Data analytics vs. business analytics: What are the differences?
Like data itself, jobs dealing with data are becoming ubiquitous. In the tech space in particular, it may even prove difficult to find a career path that does not interact with data.
The need for experts to collect, wrangle, and interpret data is resultantly very high, and the proof in the pudding—or reality, the expected job growth. Many data-related occupations are estimated to have the strongest levels of employment surge over the next decade. With a projected increase of 266%, data scientists and data analysts bring home the trophy for the fastest growth in the tech field, according to CompTIA.
ADVERTISEMENT
The Online MS in Business Analytics from Pepperdine
Complete Your MS in Business Analytics in 12 Months Visit Website
But as the world has undergone a digitalized transformation, specialized titles have also grown. Instead of there simply being plain data scientists—there are now data engineers, data analysts, business analysts, and more. This is all due to a rise in the significance of data in the business world and beyond, says Yao Morin, chief technology officer at JLL.
“At the beginning data is just like a novel thing—you need a chief data officer, chief data scientist (to) tell you how to do data. Now it’s becoming a must have,” Yao tells Fortune. “If you’re a company without a strategy to deal with your data, you can’t win in this world.”
Two roles key to succeeding at the intersection of tech and business is data analytics and business analytics. While they are sometimes used interchangeably and have similar job expectations, there are some distinct features that set them apart—and some are less obvious than you may assume.
What is data analytics?
Data analytics focuses on identifying trends among data, visualizing those trends, and helping to translate the meaning behind them. Experts in the field are adept in a mixture of mathematics and computer science. Additionally, they are aware of business and economics, which helps them have an eye for data outliers and opportunities.
From a skills perspective, data analysts can program in SQL, Python, and R, are masters in spreadsheet software like Microsoft Excel and Google Sheets, and are experts in visualization tools like Tableau, Power BI, and Looker.
Industries across the board—not just in tech—are looking for data analytics experts, such as in healthcare, education, and government. Luckily, there are many paths to becoming a data analyst, including through certification programs, bootcamps, and degrees.
What is business analytics?
Put simply, the focus of business analytics is the leveraging of data to help businesses make decisions.
Business analytics are “really in the trenches with business stakeholders,” says Morin—adding that they use data to gain insights and drive the future of companies.
Storytelling is at the heart of business analytics, she adds.
“The requirement for business analysts has been going up in the sense that you are required to be able to crunch a large amount of data, you are expected to be able to tell a story from seemingly very messy, very large amounts of data that is different from before,” Morin tells Fortune.
Experts in business analytics have a variety of skills, like being able to wrangle data using SQL, Tableau, and Looker, translate data from dashboards and spreadsheets, and having curiosity and initiative to apply data patterns to various internal and external stakeholders.
What is the difference between data analytics and business analytics?
The main difference between the areas of data analytics and business analytics is the level of daily interaction with tech and data versus business and decision-making. As you may imagine, a data analyst is more focused on the former, whereas business analysts on the latter.
Yao says to imagine the differences in terms of a hypothetical spectrum.
“So, they (data analysts) are less technical than a data scientist, but they are less business facing than a business analyst. So, they’re more like crunching data, but not like big data—like what data scientists would crunch,” Morin notes.
←Technical role | Business role → | ||
Data engineering | Data scientist | Data analyst | Business analyst |
From an experience standpoint, business analysts may come from a business background and later add data skills, says Thai Le, computer science and information science professor at the University of Mississippi. On the other hand, data analysts may learn foundations in data science and then apply them to a business setting.
But, because of their similarity, it is important to consider that some companies may not necessarily distinguish between the two job titles on paper and the distinction may instead lie in the description or the home department.
Key Skills | Data analytics | Business analytics |
Programming | Yes, Python, and SQL | Sometimes |
Dashboards & spreadsheets | Wrangling, organizing, and visualizing data | Analyzing data and applying to business goals |
Critical thinking | Yes | Yes |
Communication | Yes | Yes |
Decision-making | Sometimes | Yes, solving business problems |
How do salaries of data analysts and business analysts compare?
Relatively speaking, both the salary of data analysts and business analysts hover close to each other—but those focused on business do tend to have an edge based on Glassdoor data.
Regardless, salary will likely heavily depend on your company as well as level of experience, location, and job expectations. The good news is that because data and business analysts are in demand, your ability to have a long career is likely.