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

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 exploring either Google's Data Analytics Professional Certificate, Meta's Data Analyst Professional Certificate, or Tableau's Business Intelligence Analyst Professional Certificate here on Coursera to build in-demand skills and get job-ready for entry-level roles.

Business analytics vs. data analytics

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

What do data analysts do?

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:

Read more: What Does a Data Analyst Do? A Career Guide

What do business analysts do?

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

Read more: What Does a Business Analyst Do? And How to Become One

What is a business intelligence (BI) analyst?

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.

Educational background

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.

No degree is required for some entry-level roles

Earn a Professional Certificate in data analytics from Google or IBM 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 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.

Salaries

The in-demand skills involved in data and business analysis often draw high salaries. According to Glassdoor, business analysts in the US earn an average base pay of $83,251 as of March 2024, while data analysts bring in an average base pay of $75,562 [1,2].

Take the next step in your career with Coursera

If you’re considering a career as a data analyst, start building a foundation of job-ready skills with Meta's Data Analyst Professional Certificate on Coursera. Interested in business analytics? Start building fluency in business data strategies with the Business Analytics Specialization 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 Business Intelligence Professional Certificate. These advanced, self-paced courses will prepare you for in-demand roles like business intelligence analyst or junior data scientist.

Frequently asked questions (FAQ)