The Surprising Difference Between Business and Data Analysts
Ah, the Great Field of Data. With job role names ranging from Business Analyst to Data Engineer and everything in between, it can be confusing at first to know what any of it really means.
I teach Data Analysis in a boot camp setting. One of the questions I am asked most often is, “What’s the difference between a data analyst and a business analyst?”
The answer is, almost always, it depends.
The roles of business analysts, data analysts, data scientists, and even data engineers are not always clear cut. One main issue in the field is how broad and ambiguous “data science” or “data analytics” is. There may be a job posting for a business analyst that is really more of a data analyst and vice versa. It depends greatly on the company itself.
That being said, there are a few main differences we will break down in this article. The last one is especially surprising.
1. The Goals of Business Analysts vs Data Analysts
In some roles, the goals of data and business analysts can be similar. However, more often than not, this is the first place where major differences between data and business analysts are observed.
Business Analysts are Focused on Reporting Business Metrics
Business analysts are typically focused on business metrics and key performance indicators relating to sales, revenue, profit, etc. They may also look at customer satisfaction, demand, and overall performance of the company over time. The name suits the position though, as all business analysts’ goals are focused on business performance.
A large part of their focus on business performance includes working with clients, defining the problems that need to be solved, and communicating needs between the client and business.
Some examples of their work:
- Analyze systems and procedures that could be improved to improve business performance
- Work with clients or other stakeholders to define problems needing to be solved
- Communicate the problems with other teams in the organization to work together to reach a solution
The business analyst is concentrated on one thing: solving business problems with data.
Typically, the goals of data analysts are slightly more broad (although it should be noted that data analysts must also be focused on how their analysis is improving company decision making and metrics).
Data Analysts Crunch The Numbers To Solve A Problem & Tell A Story
They also acquire, organize, clean, analyze, visualize, and communicate that data.
While the key issues that need to be solved are being identified and outlined by the business analyst, the data analyst is tasked with collecting and analyzing that data to find a solution.
Some examples of their work:
- Acquiring data using pipelines (if there are not data engineers at the company)
- Querying existing data to collect the information needed for the specific problem
- Cleaning and organizing the data in a manner appropriate to analyze for that specific problem to be solved (this is often said to take 80% of the time on a project)
- Creating reports, visualizations, and dashboards
After collecting, cleaning, and analyzing the data, data analysts are tasked with making the data make sense. To really solve a problem, they need to be able to tell a story with that data in a way that resonates with people who are not computer programmers or statisticians. Making the data make sense to anyone in the audience is crucial to providing truly actionable insights.
In addition, data analysts might not work in a typical business setting. In this way, their goals and responsibilities may be more broad.
For example, they may be doing research data analysis for political campaigns, non-profits, new business ventures, etc.
It’s worth noting that the term “data analyst” is absolutely NOT all inclusive. There are many titles for a data analyst. These include but are not limited to:
- Financial Analyst
- Program Analyst
- Marketing Analyst
- Operations Analyst
- Network Analyst
- Research Analyst
- Computer Systems Analyst
And many more!
The differences don’t end here, either. Next let’s take a look at how the skills and tools used by business and data analysts differ.
2. The Tools Used by Business Analysts vs Data Analysts
Typically, the tools of data analysts and business analysts are the most defined and notable difference between the two.
However, as always, this can depend. Use this as a guide, not a bible.
Tools Used by Business Analysts
- SQL
- MS Access
- Excel
Tools Used by Data Analysts
- SQL
- Python
- R
- Tableau or PowerBI
- SAS or SPSS
- Excel
- Cloud services such as AWS or Azure
As you can see, there is overlap between the two roles. However, once again, the field of data analysis is a bit more broad than business analysis — even considering the tools they use.
It’s worth mentioning, skills Required by BOTH business analysts and data analysts are soft skills including creating impactful presentations, being able to communicate effectively with both technical and non-technical audiences, and using critical thinking and logic to make sure you are solving for the right problem.
Now for the surprising difference between the two….
3. The Salary of Business Analysts vs Data Analysts
Given the fact that data analysts typically work have more technical skills as far as computer programming goes, it’s often presumed data analysts make more money than business analysts.
I’ve seen people say this on LinkedIn and YouTube and Twitter. “Get into data analysis because that’s where the money is.”
But is this always true? Is it even often true?
Let’s take a closer look.
A search on Glassdoor for “How much does a data analyst make?” and “How much does a business analyst make?” returned the median salaries of $71,635 and $81,668 respectively.
Hold up.
Business analysts make on average, $10,000 MORE than data analysts per year?
Sure, $10,000 might not be a huge difference to some people, but I’d say it is for most. At the very least, it ain’t chump change.
So why does the general internet data community talk about making so much more money than business analysts?
A closer look reveals the truth:
A business analyst may make more money upfront, but looking at the “Total Pay Trajectory,” it’s clear that Data Analysts have more room for upward growth.
If you’re in it for the long haul and you’re in it for the money, data analysis is your best bet.
Then again, I don’t think you’ll make it in the long haul if you are only here for the money.
The Reality of Comparison
In reality, the comparison of these roles (and many others in the field) is futile. It is so dependent company to company. You might start as a business analysts, get sucked into the more technical side of things, and several years later end up as a data engineer.
Your best bet is really to choose what interests you the most right now.
What do you feel excited about learning now? Never mind what may or may not be your pay differences in the future.
Rarely is anyone on a straight path to success in their career.
You have time to learn, improve, and explore.
Now, go make the most of it.
Thank you for reading. If you found this helpful, please follow me here on Medium to stay up to date. I also post on LinkedIn and on Twitter.
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