{"id":28143,"date":"2022-09-11T12:55:46","date_gmt":"2022-09-11T19:55:46","guid":{"rendered":"https:\/\/careerkarma.com\/blog\/?p=28143"},"modified":"2022-10-06T18:56:58","modified_gmt":"2022-10-07T01:56:58","slug":"data-analyst-vs-business-analyst","status":"publish","type":"post","link":"https:\/\/careerkarma.com\/blog\/data-analyst-vs-business-analyst\/","title":{"rendered":"What\u2019s the Difference Between a Data Analyst and Business Analyst?"},"content":{"rendered":"\n

Data analysts and business analysts both work with data, but the analytics part is where they differ. So how does analytics fit into each of these careers? Simply put, the difference between a data analyst vs a business analyst is that a data analyst uncovers trends in data and a business analyst makes decisions based on those trends.<\/p>\n\n\n\n

When you dig deeper into the difference between data analysts and business analysts, you find more subtle distinctions in educational background, day-to-day job responsibilities, and median salary. In this article, we\u2019ll discuss everything you need to know about the differences between data analysts and business analysts.<\/p>\n\n\n\n

What Is a Data Analyst?<\/h2>\n\n\n\n

Data analysis<\/a> is the process of investigating data sets to discover useful information. A data analyst typically mines and sifts through data to provide essential analysis and reports for a company to use. They look for patterns and trends and then draw conclusions. <\/p>\n\n\n\n

Data analysts use strategies such as data mining<\/a>, predictive analytics, machine learning<\/a>, big data analytics, and text mining. Data analytics is closely related to data science<\/a>, and data modeling<\/a> uses some of the tools of data analysis. Many data analysts work with big data<\/a>, which requires some knowledge of data frames, programming languages, and algorithms.<\/p>\n\n\n\n

What Is a Business Analyst?<\/h2>\n\n\n\n

Business analysts use data to make necessary business decisions. They use the insights of data analytics to increase overall business performance. Business analytics<\/a> combines skills in management, business, and computer science. <\/p>\n\n\n\n

There are three different types of business analytics. Descriptive analytics evaluates the past to plan for the future. Predictive analytics<\/a> uses machine learning to predict future events. Prescriptive analytics combines both descriptive and predictive analytics to make informed decisions about the best courses of action. <\/p>\n\n\n\n

Business analysts may apply any combination of these techniques to every department in a company, including sales, customer service, and product development. A technical background in business administration is useful to help business analysts propose strategic business decisions.<\/p>\n\n\n\n

Data Analyst vs Business Analyst: Important Differences and Similarities<\/h2>\n\n\n\n

You might think that there aren\u2019t any differences between data analysts and business analysts because both roles analyze data. They even have similar names. While there are similarities in the overall goal and function of these roles, there are key differences in specific job responsibilities, skillsets, and education for business analysts vs data analysts.<\/p>\n\n\n\n

Difference: Responsibilities<\/h3>\n\n\n\n

A significant difference between the two roles is the day-to-day responsibilities. A data analyst extracts, cleans, and organizes data before moving on to analysis, while a business analyst often receives processed datasets to specifically look for ways to improve a company\u2019s bottom line.<\/p>\n\n\n\n

Difference: Salary<\/h3>\n\n\n\n

The earning potential for both jobs is very similar, but business analysts make a slightly higher salary on average than data analysts. The average salary for a business analyst<\/a> is $63,886. On the other hand, a data analyst earns an average salary<\/a> of $63,442 per year. <\/p>\n\n\n\n

There isn\u2019t a big difference in business analyst vs data analyst salary, and both professions are great steps toward a higher-paying career as a data scientist. Data scientists make an average annual salary<\/a> of $97,680.<\/p>\n\n\n\n

Difference: Skillsets<\/h3>\n\n\n\n

Data analysts and business analysts have overlapping skillsets when it comes to analyzing data and managing projects<\/a>. In addition to foundational data skills, business analysts also need strong communication skills and negotiation skills<\/a>, while data analysts need additional technical skills<\/a> in statistical programming and data management.<\/p>\n\n\n\n

Difference: Education<\/h3>\n\n\n\n

Entry-level roles for both data analysts and business analysts require a bachelor\u2019s degree<\/a>. Data analysts usually have degrees in computer science, statistics, or math, while business analysts usually earn degrees in business administration or economics.<\/p>\n\n\n\n

Similarity: Data Analysis<\/h3>\n\n\n\n

The most obvious similarity between a data analyst and a business analyst is that they both work with data. What they do with the data and the types of questions they try to answer with data are different, but both roles use statistical analysis on datasets every day. <\/p>\n\n\n\n

Similarity: Tools<\/h3>\n\n\n\n

Data analysts and business analysts both work with database tools like SQL and visualization tools like Tableau, Looker, and Google Data Studio. Business analysts might use more user-friendly software for data analysis, such as Excel, while data analysts might need to learn Python<\/a> or R for data analysis.<\/p>\n\n\n\n

Similarity: Data-driven Decisions<\/h3>\n\n\n\n

Both business analysts and data analysts work toward similar goals, using insights from data analysis to solve problems and make data-driven decisions. Business analysts work on these goals for different business organizations, while data analysts might work for businesses, government agencies, academic institutions, or non-profit organizations.<\/p>\n\n\n\n

Data Analyst vs Business Analyst: Pros and Cons<\/h2>\n\n\n\n
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Business analysts and data analysts both use analytical skills to discover meaningful insights and suggest data-driven solutions.<\/figcaption><\/figure>\n\n\n\n

Becoming a data analyst or business analyst comes with its own pros and cons. The decision to pursue one or the other depends on your personal strengths and weaknesses, so the importance of different business vs data analyst pros and cons will depend on your unique situation. Here are some general pros and cons to consider for both positions:<\/p>\n\n\n\n

Data Analyst Pros<\/h3>\n\n\n\n