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4 Differences that Separate Business Analytics from Data Analytics

4 Differences that Separate Business Analytics from Data Analytics
The Siliconreview
15 May, 2020

All fields of analytics share the basic principles of analytics for sure, but depending on which path the analyst chooses to pursue, their career prospects, market demand, fields of work, and the work itself will vary quite widely. To provide aspiring analysts with an idea of what they can expect from either of the two fields, here is a brief introduction to four main differences that separate business analytics from data analytics.

The Difference in Technique and Application

Data analytics is widely considered to be a much more technical job than business analytics since the data analyst’s direct involvement in the following is crucial to the job:

  • Data collecting, purging, cleaning, and preparing
  • Finding patterns, correlations and trends to build a predictive model
  • Finding the hidden problems and presenting solutions via the use of statistical figures

A business analyst, on the other hand, gets directly involved with the company’s regular business model, to make every process more functional and cost-effective. Some of the work which they are hired for will include:

  • Data inspection, purging, translating and modeling
  • Working beside the executives to help them understand the data presented by the data analyst
  • Interpreting the data analyst’s findings and working on them further to develop improvement models

Differences in Academic Background

Senior data analysts with the experience and right qualifications would often be called data scientists, because of the critical research they do for their respective employers. Their technical work needs a solid background in subjects such as the following:

  • Mathematics
  • Statistics
  • Computer programming/coding

The business analysts too shall benefit greatly, if they have an academic background, or at least a strong base in math, stat, and coding, However, business analysts do not necessarily have to have such backgrounds. A majority of them come from fields such as:

  • Finance
  • Accounting
  • Operations
  • Marketing
  • Management

The Difference in Job Prospects

As Suffolk University Online points out while discussing the differences in job prospects for students of business analytics vs data analytics, there doesn’t necessarily have to be a difference at all. Check out the website to know how the right analytics program can help you take up any of the two roles in the future, or even change paths mid-career to the one that suits your expertise and educational background more.

The Difference in Pay

According to PayScale, the average salary of a data analyst is $60,284 per year in the US. On the other hand, the mean salary of a business analyst is roughly $68,820 per year. Therefore, the difference is not quite significant, but most certainly present. In spite of the data analyst being more technically sound in their education, qualification, and work, they do earn less than business analysts on an average.

The job of the analyst is a complicated one, and unless someone has the aptitude to do the job, they are unsuitable for the profession. In order to succeed in business or data analytics, the professional must be proficient in seeing patterns, organizing data, and predicting outcomes naturally.