Learn how data analysts and business analysts work with data to drive better business decisions (and find out which might be a better career fit for you).
Data analysts and business analysts both help drive data-driven decision-making in their organizations. 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.
In this article, we’ll look closer at what makes each role unique and why you might choose to pursue either as a career. Afterward, if either path intrigues you, consider enrolling in the Google Data Analytics Professional Certificate or the Microsoft Business Analyst Professional Certificate to start building job-relevant skills today.
Business analysts and data analysts have similar roles, and some companies might use the terms interchangeably. Yet, while both types of analysts use data to improve business decisions, they do so in different ways.
Business analysts help identify problems, opportunities, and solutions for their organizations. 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
BI analysts are somewhat of a hybrid between business and data analysts. They use analysis, modeling, and visualization of industry trends and the competitive landscape to help businesses cut losses and increase profits.
Data analysts gather, clean, analyze, visualize, and present existing data to help inform business decisions. An effective data analyst uses data to answer a question and empower decision-makers to plot the best course of action. Common 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
Analyzing data for patterns and trends
Visualizing data to make it easier to understand
Presenting data in such a way that it tells a compelling story
Learn more about the job of a data analyst in this lecture from Google's Data Analytics Professional Certificate:
Business and data analysts can come from various academic backgrounds, though many companies look for candidates with at least a bachelor’s degree. Generally speaking, business analysts might have a degree in a business-related field, while data analysts often have degrees in STEM fields like statistics, math, or computer science.
Earning a graduate degree focusing on data analytics could open opportunities for advancement in either field.
Data analytics and business analytics require similar interpersonal skills but slightly different technical skill sets. Whichever path you choose, for example, you can set yourself up for success by being a good:
Oral and written communicator
Problem solver
Critical thinker
Organizer
Collaborator
While both occupations work with data, they do so in different ways. Here’s a look at some common skills for each.
Data analyst | Business analyst |
---|---|
Data analysis | Needs analysis |
Statistics | Prototyping |
Knowledge of data structures | Knowledge of business structures |
SQL and statistical programming | Microsoft Visio and software design tools |
Business and data analysts use their knowledge of data to help organizations make better, more informed decisions. Prepare for your data career with one of these job-relevant programs on Coursera:
To prepare for a career as a data analyst, consider taking Google's Data Analytics Professional Certificate. In as little as six months, you'll gain an immersive understanding of the practices and processes used by junior data analysts, build key analytical skills, and learn how to visualize and present data findings in dashboards.
To launch your career as a business analyst, enroll in Microsoft's Business Analyst Professional Certificate. Learn how to identify and analyze business problems, use Microsoft Excel for data analysis and visualization, and model business processes in as little as three months.
To advance your data or business analyst career , explore the Google Business Intelligence Professional Certificate. In this advanced-level program, you'll practice data modeling and ETL processes, create dashboards that communicate insights, and design data visualization that answers business questions.
Both roles are in demand and well paid. The best option for you will depend on your unique interests, skills, and career goals. If you gravitate more toward mathematics and statistics, then a data analyst position could be a good fit. If you’re more of a business-minded problem solver, consider business analytics instead.
Yes, data analysts can become business analysts (and vice versa). Many of the skills overlap. A data analyst moving into business analytics might want to polish up on their knowledge of business structures and process prototyping. Business analysts who’d like to work more closely with datasets can build their SQL, statistical programming, and data management skills.
Data analysts come from a range of educational backgrounds. Degrees in mathematics, statistics, and computer science tend to teach the math and analysis skills needed on the job. But a business degree can equip you with the ability to analyze business problems and communicate solutions effectively—also important skills.
Glassdoor. "Business Analyst Salaries, https://www.glassdoor.com/Salaries/business-analyst-salary-SRCH_KO0,16.htm." Accessed February 1, 2025.
Glassdoor. "Data Analyst Salaries, https://www.glassdoor.com/Salaries/data-analyst-salary-SRCH_KO0,12.htm." Accessed February 1, 2025.
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