Which career path would be more suitable for you: business or data analysis?

These job designations are occasionally used synonymously in smaller firms to refer to data or systems analysis roles. 

However, larger firms frequently employ business and data analysts to carry out specific tasks, making it crucial to comprehend the distinctions between the two professions.

Here is a look at what these positions require and some guidance on choosing the career path that's best for you.

Data analytics examines databases to find trends and insights applied to organizational decision-making. 

Business analytics is concerned with examining various forms of data to create functional, data-driven business choices and then putting those conclusions into practice.

Insights from data analysis are frequently used in business analytics to pinpoint issues and come up with remedies.

What is a data analyst?

A data analyst is a professional responsible for collecting, analysing, and interpreting large data sets. They use this data to identify patterns and trends that can be used to inform business decisions. 

Data analysts often use statistical techniques and software tools to organise and analyse data, and they may also create reports and visualisations to communicate their findings to others.

What do Data Analysts do?

Data analysts perform a variety of tasks, including:

• Collecting and cleaning data from various sources.
• Analysing data using statistical techniques.
• Identifying patterns and trends in the data.
• Interpreting the data to inform business decisions.
• Creating reports and visualisations to communicate findings to others.
• Collaborating with cross-functional teams to implement data-driven solutions.
• Continuously monitor and update their understanding of the data and the business to ensure the relevance of their findings.
• Advising and guiding in the implementation of data governance policies.

Data analysts often use software tools such as Excel and SQL and programming languages like Python or R to perform their tasks. 

They typically work in the finance, healthcare, e-commerce, and technology industries.

What is a Business analyst?

A business analyst is a professional who helps organisations improve their processes and performance by analysing business information and identifying areas for improvement. 

They work across various departments, such as finance, operations, and marketing, to understand the organisation's goals and objectives and then use that knowledge to identify and recommend solutions to improve the business's overall performance.

What do Business Analysts do?

The primary responsibilities of a business analyst include the following:

• Identifying and analysing business needs.
• Identifying and recommending solutions to improve business processes.
• Gathering and documenting requirements for new systems or projects.
• Facilitating communication between stakeholders and technical teams.
• Validating and testing the solutions to ensure they meet the business requirements.
• Monitoring and reporting on the progress of projects and the implementation of new systems.
• Continuously monitor and update their understanding of the business and the industry to ensure the relevance of their recommendations.

Business analysts typically work in the finance, healthcare, e-commerce, and technology industries.

What’s the difference?

The main difference between a data analyst and a business analyst is their focus and the scope of their work.

A data analyst primarily collects, analyses, and interprets large data sets to inform business decisions. Their work often involves using statistical techniques and software tools to organise and analyse data and creating reports and visualisations to communicate their findings to others.

On the other hand, a business analyst focuses on identifying and analyzing business needs and recommending solutions to improve business processes and overall performance. They work across various departments and use their knowledge of the organisation's goals and objectives to identify areas for improvement. They gather and document requirements for new systems or projects, facilitate communication between stakeholders and technical teams, validate and test solutions, and monitor and report on the progress of projects and the implementation of new systems.

In summary, a data analyst is more data-focused, while a business analyst is more process-focused. While both roles use data to inform their work, a data analyst's work centres around the analysis of data, while a business analyst's work centres around the study of business processes and the identification of solutions to improve them.

Data Analyst Vs Business Analyst: Educational Requirement

The educational requirements for Data Analysts and Business Analysts can vary depending on the employer and the specific role. 

However, there are some general guidelines for the level of education required for each role.

Data Analyst:

A bachelor's degree in a field such as math, statistics, computer science, or a related field is typically required for entry-level data analyst positions. Some employers may also consider candidates with degrees in other areas with relevant experience and skills.

Advanced positions such as Data Scientist, Machine Learning Engineer, or Data Engineer may require a Master's degree in a related field such as Computer Science, Data Science, or Operations Research.

Business Analyst:

A bachelor's degree in a field such as business, finance, economics, or a related field is typically required for entry-level business analyst positions. Some employers may also consider candidates with degrees in other areas with relevant experience and skills.

Advanced positions such as Business consultant, Business Intelligence analyst, or Project Manager may require a Master's degree in a related field such as Business Administration or Management.

Skills such as programming, data visualisation, data modelling and SQL, statistics and machine learning can be a plus for both roles regardless of their educational background.

Additionally, having relevant industry experience can also be an asset for both roles.

While having a degree in a specific field can be beneficial for data analyst and business analyst positions, it's not always a hard requirement. Employers may also consider candidates with experience and skills relevant to the role.

How to Choose Between a Career as a Data Analyst and Business Analyst

Choosing between a career as a data analyst and a business analyst depends on your interests, skills, and the type of work you want to do. Here are a few factors to consider when making your decision:

• Interest in data: If you enjoy working with data and have a strong background in math, statistics, or computer science, a career as a data analyst may be a good fit for you. On the other hand, if you are more interested in understanding and improving business processes, a career as a business analyst may be a better choice.
• Problem-solving approach: Data analysts solve problems using data and statistical methods. In contrast, business analysts tend to focus on solving problems by understanding and improving business processes. Consider which type of problem-solving approach aligns better with your skills and interests.
• Type of work: Data analysts often work with large data sets, using software tools and statistical techniques to analyse and interpret the data. On the other hand, business analysts may spend more time working with stakeholders and cross-functional teams to understand business needs and recommend solutions. Consider which type of work you enjoy more.
• Career growth: Both data analysts and business analysts have career growth and advancement opportunities. Data analysts may advance to become data scientists or data engineers, while business analysts may advance to become project managers or business consultants.

Ultimately, both roles are in high demand and have much to offer. You must weigh your interests, skills and career goals before deciding. 

Consider gaining some experience in both fields, or a combination of both, to help you make a more informed decision.

Data Analyst Vs. Business Analyst: Job, Career Scope, and Salary

Data Analyst and Business Analyst are both in-demand careers offering different job roles, career scopes, and salary opportunities.

Job roles

Data Analysts are responsible for collecting, analysing, and interpreting large sets of data to identify patterns and trends that can inform business decisions. They use statistical techniques and software tools to organise and analyse data and create reports and visualisations to communicate their findings to others.

Business Analysts help organisations improve their processes and performance by identifying and analysing business needs and recommending solutions. They gather and document requirements for new systems or projects, facilitate communication between stakeholders, and validate and test solutions.

Career scope

Data Analysts may advance to roles such as data scientist, data engineer, or data architect. They may also move into management or consulting positions or start their data-driven businesses.

Business Analysts may advance to roles such as project manager, business consultant, or business intelligence analyst. They can also move into management or leadership roles within their organisations.

Salary

The salary for Data Analysts and Business Analysts can vary depending on location, experience, and industry factors. However, both roles typically offer competitive salaries. According to Glassdoor, the average salary for a Data Analyst in the United States is around $74,000 per year, and the average salary for a Business Analyst is around $81,000 per year.

It's worth noting that both jobs are in high demand, have many career growth opportunities, and offer relatively good salaries. 

Choosing between the roles should be based on your interests, skills, and career goals.