Data analyst vs. business analyst
Written by Michael Feder
Reviewed byKathryn Uhles, MIS, MSP,Dean, College of Business and IT
Those who work in data analytics and those who work in business analysis have plenty of similarities, and many organizations benefit from both – but they are different roles. They work together to deliver analytics reports to stakeholders within an organization and, most importantly, provide insights that help guide business decisions. Let’s explore these roles and their differences and similarities in depth.
Data analyst vs. business analyst
The difference between a data analyst vs. business analyst role is important for any business to consider. Although both types of analysts are critical to businesses, the two roles are also distinct. One key difference is the level of experience each role requires, which affects the types of tasks and deliverables each is responsible for.
What is a data analyst?
Data analysts use select information to help an organization make better decisions. Data analytics involves gathering information to answer questions, solve problems and provide insight into how a company can improve its operations.
Those who work in data analytics have varied educational backgrounds. Often, however, they haveaor a related field. It can also be helpful to have certifications in relevant data-oriented software programs.
Data analytics also involves sharing analysis findings with team members who may have different backgrounds, socommunication skillsare also important.
How do you become a data analyst?
To pursue a career in data analytics, you should be able to:
● Use software such as Microsoft Excel and Access to collect data from various sources (including webpages)
● Use spreadsheets to perform calculations
● Write queries that pull information from databases
● Create charts and graphs
● Analyze charts and graphs with statistical methods like linear regression
● Present findings in written reports or presentations
● Work well with others by being receptive to feedback and communicating confidently
You can learn data analytics skills through aBachelor of Science in Business with a Business Analytics Certificateprogram. Depending on the company or job you want, the experience and education required for a data analytics role may vary.
What is a business analyst?
A business analyst works with business intelligence to help determine how to make an organization’s processes more efficient, effective and profitable. Business analysts are often responsible for helping create new business models or improving existing ones.
This type of analyst alsoidentifies gaps in a company’s processes or product offerings. For example, working for an insurance company, an analyst may notice that their competitors excel by selling a unique type of insurance policy. By showing the profit differences, the analyst can then recommend new tactics or offerings to remain competitive.
Those who work in business analysis must also understand the needs of customers who might use the products or services offered by their employers and then create solutions based on those needs. These strategic analysts typically work closely with other team members — like project managers, designers and developers — to ensure that all aspects of a project are managed correctly.
How do you become a business analyst?
Those interested in pursing careers in business analysis typically need abachelor’s degree in businessor social science. Depending on the company and role, some positions may require an MBA or further certification.
Data analyst vs. business analyst differences
Despite their similar titles, the roles of data analyst and business analyst have several important differences.
First, data analysts generally need moretechnical skillsthan business analysts. In addition, data analysts tend to focus on more specific, data-oriented analytical tasks than business analysts (think analyzing a database or creating statistical reports).
Here are some other key differences:
Data analysts
Data analysts are responsible for collecting, organizing and analyzing data to recommend what action should be taken next. They may also employ statistical and mathematical techniques to extract data and interpret useful information.
These analysts often have an undergraduatedegree in data scienceor a business-relatedfield. They may also have an MBA or other business administration degree. They need strong analytical skills and an understanding of how businesses work.
Individuals in data analytics roles typically work closely with other team members — including IT professionals who help them with technical issues — to ensure that reports are accurate, consistent and easy to understand by all parties. They also frequently provide internal and client-facing reports to help management keep track of progress and spot potential problems early on.
Business analysts
Business analysts are responsible for taking care of the business intelligence and strategy side of things by providing insight into where a company is currently and how it can improve its performance. They identify potential opportunities and risks as well as plan strategies for growth. They help make organizations more efficient and profitableby improving business intelligence processes, validating solutions and, in some companies and roles, making informed decisions for stakeholders.
Although those in business analytics are often required to have adegree in businessor an MBA, gaining additional certifications or experiences can help build valuable skills. These analysts are skilled at identifying problems and proposing solutions by gathering information from various sources. Solutions can tackle everything from changing an organization’s workflow to altering its entire operations system. Data analysts, on the other hand, may be more focused on technical, data-oriented problems.
Data analyst vs. business analyst similarities
Both data analytics and business analysis require you to think critically about your work and use quantifiable proof to make decisions. In addition, they require you to communicate with other people in the company, including upper management, other departments and clients.
Here are some other similarities:
● They both collect and analyze data: Data analysts take raw data and turn it into something that can be used to make decisions or support a business case through data visualization. Business analysts are responsible for defining what needs to be collected, how it should be collected, who will analyze it and how they will use it.
● They both use their findings to help businesses make better decisions: They work with data to find trends and make recommendations for improving the business. Analysts on the data side focus on collecting and analyzing data, while those on the business side focus on using that information to create new products or services that will be profitable for their company.
● They need solid analytical skills: Both are responsible for analyzing data, which means they need to be able to look at a problem from all angles, identify its root causes and possible solutions and then propose those solutions to their supervisors. They must also be able to communicate effectively with their colleagues and supervisors.
● They generally require a certain type of education: Data analysts and business analysts both generally require a bachelor’s degree or MBA. This is one of the most common similarities between the two positions.
Which is right for you?
Aside from degree requirements and industry research when considering a data analyst vs. business analyst path, there are a few questions you can ask yourself to help determine whether data or business analysis is the right fit for you:
● Do you like working with numbers and data?
● Are you interested in finding trends and patterns?
● Do you have strong analytical skills?
● Are you good at problem-solving?
● Do you like working with people and teams?
● Do you want to help businesses improve their efficiency and bottom line?
● What type of work environment would make you happiest?
● Do you enjoy crunching numbers and analyzing data?
● Do you prefer working with people and understanding business problems?
● Is there an opportunity for advancement in either field?
With these questions and your answers in mind, you can create a list of pros and cons to decide which career path -- data analyst vs. business analyst -- is right for you.
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ABOUT THE AUTHOR
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at ۴ý where he covers a variety of topics ranging from healthcare to IT.
ABOUT THE REVIEWER
Currently Dean of the College of Business and Information Technology,Kathryn Uhles has served ۴ý in a variety of roles since 2006. Prior to joining ۴ý, Kathryn taught fifth grade to underprivileged youth in ۴ý.
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