In recent years, business analysts have gained attention due to the promotion of digital transformation (DX). Business analysts are an essential role in determining the overall direction of projects.
This article provides a thorough explanation of the job responsibilities, salaries, useful qualifications, and necessary skills for business analysts.
Digital transformation efforts in Japan are making significant strides. According to a study by the Independent Administrative Institution, Information-Technology Promotion Agency, the percentage of companies in Japan implementing DX based on company-wide strategies has been steadily increasing from 2021 to 2023.
With the growing focus on new technologies like big data, AI, and IoT, the need for business analysts is likely to rise. This means that business analysts will remain in demand in the future.
Oskar Takenaka, Division Director of Enterprise Technology & Consulting at Robert Half Japan, notes “While the role of business analysts has gained recognition in Japan over the past decade, it still lacks the acknowledgment seen in Western countries. It is important to recognize and nurture the necessity for business analysts within organizations going forward.”
The role of business analysts has gained traction in Western countries since around the year 2000, establishing itself as a recognized profession. In Japan, the Japanese version of the Business Analysis Body of Knowledge (BABOK®) was published in 2009, leading to a gradual increase in awareness of the role.
Recently, the diversification of client needs and the evolution of IT technology have led to a growing demand for customized services across companies. Additionally, factors such as the COVID-19 pandemic and changes in working conditions due to natural disasters have created an uncertain environment for businesses. In this context, business analysts are crucial for analyzing business operations and market conditions to propose effective strategies, leading to increased demand for their expertise.
A business analyst specializes in business analysis. Their role involves analyzing data from both internal and external sources to help clients solve their problems.
The process begins with interviewing client companies to understand their business operations and challenges. From there, the business analyst identifies issues and communicates potential IT solutions to developers and other specialists. Essentially, business analysts serve as a bridge between clients and the experts who can turn their needs into reality.
While the role of business analyst is still developing in Japan, the function itself has been around for a while. Traditionally focused on business, the role is increasingly integrating digital transformation and the application of IT technologies to propose solutions.
Both business analysts and consultants engage in client interviews and market analysis to identify problems and propose solutions. However, a key difference is that business analysts often work more closely with system developers, such as engineers. Their role includes defining requirements for system specifications, which engineers then use to design and develop systems.
Conversely, consultants typically have more direct client interactions. Their primary responsibility is to set the overall direction for projects without getting into the specifics of requirements definition.
In consulting firms, business analysts often hold entry-level positions and may advance to become consultants after gaining knowledge and experience.
Project managers are responsible for overseeing the project team and ensuring the project runs smoothly. They handle a wide range of tasks, including project planning, schedule management, and reporting progress and challenges, all to deliver solutions recommended by business analysts.
As a result, the scope of work for project managers and business analysts differs. Project managers are involved in every aspect of the project, from requirements definition and design to development and maintenance, ensuring the system functions correctly. In contrast, business analysts primarily focus on gathering information from clients and defining requirements.
Related: What is a project manager? Roles, responsibilities, and salary
As mentioned earlier, business analysts are specialists in business analysis. The International Institute of Business Analysis (IIBA®) defines business analysis as the practice of defining needs and recommending solutions that deliver value to stakeholders.
This means business analysts play a key role in driving positive change for their clients by identifying their needs and proposing effective solutions.
Clients may not always have a clear understanding of their IT requirements or what their business needs. That’s where business analysts step in—they listen to clients and propose solutions that leverage IT systems.
Another important aspect of a business analyst's job is to communicate the information gathered from clients to project managers and other relevant parties involved in system development. They organize client requests and the requirements needed for IT system development into a coherent format, which helps project managers form project teams and assign responsibilities. Engineers then take over the actual system development process.
Business analysts can be categorized into seven types. Let's take a closer look at each one.
The role of a business systems analyst involves gathering information from clients about their management situation and analyzing it to develop plans for implementing business systems. Business systems are systems designed to efficiently handle operations such as customer management and sales management. This analyst evaluates existing systems, proposes better alternatives, and contributes to solving problems.
Functional business analysts focus on reviewing specific business systems. They document these systems and check their efficiency. Unlike business systems analysts, they also examine aspects such as task distribution and outsourcing, ensuring that overall business processes are optimized.
Product analysts analyze user needs and connect them to product development. They assess whether digital products or employee strengths are being utilized effectively while designing improvement strategies for products and services based on performance evaluations.
Enterprise business analysts belong to cross-functional organizations like Centers of Excellence (CoE) and are responsible for addressing issues that span multiple departments. They analyze how departments communicate and share information, supporting smooth collaboration towards shared goals.
Business architects analyze the overall structure of business processes and construct those processes. They consider the scale and nature of the business to promote digital transformation (DX) for achieving management goals. This role is essential when launching new businesses. While business architects work closely with management, business analysts tend to interact more with management-level staff across departments.
Business intelligence analysts analyze vast amounts of internal and external data to support management strategies and decision-making. Business Intelligence (BI) typically involves data analysis to aid decision-making, but in recent years, it has expanded to include external market analyses.
Hybrid business analysts take on the dual role of analysis and problem-solving execution. While traditional business analysts leave system development to engineers, hybrid analysts engage in the implementation of systems by utilizing tools like Robotic Process Automation (RPA) to automate business processes.
According to internal data from Robert Half, the average salary for a Business Analyst ranges from 6.5 million to 10.5 million yen. As one gains experience and skills, the average salary can exceed 10 million yen.
Below are the average salaries for related job roles for your reference:
Position
| Entry-Level Experience
| Average Experience
| Excellent Experience
|
Application Manager
| 8.5 million yen
| 10.5 million yen
| 12.5 million yen
|
Business Relationship Manager (BRM)
| 10.5 million yen
| 13.5 million yen
| 16.5 million yen
|
Architect (Application, Solution, System, Infrastructure, Enterprise)
| 10.5 million yen
| 14.0 million yen
| 18.0 million yen
|
IT Auditor / IT Risk Specialist
| 6.0 million yen
| 8.0 million yen
| 10.5 million yen
|
IT Director / Chief Information Officer (CIO) / Chief Technology Officer (CTO)
| 16.0 million yen
| 22.0 million yen
| 26.0 million yen
|
IT Governance Specialist
| 7.5 million yen
| 9.5 million yen
| 11.5 million yen
|
IT Strategy / Planning / Consulting
| 8.5 million yen
| 10.5 million yen
| 12.5 million yen
|
Network & Server Support / Engineer
| 6.5 million yen
| 8.5 million yen
| 10.5 million yen
|
Program Manager / Director
| 12.5 million yen
| 14.5 million yen
| 16.5 million yen
|
Service Delivery Manager
| 10.5 million yen
| 12.5 million yen
| 14.5 million yen
|
Here is an example of a specific job listing for a Business Analyst.
Job title
| IT Business Analyst
|
Expected salary
| ¥ 8 million - 11 million
|
Resposibilities
| - Serve as the main point of contact for IT solution development to support product and service planning.
- Collaborate with product, sales, and operations teams to propose IT solutions for new products and services.
- Act as the product owner post-release, evaluating feedback from the business division and ensuring project KPIs are met.
- Manage product improvement requests from both the business division and IT team, organizing them as backlog items.
- Lead communication with stakeholders, prioritize backlog items, and develop action plans to enhance product/service value and promote business growth.
- Collaborate with stakeholders to create IT business cases for new initiatives, defining scope and execution plans to gain approval for project execution.
- Work with the IT delivery team leader, UX team, and data science team to finalize requirements and align on architecture and solution direction.
|
Qualifications
| - Experience in cross-departmental system business analysis.
- End-user and data-driven mindset.
- Presentation skills.
- Logical thinking and problem-solving abilities.
- Native-level Japanese / Intermediate English.
- Experience in IT core system projects (ERP, accounting systems, etc.).
|
Location
| Tokyo 23 wards
|
Here are the skills required for a Business Analyst.
Business Analysts are responsible for gathering information from clients and conveying their analysis to relevant parties. They need strong communication skills to build good relationships with various stakeholders of different ages and positions. Communication skills encompass not just speaking but also the ability to understand others' requests and summarize them in writing.
Building trust with stakeholders, including clients, is essential. When there are differing opinions between clients and system developers, it's important to listen to both sides calmly and make informed judgments. Explaining the decision-making process and proposing multiple solutions helps ensure that opposing viewpoints are understood.
Business Analysts must propose optimal solutions to clients. To do this, they need skills to read large amounts of data and analyze information accurately.
For example, if a company's website is not generating sufficient traffic, the analyst should gather and analyze data related to the website's traffic to identify problems. It's important to consider external factors, such as market trends, to improve analysis skills and identify root causes.
Business Analysts need to devise solutions to clients' problems based on analyzed data.
They must determine whether a website needs redesigning or if the campaign content should be revised, finding appropriate solutions. A broad knowledge of IT tools expands the range of possible solutions.
Qualifications useful for business analysts include three certifications: ECBA, CCBA, and CBAP. These three certifications are offered by the International Institute of Business Analysis (IIBA®), and exams can also be taken online. Let’s take a look at each of them.
The ECBA™ certification recognizes the foundational skills, knowledge, and behaviors related to business analysis and is considered an entry-level certification. It is recommended for those aspiring to become business analysts.
Since there are no prerequisites for the ECBA exam, even those without practical experience can take it. Utilize the BABOK® Guide, which outlines the knowledge areas of business analysis, and exam preparation courses for studying.
The CCBA® certification is suitable for individuals with 2-3 years of practical experience as a business analyst and recognizes specialized knowledge in business analysis.
To be eligible for the CCBA exam, you must meet the following four conditions:
Have at least 3,750 hours of work experience as a business analyst in the past seven years.
Have experience of 900 hours or more in at least two of the six knowledge areas defined by the BABOK® Guide, or experience of 500 hours or more in at least four areas.
Have completed more than 21 hours of professional development training within the last four years.
Have a reference letter from a supervisor, client, or CBAP certification holder.
The CCBA exam has a higher barrier to entry, with detailed requirements specified. Therefore, obtaining the CCBA certification proves your ability to handle large and complex projects. Sample exams are available on the official page, so give it a try.
The CBAP® certification is an advanced-level certification for individuals with more than five years of practical experience as a business analyst. It recognizes extensive knowledge and experience in business analysis.
To be eligible for the CBAP exam, you must meet the following four conditions:
Have at least 7,500 hours of work experience as a business analyst in the past ten years.
Have experience of 900 hours or more in at least four of the six knowledge areas defined by the BABOK® Guide, with a total of at least 3,600 hours from the total of 7,500 hours.
Have completed more than 35 hours of professional development training within the last four years.
Have two reference letters from a supervisor, client, or CBAP certification holder.
Similar to the CCBA, sample exams are available on the official page. The difficulty level is not disclosed, but as of July 31, 2024, there are 21,020 CBAP certification holders.
People suited for business analysts have the following characteristics.
Business analysts need to have strong analytical abilities. If the analysis results are incorrect, it can impact business activities. It's important not only to master analytical tools but also to discern how to combine different data to extract the necessary information.
Business analysts must propose optimal solutions to solve clients’ challenges. When proposing solutions, they should explain logically and clearly based on evidence so that clients can understand. Multifaceted thinking that considers system functionalities, costs, and clients' management situations is essential.
To make optimal proposals to clients, one must constantly acquire new knowledge about systems and societal trends. Those with a high interest in IT and a willingness to learn are well-suited for business analyst roles.
Business analysts work while coordinating with various stakeholders. Since there are many opportunities to communicate, those who do not mind interacting with others are well-suited for this role. Even if someone is not good at speaking, if they can listen and confirm the content of what others say, they possess good communication skills. Since they are also involved in creating requirement definitions, it is beneficial to have the ability to summarize information in a way that others can understand.
To become a business analyst, one needs to acquire knowledge and experience in business, as well as analytical skills.
One method to gain foundational knowledge and experience in marketing is to accumulate experience in departments such as corporate planning or internal DX promotion. Understanding various cases of challenges and solutions related to management is beneficial.
Additionally, data analysis skills are essential. By learning various analytical tools and trying them out, one can determine which tools are suitable for analyzing specific challenges. Knowledge of IT tools related to operations, such as customer management and inventory management, can also be useful when proposing solutions. Pursuing certifications like ECBA can help acquire practical-level skills and knowledge.
For those looking to transition smoothly, utilizing a recruitment agency can be beneficial.
Possible career paths for business analysts include the following positions.
As a business analyst, gaining experience and achievements may lead to the position of senior business analyst, where you can lead a team of business analysts.
You would work alongside project managers to ensure that projects are progressing smoothly and address any issues that arise. There may also be expectations for you to mentor other business analysts. Ultimately, you could choose to become an expert analyst.
For those with leadership skills, becoming a project manager who oversees the entire project is recommended.
Business analysts typically only engage in the initial stages of a project, but project managers are responsible for managing projects from inception to completion. They can directly understand how systems operate and the results produced. When issues arise, they respond and provide instructions or explanations to stakeholders.
For those who want to be involved in negotiations with clients and determining the overall direction of projects, there is the path of becoming a business consultant. This role engages in upstream processes compared to business analysts.
While business analysts create system requirements definitions, business consultants focus on system proposals. They also emphasize external movements, such as market research, over internal company data, guiding clients to gain an advantage over competitors. Strong marketing skills are essential, as this role requires less technical involvement than system development.
There is also a career path to start your own business as a business consultant or work as a freelancer. Both paths depend on one’s abilities, making them suitable for individuals with a strong desire to take on challenges.
Business analysts are a profession with future demand. With the promotion of digital transformation (DX), they are becoming increasingly prominent in Japan. To thrive as a business analyst, strong communication skills and data analysis skills are required.
Aim for certifications like ECBA and CCBA to acquire knowledge and experience. Job openings for business analysts are often found in foreign-affiliated companies and large enterprises.
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