Over the past few years, data analytics has gotten a lot of attention for its power to solve business problems. However, this is not the first time that business analytics has gotten the attention of the business world. Business analytics is not new, it has been around for years.
Business analytics helps businesses understand customer preferences, analyse market trends and optimise performance. Data analytics helps businesses understand customer preferences, analyse market trends and optimise performance. But, what’s the difference between data analytics and business analytics? Which is more important?
In this blog, we’ll compare data analytics with business analytics, look at the differences between data analytics and business analytics and then try to find out which one is better?
What is Business Analytics?
The evolution of business analytics is ongoing, but it is based on the integration of strategic managerial thinking, data-driven insights, and clear communication to solve problems and improve efficiency. The goal of business analytics is to determine enterprise decision making and to implement changes within an organization based on big data tools. An organization implements business analytics to identify weaknesses in existing procedures and to uncover information that can be used to drive efficiency and growth metrics in other areas.
Typically, business analysts come from management, business, information technology, or computer science backgrounds. Using the data insights available, Business analysts work on the front end of the data pipeline. Statistical tools and programming should also be familiar to business analysts.
What is Data Analytics?
The field of data analytics combines technology, statistical techniques, and big data to identify patterns and correlations in business. In an organization, data analytics can be used to improve efficiency in gathering information and developing actionable strategies.
Throughout the data pipeline, analysts utilize various data techniques. A data analyst is responsible for collecting, analysing, and interpreting data to find insights that will assist businesses in improving efficiency and solving problems. During the data analytics process, the data analyst will need to collaborate with IT and management departments to determine goals and then report results.
What is the Difference Between Data Analytics and Business Analytics?
Most people confuse data analytics with business analytics. Although they are both related to data, the two are different. These days, there are two different types of analytics tools that businesses use, data analytics and business analytics. While both of these are very different, both are equally important. Business analytics and data analytics are two different things that have been merged to give better insights. While business analytics is a subset of data analytics, not all data analytics is done by a business analyst.
Data analytics is used by marketers to analyse data to improve advertising and business analytics is used by people in the finance sector to measure the overall health of the business.
If you are interested in starting a career in either data analytics or business analytics, you must understand the similarities and differences between these fields.
Often, these fields seek to increase efficiency by using data, but their differences make them distinct. Consider your interests, skills, and background before choosing one of these career paths.
Business Analytics vs Data Analytics
Data analytics in business is one of the most talked-about domains in the industry right now. Data and analytics can be used in a plethora of businesses. From doctors to researchers and more, the data and analytics combination is invaluable. It’s a very lucrative career option for many individuals moreover there are numerous benefits of data analytics in business that has created more demand. The market is growing and the big companies are hiring people for this role. There is a lot of buzz and hype about data analytics and it’s widely cited as the buzzword of the moment.
Moreover, when it comes to elaborating the role of Business Analytics there is a lot of misunderstanding. People think that Business Analytics is about crunching numbers and making projections. Also, people think that the benefits of data analytics in business are more if compared with business analytics. The truth is that Business Analytics is more about understanding how your organization works, measuring its performance, and improving upon its processes. Business Analytics is about using data to gain insights about your organization.
Let us understand both the terms with a brief comparison:
Data Analytics – Meaning & Purpose
Data analytics in business is used to examine data to uncover trends and insights of the past, present & future business landscapes. In the field of data analytics, various statistical techniques, big data processing, and technology are used to analyse and categorize data.
Today, among the most popular forms of data analytics, Machine Learning, which uses massive amounts of data to make intelligent predictions and to uncover patterns within that data that will yield unique insights that will answer a particular question.
The analysis of data requires the use of sophisticated tools such as Python and Tableau, which are more technical than business analytics. Additionally, data findings must be translated into meaningful information that can be easily understood and interpreted by different teams or leaders.
Developing strategies to take advantage of new business opportunities can be facilitated with the use of data analytics.
Business Analytics – Meaning & Purpose
By contrast, Business Analytics is practical. In business analytics, professionals investigate how data can be used to improve weak areas in existing processes and to optimize a specific business process. Several business functions such as sales and marketing can be enhanced with the use of tools for financial analysis, data visualization, and data mining.
In contrast to data analytics, which focuses more on the backend, business analytics addresses problems and recommends solutions that are unique to the business and usually remains at the forefront of the data pipeline.
Integrated business analytics supports strategic decision-making and promotes practical change throughout an organization.
Data Analytics vs Business Analytics: Educational background
Various academic backgrounds can qualify as business and data analysts, but most employers prefer candidates with at least a bachelor’s degree. A business analyst might have a degree in a business-related field, whereas a data analyst might have a degree in math, statistics, or computer science.
In either field, a graduate degree with a focus on business analytics and data analytics could pave the way for career advancement.
Data Analytics vs Business Analytics: Skills
Business analytics and data analytics require slightly different skill sets. Both professions use data, but they do so differently. Regardless of your path, you can be a successful person by being good:
Data Analytics Skills
Depending on the environment and projects they work on, data analysts develop a range of skills. These skills include technical and business knowledge. Some of these skills include:
- Understanding of data structures
- Data analysis and Database design
- SQL and statistical programming knowledge
- Familiar with languages such as R/SAS
- Data mining and visualization techniques
- Artificial intelligence & Machine Learning
- Solving analytical problems
- Creative problem-solving
- Strong research abilities
Business Analyst Skills
Business analysis and data analysis often cross paths, but the skills required for business analysis differ. Business analytics should consider the following skills and competencies:
- Knowledge of business structures and Business intelligence
- Understanding of statistical analysis software
- Excellent programming skills
- Ability to analyse needs
- Ability to use survey software and query tools
- Reporting and analytical skills
- Visualization and data mining
- Analytical problem-solving capabilities
- Clear and effective communication
- Ability to think creatively
- Designing prototypes
Data Analyst vs Business Analyst: Job Opportunities
Several types of businesses offer career opportunities for data analysts. These include education, IT, e-commerce, finance, government, and healthcare. Data analysts may work for a hospital, university, MNCs or a tech start-up as their skills can be applied to many different industries.
There are different types of business analysts, such as operations research analysts, market research analysts, and financial analysts. Each of these positions focuses on one primary department within one organization. Business analysts can find work in a wide variety of companies just as data analysts are in demand in different industries.
Data Analytics vs Business Analytics: Salary
Many data and business analysts earn high salaries because they possess in-demand skills. According to Glassdoor, the average salary of Business analysts is ₹6,55,000 per year in India. While Data analysts earn an average salary of 6,00,000 per year in India.
Roles and Responsibilities of Data Analyst and Business Analyst
Both data analysts and business analysts are responsible for helping their organizations make data-driven decisions. The data analyst mainly works closely with the data itself, whereas the business analyst addresses business needs and recommends solutions. Each of these roles is highly desirable and well-compensated.
Often, companies interchangeably use the terms business analyst and data analyst. Although both types of analysts use data to improve decisions, their approaches are different.
Let us find out the roles and responsibilities of Data Analysts and Business Analysts:
What is the role of a Data Analyst?
To assist with strategic decision-making, data analysts compile, process, interpret, visualize, and evaluate existing data. When analysing data, an effective data analyst provides insights that assist decision-makers in their decision-making process.
Common roles and responsibilities of a data analyst might include:
- Identification and gathering of data
- Organizing and analysing the collected data
- Trends and patterns analysis
- Making the data easier to comprehend via visualization
- Creating a compelling data presentation through storytelling
- Determine a problem or business need with the involvement of business leaders and stakeholder
What is the role of a Business Analyst?
Business analytics is the process of analysing huge sets of data to discover significant patterns, trends and associations. The business user can use business analytics to analyse past performance to predict future performance. The business user can also use the information to improve performance by making sure that the right resources are provided to the right areas of the business. A Business Analyst assists organizations in identifying issues, opportunities, and solutions associated with their business.
Common roles and responsibilities of a business analyst might include:
- Identifying areas for improvement by reviewing processes and interacting with employees
- Visualizing financial models to aid decision-making
- Providing training & instructions to staff to utilize new systems
- Analysing IT structures and processes in a company
- Delivering conclusions and recommendations to management and key stakeholders
Business Analytics vs Data Analytics: Which is Better?
Data and business analysis are both aimed at achieving the same goal. They are both used to optimize businesses through data. In both cases, you will need to be familiar with statistical techniques, data management strategies, and data visualization. Together, these roles can identify and implement business insights successfully.
As a data analyst, you will excel if you love data and computers. And you will be an ideal candidate for business analytics if you enjoy presenting complicated concepts and implementing practical solutions.
Several industries today rely on both of these fields to boost efficiency, uncover useful insights, and help businesses thrive. With a master’s degree in business analytics or data analytics, you may experience a wealth of career opportunities.
Business Analysts and Data Analysts play a critical role in helping organizations realize the full potential of their business designs, goals, plans, and strategies by bringing substantial value to organizations.
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