out what goes where and what fits where, ensuring you don’t become overwhelmed when faced with real-world problems.

To gain practical experience, consider looking for internships. These opportunities allow you to work with other professionals to solve problems.

As you gain more experience, apply for entry-level positions to sharpen your skills and knowledge. Consider taking project-based roles on platforms like Upwork to understand the practical aspects of data analysis, stakeholder communication, and business decision-making.

4. Obtain relevant certifications

Professional certifications can enhance your profile by demonstrating you have the right skills and knowledge. Certifications can also help with career advancement, enabling you to qualify for higher positions.

Some certifications to validate your expertise and open doors to advanced roles include:

• Google Business Intelligence Professional Certificate
• Python certifications
• Data analytics certifications
• Microsoft Certified: Power BI Data Analyst Associate
• Tableau Certified Data Analyst

5. Develop soft skills

Being a BI analyst isn’t only about having technical expertise. You also need soft skills to connect with other people and perform your job well.

A successful BI analyst must have excellent critical thinking, communication, and decision-making abilities. You can nurture these skills through your everyday workplace interactions or by attending workshops and seminars. Internship opportunities can also help you learn from mentors and seasoned experts on how to conduct yourself in the workplace.

6. Stay updated with industry trends

The BI analysis field is dynamic. New trends and tools are always emerging and changing how individuals do things.

As a BI analyst, stay updated with the latest data analysis techniques, tools, and business intelligence. Read articles, blog posts, and industry-specific publications to keep yourself updated with the latest advancements in data science.

Follow thought leaders on social platforms like LinkedIn to help you understand their perspectives and learn from their experiences. Attending workshops and forums and being part of online forums like those on Reddit and Stack Overflow can also ensure that you’re aware of industry developments.

7. Use the right platforms to find opportunities

Once you’ve acquired the right technical and soft skills, consider leveraging online platforms to find opportunities and projects. Platforms like Upwork can serve as a launchpad for aspiring BI analysts, offering you a chance to work on diverse projects, build a portfolio, and network with potential clients or employers.

Discover the advantages of working in business intelligence

Working as a business analyst can be rewarding and fulfilling. You can use your expertise in data analysis to help businesses access crucial insights and make data-driven decisions.

If you’re confident with your skills, consider kick-starting your BI analyst career on Upwork. You can find different business intelligence analyst jobs to earn extra income and develop your expertise.

And if you’re looking for business professionals to help boost your performance, Upwork can connect you with qualified BI analysts.

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Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.