Business Analyst or Data Analyst, Which One to Choose and Why?

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A business analyst or data analyst? While both these positions deal with large sets of data, they are often used interchangeably and are a cause of confusion.

In small businesses, the difference can be negligible, but in large enterprises, both these roles perform diverse duties and have varied responsibilities. This article maps the major differences between the job of a data analyst as well as a business analyst, to help you make the right career choice. 

According to IDC, the amount of new data created each year is predicted to grow at 26% compounded annually and is expected to hit 175 ZB (a Zettabyte is 10^21 Bytes) by 2025. The figure below underscores how much more data needs to be captured and utilized by enterprises, and how important these roles are.

The Data Analyst 

A data analyst makes use of specialized data analysis tools and methodologies to enable informed decision making. A data analyst’s job is much more technical as compared to a business analyst’s role. The major responsibilities of a data analyst include:

  • Configuring databases to capture and record data from various sources - internal or external - to the enterprise
  • Extracting, transforming, and cleaning data (from both structured and unstructured formats) to make it available for easy analysis
  • Prepare data analysis reports for senior management to make better decisions

From an educational perspective, getting a job as a data analyst requires having a graduate degree from the STEM (Science, Tech, Engineering, Mathematics) background. If you have experience in statistics, computer science, information management, or finance, you will love being a data analyst.

For an advanced career in data analytics, several tools can be mastered to become proficient. By undergoing certifications in programming languages like R, Python, BDA, Hadoop/Big Data, and other scripting languages, you can easily kick start your data analyst career.

Skilled data analysts command premium salaries as they come with experience. Companies in Finance, Insurance, eCommerce, and Investment Banks are always on the lookout for bright and talented data analysts. People with a background in data analytics can easily join the most prestigious and sought-after streams like Data Science, Business Intelligence (BI), AI, and ML.

The Business Analyst

The business analysts’ job is to analyze data to provide information to help streamline and improve business metrics. It does not involve hardcore data manipulation or technical knowledge, but the BA needs to understand the industry and business-oriented processes like forecasting, budgeting, operational excellence, and HR hiring. 

The business analyst’s job typically requires building strategic, tactical, and operational knowledge to devise improved goals and objectives for the business. In many cases, the business analyst works on data provided by the data analyst. 

A degree in business administration, consulting, general management, or IT provides a strong background for a business analyst. Some of the most desirable skills in a business analyst are: 

  • Excellent analytical skills
  • Strong interpersonal and communications skills
  • Advanced Excel skills
  • Being adept at problem-solving

The average base salary of a business analyst is INR 6 lakhs per year. Business analyst jobs are sought by almost all companies for information collation, creating the right collaterals, conducting analysis, and creating reports for senior business leaders. 

While both business analyst and data analyst jobs require working with data, the difference lies with the output that they provide. Before choosing your career path, you need to think about the following key points:

  • Whether you are interested in the business aspect or are more comfortable with number crunching
  • You have a technical background or a business one
  • Data analyst jobs have a higher growth curve but require constant learning and upgrading throughout their career

But rest assured, both jobs are in high demand and seeing a huge spurt in demand. As the world starts to sink into an overabundance of data, it is the business or data analysts who will keep organizations afloat. There are many free online introductory courses available that would help you decide the best option for your career!

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Pic Credit: Brooke Cagle | Unsplash