Business Analyst vs. System Analyst: What’s the Difference?

10.12.2024
Business Analyst vs. System Analyst: What’s the Difference?
Who's who

Types of Analysts

The role of an analyst covers a wide range of specialisations, each with its own focus and responsibilities. Despite their differences, all analysts share the same goal: uncovering insights and providing answers that help with predictions and better decision-making.
Here are some of the most common types of analysts:
  • Business analyst;
  • System analyst;
  • Data analyst;
  • Financial analyst;
  • Marketing analyst;
  • Product analyst;
  • Risk analyst;
  • Security analyst;
  • Logistics analyst;
  • HR analyst;
  • Economic analyst;
  • CRM analyst;
  • BI analyst.
  • Business analyst;
  • System analyst;
  • Data analyst;
  • Financial analyst;
  • Marketing analyst;
  • Product analyst;
  • Risk analyst;
  • Security analyst;
  • Logistics analyst;
  • HR analyst;
  • Economic analyst;
  • CRM analyst;
  • BI analyst.
Today, we’ll focus on two key IT roles: business analysts and system analysts. We’ll explore their differences and core responsibilities and help you determine which one is the right fit for your business.

Who is a Business Analyst?

A business analyst is a professional who helps companies work smarter by analysing their current processes and data. Their main job is to spot problems, come up with solutions, and guide their implementation.
This role is all about understanding how an organisation runs and finding ways to make it better. Business analysts dig into processes, data, and systems to suggest changes that align with the company’s goals and drive results.
The main areas of focus include:
  • analysing and documenting current processes, identifying problem areas;
  • proposing strategies for optimisation and cost reduction;
  • developing technical specifications for implementing new systems or improving existing ones.
How We Found a Middle Business Analyst for a German IT Startup in 21 Days

Who is a System Analyst?

A system analyst is a professional who designs and improves IT systems to meet business needs. Their main job is to gather requirements, turn them into clear technical specs for developers, and make sure the final product delivers what's expected.
This role connects business needs with technology. System analysts look at the company’s goals and create technical solutions to help achieve them.
The main responsibilities include:
  • gathering and analysing requirements from business stakeholders and IT system users;
  • documenting these requirements in a format understandable to developers;
  • participating in product development, from task setting to testing;
  • creating documentation and training users.

What’s the Difference?

Tasks

Business Analyst

System Analyst

  • translates business requirements into technical specifications for development;
  • designs IT systems, including databases, APIs, and architecture;
  • analyses existing IT solutions and identifies their limitations;
  • participates in the design and implementation of system integrations;
  • conducts IT solution testing and provides ongoing support after deployment.
  • identifies what the business needs to achieve its goals or solve problems;
  • examines current business processes, pinpoints weaknesses, and proposes improvements;
  • develops and documents business requirements for further work;
  • evaluates risks and the economic feasibility of proposed solutions;
  • facilitates communication between stakeholders and the technical team.

Skills

Hard
  • Technical Expertise. Knowledge of programming languages, software architecture, and databases.
  • System Modeling. Proficiency in tools like UML, ERD, and other design frameworks.
  • Testing Skills. Ensuring IT solutions meet requirements through rigorous testing.
  • Process Modeling. Proficiency in BPMN, IDEF0, and other notations.
  • Data Analysis. Skills in analysing data using tools like Excel, Power BI, and Tableau.
  • Task and Process Coordination. Experience with project management tools such as Jira and Trello.

Business Analyst

System Analyst

Soft
  • Attention to detail. Creating accurate documentation and performing precise analysis of system requirements.
  • Teamwork. Coordinating effectively with developers, testers, and other specialists.
  • Critical thinking. Evaluating solutions and proposing improvements where necessary.
  • Analytical abilities. Identifying key issues and evaluating their impact on business.
  • Communication skills. Capacity to conduct interviews with stakeholders and clearly convey information to the team.
  • Conflict resolution. Finding compromises to balance different stakeholder interests.

Business Analyst

System Analyst

Responsibilities

  • creating technical documentation and defining tasks for development;
  • designing technical architecture and integration solutions;
  • monitoring development at all stages;
  • conducting testing and analysing system risks;
  • preparing technical manuals and training users.
  • collecting and documenting business requirements;
  • conducting research, interviews, and data analysis;
  • developing strategies for process optimisation;
  • presenting the finalised solution to business stakeholders;
  • managing changes and overseeing project execution.

Business Analyst

System Analyst

Tools

  • UML-Diagrams
  • SQL;
  • Enterprise Architect;
  • Testing Instruments.
  • Microsoft Visio;
  • Power BI, Tableau;
  • Jira, Trello;
  • Confluence.

Business Analyst

System Analyst

Methodologies

  • Waterfall;
  • Scrum;
  • DevOps.
  • BABOK;
  • Lean, Six Sigma;
  • Agile.

Business Analyst

System Analyst

Collaboration

Example from an IT Company
Let’s look at how business analysts and system analysts work together, using an IT company developing a mobile app for restaurant table reservations as an example.
Step 1: Business Analyst’s Role
The product owner approaches the business analyst with a problem: "Many users aren’t completing their table reservations in the app. How can we fix this?"
What the business analyst does:
  • 1
    Analyses the current situation:
    • Pinpoints the stage where users most often abandon the app.
    • Collaborates with the data analyst to uncover what actions lead to drop-offs.
    • Reviews user feedback through app reviews or focus groups to understand pain points.
  • 2
    Identifies the causes:
    • Finds that most users abandon the process at the mandatory prepayment stage.
    • Conducts competitive research to see how other services handle similar issues.
  • 3
    Proposes a hypothesis:
    • Suggests replacing the mandatory prepayment with a system where users input their card details, but charges are only applied if they fail to show up.
  • 4
    Develops business requirements and drafts a document describing the new functionality:
    • Users provide their card details during the reservation.
    • If they don’t show up, a penalty fee is charged.
    • The penalty amount is set in the system and displayed before confirmation.
  • 5
    Passes on business requirements:
    • Hands the business requirements to the system analyst.
    • Schedules a meeting to go over the details and work together to find the best solution.
Step 2: System Analyst’s Role
After receiving the business requirements, the system analyst reviews them in detail and begins working on the technical implementation.
What the system analyst does:
  • 1
    Reviews business requirements:
    • Asks clarifying questions to ensure a complete understanding.
    • Evaluates the limitations of the current system to determine its readiness for the new feature.
  • 2
    Designs the architecture:
    • Plans how payment information will flow between the client interface, backend, and restaurant systems.
    • Creates a prototype interface for designers to use when building layouts.
    • Identifies how to integrate the new feature into the existing CRM system.
  • 3
    Breaks the project into stages:
    • Updates the database.
    • Develops new APIs.
    • Refines the app interface.
    • Prepares detailed implementation tasks for the development team, documented in tools like Jira.
    • Draws sequence diagrams to visually map how the system components will interact.
  • 4
    Oversees implementation:
    • Tracks the development team’s progress on tasks.
    • Provides guidance on complex issues that arise during development.
    • Participates in testing to ensure the feature works correctly.
  • 5
    Prepares technical documentation and training:
    • Writes comprehensive documentation for the new feature.
    • Trains the support team to effectively handle user questions.
Step 3: Final Solution Presentation
The business analyst leads the product demo for the client, highlighting how the new feature addresses the identified issue and improves conversion rates. Meanwhile, the system analyst explains the technical aspects of the implementation, detailing how the functionality was built and how it can be scaled in the future.
Key aspects of collaboration:
  • 1
    Clear role distribution. The business analyst focuses on understanding business problems and describing them in a clear and accessible way. The system analyst is responsible for translating these needs into specific technical solutions.
  • 2
    Alignment at every stage. Collaborative work ensures no gaps or misunderstandings arise during the process.
  • 3
    Team efficiency. Business and system analysts enable a seamless transition from idea development to technical implementation.

Demand and Salaries

The average annual salaries of business and system analysts are based on data from Glassdoor and Indeed. The figures provided are estimates and may vary significantly depending on grade, qualifications, company, and region.
Note: This data is from 2024, with salaries listed in US dollars.
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Career Path

Education

Business Analysts
Basic Education. A degree in economics, management, marketing, or project management is a good starting point.
Courses and Certifications:
  • BABOK Guide: A foundational standard for business analysts.
  • Data Analysis: Courses on Power BI, Tableau, and SQL.
  • Process Management: Lean, Six Sigma, Agile methodologies.
System Analysts
Basic Education. A degree in IT or related technical fields, such as:
  • Computer Science and Engineering
  • Applied Mathematics
  • Software Engineering
Courses and Certifications:
  • Process Modeling: Fundamentals of UML, BPMN.
  • Databases and SQL: Skills for working with and managing databases.
  • Technical Documentation: Writing clear and effective technical specifications.
  • Certifications: CBAP or system analysis courses on online platforms.

What to Choose and Who It's For

Business Analyst
If you enjoy talking to people, negotiating, analysing processes, and coming up with ways to make things run smoother, this could be your role. Strong communication skills, attention to detail, and the ability to think strategically are key. A great business analyst knows how to work with data, spot connections, and think about the bigger picture.
System Analyst
This role is perfect for tech enthusiasts who love solving complex problems and creating well-structured solutions. If you’re detail-oriented, enjoy process modelling, and like diving into the technical side of things, this might be the job for you. Strong technical knowledge, a systematic mindset, and a sharp eye for details are essential here.

Can You Transition Between Roles?

Yes, transitioning between these two roles is possible, as they share several overlapping skills. However, understanding their differences in approach and areas of expertise is critical for success.
Switching from Business Analyst to System Analyst
Business analysts usually focus on broader business needs and processes. To move into system analysis, you’ll need to deepen your understanding of IT and technical systems.
Useful tips:
  • Learn Programming Basics. You don’t need to become a developer, but understanding how code works will make it easier to work with technical teams. Start with Python or JavaScript.
  • Dive into System Modeling. Get familiar with tools like UML (Unified Modeling Language) and BPMN (Business Process Model and Notation) to describe and visualise technical processes.
  • Master Databases. Learn SQL to work with data directly and understand how it’s managed in systems.
  • Understand System Architecture. Study the basics of client-server models, APIs, and system integration principles.
Switching from System Analyst to Business Analyst
System analysts focus on the technical details of projects. To transition to a business analyst role, you will need to focus on business strategy, process management, and stakeholder collaboration.
Useful tips:
  • Learn Business Process Management. Explore Lean, Six Sigma, and Agile practices, along with Scrum methodologies.
  • Understand Business Fundamentals. Get a grasp on ROI, KPI, profitability, and other key business metrics.
  • Improve Communication Skills. Practice negotiating, gathering requirements, and running workshops with clients.
  • Learn Analytical Tools. Get hands-on experience with tools like Power BI or Tableau for presenting data and insights.
  • Know Your Industry. Learn the ins and outs of the industry you are working in – whether it is IT, retail, manufacturing, or finance.
Business Analyst and System Analyst: Transition Between Roles
Where there’s a will, there’s a way

2-in-1 or One Replacing the Other

The roles of system analysts and business analysts overlap but each has a unique focus and requires specialised knowledge and skills. Attempting to combine both roles into one person or substituting one for the other can lead to mistakes, reduced efficiency, and increased risks.

When the Roles Are Interchangeable

Small Projects
A single analyst can effectively manage projects with a narrow scope and straightforward business and system requirements. For example, in a team with well-defined processes, documented instructions, and minimal variability in requirements, a system analyst might perform the role of a business analyst.
Projects with Established Processes
When business stakeholders have a clear vision, relevant experience, and are highly engaged, a dedicated business analyst may not be necessary.
Experienced Teams
When business representatives have a deep understanding of the processes and can quickly answer any questions from the system analyst, the absence of a business analyst poses less risk.

When the Roles Are Not Interchangeable

Complex Projects with High Uncertainty
If business processes are not yet established, there are no standard procedures, and the goals need to be carefully studied, a business analyst becomes indispensable.
A system analyst cannot thoroughly understand business needs without prior analysis from a business analyst, increasing the likelihood of errors.
Unclear Requirements
In projects starting from scratch, where business stakeholders have only a vague vision of the desired outcome, the system analyst might rush into designing solutions without fully aligning them with the business goals.
Industry-Specific Complexities
In industries like finance, logistics, or healthcare, a business analyst is crucial to bridge the gap between business requirements and technical capabilities.

Mistakes That Can Occur When One Role Replaces the Other

When a system analyst takes on business analyst responsibilities:
  • Focusing on the system instead of the goal. A system analyst might constrain requirements to fit the current system rather than analyse what the business truly needs. This can lead to solutions that are technically functional but fail to meet business objectives.
  • Premature design. When goals and problems need clarification, the system analyst may rush into designing solutions without fully understanding the task, leading to misaligned outcomes.
When a business analyst takes on system analyst responsibilities:
  • Inadequate technical detailing. A business analyst might propose a solution that theoretically improves a process but doesn’t account for system constraints or capabilities. This increases the risk during development and maintenance.
  • Design flaws. Lacking technical expertise, a business analyst might lay the foundation for an inefficient system that requires costly rework.
Business analyst and system analyst: in which cases the roles are not interchangeable

How to Determine Who You Need

The decision depends on your business’s current needs, the nature of your project, and the expertise of your team. To select the right specialist, consider these key aspects:
1. Project goals:
  • If the project focuses on improving or reorganising business processes, and implementing new workflows, strategies, or products, a business analyst is the right choice.

    Example task: Optimising client interaction processes or analysing how a new CRM system could boost sales.
  • If the project requires technical implementation, IT system configuration, or integration, you’ll need a system analyst.

    Example task: Designing a database, integrating new software with existing infrastructure, or setting up APIs.
2. Project stage:
  • If a project is in its early stages, a business analyst can help define goals, analyse business processes, and gather requirements.
  • If a project is at the implementation stage, a system analyst takes over to translate business requirements into technical tasks, design solutions, and oversee technical execution.
3. Project type:
  • If the project is small or involves tasks that replicate existing processes, one analyst may handle both roles.
  • For projects with multiple business processes, significant technical constraints, or complex system integrations, both specialists will be needed.
4. Level of uncertainty:
  • If you’re unsure about the project’s goals and objectives, a business analyst is essential to conduct analysis and clarify requirements.
  • If the business goals are already clear and the main task is technical implementation, a system analyst is your best fit.
Business analyst and System analyst: who is needed?

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Alexandra Godunova
Content Manager in Lucky Hunter
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