Data analytics uses a combination of technology and statistical questions to find patterns in large amounts of data. When a business implements data analytics as part of their overall strategy, they develop more efficient methods of gathering and storing data. This information would be valuable in creating a plan to grow the business.
On the other hand, business analytics is more focused on the business side of things. It uses the same big data tools like data analytics, but rather than it is the actual process of storing and gathering data, business analytics is the process used to make important decisions about a business.
It’s important to understand the difference between data analytics vs. business analytics because businesses will be developing strategies to improve both. They do both share the same overall goal though – boosting company efficiency through data. For example, the Research Optimus Company has teams built around both data and business analytics. Brands will need to do the same thing.
The Difference Between a Data Analyst and Business Analyst
To better understand the difference between the two, we need to take a look at the experts behind both. Their skillsets and other important highlights will show us the skill demand behind the job itself.
Data analysts work to discover insights that are not available to the naked eye. Their primary job is to develop systems to collect, process, store, and analyze data. They will spend most of their time working in the data itself. Data analytics do not care as much about the business side as they do the information itself.
So they develop systems to make this information readily available to the leaders who make important decisions. The key here is that the data analytical expert can present the information in a way that is understandable by anyone in the company.
Some roles include data mining, data cleansing, statistical analysis, data management, and fixing certain inefficiencies within the data itself.
Data analysts must have a strong background in computer science, statistics, and math to develop the right skill set for this important job. They will also need to learn certain software skills, like Python and SAS. Having all of these skills will create a well-versed toolkit that can then be used to not only develop systems that gather data but finding ways to make it visual.
Business Analysts are a Bit Different
Let’s flip the coin on this whole data analytics vs. business analytics topic and take a closer look at the requirements for a business analyst. Of course, the entire concept of business analytics is constantly changing, so these requirements might change as well. Right now, business analysts use a combination of data-driven insight and managerial insight to make business decisions.
While business analysts require a lot of knowledge in data, they are not creating the data strategies for a business. They are creating systems that are used to apply data to important decisions.
Business analysts must have a solid grasp of business practices, information technology, management, and computer science. Since business analytics uses a lot of different sources of data from a lot of different topics, business analysts who have a diverse background are going to be better equipped.
With that said, the most important skill is communication. If business analytics is to do a business any good, then the data must be effectively communicated to the proper departments.
Data Analytics vs. Business Analytics
|Type||Data Analytics||Business Analytics|
|Focus||Data Analytics would search for patterns in the data and build models to see how responsive it is to their models. Their task is to find patterns and communicate them to the proper area.||Business Analysts use the data to create reports and check key performers. They verify whether patterns in the data are trends and help the company make important decisions.|
|Transform||Transformations to data are done within the database itself, and if there is a need to enrich or correct data, then it’s done immediately.||Data transformations are carefully planned and done upfront.|
|Data Models||Data analysts tend to depend more on probabilities than practice. Since they are using a data-only approach, they would base theories on statistical probability.||Business analysts look at data as only a single source. They have other markers to use as a basis for important decisions.|
|Process||Data analysts create new data mining techniques and experiment with them to provide business leaders with the best visual representation possible.||Business analysts create studies based on the data and build comparative studies.|
|Particulars||If a data analyst were to find patterns in data that were not a part of their previous set, then they would find more reliable sources for this set of data and add it to the current collection method.||Business analysts plan their sources of data well in advance, and they are not as able to change it on the fly. But they do have a better understanding of what’s necessary for their business.|
|Data Quality||Data analysts tend to depend more on probabilities than practice. Since they are using a data-only approach, they would base theories on statistical probability.||Business analysts look at data as only a single source. They have other markers to use as a basis for important decisions.|
Data Analytics vs. Business Analytics Skillset Comparison
Data Analysts Skillset
- Data mining experience
- Knowledge in machine learning
- Full understanding of R and SAS language
- Database design experience
- Utilization of statistical methods
- Problem-solving using analytics
Business Analysts Skillset
- Data mining
- Advanced problem solving using analytics
- Knowledge of survey tools
- Exceptional creative thinking skills
- Firm understanding of statistical analysis software
- Computer programming skills
- Business intelligence skills
- Exceptional communication skills
Both data analytics and business analytics have the common goal of improving the efficiency of a business. They use different skills to accomplish the same overall goals. Data analysts tend to focus more on the data itself while business analysts are looking for insights to assist in making important decisions.
About the Author
Gracie Myers is a content writer at Research Optimus. She enjoys writing on various topics mainly associated with Research. Her famous articles are on the topic of Business Research, Market Research, Business Analytics and many more.
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