Tech companies require both data analysts and business analysts. That is why both jobs are in high demand, focusing on providing data-driven business solutions to their customers. But data analysts’ and business analysts’ roles and responsibilities are sometimes hard to understand.
We will focus on the differences between data analysts and business analysts and find out which might be the best career fit for you.
In some companies, the roles of business analysts and data analysts may be almost the same, while in others, they may be very different. But some specific tools and skills need to be considered when calculating salaries and more general factors like location and years of experience. So let us begin by comparing business analysts vs. data analysts.
Both jobs would let you leverage your love of “all things data” and your desire to solve problems to your advantage. In addition, both professions would benefit from an in-depth understanding of data science. But business analysis and data analysis are two different jobs that require diverse skills and interests. Therefore, it is essential to choose your career path carefully.
Let us take a closer look at the individual roles of a business analyst and a data analyst.
Who is a Business Analyst?
A business analyst studies and documents a business’s market environment, operations, and systems. A business analyst finds areas of a company that can be improved and whose processes can be made stronger. They often work with colleagues at the same level of the organization’s hierarchy to share their findings and help make improvements.
What is the role of a Business Analyst?
Business analysts identify challenges, opportunities, and solutions.
- Evaluating a company’s present IT functions
- Interviewing team members to find improvement areas
- Providing management and other stakeholders with findings and recommendations
- Visualizing and modeling business choices
- Training employees on new systems
Who is a Data Analyst?
A data analyst will collect, clean, and analyze data sets to find the right solution to a problem or answer to a question. People with these skills can work in many fields, including business, finance, criminal law, science, medicine, and government.
What is the role of a Data Analyst?
- Defining a problem or requirement with business leaders and stakeholders
- Data identification, cleaning, and analysis
- Data trend analysis
- Visualizing data to make it easier to interpret
- Presenting facts in a way that creates a compelling story
Main differences between Business Analytics vs. Data Analytics
- Skills
Business analysts need to know about data science and how to communicate, think analytically, negotiate, and run a business. On the other hand, data analysts are required to have equivalent basic skills, with a greater emphasis on technical data manipulation.
For example, some of the skills that a business analyst should have are:
- Data-research expertise
- Mathematical and analytic skills
- Investigation and data identification
- SAP-proven
- Excel, Word, and PowerPoint experts
- SQL-savvy
- Should Manage projects
- Effective communication
On the other hand, a data analyst should have the following skills:
- Analytical pro, intellectually curious, accurate reporter
- Data mining expertise
- Emerging technologies, data frameworks, machine learning
- SQL/CQL, R, Python
- Agile development skills
- Salary
Which is more lucrative, a data analyst or a business analyst, in terms of salary? A data analyst’s average annual salary can reach $63,509, according to Payscale. It also depends on the firm, the position, and the geographic area. The annual income of a business analyst is considerably greater, averaging $71,220. Again, the candidate’s skillset, profile, the company’s reputation, and location all play a role. Higher-level employment that pays up to $91 817 a year can be held by those who are more qualified. Therefore, the remuneration for a data analyst vs. a business analyst will vary.
In conclusion, numerous new roles have evolved, including those of business analyst and data analyst. When the amount of data and the business need to get bigger, there is a gap between a business analyst and a data analyst. So, we discussed the basics of both career paths and helped you decide which one to choose.
- Responsibilities
Business analysts develop the functional requirements that IT systems are built on. Data analysts figure out what the framework and collected data mean. Data scientists can often automate the work of a business analyst and may also be able to give business insights.
- Education background
Business and data analysts can have different levels of education, but most employers look for people with at least a bachelor’s degree. Business analysts usually have a degree in a field related to business, while data analysts usually have a degree in a STEM field like statistics, math, or computer science.
Getting a master’s degree focused on data analytics could help you move up in business or government job roles.
How to prepare for Business Analyst or Data Analyst job roles?
Now that you know all the roles and responsibilities of a data analyst and a business analyst, you can think of transitioning to a business analysis course offered by Purdue University in association with Simplilearn.
This Professional Certificate Program in Business Analysis is for professionals who want to start a career in Business Analysis, learn business analysis techniques, and get hands-on experience. It is also for experienced analysts who want to learn about the latest tools and frameworks used by Agile teams.
Conclusion
We have now seen all the key elements of business analysts vs. data analysts and how many factors can affect both of these responsibilities in distinct ways.
The best way to learn more about all the factors that go into the desired wage number or range is to research from many different sources. Other things to consider are bonuses, stock options, education, certifications, your resume, your negotiating ability, and how well you do in the interview.
Grace