Business analyst vs data analyst: key differences, responsibilities and skills

Data analytics is a vital tool used by companies to gain a competitive advantage and drive innovation through informed strategies.

The demand for data analytics professionals is on the rise as the industry continues to grow, with 92% of enterprises using data and analytics to gain greater marketing insights according to a survey by KPMG.

The top reasons for investing in data and analytics are improving productivity (47%), generating sales growth (37%), and reducing costs (16%). With the abundance of terms related to analytics, it can be confusing to differentiate between them.

In this article, we will clarify two key roles in the field: data analysts and business analysts. While they are closely related, they have distinct functions and responsibilities.

Let’s look into the details of Business Analyst vs Data Analyst.

Data Analyst roles and responsibilities

Data analysts collect raw data, cleans and visualizes datasets to help stakeholders with strategic decision-making. 

The job of a data analyst involves technical work using various analytical tools. They routinely gather information and create reports based on their findings. 

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Data analyst responsibilities

Some of the key responsibilities of a data analyst are as follows: 

• Identifying problems and business shortcomings.
• Gathering data from various sources.
• Data cleaning and data analysis. 
• Interacting with decision-makers and stakeholders.
• Identifying patterns and trends from datasets. 
• Create data visualizations for easy understanding.
• Presentation of reports in an engaging manner. 
• Maintenance of databases and data systems. 

Business Analyst roles and responsibilities

While data analysts work more closely with data, business analysts focus more on addressing the needs of an organization and improving business performance. 

They study past and current data trends collected by data analysts and recommend changes. 

BAs work closely with the stakeholders to identify business goals, bottlenecks, and potential opportunities. 

Let us look at the key responsibilities of a Business Analyst:

Business analyst responsibilities

• Business Analysis: Analyze past and current business data to derive logical conclusions.
• Interact with the team to gain insights about business challenges.  
• Work closely with decision-makers to identify areas for improvement.
• Create visual representations and statistical models from the data. 
• Communicate with stakeholders about key findings and recommendations. 
• Prepare analysis reports and presentations for more clarity. 
• Conduct surveys and informative workshops. 
• Identify new processes and operational changes for the business.

Top 7 business analytics tools in 2024

Business analytics vs data analytics: a comparison

The following table shows a brief comparison of business analytics and data analytics: 

Can a data analyst become a business analyst?

Yes, a data analyst can change his role to become a business analyst (and vice versa), as many of their skills are common. However, this transition becomes easy with proper training and skill upgrades.

Business analyst vs data analyst – skills

As we have already discussed, Data analysts and Business analysts are two different functions. The skill sets required for both roles are also different in many aspects. 

Here’s a look at the skills required for data analyst and business analyst. 

Data analyst skills

• Good knowledge and understanding of data mining techniques.
• Sound technical skills for data collection, filtering, organization, and visualization. 
• Familiarity with data frameworks and machine learning techniques.
• Basic knowledge of programming especially SQL, R, Spreadsheets, Python, etc.
• Strong analytical skills to interpret data and derive conclusions.
• Good communication and interpersonal skills to interact with decision-makers.
• Proficiency in analytical and data visualization tools like Tableau, Oracle BI, SAS, etc. will be an added advantage.

Business analysts skills

• A strong analytical mindset and problem-solving skills.
• Excellent communication skills to collaborate with stakeholders and teams.
• Knowledge of project management tools like Jira, Trello, Gantt charts, etc.
• Proficiency in Microsoft Excel, MS Word, and MS PowerPoint.
• Knowledge of databases like Microsoft SQL Server, MySQL, Oracle DB, etc.
• Very good organizing and documentation skills. 
• Expertise in report generation and presentations. 

What is the eligibility criteria?

Business analyst and data analyst job roles have specific eligibility criteria. However, the criteria may vary according to the organization and level of experience. 

A data analyst job position usually demands a Bachelor’s or Master’s degree in Mathematics, Computer science, Statistics, or Economics. If you are from a different academic background but still want to explore a career in this field, you can consider getting a few credible certifications and courses for upgrading your job-specific skills. 

A business analyst job often requires you to have a Bachelor’s degree in business or a related domain or an MBA degree. If you are a graduate with good analytical skills and basic technical knowledge, you can try for entry-level business analytics jobs. 

Career path- business analyst vs data analyst

According to the US Bureau of Labor Statistics, employment of management analysts is projected to increase by 14% from 2020 to 2030, faster than the average for all occupations.

If you’re considering a career as a data analyst, it is time to brush up on your technical skills and get a valid certification. Check out various analytics courses offered by Google and Microsoft. Professional business analytic certifications showcase your proficiency in the subject and also introduce you to analytical tools and practices.

A Business analyst is one of the most sought-after job positions across many industries today. Most aspiring candidates start with an entry-level position and advance their career by pursuing a Master’s degree or by completing certifications.

If you are keen on advancing to a higher job position in business analytics, consider pursuing an Executive MBA in Business Analytics program. Work experience is very relevant for this role as it will help you gain a deep understanding of the business operations and the market you are involved in.

After completing a master’s course, you will be eligible to apply for analyst jobs in Dubai and other global destinations.