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What does a business functional analyst do?

Updated January 8, 2025
7 min read
Quoted expert
Rebecca Sarver

A business functional analyst's role focuses on helping companies utilize and implement software and systems in various operations. They conduct initial assessments, gather and analyze data from different departments, perform risk assessments, and create plans for system implementation and integration. They also conduct extensive research and analyses to determine the strengths and weaknesses of existing systems, developing solutions to optimize operations. Moreover, besides performing analytical tasks, a business functional analyst may also provide technical support to staff by troubleshooting complex issues and performing corrective measures when necessary.

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Business functional analyst responsibilities

Here are examples of responsibilities from real business functional analyst resumes:

  • Manage integrated functionality & technology dependencies, usability, reliability, performance and support requirements of legacy CRM and web applications.
  • Train the business team on Sharepoint.
  • Provide SME knowledge to analyst and technical team on ordering business.
  • Provide cross functional diagrams through the use of Visio to represent user/system interaction.
  • Develop Visio models to show data and process flows for current and future processes.
  • Employ SDLC for the purpose of monitoring the project and also follow the step-by-step procedure.
  • Work with the SME's to define business critical needs and analyze the possible technical solutions.
  • Compose system QA testing scenarios, document, track, report system bugs, and documented/recommend solutions.
  • Act as liaison between the client and cross-functional teams by documenting defects (issues) discover during UAT testing.
  • Conduct UAT with the cross-functional business teams to ensure the system are aligned with the vision of the business teams.
  • Maintain the query log for business, QA and d developers to provide clarity, resolve issue and answer questions.
  • Identify PeopleSoft deliver solution for existing customization.
  • Skil in producing high quality requirement specifications to support ERP functional design development.
  • Provide functional/technical expertise for ERP base projects and/or enhancements and support for application subsystems.
  • Identify functional regression scenario, detail level regression scenario documentation and test case preparation on the priority.

Business functional analyst skills and personality traits

We calculated that 12% of Business Functional Analysts are proficient in Java, Business Process, and ERP. They’re also known for soft skills such as Creativity, Analytical skills, and Communication skills.

We break down the percentage of Business Functional Analysts that have these skills listed on their resume here:

  • Java, 12%

    Designed and developed several utility applications for automation regression test against all the templates, batch submission and reporting using Java.

  • Business Process, 10%

    Participated in research, data gathering, business analysis and development of strategies to support business decision-making and business process requirements.

  • ERP, 4%

    Provide functional/technical expertise for ERP based projects and/or enhancements and support for application subsystems.

  • UAT, 4%

    Created & testing UAT scripts for PeopleSoft delivered North American Payroll, Tax Updates, Ben Admin since 2 plus years.

  • Test Cases, 4%

    Reviewed functional and technical requirements to develop test plans and test cases for UNIX-based Interactive Voice Response (IVR) application.

  • User Acceptance, 4%

    Worked with users in User acceptance testing Implementation of Marketing Management involved Campaign management, segmentation with E-mail campaigning.

Most business functional analysts use their skills in "java," "business process," and "erp" to do their jobs. You can find more detail on essential business functional analyst responsibilities here:

Creativity. The most essential soft skill for a business functional analyst to carry out their responsibilities is creativity. This skill is important for the role because "because analysts are tasked with finding innovative solutions to computer problems, an ability to “think outside the box” is important." Additionally, a business functional analyst resume shows how their duties depend on creativity: "tested scm for oracle e-business using po, ap, om, inventory, ar etc. "

Analytical skills. Another essential skill to perform business functional analyst duties is analytical skills. Business functional analysts responsibilities require that "analysts must interpret complex information from various sources and decide the best way to move forward on a project." Business functional analysts also use analytical skills in their role according to a real resume snippet: "analyzed introduction of new xml tags on payments for pain 008.001.003 and 002 versions. "

Communication skills. This is an important skill for business functional analysts to perform their duties. For an example of how business functional analyst responsibilities depend on this skill, consider that "analysts work as a go-between with management and the it department and must explain complex issues in a way that both will understand." This excerpt from a resume also shows how vital it is to everyday roles and responsibilities of a business functional analyst: "performed status reports, communications logs and issues logs as project coordinator role. ".

Most common business functional analyst skills

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Compare different business functional analysts

Business functional analyst vs. Analyst lead

The duties of an analyst lead depend on one's line of work or industry of employment. Typically, their responsibilities revolve around performing research and analysis, coordinating with different departments to gather leads and data, reviewing findings, and producing reports and presentations for the stakeholders and other higher-ranking officials. Through the results, an analyst lead can provide advice, devise strategies for business optimization, spearhead the development of processes, identify strengths and weaknesses, and offer recommendations on areas in need of improvement. All of this is done while in adherence to the company's vision and mission.

We looked at the average business functional analyst salary and compared it with the wages of an analyst lead. Generally speaking, analyst leads are paid $6,000 higher than business functional analysts per year.While their salaries may differ, the common ground between business functional analysts and analyst leads are a few of the skills required in each roleacirc;euro;trade;s responsibilities. In both careers, employee duties involve skills like java, business process, and uat.

These skill sets are where the common ground ends though. The responsibilities of a business functional analyst are more likely to require skills like "erp," "manage change," "user stories," and "regression." On the other hand, a job as an analyst lead requires skills like "analytics," "project management," "customer service," and "excellent interpersonal." As you can see, what employees do in each career varies considerably.

Analyst leads tend to make the most money working in the finance industry, where they earn an average salary of $110,488. In contrast, business functional analysts make the biggest average salary, $101,993, in the finance industry.On average, analyst leads reach similar levels of education than business functional analysts. Analyst leads are 4.8% less likely to earn a Master's Degree and 0.9% more likely to graduate with a Doctoral Degree.

Business functional analyst vs. Implementation analyst

An implementation analyst is an individual who is responsible for conducting data analysis and software testing when a company is doing a software upgrade. Implementation analysts must ensure that the company has the appropriate equipment to meet its operational needs by determining which hardware and software they should use. They provide workshops and conduct education for trainers on the functionality of the product as well as to conduct tests to ensure the proper functionality of the product. Implementation analysts must also prepare budgets for proposed equipment or tailor their recommendations to fit an established budget.

Implementation analyst positions earn lower pay than business functional analyst roles. They earn a $6,996 lower salary than business functional analysts per year.While the salary may differ for these jobs, they share a few skills needed to perform their duties. Based on resume data, both business functional analysts and implementation analysts have skills such as "java," "erp," and "uat. "

In addition to the difference in salary, there are some other key differences worth noting. For example, business functional analyst responsibilities are more likely to require skills like "business process," "functional specifications," "bi," and "user stories." Meanwhile, an implementation analyst has duties that require skills in areas such as "client facing," "shared services," "project management," and "customer service." These differences highlight just how different the day-to-day in each role looks.

Implementation analysts earn a lower average salary than business functional analysts. But implementation analysts earn the highest pay in the technology industry, with an average salary of $83,317. Additionally, business functional analysts earn the highest salaries in the finance with average pay of $101,993 annually.In general, implementation analysts achieve lower levels of education than business functional analysts. They're 10.8% less likely to obtain a Master's Degree while being 0.9% more likely to earn a Doctoral Degree.

What technology do you think will become more important and prevalent for business functional analysts in the next 3-5 years?

Rebecca SarverRebecca Sarver LinkedIn profile

Lecturer in Human Services Studies, Elmira College

The use of remote and virtual meetings will continue, even after COVID-19. Face-to-face meetings may still be the preferred method of contact, but the reality is that many clients who need to access services do not have reliable and consistent transportation to get to the services. Phones and computers enable more convenient meetings that are less costly in terms of time and travel. Some clients may prefer not to leave their homes.

Business functional analyst vs. Senior technical business analyst

Senior Technical Business Analysts are experienced employees who primarily work on business improvements. They review business processes and other operations-related procedures in relation to the current business landscape. They should be familiar with the trends in the industry and how these trends affect the company. They should also be familiar with the company processes, people's capabilities, and other context-setting information related to the business. Senior Technical Business Analysts work with different departments to get a holistic view of the company. This would help them recommend action plans and next steps to address the company's challenges and ensure that the company overcomes these challenges.

On average, senior technical business analysts earn higher salaries than business functional analysts, with a $16,643 difference per year.By looking over several business functional analysts and senior technical business analysts resumes, we found that both roles require similar skills in their day-to-day duties, such as "java," "business process," and "erp." But beyond that, the careers look very different.

The required skills of the two careers differ considerably. For example, business functional analysts are more likely to have skills like "manage change," "user training," "peoplesoft," and "payroll." But a senior technical business analyst is more likely to have skills like "project management," "business analysis," "scrum," and "business stakeholders."

Senior technical business analysts earn the highest salary when working in the energy industry, where they receive an average salary of $122,449. Comparatively, business functional analysts have the highest earning potential in the finance industry, with an average salary of $101,993.Most senior technical business analysts achieve a similar degree level compared to business functional analysts. For example, they're 3.9% less likely to graduate with a Master's Degree, and 1.0% less likely to earn a Doctoral Degree.

Business functional analyst vs. Business analyst/project manager

A business analyst/project manager is responsible for developing project management procedures, analyzing processes, and ensuring the accuracy and efficiency of project deliverables, following clients' specifications and requirements to meet their highest satisfaction. Business analysts/project managers manage project resources, delegate tasks to project staff, setting deadlines, and coordinating with the clients for regular updates and suggest strategic adjustments as needed. They also mitigate potential risks and manage changes during the project execution, maintaining the quality of the outputs, and balancing costs to meet the clients' budget goals.

Business analyst/project managers typically earn higher pay than business functional analysts. On average, business analyst/project managers earn a $10,618 higher salary per year.According to resumes from business functional analysts and business analyst/project managers, some of the skills necessary to complete the responsibilities of each role are similar. These skills include "business process," "erp," and "uat. "Each job also requires different skills to carry out their responsibilities. A business functional analyst uses "java," "manage change," "regression," and "gap analysis." Business analyst/project managers are more likely to have duties that require skills in "project management," "business stakeholders," "project scope," and "business analysis. "The finance industry tends to pay the highest salaries for business analyst/project managers, with average annual pay of $120,172. Comparatively, the highest business functional analyst annual salary comes from the finance industry.business analyst/project managers reach similar levels of education compared to business functional analysts, in general. The difference is that they're 1.6% more likely to earn a Master's Degree, and 0.4% more likely to graduate with a Doctoral Degree.

Types of business functional analyst

Updated January 8, 2025

Zippia Research Team
Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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