Business data analysts use the data analysis process to advance their company’s business goals. They aim to identify opportunities to grow, optimize, and improve an organization’s business processes. In this article, we’ll detail the tasks and responsibilities associated with business data analysts, their average salary, and how to become a business data analyst.
What is a Business Data Analyst?
A business data analyst is a professional who uses data analysis to understand, interpret, and predict patterns in business, and then uses those data-driven insights to enhance their business practices. They tend to work on solving issues similar to those that a business analyst might aim to solve, and they use similar skills in their approach. Business data analysts tend to focus specifically on furthering key business goals, such as supply chain management, customer service, or global trade practices.
The Difference Between Business Data Analysts and Business Analysts
There are two main differences between business data analysts and business analysts. Firstly, business data analysts are more involved with identifying problems, whereas business analysts typically work with problems that have already been determined. Secondly, business data analysts will use database tools like Excel and SQL and programming languages like R and Python to collect and analyze new data sets, whereas business analysts typically work with data sets that have been prepared for them.
Business Data Analyst Tasks and Responsibilities
A business data analyst’s responsibilities lie at the intersection of data analysis and business analysis, and so their job description tends to look like a combination of both roles. Some tasks you might see in a business data analyst job description are:
- Developing and deploying dashboards to collect data-backed insights
- Interpreting key business data sets
- Delivering insights on potential areas of growth, optimization, and improvements
- Supporting business intelligence strategies with quantitative analysis
- Working cross-departmentally on data-driven strategies that improve business processes and decision-making
Tools Business Data Analysts Use
Business data analysts use a number of tools throughout the data analysis process to aid in efficiency and accuracy. Some common tools include:
- Microsoft Excel
- SQL
- Python
- R
- Tableau
- Alteryx
- Microsoft Power BI
Business Data Analyst Salary and Job Outlook
As of March 2022, the average salary for a business data analyst in the United States is $87,333, according to Glassdoor [1]. The demand for data analysts across sectors remains high, and the US Bureau of Labor Statistics expects operations research analyst positions to grow by 25 percent between 2020 and 2030, management analyst positions by 14 percent, and mathematicians and statisticians by 33 percent.
How to Become a Business Data Analyst
There are many paths toward becoming a business data analyst. One path might be education: companies looking to hire a business data analyst will often want candidates to have a bachelor’s degree—ideally in business, engineering, technology, math, computer science, or a related area. For higher level roles, some companies may look for candidates with an MBA or graduate degree in a related field, like data analytics or computer science. Many companies will also consider candidates with equivalent experience.
Business Data Analyst Technical Skills
Some technical skills business data analysts rely on are:
- Database tools: Many data analysts use Microsoft Excel and SQL to collect and organize data.
- Programming languages: Analysts use R and Python to clean, manipulate, and analyze data.
- Data visualization: Analysts use tools like Tableau and Microsoft Power BI to translate their data into visual insights.
- Business analysis: Understanding how businesses function is key to recognizing potential areas of improvement.
Business Data Analyst Workplace Skills
Some workplace skills business data analysts use include:
- Communication and collaboration: Analysts often work cross-departmentally to influence decision
A career as a business data analyst offers great opportunities for those interested in data analysis and business management. Business data analysts are in high demand across various industries, and their work plays a crucial role in enhancing business processes and decision-making. To become a business data analyst, one can pursue education in relevant fields or gain equivalent experience. With the right combination of technical and workplace skills, business data analysts can excel in their careers and make a significant impact in their organizations. As the field continues to grow and evolve, it is an exciting time to be a business data analyst.
