Data analyst vs business analyst: What are the role differences?

Data analyst and business analyst are two professional job roles that work with data to help businesses achieve their goals. What’s their difference?

These professionals must have an in-depth grasp of the business requirements, procedures, and the goals for analysis.

Both data analysts and business analysts use data to help business organizations be successful. In some cases, both these job roles are usually interchanged especially in startups or smaller companies. However, data analysts and business analysts professions both have their own differences when it comes to specific roles and skills needed for the job.

Data analyst vs business analyst

Data analysts are professionals who focus on analyzing data sets to determine trends and insights. These help businesses make informed decisions for improvement and success. 

Business analysts, on the other hand, are professionals who are problem solvers and critical thinkers. They focus on analyzing and interpreting different types of data to help businesses identify operational inefficiencies, evaluate their overall performance, and other concerns that a business needs to address. A business analyst offers business organizations solutions in specific areas depending on the data results. 

Roles of a data analyst

Data analysts spend more of their time doing data research and creating compelling reports that present the data insights. Part of the roles of a data analyst are the following:

  • Create both internal and client reports. 
  • Create and maintain reports for different departments. 
  • Design and maintain database and systems, as well as troubleshoot issues.
  • Mine and clean data in preparation for analysis.

Data analysts work more independently compared to business analysts. To succeed in this field, a data analyst must possess technical skills and analytical skills. Data analysts must have proper knowledge in data mining techniques and agile development methodologies. It is also a must for these professionals to have good presentation skills and data visualization, including intensive knowledge in Microsoft excel, R or Python programming, and Structured Query Language (SQL).   

Roles of a business analyst

Business analysts offer businesses strategic solutions for their current or future problems. Part of the roles of a business analyst are the following:

  • Understanding and analysing the business requirements.
  • Gauge the business organization’s efficiency and other metrics.
  • Project management.
  • Quality testing.
  • Collaborate with other teams and stakeholders. 
  • Make informed decisions together with business leaders.
  • Produce recommendations for businesses to improve their processes, overall performance and procedures.  

Business analysts must be good communicators as they will be required to work collaboratively with other departments and stakeholders. These professionals must have an in-depth grasp of the business requirements, procedures, and the goals for analysis. It is also essential for business analysts to possess mathematical and analytical skills, SAP skills, as well as proficiency in the use of Microsoft excel, Word, and Powerpoint. 

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