Business Analyst vs. Data Analyst: What's the Difference?

Data analysts and business analysts both help drive data-driven decision-making in their organisations. Data analysts work more closely with the data itself, while business analysts are more involved in addressing business needs and recommending solutions. Both are highly sought-after roles that are typically well-compensated.

Take a closer look at what makes each role unique and why you might pursue either as a career. 

Business analytics vs. data analytics

Business analysts and data analysts have similar roles, and some companies might use the terms interchangeably. Both types of analysts use data to improve business decisions, but they do so in different ways. 

What do data analysts do?

Data analysts gather, clean, analyse, visualise, and present existing data to help inform business decisions. An effective data analyst uses data to answer questions and empower decision-makers to plot the best course of action. Everyday tasks for a data analyst might include:

• Working with business leaders and stakeholders to define a problem or business need

• Identifying and sourcing data 

• Cleaning and preparing data for analysis

• Analysing data for patterns and trends

• Visualising data to make it easier to understand

• Presenting data in such a way that it tells a compelling story

What do business analysts do?

Business analysts help identify problems, opportunities, and solutions for their organisations. They do this by:

• Evaluating a company's current functions and IT structures

• Reviewing processes and interviewing team members to identify areas for improvement

• Presenting findings and recommendations to management and other key stakeholders

• Creating visuals and financial models to support business decisions

• Training and coaching staff in new systems

What is a business intelligence (BI) analyst?

BI analysts are somewhat of a hybrid between business and data analysts. They use analysis, modelling, and visualisation of industry trends and the competitive landscape to help businesses cut losses and increase profits.

Educational background

Business and data analysts can come from a broad range of academic backgrounds, though companies typically look for candidates with degrees. Generally speaking, business analysts might have a degree in a business or accounting-related field, while data analysts often have degrees in STEM fields like statistics, maths, or computer science.

Earning a master’s degree focusing on data analytics could help open opportunities for advancement in either field.

No degree is required for some entry-level roles.

Earn a Professional Certificate in data analytics from or to build the skills necessary for an entry-level data analyst role in less than six months of study.

Skills: Business vs. data analyst

Data analytics and business analytics each involve a slightly different skill set. Both occupations work with data in different ways. Consult the chart below to compare the standard skills for each.

The two roles share several skills as well. Whichever path you choose, you can set yourself up for success by being a good:

• Oral and written communicator

• Problem solver

• Critical thinker

• Organiser

• Collaborator

Salary

The in-demand skills involved in data and business analysis often draw high salaries. According to Glassdoor UK’s June 2024 data, business analysts earn an average base pay of £45,254, while data analysts bring in an average base pay of £36,354 [1, 2].

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When comparing data analysts to business analysts, you can see that both use data to make informed business decisions, yet their specific approaches differ. While data analysts delve deeply into data, business analysts focus on identifying and addressing business challenges.

If you're considering a career as a data analyst, start building a foundation of job-ready skills with the Google Data Analytics Professional Certificate on Coursera. If business analytics are more aligned with your interests, consider building fluency in business data strategies with the Business Analytics Specialisation from the University of Pennsylvania.

If you already have experience and want to take your data or business analyst career to the next level, build your skills with the Google Advanced Data Analytics Professional Certificate or Google Business Intelligence Professional Certificate. These advanced, self-paced courses will prepare you for in-demand roles like business intelligence analyst or junior data scientist.

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