Data Analyst Vs Business Analyst – Which One Should I Choose?

Data Analyst Vs Business Analyst - Which One Should I Choose

If you enjoy dealing with data, you may find yourself at a crossroads while deciding between a data analyst and a business analyst as a professional career. How do you pick between business analyst and data analyst careers? The good news is that both positions allow you to profit from your passion for data.

Data business analysts are responsible for analyzing data sets and identifying trends so that firms may make informed decisions. In contrast, business analyst experts are outstanding communicators, critical thinkers, and problem-solvers. These individuals have an in-depth understanding of their organization’s objectives and processes, allowing them to assess performance, identify deficiencies, and provide advice and implementation of remedies.

Who Is A Business Analyst?

According to the most frequent definition, the function of a business analyst entails resolving a current or future problem for an organization, typically through the deployment of technology. As opposed to determining and controlling the larger organizational strategy, a business analyst often focuses on a particular project or difficulty as a CEO might.

In solving this difficulty, the business analyst aids change, functioning as a change agent. The result of a business analyst’s work is always some change, even if their function does not involve implementing that change.

Who Is A Data Analyst?

Data analysts employ several potent tools and techniques to determine how the available data, in its various formats, might be sliced, diced, and combined to help the organization achieve its strategic objectives. In contrast to the business analyst, who works on various organizational tasks and problems, data analysts often focus solely on data. As a first step, a business analyst must define a query or a problem. A precise definition helps the data analyst determine which data sets are vital and which are unnecessary.

The 4 Key Differences Between A Business Analyst And A Data Analyst

Although business analysts and data analysts have many similarities, there are four key distinctions.

1. Overall Responsibility

Business analysts offer the functional requirements that inform the design of IT systems. Data analysts extract meaning from the system-generated and collected data. Frequently, data scientists can automate the business analyst’s responsibilities and may also be able to provide business insights.

2. Salary

According to, the median compensation for a data analyst is $70246. The average yearly compensation for a business analyst is $75,575, slightly more than the average salary for all occupations. Business analysts often earn more, but professionals in both roles are prepared to transfer into the “data scientist” post and earn an average income of $113,436.

3. Skillsets

Business analysts require data science expertise in addition to communication, analytical reasoning, negotiating, and managerial abilities. Data analysts require similar abilities, with a greater emphasis on technical data manipulation.

4. User Interaction

As project facilitators and supervisors, business analysts frequently contact system users, customers, and system developers more directly than data analysts. It is because business analysts may routinely conduct interviews to learn more about how they use technology to improve company processes. Although data analysts may first collaborate with corporate subject matter experts to discover important data sets, they perform most of their work autonomously. Throughout an individual project, they collaborate with others.

Similarities Shared Between Business And Data Analysts

Despite their different distinctions, business analysts and data analysts share several parallels, including the following:

1. Work Environment

Business and data analysts spend most of their time in an office environment. They may share an office or work remotely from home. Business analysts and data analysts spend most of their time obtaining and evaluating data on a computer. They both normally work full-time, conventional hours, Monday through Friday. Employers may ask analysts to work additional hours in times of increased demand.

2. Communication Skills

Both business and data analysts must possess great communication abilities. This competence can help them effectively communicate their findings, whether orally or in writing. Good communication skills also aid analysts in evaluating data and translating it into knowledge that all employees can comprehend.

3. Critical Thinking

Another ability utilized by both analysts is critical thinking. Both sorts of analysts seek information that may assist them in resolving workplace issues. For instance, a business analyst may seek specific data to enhance a company’s operations. They may examine a company’s policies, structure, and workflow to identify data they can use to enhance these areas. A data analyst may examine a company’s objectives and identify data that can assist employees in achieving these objectives. Both analysts may evaluate their findings rigorously to ensure accuracy and professional presentation.

5.  Business Analyst Versus Data Analyst: Responsibilities

IT departments, data management teams, and data scientists with who they collaborate. Data analysts assist businesses by evaluating data and presenting business stakeholders with actionable insights. In addition to providing competitive research and identifying business and market trends, data analysts utilize their specialized knowledge to do competitive analysis.

Data analysts are responsible for the following:

  •  Gather Data: Analysts frequently acquire data on their own. It may involve conducting surveys, monitoring the characteristics of website visitors, or purchasing datasets from data-gathering specialists.
  •  Clean Data: Cleaning the data is maintaining the integrity of the data in a spreadsheet or computer language so that your interpretations are neither inaccurate nor skewed.
  • Model Data: This involves constructing and designing database structures. You may choose the data types to save and gather, set the relationships between data categories, and determine how the data will look.
  • Interpret Data: To interpret data, you must identify patterns or trends in the data that will assist you in answering the question.
  • Present: Sharing the outcomes of your research will be a crucial aspect of your profession. You accomplish this by creating charts and graphs, composing reports, and presenting information to interested parties.

The duties of a business analyst vary by industry, but their primary purpose is to analyze and extract insights from data to make informed business decisions. Their main responsibilities include:

  • Specify configuration needs and business analysis prerequisites
  • Perform quality control
  • Specify reporting and alerting needs
  • Own and cultivate partnerships, working with them to optimize and enhance our integration.
  • Help design, document, and maintain system procedures
  • Report on prevalent sources of technical queries or concerns and provide team recommendations
  • Communicate essential results and ideas to the product team
  • Constantly search for ways to enhance monitoring, uncover concerns, and provide enhanced customer value.

6. Business Analyst Versus Data Analyst: Skills And Requirements

Typically, business analysts have a bachelor’s degree in a business-related discipline such as business administration, finance, or economics. Included among the requirements of business analysts are the following:

Technical Skills

To identify business solutions, business analysts must comprehensively understand existing technology platforms and developing technologies to estimate the possible results they may reach with current applications and new offers. In today’s business analyst job descriptions, the ability to design business-critical systems and test software tools are also vital technical abilities.

Communication Expertise

Communication fluency is an essential ability for any business analyst. Business analysts must interface with developers, clients, end users, and management. The success of a project is contingent on the clarity with which business analysts communicate details such as desired revisions, testing results, and project requirements.

Analytical Abilities

The skill set of a business analyst should include outstanding analytic abilities to analyze and convert client needs into operational processes. In most job descriptions for business analysts, the ability to examine documents, data, user surveys, and workflows to provide problem-solving solutions is included as a requirement.

Capacity For Making Conclusions

In any job description for a business analyst, strong decision-making abilities are required. Business Analysts should be able to evaluate inputs from stakeholders, analyze a situation, and choose the best course of action. The capacity of business analysts to make sound decisions will substantially impact an organization’s ability to endure and generate profits.

Managerial Skills

Some of a business analyst’s responsibilities include planning a project’s scope and guiding staff, projecting budgets and managing change requests, and monitoring time limits. As a multidisciplinary position, business analysts must exhibit advanced management skills to oversee projects from start to finish.

On the other hand, data analysts place a greater emphasis on numbers. Typically, these professionals have a bachelor’s degree in a STEM field and experience in computer programming, modeling, and predictive analytics. Master’s degrees are beneficial.

The required skills of data analysts include

  •  Database Tools: Microsoft Excel and SQL should be essential tools for any data analyst. SQL can manage larger data sets and is widely viewed as a requirement for data analysis, but Excel is pervasive across industries.
  • Statistics and Mathematics: Understanding the concepts underlying what data tools are doing will greatly assist your work. A thorough understanding of statistics and mathematics will allow you to select which tools to tackle a given problem, detect mistakes in your data, and comprehend the results with greater clarity.
  •  Problem-Solving: A data analyst must thoroughly comprehend the question posed and the issue to be resolved. Additionally, they must be able to identify patterns or trends that may expose a story. Possessing critical thinking abilities will enable you to focus on the appropriate forms of data, detect the most illuminating ways of research, and identify job gaps.
  • Communication: The ability to convey your thoughts to others will be vital to your success as a data analyst. Strong written and oral communication skills for interacting with coworkers and other stakeholders are strengths for data analysts.
  • Field Knowledge: Knowing about the industry in which you work, whether it be healthcare, business, or finance, can provide you an advantage in your work and job applications. If you’re aiming to break into a certain field, you should study a book on the subject or pay attention to industry news. It can familiarize you with the major concerns and trends of the sector.
  •  Programming Languages: Learning a statistical programming language, such as Python or R, will enable you to manipulate massive data sets and solve complicated equations. Even though Python and R are among the most popular, you should examine job descriptions of positions you’re interested in to discover which language will be most beneficial to your business.
  •  Data Visualization is essential to being a good data analyst because it allows you to present your findings clearly and convincingly. Understanding how to communicate information using charts and graphs effectively can ensure that your coworkers, employers, and stakeholders can comprehend your work. Excel, Tableau, and Jupyter Notebook are among the numerous technologies used to produce graphics.

7. The Career Path of a Business Analyst vs. That of a Data Analyst

Entry-level data analysts must possess a bachelor’s degree in a relevant subject. Frequently, recruit managers to favor a graduate degree or Masters’s in analytics for senior-level positions. While both data analysts and business analysts utilize data, what they do with it is the fundamental distinction between the two. Company analysts utilize data and investigate it to improve business decisions. On the other side, data analysts work with data connected to an organization’s logistical databases.

8. Comparison Of Business Analyst And Data Analyst Salaries

You have probably thought about the topic, “What is the difference between a data analyst and a business analyst?” Additionally, factors such as the organization, the employment type, and the geographical location play a role. The annual income of a data business analyst is often much higher, coming in at a mean of $78,500. Once more, the candidate’s skill set, profile, reputation of the organization, and location all come into play. Those with higher qualifications are eligible to assume senior positions that pay up to $110,000 annually. As a result, a business analyst’s salary differs from that of a data analyst.

9.  How To Choose Between Careers As A Data Analyst And A Business Analyst

Which career path, data analyst or business analyst, should you pursue? To determine this, you must consider the three elements below:

Consider Your Hobbies

Do you prefer to tackle business problems, or are you preoccupied with data and statistics? Business analysts are more interested in finding solutions than working in the business sector. For example, they may be responsible for conducting research, organizing, and overseeing the implementation of a new workflow. These people are often natural-born communicators; oral and written communication skills are essential since they must communicate technical messages to non-technical audiences.

Data analysts must have a comprehensive knowledge of the sector they serve. Various data analysts excel in fields such as programming and statistics. As the organization’s data gatekeepers, they are interested in obtaining data points from complex and frequently disparate sources.

Consider Your Professional Background.

Business analysts and data analysts often have various educational and professional histories. Typically, business analysts (also known as systems analysts) have a bachelor’s degree in a business-related field. They mostly use data to increase the efficiency of corporate processes. They know multiple programming languages but are not necessarily experts in them.

Based on business requirements, business analysts may collaborate with the technical team to develop a software package or deploy a new CRM.

On the other hand, data analysts spend their entire day dealing with massive data sets to identify trends, construct charts, and create visual presentations for the business to use when making decisions. Typically, these professionals are STEM graduates with extensive knowledge in mathematics, science, programming, databases, modeling, and predictive analytics.

Consider Your Professional Route.

Although business and data analysts share similarities, such as high salaries, their professional paths differ. The average salary for a mid-level ERP business analyst in the IT industry is $110,000. Because business analysts are not required to have as extensive a programming background as data analysts, entry-level business analyst employment may pay a substantially lower salary. However, earnings can surpass six figures for people in advanced positions or enterprises with high demand.

Typically, advanced degrees and certifications are required to transfer from the job of business analyst to one that focuses on analytics. Moreover, data analysts enjoy excellent job security and competitive pay. For instance, data analysts in the technology field make between $87,500 and $126,250 annually. Because these people primarily work with databases, there is room for improvement in understanding other programming languages, such as R and Python. Moreover, higher-level data analysts can readily shift into careers as developers and data scientists.

10. Which Of The Two Careers—Data Analyst Or Business Analyst—Is More Desirable?

Both data analysts and business analysts play vital responsibilities in their organizations. However, your best role depends totally on your requirements and needs. The business and data analysts use data to support their project-related reports and conclusions. However, the two professions handle their data differently. On the one hand, business analysts are tasked with making crucial business judgments. At the same time, data analysts are responsible for collecting, organizing, and interpreting a company’s data to make it valuable for its operations.


This article helped you better understand the distinctions between a data analyst and a business analyst. It is necessary because both of these fields deal largely with data. However, because both designations share some common characteristics, transitioning from one to the other at any point in time is relatively easy. Before choosing a career path, you need to accurately assess your skill set and each industry’s personal benefits and drawbacks.

Recent Posts