What does a functional analyst do?

Functional analysts are professionals specializing in a specific line of business, technology, and industry. They collect information by interviewing managers and employees and studying the company's systems and procedures. They design computer systems that meet business requirements and prepare reports for the managers. Additional duties for this role include installing and configuring new systems, running tests to ensure that specifications are met, and writing user manuals. Functional analysts are also responsible for conducting training on new capabilities to existing end-users.
Functional analyst responsibilities
Here are examples of responsibilities from real functional analyst resumes:
- Manage offshore production support resources while defining SLA's and processes in coordination with contract teams.
- Manage a team of 6 technical resources and their tasks, including EDI, interfaces, conversions, and reporting.
- Lead functional staff in planning stage of system migration from client-server architecture to web base environment via ResQSoft conversion tool.
- Manage customer information and create reports using Microsoft dynamics CRM.
- Assist in business process mapping and prototyping, gap analysis, solution design, setup and testing.
- Contract as MDM product structure subject matter expert (SME) on an IBM global large-scale ERP initiative.
- Participate customized & add new PeopleSoft objects focusing on workforce administration, and payroll processing functions.
- Interact with developers and business owners to establish baseline test scenarios derive from requirements following SDLC methodology.
- Project focuse on FI and HCM.
- Design and implement the account structures and train the end-users on Hyperion.
- Diagnose system errors, contact Lawson for patches, and test results.
- Perform process mapping, module set-ups, end-to-end testing & participate in go-live.
- Work closely with business users to design, develop and enhance Hyperion queries.
- Customize and configure FI/CO modules and involve in unit testing and integration testing.
- Gather requirements and test custom functionality and design of FI/CO and GPD modules.
Functional analyst skills and personality traits
We calculated that 7% of Functional Analysts are proficient in Business Process, Lifecycle Management, and HR. They’re also known for soft skills such as Analytical skills, Communication skills, and Creativity.
We break down the percentage of Functional Analysts that have these skills listed on their resume here:
- Business Process, 7%
Performed the role of troubleshooter, successfully identifying system inconsistencies and implementing optimum business solutions through programming and business process enhancements.
- Lifecycle Management, 5%
Apply Application Lifecycle Management, practices and processes to ensure quality results for project planning/deployment.
- HR, 4%
Performed fit/gap and requirements analysis sessions to upgrade HR and Benefits Administration on PeopleSoft version 9.1 for a fast-paced environment.
- ERP, 4%
Suggested effective business practices to clients using ERP solution to improve overall business performance.
- Technical Support, 4%
Coordinated across all organization levels comfortably with internal business customers, technical support resources, resources and external business partners.
- Functional Specifications, 3%
Translate business requirements for system upgrades through interviews and observations of end users; document system-level technical/functional specifications for feasibility.
Common skills that a functional analyst uses to do their job include "business process," "lifecycle management," and "hr." You can find details on the most important functional analyst responsibilities below.
Analytical skills. One of the key soft skills for a functional analyst to have is analytical skills. You can see how this relates to what functional analysts do because "analysts must interpret complex information from various sources and decide the best way to move forward on a project." Additionally, a functional analyst resume shows how functional analysts use analytical skills: "developed queries to extract the data from several tables pertaining to the setups / configurations across all erp modules. "
Communication skills. Another essential skill to perform functional analyst duties is communication skills. Functional analysts responsibilities require 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." Functional analysts also use communication skills in their role according to a real resume snippet: "provided new content & information design for corporate systems website & redesigned the sharepoint to enhance communication & teamwork. "
Creativity. Another skill that relates to the job responsibilities of functional analysts is creativity. This skill is critical to many everyday functional analyst duties, as "because analysts are tasked with finding innovative solutions to computer problems, an ability to “think outside the box” is important." This example from a resume shows how this skill is used: "created user-friendly training documentation for inventory, purchasing, order management, ap, ar, gl and hr modules. "
The three companies that hire the most functional analysts are:
- Oracle193 functional analysts jobs
- Arrow Electronics114 functional analysts jobs
- Pwc66 functional analysts jobs
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Functional analyst vs. Business analyst/quality analyst
A business analyst/quality analyst is responsible for evaluating business outputs and operational processes to ensure that everything adheres to the quality standards and business regulations. Business analysts/quality analysts support senior management in determining solutions to improve the company's services and provide the highest satisfaction for the customers and clients. They also conduct data and statistical analysis by assessing the market trends to identify opportunities that would generate more revenue resources and increase profitability for the business.
These skill sets are where the common ground ends though. The responsibilities of a functional analyst are more likely to require skills like "lifecycle management," "hr," "erp," and "technical support." On the other hand, a job as a business analyst/quality analyst requires skills like "sql server," "microsoft visio," "application development," and "scrum." As you can see, what employees do in each career varies considerably.
Business analysts/quality analysts really shine in the finance industry with an average salary of $94,836. Comparatively, functional analysts tend to make the most money in the retail industry with an average salary of $121,923.On average, business analysts/quality analysts reach similar levels of education than functional analysts. Business analysts/quality analysts are 3.4% more likely to earn a Master's Degree and 0.3% more likely to graduate with a Doctoral Degree.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.
In addition to the difference in salary, there are some other key differences worth noting. For example, functional analyst responsibilities are more likely to require skills like "lifecycle management," "erp," "technical support," and "client facing." Meanwhile, an analyst lead has duties that require skills in areas such as "analytics," "project management," "customer service," and "excellent interpersonal." These differences highlight just how different the day-to-day in each role looks.
On average, analyst leads earn a lower salary than functional analysts. Some industries support higher salaries in each profession. Interestingly enough, analyst leads earn the most pay in the finance industry with an average salary of $110,488. Whereas functional analysts have higher pay in the retail industry, with an average salary of $121,923.In general, analyst leads achieve similar levels of education than functional analysts. They're 2.6% less likely to obtain a Master's Degree while being 0.3% more likely to earn a Doctoral Degree.Functional analyst vs. Business intelligence analyst
The primary job of business intelligence (BI) analysts is to analyze data and identify areas of improvement for an organization. These professionals are responsible for identifying trends that may help managers, executives, and other departments make better decisions to improve company processes and modernization. Other duties include identifying areas of revenue loss and ways to maximize profit, analyzing competitors' use of BI, and implementing new methodologies and data analysis. This role is particularly analytical and needs a balance of communication, information technology, and problem-solving skills.
The required skills of the two careers differ considerably. For example, functional analysts are more likely to have skills like "business process," "lifecycle management," "functional specifications," and "test scripts." But a business intelligence analyst is more likely to have skills like "business intelligence," "analytics," "power bi," and "dashboards."
Business intelligence analysts make a very good living in the start-up industry with an average annual salary of $88,964. On the other hand, functional analysts are paid the highest salary in the retail industry, with average annual pay of $121,923.When it comes to education, business intelligence analysts tend to earn similar degree levels compared to functional analysts. In fact, they're 3.9% more likely to earn a Master's Degree, and 0.6% more likely to graduate with a Doctoral Degree.Functional analyst vs. Systems analyst
A systems analyst is responsible for monitoring the effectiveness of technology systems and analyzing its efficiency for business operations and clients' needs. Systems analysts create specific modifications to operating systems and help design solutions and processes. Other tasks include managing the system's workflow, diagnosing and detecting malfunctions, performing troubleshooting, and assisting clients' with their concerns. A systems analyst must have excellent command with programming languages and the knowledge with the technology industry to understand systems' complexities and processes.
Types of functional analyst
Updated January 8, 2025











