Most of the time people get confused between a business analyst and a business development executive or business development manager. There is a difference between them and it is based on their roles and responsibilities in the company.
Have you seen people roaming around in your company in a fancy suit with an attitude like they own the company? Well, these people could be the business development team. As I said, business analyst and business development is not the same, we will discuss the key difference between them in this article.
What Is A Business Analyst?
In a simple term, a business analyst is a professional who is responsible for bridging the gap between the IT team and business stakeholders using various strategies, tools, and techniques. Business analysts also analyze the organization, business process, or business domain and document them. Business They also involved in helping businesses in improving their processes, products, services, and software through data analysis.
Some of the key activities of a business analyst are;
- Requirement Elicitation
- Gap analysis, impact analysis, process modeling, etc.
- Stakeholder meetings, presentation, communication (verbal and written)
- Business user support, etc.
You can check out my article where I have listed key roles and responsibilities of a business analyst in detail.
What Is A Business Development?
In a nutshell, Business Development is a process of developing and implementing the long term growth opportunity within or between the organizations. Who does the business development?
It’s business development executive and business development managers. There are many other titles and it differs from company to company but roles and responsibilities are somewhat similar.
A business development executive or a business development manager brings the long term value by continuously involved in finding the company’s growth opportunities and establishing a long relationship with the organization.
A typical business development executive of business development manager’s roles are responsibilities are;
- Identify new clients or make money from the existing clients.
- Look for the long term growth opportunities by contacting potential customers.
- Build a good client relationship and maintain the relationship with existing clients.
- Achieve monthly, quarterly, or yearly targets set by the company.
- Finding ways to promote the company efficiently.
- Pitch the new product into the market and get business for the company.
- Make the profitable deals with other companies.
In a nutshell, a business development executive/manager works to bring customers and money to the company.
The business development executives or managers do the following;
- Reach out to people – by phone or cold calling, email or personal visit
- Talk to customer – Discuss the potential business opportunity
- Negotiate – Negotiate the win-win deal.
- Close – Finally close the deal by selling or finalizing the contract.
Difference Between Business Analysts and Business Development
Now, we know about the business analysts and business development executives/managers. We also saw their roles and responsibilities. Let’s list out the key differences between a business analyst and business development executive/manager.
|Criteria||Business Analyst||Business Development|
|Roles and Responsibilities||Business Analysts work as a bridge between stakeholders and IT. They also analyze the business processes and work on the improvements.||A business development executive or business development manager focuses on bringing new clients, maintaining client relationships, and finding a profitable deal for the company.|
|Bringing Money||Business Analysts don’t bring money from outside deals, however, they save money by enhancing the business processes.||Business Development Team brings money by finding long term customer deals.|
|Target||Business Analysts have the project timeline to achieve.||Business Development team has monthly, quarterly or yearly targets to achieve. They might lose the job if they failed to achieve the same.|
|Documents||A business analyst prepared BRD, FRD, Wireframe, Process diagrams, etc.||A business development executive writes bids, proposals, brochures, etc. They are responsible for promoting the company’s products and services.|
|Communication||A business analyst communicates with the stakeholders or the business users to gather the requirements. BA is the first point of contact for the stakeholders.||Business Development Executives communicate with the new potential clients and existing clients to find the opportunity for making more money for the company.|
|Work Style||A business analyst has to be in the office during the work as the regular employees.||Business Development’s job is flexible and they don’t spend much time in the company. (at least in most of the companies)|
Which One Is Better?
It would not be fair to compare business analysts and business development. Both have their pros and cons. It all depends on what you want to be because both are required to run a company.
Companies cannot run without money and the business development team brings money. Similarly, companies cannot run efficiently without proper process and system implementation and BA does these things.
Either you want to go for a business analyst or business development profession, you need to have good
- Communication skills
- Presentation skills
- Public speaking skills
- Relationship building skills
- Negotiation and convincing skills, etc.
Both positions have merit, just depends on your personality and skill set. If you are looking to be a business executive and are strong in all required skills for both positions, the Business Development Manager could accelerate your career. Rember, you need to close the big deals if you remaining employed else ready to find another company.
The Business Analyst is a steadier climb but allows you to work with all parts of the business and grow organically within the company.
How about the salary or overall earnings?
Typically a business analyst and business development executive have the same salary but a business development executives get a commission whenever they successfully close any deal. Therefore, they have the added advantage over business analyst. However, a business development executive needs to meet the set targets to stay employed.
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Business Analysts and Business Development Executives/Managers both important for a company. A business analyst also referred to as a sales (who gets the new client to the company) executive or account executive (who manages the existing clients) in some of the companies.
A business development executive focuses on building long term contracts/relationships with other companies to generate long term money for the company whereas a business analyst acts as a bridge between IT and business stakeholders to develop and deliver the required system/changes. Business analysts also analyst the current processes and recommend process improvement that could help the company to eliminate waste and save money.
A BDE i.e. Business Development Executive usually has short term targets like monthly, quarterly, and yearly that they need to achieve. Whereas the business analysts need to follow the project deadlines.
Since business development impacts stakeholders, business development decisions will often include the input of the business analyst.
I hope, the difference between a business analyst and business development executive is clear for you. Do consider sharing this article with your friends and someone who may find this information useful.
Frequently Asked Questions
Is the business development executive is the same as the sales executive?
Not Necessarily. A business development executive is different than sales as business development is not about selling stuff rather it is about building long term values with other companies or clients.
Is a business analyst and business development the same?
No! Business Analyst and Business Development are two different things. Business Development is more of a bring new business for the company whereas a Business analysis is more focused on identifying a need for change in how businesses work and helping to facilitate such change