Difference Between Data Analyst And Business Analyst Explained

Business Analyst versus Data Analyst—you've probably asked yourself which path is right for you! It's a question that's popping up more frequently! 

Both are in-demand positions with engaging career options in today's data-centered world. Although the two roles sound similar, they often serve different functions, require different skills, and provide distinct career paths.

A Business Analyst is someone who focuses on understanding business needs and driving process improvement while acting as the link between those interested in a business solution (stakeholders) and the technical workers responsible for implementing that solution. 

Business Analysts take a company's problem statements and translate them into actionable tasks.

A Data Analyst does the reverse—they study numbers to find trends and provide information valuable to making data-informed business decisions.

If you enjoy problem-solving through reporting, working with teams, and are able to make decisions that drive business strategy, a Business Analyst role may be best for you. If you prefer studying numbers and patterns derived from crunching numbers through data tools, a Data Analyst career may be a better fit for you.

In this blog, we will outline the key differentiators between a Business Analyst and a Data Analyst, so you can make an informed and confident decision about your future career.

What is a Business Analyst?

A Business Analyst is a problem solver and business strategist. They are the glue of the company, connecting stakeholders and technical teams to each other.

When things go wrong in business, the BA examines the challenges the industry is facing. 

They assess the business's needs and identify areas for improvement.

The BA will present options on how to improve either processes, products, or services that contribute to the overall success of the business.

Business Analysts differ from Data Analysts, who primarily work with data.

For BAs, their focus is on understanding business objectives, and identifying what strategies or changes they need to achieve those goals. 

They explore business requirements and assess the risks associated with each of the proposed solutions, ensuring that the outcome fits the business objectives.

BAs achieve this type of assessment using business tools that include: process modeling, requirement prioritization, analysis and stakeholder interviews, which they draw on for insights and analysis.

If you like to think critically, solve problems, work with cross-functional teams that drive business improvements, then the role of a Business Analyst is an excellent role for you. 

It is an exciting pathway for careers in business that span wide-reaching industries including finance, healthcare, technology, e-commerce, and many others.

What is a Data Analyst?

A Data Analyst plays a pretty crucial role in any organization. The primary role is to gather, process, and analyze data.

The aim is to understand trends and insights that help guide businesses in decision-making. T

hey leverage statistical techniques and visualization tools to create reports or dashboards from raw data that can inform good decision-making.

It's incredible how Data Analysts can interpret numbers into actionable intelligence to drive a company forward. 

While Business Analysts work primarily in the areas of business strategy, research, and process improvements, Data Analysts are analyzing structured and unstructured data, answering questions like "What did happen?" and "Why did it happen?"

Data Analysts utilize data manipulation and interpretation tools, such as SQL, Python, Excel, Power BI, and other applications to analyze data and support organizations' ability to optimize their operation to improve efficiencies. 

If you are strong analytically, enjoy numbers and enjoy discovering patterns from large data, Data Analytics might just be a career for you.

As organizations turn to data-informed, or data-driven processes for insight, the demand for quality Data Analysts will continue to grow in all industries. 

What Does a Business Analyst Do?

A Business Analyst (BA) plays a crucial role in helping organizations improve processes, optimize strategies, and implement solutions that align with business objectives.

They act as a bridge between stakeholders and technical teams, ensuring that business needs are effectively translated into actionable solutions.

5 Key Responsibilities of a Business Analyst

• 1

  Documentation & Requirement Gathering: A business analyst's role is to document the requirements of the stakeholders. The business analyst obtaining the requirements will document as many of the requirements as possible to ensure that all stakeholders understand the scope of the project as they envision it.

• 2

  Process Analysis & Optimization: They examine at how businesses work now to find problems and ways to make things better. They suggest changes that make the whole business run more smoothly by looking at workflows and finding bottlenecks.

   

• 3

  Working with the IT teams to develop and implement solutions that will meet business needs. Business Analyst will help ensure that the business strategy and technology strategy are aligned to achieve the best possible outcomes.

   

• 4

  Stakeholder Interaction & Collaboration: BAs serve as intermediaries between business teams and IT teams to create an effective communication loop to ensure all stakeholders and departments are aligned on expectations, timelines, and deliverables.

• 5

  Market & Competitive Research: Several Business Analysts conduct market research to recognize industry trends, consumer preferences, and competitor practices to inform their business decisions.

   

Key Responsibilities of a Data Analyst

• 1

  Collecting and Cleaning Data: The typical duties of Data Analysts include collecting information from a variety of sources - databases, APIs, and spreadsheets. Data Analysts will always clean and prep data for analysis to find and remove errors, inconsistencies and missing values - so that the data is accurate.

• 2

  Exploratory Data Analysis (EDA): After collecting and cleaning, the Data Analyst will xplore recoding the datasets for information to understand trends, relationships and anomalies. Data Analysts will do this using statistical techniques and visualization tools and design to extract truly insightful meaning from the data.

• 3

  Data Visualization and Reporting: Data Analysts will design dashboards and charts using a range of software including Power BI, Tableau or Excel. Data visualizations are a method of interpreting complex data to support and inform business decision-making.

• 4

  Trend Analysis and Forecasting: Data Analysts will leverage and report on statistical modeling and machine learning techniques to inform prediction of future trends, to ensure businesses can prepare for changes in their marketplace, customer behaviors and/or operational developments.

• 5

  Collaboration with Teams: Amid the numbers, Data Analysts collaborate with business teams to assist in interpreting the findings based on data and providing actionable recommendations based on their data findings.

Business Analyst Vs. Data Analyst: Certifications

If you are thinking of becoming a Business Analyst or Data Analyst, there are certifications that will help you stand out. While both work on enabling data-supported decision making, the certifications that they get are concentrated in different skill sets.

Top Certifications for Business Analysts

For someone looking to be a business analyst, the Entry Certificate in Business Analysis (ECBA), awarded by the IIBA, is a great entry-level certification that gives candidates a solid background in the competency and skill of business analysis.

If you have a little experience the Certification of Capability in Business Analysis (CCBA) would work to show that you understand what is happening around you in documentation, planning and evaluating possible solutions.

If you are even further advanced to an experienced Business Analyst, the Certified Business Analysis Professional (CBAP) is a very popular certification to demonstrate advanced competency in business analysis and real life experience Retrieved.

You can also consider the PMI-PBA (Professional in Business Analysis), which takes what a Business Analyst does and aligns it more closely with the practices of project management.

If you're considering a career as a Business Analyst (BA) or Data Analyst (DA), certifications can give you a competitive edge.

While both roles involve data-driven decision-making, the certifications they pursue focus on different skill sets.

Top Certifications for Data Analysts

Data analysts, on the other hand, focus more on technical skills like data visualization, SQL, and statistical modeling.

The Google Data Analytics Certificate is a great entry-level option, covering the fundamentals of spreadsheets, SQL, and Tableau.

For those looking to specialize, the Microsoft Certified: Power BI Data Analyst Associate helps professionals become experts in data visualization and modeling.

Meanwhile, the IIBA Certification in Business Data Analytics (CBDA) is an excellent choice for business analysts looking to strengthen their data analytics skills.

Both fields offer exciting opportunities, and the right certification depends on your career goals. 

Business Analyst Vs. Data Analyst: Career Path

There are interesting career paths in both business analysis and data analysis, and opportunities to progress, to specialize in a domain, and step into leadership roles in either role.

While there are similarities, each career path varies because of the skills and focus set associated with each role.

Data Analyst Career Path

1. Getting started: Quite often your entry-level position as a data analyst will be as Junior Data Analyst, where you will focus on extracting, wrangling, and cleaning datasets; parsing or validating data accuracy; and building reports and/or dashboards with tools like SQL, Python, or Tableau. 

Once you accumulate experience, you will then transition into a data analyst position with responsibilities for analyzing more complex datasets, pattern recognition, and crafting your insights into business decisions.

2. Early Career Development: Once you build a credible technical base you may be offered a senior data analyst position with responsibilities for leading projects and/or exploring higher-level analysis utilizing advanced techniques predictive modeling and/or machine learning techniques. 

If you have an affinity for a specialty area you can also explore specialty roles in niche areas, geospatial analytics or data engineering for example.

3. Manager & Director Roles: As your career continues to advance, positions as analytics manager or data scientist become attainable.

Whether you favor managing teams or using your analytical skillset to solve interesting data problems to impact the organization, you will have an avenue for growth.

4. Executive Level: At the highest tier, you may become a director of data analytics or Chief Data Officer (CDO) in an organization and will lead the strategy of how the organization leverages data for continuous success.

Business Analyst Career Path

1. Early Career Steps: Beginning your professional experience as a Junior Business Analyst has a focus on requirements gathering, process analysis, and stakeholder management.

When you transition to a Business Analyst, this will include taking ownership of larger projects, and making recommendations to impact business performance.

2. Taking charge of complex project: As a Senior Business Analyst, you will be at the helm of larger and more complex projects. You may also focus your talents on process analysis or systems analysis.

3. Taking Charge: If you prefer to utilize your experience in a leadership role, next steps could be a Business Analytics Manager, or a Product Manager. If you have a passion for strategy, becoming a Strategy Consultant could be the right role.

4. Strategic Roles: At the top of your career path, the Director of Business Analytics or Chief Operations Officer (COO) roles will offer you the opportunity to influence the business in a strategic manner at an executive level.

Both of these paths provide a wealth of opportunity for advancement in your career. Whether you will analyze numbers and data points, or find business problems to solve, it is a concrete way for you to leverage your skills.

Data Analyst Vs. Business Analyst: Salary Analysis

When comparing the salaries of Business Analysts and Data Analysts across the Globe, notable differences emerge, influenced by experience levels and regional economic factors.

United States (USA)

1. Data Analyst: The average monthly base salary is about RM 4,321, which adds up to about RM 51,852 a year. (Indeed Malaysia)

2. Business Analyst: The average base salary for a business analyst is about RM 5,622 per month, or about RM 67,464 per year.(Indeed Malaysia)

Business analysts typically earn more money than Data Analysts in Malaysia. These averages are usually for people who are just starting out in their careers or are in the middle of their careers.

India

1. Business Analyst: Annual salaries range from ₹600,000 to ₹1,300,000.

2. Data Analyst: Annual salaries range from ₹500,000 to ₹1,200,000.

According to Glassdoor's report, the salary ranges for both positions are approximately the same in India, with Business Analysts generally earning on the upper side of the range. These estimates typically relate to the salaries of professionals with 2-5 years of experience.

Malaysia

1. Business Analyst: The average base salary is about RM 5,622 per month, equating to approximately RM 67,464 annually.( Indeed Malaysia)

2. Data Analyst: The average base salary is around RM 4,321 per month, totaling roughly RM 51,852 annually. (Indeed Malaysia)

In Malaysia, Business Analysts tend to earn more than Data Analysts. These averages typically represent early to mid-career professionals.

It is essential to note that salaries will depend on the sector, the size of the firm, the geographical place in the country where the person resides and their relevant experience. 

Cost of living and exchange rates will also affect the purchasing power of salaries across countries.

Business Analyst Vs. Data Analyst: How to Choose the Right Career Path?

It is important to examine your interests, strengths, and ultimate career trajectory when deciding between a Business Analyst or Data Analyst career.  Both career roles analyze the data that is pivotal for producing business outcomes; however, the focus, skills, and path will vary.

1. What Interests You More?

• If you are interested in solving problems, improving processes and working with stakeholders, a Business Analyst position could be a good fit for you. This person will be focused on identifying the business needs, recommending solutions to that need, and then executing on the strategic decisions. 

• If you are interested in numbers, statistics and using data for insights and decision-making, then you would be better suited to pursue a Data Analyst career. In this role, Data Analysts may spend more time analyzing data for trends or insights, and spend even more time generating reports using SQL, Python or even Tableau to get the reports created.

2. Which Skills Do You Prefer to Develop?

• Business Analyst: Effective communication, stakeholder management, business sense, and analytical thinking. You will use Excel, Power BI, and project management tools.

• Data Analyst: Ability to visualize, statistical techniques, and coding language (SQL, Python, R). You will be working more with databases and machine learning models.

3. Career Path Options and Salary Considerations

Business Analysts can advance in their careers and become a Product Manager, Strategy Consultant, or Chief Operating Officer (COO) in 5-10 years.

Data Analysts can move up to become Data Scientists, Analytics Manager, or Chief Data Officer (CDO).

Most of the time, salaries are the same in different places, but they can be a little different depending on the skills and the industry.