Business Analyst vs. consultant: What Are the Differences?
Learn about the two careers and review some of the similarities and differences between them.
Many people enter the business world with the goal of becoming a business analyst or consultant. Though these positions share some similarities, there are several key differences between them. In this article, we discuss the differences between a business analyst and a consultant, and we provide additional business-related professions you may be interested in pursuing.
What is a Business Analyst?
A Business Analyst is a professional who helps organizations identify and solve problems. They use data analysis, modeling and testing to understand a company’s business operations and find ways to improve efficiency and effectiveness. Business Analysts work in a variety of industries, including information technology, finance, healthcare and manufacturing. They typically have a bachelor’s degree in business administration or a related field. Many Business Analysts also have a master’s degree in business administration (MBA) or a Certified Business Analysis Professional (CBAP) designation.
What is a Consultant?
Consultants are professionals who provide expert advice in a particular area of work. They are usually hired by organizations to help solve specific problems or improve performance. Consultants typically have a lot of experience in their field and are able to offer impartial, objective advice. They may also be hired to provide specialist skills or knowledge that an organization doesn’t have internally. Consultants typically work on a project basis, meaning they are brought in for a specific period of time to work on a specific problem or goal. Once the project is complete, they are usually no longer involved with the organization.
Business Analyst vs. Consultant
Here are the main differences between a business analyst and a consultant.
Job Duties
Both business analysts and consultants can perform a variety of duties to help their clients. The specific tasks they carry out depend on the needs of their client and the goals they aim to achieve. Some common duties include researching the market, developing strategies, creating plans and policies and carrying out implementation.
Business analysts often focus on using data and analytics to solve problems within a company. They may use the information they collect to determine which strategies will best help the company succeed and then present that information to key stakeholders. In contrast, consultants typically work with companies to develop solutions to broader challenges, like launching a new product or entering a new market. They may provide advice to their clients but rarely implement change without further instruction.
Job Requirements
Business analysts and consultants typically need a bachelor’s degree in business administration, economics or another related field. However, some employers prefer candidates to have a master’s degree as well. Additionally, many business analysts and consultants pursue certifications through professional organizations, such as the Institute of Management Consultants (IMC) or the Project Management Institute (PMI). These organizations offer training programs that teach professionals how to use consulting software and other tools they might need on the job.
Work Environment
Business analysts typically work in an office setting, but they may also travel to meet with clients and observe their operations. They often collaborate with other team members, such as software developers or IT professionals, to create solutions for a company’s needs. Business analysts usually work full time during regular business hours, although overtime is sometimes required.
Consultants can work in many different environments depending on the type of consulting they do. For example, consultants who provide technical support may travel to client sites to assist them with issues. Consultants who advise companies on marketing strategies may spend most of their time working from home or in an office. Consulting firms often require consultants to work long hours when projects are due, so consultants should expect to work overtime regularly.
Skills
Both business analysts and consultants use analytical skills to examine a company’s operations and make recommendations for improvements. They also both need to have excellent communication skills to present their findings to clients or company executives.
Business analysts tend to focus more on the technical aspects of a company’s operations, such as its financial data or production processes. They use their skills to identify inefficiencies or areas where the company could be losing money. Consultants, on the other hand, often focus on strategic planning and provide advice on how a company can improve its overall performance. This may involve developing new marketing strategies, improving customer service or streamlining operations.
Salary
The average salary for a business analyst is $80,401 per year, while the average salary for a consultant is $84,847 per year. Both of these salaries can vary depending on the industry in which you work, your level of experience and your location.
