Learn how data analysts and business analysts work with data to drive better business decisions (and find out which might be a better career fit for you).
Data analysts and business analysts both help drive data-driven decision-making in their organisations. Data analysts work more closely with the data itself, while business analysts are more involved in addressing business needs and recommending solutions. Both are highly sought-after roles that are typically well-compensated.
Take a closer look at what makes each role unique and why you might pursue either as a career.
Business analysts and data analysts have similar roles, and some companies might use the terms interchangeably. Both types of analysts use data to improve business decisions, but they do so in different ways.
Data analysts gather, clean, analyse, visualise, and present existing data to help inform business decisions. An effective data analyst uses data to answer questions and empower decision-makers to plot the best course of action. Everyday tasks for a data analyst might include:
Working with business leaders and stakeholders to define a problem or business need
Identifying and sourcing data
Cleaning and preparing data for analysis
Analysing data for patterns and trends
Visualising data to make it easier to understand
Presenting data in such a way that it tells a compelling story
Business analysts help identify problems, opportunities, and solutions for their organisations. They do this by:
Evaluating a company's current functions and IT structures
Reviewing processes and interviewing team members to identify areas for improvement
Presenting findings and recommendations to management and other key stakeholders
Creating visuals and financial models to support business decisions
Training and coaching staff in new systems
BI analysts are somewhat of a hybrid between business and data analysts. They use analysis, modelling, and visualisation of industry trends and the competitive landscape to help businesses cut losses and increase profits.
Business and data analysts can come from a broad range of academic backgrounds, though companies typically look for candidates with degrees. Generally speaking, business analysts might have a degree in a business or accounting-related field, while data analysts often have degrees in STEM fields like statistics, maths, or computer science.
Earning a master’s degree focusing on data analytics could help open opportunities for advancement in either field.
Data analytics and business analytics each involve a slightly different skill set. Both occupations work with data in different ways. Consult the chart below to compare the standard skills for each.
Data analyst | Business analyst |
---|---|
Data analysis | Needs analysis |
Statistics | Prototyping |
Knowledge of data structures | Knowledge of business structures |
SQL and statistical programming | Microsoft Visio and software design tools |
The two roles share several skills as well. Whichever path you choose, you can set yourself up for success by being a good:
Oral and written communicator
Problem solver
Critical thinker
Organiser
Collaborator
The in-demand skills involved in data and business analysis often draw high salaries. According to Glassdoor UK’s June 2024 data, business analysts earn an average base pay of £45,254, while data analysts bring in an average base pay of £36,354 [1, 2].
When comparing data analysts to business analysts, you can see that both use data to make informed business decisions, yet their specific approaches differ. While data analysts delve deeply into data, business analysts focus on identifying and addressing business challenges.
If you're considering a career as a data analyst, start building a foundation of job-ready skills with the Google Data Analytics Professional Certificate on Coursera. If business analytics are more aligned with your interests, consider building fluency in business data strategies with the Business Analytics Specialisation from the University of Pennsylvania.
If you already have experience and want to take your data or business analyst career to the next level, build your skills with the Google Advanced Data Analytics Professional Certificate or Google Business Intelligence Professional Certificate. These advanced, self-paced courses will prepare you for in-demand roles like business intelligence analyst or junior data scientist.
Both roles are in demand and well-paid. The best option for you will depend on your unique interests, skills, and career goals. A data analyst position could be a good fit if you gravitate towards mathematics and statistics. If you're more of a business-minded problem solver, consider business analytics instead.
Yes, data analysts can become business analysts (and vice versa). Many of the skills overlap. A data analyst moving into business analytics might want to polish up on their knowledge of business structures and process prototyping. Business analysts who want to work more closely with data sets can build their SQL, statistical programming, and data management skills.
Data analysts come from a range of educational backgrounds. Degrees in mathematics, statistics, and computer science tend to teach the maths and analysis skills needed on the job. However, a business degree can equip you with the ability to analyse business problems and communicate solutions effectively—also essential skills.
Glassdoor. "Business Analyst Salaries, https://www.glassdoor.co.uk/Salaries/business-analyst-salary-SRCH_KO0,16.htm." Accessed 5 June 2024.
Glassdoor. "Data Analyst Salaries, https://www.glassdoor.co.uk/Salaries/data-analyst-salary-SRCH_KO0,12.htm." Accessed 5 June 2024.
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