Business Analyst vs. Business Consultant: Understanding the Differences in Job Roles

“To be successful, you have to have your heart in your business and your business in your heart.” – Thomas J. Watson, Chairman and CEO of IBM

The art of doing business is not the product of this modern civilization. Rather, it started even before the concept of money existed through early trading practices. Then happened the rise of currency in ancient areas of Rome, China, and Greece, which led to the growth of formal business. Soon after, long-distance trades were established across Middle East Asia, and business became more localized. The 20th century brought that advancement of technology, and we witnessed the phenomenon of globalization. Businesses expanded on an innumerable scale, and multinational corporations soon started existing. With each day, operations became faster and more efficient, and the rise of consumerism along with advertising and marketing became essential to the business world. Today, we are a part of a digital revolution, and we see tech giants like Amazon, Apple, and Microsoft.

In this digital revolution, there is surplus data on which various business decisions rely, from marketing to finance. This has given rise to numerous job roles, which help businesses advance and grow in a positive direction. Two of the primary roles in the world of business are business analyst and business consultant. Both of these job roles are like trusted guides in the wilderness of the world of corporations. To encompass any of these roles, you need to have a fresh perspective and be equipped with the right skills to help businesses navigate the corporate world. With this, we shall look at the major differences between the job rules of a business analyst and a business consultant, the average salaries, hiring companies, etc.

The Strategy and The Solution: Business Analyst vs. Business Consultant

A business analyst and a business consultant are two of the most celebrated jobs in the business realm. You can think of a business analyst as a detective of the corporate world who dives deep into the world of data, uncovers hidden insights, and has a very sharp eye for details. On the other hand, a business consultant is like your guru who guides you through the unstable nature of the business world, carves a successful path to your business, and drives it towards success.

A business analyst and consultant provides the best solutions and remedies for any issues a business may face. However, a business analyst is more involved internally and works closely with the teams of an organization; a business consultant’s role is usually short and specific project-related. However, both a business analyst and a business consultant do not just give their advice; rather, they help transform businesses, inspire them to create a breakthrough and make companies run smarter and more efficiently.

The Battle of Business Brains: Business Analyst vs. Business Consultant

Let’s try to understand the major key differences in the job roles of a business analyst versus a business consultant through various points mentioned below:

1. Business Analyst

The primary job of a business analyst is to analyze the different systems, processes, and applications that an organization uses. A business analyst understands different problems that a business or a firm faces and provides them with the best solutions. Apart from this, a business analyst primarily works to improve efficiency, streamline different operations, and make various changes that help improve internal projects using data-driven and survey-based insights.

As a business analyst, you are also required to act as a liaison between stakeholders like heads of IT teams or business leaders, making sure that all of the requirements that have been stated regarding the project are clearly defined, understood, and completed before a given deadline. As a business analyst, you especially have to emphasize data analysis, process mapping, and requirement gathering so that you have valid data that you can use to analyze different systems and processes within an organization.

Job Objectives:

Here are the primary job objectives of a business analyst:

• Help businesses make data-driven decisions

• Optimize the internal processes within an organization

• Work on specific objectives related to specific systems

• Support the successful implementation of systems or technology at a workplace

Skills and Tools

• Both business analysts and business consultants are required to have very strong data analysis skills and business process modeling knowledge so that they can provide their best recommendations to businesses.

• As a business analyst, you need to have strong requirement-gathering skills so that you can gain technical knowledge of the current trends and foresee the impact that they will bring on the IT systems in the near future.

• You should also be familiar with software tools like Visio or JIRA for Agile methodologies. This helps you to track the progress of a business or also define a particular system and what all requirements processes can be.

Also Read: Top Colleges for MBA in Business Analytics in India

Responsibilities and Engagement:

A business analyst typically works with the internal teams, like the department heads of a specific team, project managers, or the heads of the IT teams. They work closely to identify oncoming problems and develop solutions that provide instant remedies. Also, as a business analyst, one is involved in different day-to-day operations and usually works with the company for a longer period of time, making sure that whatever recommendations he or she is assisting or effectively implementing. They also see the changes the recommendations are, their effectiveness, or whether more changes are required to enhance the progress of the business.

 Wish to read in-depth about Business analysis? Read here.

2. Business Consultant

There is often confusion between the job roles of a business analyst and a business consultant. However, the major difference in the role of a business consultant is that they provide tactical or strategic decisions that prove beneficial for a company in the long term. A business consultant is brought in to help a company from an external firm. A business consultant has the privilege to work across businesses or industries, which helps them gather experience and insights. They use this knowledge that they have accumulated over the years to help business enterprises improve their growth and performance or tackle any specific issues that they are facing.

As a business consultant, you are required to provide remedies that can help a business expand or combat issues they are facing using actionable strategies. Your role comprises skills like strategic planning for certain issues like improving the design of an organization or a workplace, recommending what strategies could be more useful, how a market currently is working, and what actions can be taken to make profits for a firm.

Job Objectives:

Below are the primary job objectives of a business consultant:

• Provide a more strategic and broad perspective to an organization.

• Work towards the transformation of large-scale businesses.

• Help make critical decisions for the future growth of a business.

• Provide special insights to resolve specific issues and boost performance.

Skills and Tools

• A business consultant should be efficient in communicating effectively with clients to deliver the best recommendations for their business growth.

• As a business consultant, you need to possess strong problem-solving, strategic thinking, and data-driven analytics skills.

• You are also required to have an understanding of the dynamics of present markets and industries, ongoing changes and trends, and various management systems and processes.

• As a business consultant, you should possess knowledge of tools like foundation modeling, Porter’s Five Forces, or SWOT analysis to assess different challenges or opportunities that appear for a business or a firm at a given point in time.

Responsibilities and Engagement:

The primary responsibility of a business consultant is usually related to a specific project or problem. They are often brought from an external firm to provide their special guidance and knowledge to help solve an existing problem. Unlike a business analyst, their engagement and responsibilities with the company are short-lived since they usually complete their working tenure once the project is finished. Also, they are less likely to be involved in the day-to-day operations of a company or in meetings with other team heads. They are not majorly involved in the business processes of a company unless their role requires them to do so.

 Pay Scales of Business Analyst Vs. Business Consultant

 Here’s the payscale of the both the job roles and the companies which hire them: 

Also Read: Top 7 Career Options After MBA in Business Analytics

Top Paying Companies for Business Analysts

• Shell Business Analyst Salary – ₹12.0 Lakhs to ₹45.0 Lakhs per year

• Eurofins IT Solutions Business Analyst Salary – ₹15.0 Lakhs to ₹32.6 Lakhs per year

• ION Group Business Analyst Salary – ₹10.3 Lakhs to ₹36.0 Lakhs per year

• Amadeus Business Analyst Salary – ₹11.0 Lakhs to ₹36.0 Lakhs per year

• Philips Business Analyst Salary – ₹10.4 Lakhs to ₹40.0 Lakhs per year

Top Paying Companies for Business Consultants

• Independent Consultant Business Consultant Salary – ₹15.2 Lakhs to ₹49.1 Lakhs per year

• ZS Business Consultant Salary – ₹14.6 Lakhs to ₹35.0 Lakhs per year

• GlobalLogic Business Consultant Salary – ₹12.0 Lakhs to ₹33.5 Lakhs per year

• Nagarro Business Consultant Salary – ₹13.4 Lakhs to ₹28.0 Lakhs per year

• Dale Carnegie Training India Business Consultant Salary – ₹10.0 Lakhs to ₹40.0 Lakhs per year

Source: AmbitionBox

The Great Debate: Who Drives Change—The Analyst or the Consultant?

There is a reason why we have previously mentioned that the jobs of a business analyst and a business consultant are celebrated as two of the most esteemed professions in the business world. However, when it comes to driving change in the world of business, both business analysts and business consultants are vital to the success of a company. Even though both of these job roles employ different approaches and methods for success, they both focus on continuous improvement and transformational change, ensuring they provide a successful roadmap for the success of an organization. They offer valuable insights and recommendations to help solve issues and drive business success.

So there is no clear winner between the two roles. But when a business analyst and a business consultant work together, it makes the perfect combination.

Takeaway

Whether the role of a business analyst or business consultant suits you depends upon your personal goals and professional aspirations. People often confuse the two job roles and believe that most of their responsibilities are similar. However, the responsibilities of these two are extremely different. While a business analyst focuses on improving existing processes related to a business, a business consultant provides external insight to make better decisions. A business analyst works within an organization and is involved in day-to-day operations, while a business consultant is usually brought in from an external firm to help large-scale businesses.

The truth is, both roles are essential to different businesses. The two job roles have contrasting responsibilities, scopes, and approaches to problem-solving, but they ultimately focus on the growth and development of a business or a firm.