In today’s competitive business environment, many organizations rely on big data to evaluate business performance, formulate strategies, and plan for the future.

As a result, there is a rising need to hire skilled individuals who can get key insights from massive datasets and effectively use these insights to create effective solutions.

In this article, we are going to discuss the differences and similarities between a Data Analyst and a Business Analyst, as well as the objectives of each role, to help you decide which career path would be best for you.

Business Analytics and Data Analytics: An Overview

The need to harness big data and put into good use the massive amount of information being examined has revealed the importance of Data Analytics and Business Analytics to many organizations.

Both Data Analysts and Business Analysts help the company’s decision-making process by fetching and manipulating data.

Data Analysts scour through raw data to generate reports and model insights, while Business Analysts derive conclusions from these insights.

One can say Data Analysts do the background work, while Business Analysts apply the results using a practical approach.

If you love analyzing or working with data, you may be finding it difficult to choose a career path between Data Analytics and Business Analytics.

With a background in Data Science, you may be able to fit into either role. However, both the Business Analyst and Data Analyst positions require unique skills to function and have different goals.

Data Analysts spend most of their time mining and preparing data for analysis that they have little or no time left to make strategic recommendations based on the intelligence gathered. Thus, this responsibility falls squarely on the shoulders of Business Analysts, who are expected to communicate findings and provide ideas on how to improve existing business processes.

Both Data Analysts and Business Analysts must understand the intricacies of the business as both roles are key in driving productivity in the organization.

What Does a Data Analyst Do?

As opposed to business-focused Business Analysts, the role of a Data Analyst is largely technical.

Depending on the organization, a Data Analyst may be referred to as a Data Scientist, Data Engineer, Data Architect, or Machine Learning Scientist.

These individuals mainly work at the back end of the data pipeline and spend most of their time computing numbers and processing information.

By sifting through massive amounts of data, Data Analysts can reveal trends and provide other departments with the crucial information they need to function.

Some daily tasks performed by Data Analysts include the following:

• Mining and scrubbing data
• Carrying out data entry
• Creating dashboards for different departments, and
• Producing internal reports

What Skills Should a Data Analyst Have?

Data Analysts use a variety of intricate skills to assist business operations. These individuals are required to apply strategic analysis and critical thinking in their daily tasks.

Also, to reveal insights and patterns, Data Analysts need to be proficient in complex calculation applications and computer programs to obtain facts and figures. Hence, it is crucial to have mathematical skills and detailed knowledge of programming.

Other core skills a Data Analyst must possess are:

• Proficiency in Excel and Microsoft Office tools
• Database Design
• R and Python
• Data Mining Techniques
• Machine Learning, Artificial Intelligence, and
• SQL or CQL Proficiency

Data Analyst Objectives

A Data Analyst is responsible for collating and analyzing organizational data and maintaining a strong database.

Having direct access to large amounts of raw information, a Data Analyst is in a better position to discover valuable insights to help measure performance, solve problems, and develop a plan to grow the business.

Therefore, the main objectives of a Data Analyst boil down to gathering data and presenting raw information in a format that is comprehensible by stakeholders and other members of the team.

What Does a Business Analyst Do?

In simple terms, Business Analysts measure performance, identify business problems, and suggest solutions using data as a resource.

Depending on the industry or organization, Business Analysts are often referred to as Enterprise Analysts, Agile Analysts, Business Architects, Strategy Officers, or Process Officers.

These individuals are typically problem solvers who use data-driven insights to identify loopholes in existing procedures while creating new strategies and discerning potential opportunities.

With conclusions drawn using big data tools, Business Analysts can make recommendations that would enable stakeholders to effect and implement practical changes within the organization.

The Business Analyst role is quite versatile, so their tasks may vary depending on the organization they work for.

However, one can narrow down their day-to-day activities  to the following:

• Communicating information to stakeholders
• Project development and management
• Analyzing and improving business procedures, and
• Formulating and defining business strategies

What Skills Should a Business Analyst Have?

Since they are the link between Data Analysts and stakeholders, Business Analysts must be adept at communicating complex data patterns and insights as clearly and simply as possible.

Strong interpersonal skills are also key attributes of Business Analysts, as they will be collaborating with various people across different teams.

Additionally, Business Analysts are meant to be problem solvers with strong attention to detail, who can detect gaps in business structures and offer useful solutions.

Other skills a Business Analyst must have include:

• Tableau Experience
• Problem Solving and Analytical Skills
• Communication Skills
• Proficiency in Microsoft Excel, Word, and PowerPoint
• SAP Software Proficiency, and
• SQL Proficiency

Business Analyst Goals

Business Analysts perform various tasks, however, their core objective can be streamlined to making strategic decisions that can facilitate business growth.

By analyzing facts-based insights provided by Data Analysts, Business Analysts can make recommendations that can address business pain points and improve productivity.

While Business Analysts cannot make decisions independently, their job is to provide stakeholders with intelligence on the current state and possible future of the organization.

Data Analyst vs Business Analyst: Similarities

The Business Analyst and Data Analyst roles are similar in that they both have to boost business efficiency with the use of data.

As such, it is not uncommon to find a Business Analyst playing the role of a Data Analyst and vice-versa in many organizations.

Moreover, both roles share similar skill-sets as they both require an understanding of data management, statistical methods and analysis software, and data visualization to carry out their everyday tasks.

Data Analyst vs Business Analyst: What Sets Them Apart?

The use of data is at the center of both Data Analytics and Business Analytics.

Nonetheless, the Data Analyst and Business Analyst roles have varying responsibilities and objectives.

While a Data Analyst is focused on mining and analyzing data to reveal trends and patterns, a Business Analyst is more concerned about leveraging data to attain organizational goals.

Essentially, each role differs in the sense that Data Analysts are numbers-oriented, while Business Analysts are strategy-oriented.

In terms of education, a background in business administration, economics, finance or other related fields is usually preferred for the role of a Business Analyst.

On the other hand, Data Analysts are required to have a STEM (Science, Technology, Engineering, Mathematics) or programming background.

How Much Do Business Analysts and Data Analysts Earn?

According to Glassdoor, the salary of a Business Analyst falls between $53,000 and $106,000 US dollars per year, depending on the industry and geographic location.

Data Analysts earn slightly more with a salary range of $83,000 to $145,000 annually.

To switch careers from Business Analyst to Data Analyst, a certification in Data Science or advanced degree is often required.

Data Analysts making a transition into a Business Analyst role may also need a certification or business degree.

Wrapping Up…

Data Analytics and Business Analytics are in-demand across various business sectors.

From sales to eCommerce to tech startups, Data Analysts and Business Analysts play vital roles in keeping the business alive.

While each role requires some unique backgrounds and skill sets, both disciplines work collaboratively to enhance business procedures to improve services or products.

Overall, your strengths and preferences are essential elements when choosing a career path between Business Analytics and Data Analytics.

If you excel in computing huge amounts of data and numbers and prefer to work independently, then the Data Analyst role might be a good fit for you.

However, if you are a more “hands-on” person with an affinity for solving problems and communicating with different people on a daily basis, then pursuing a career as a Business Analyst might be worthwhile.