Business

What Does a Business Data Analyst Do? 2024 Career Guide

Business data analysts use the data analysis process to understand, interpret, and predict patterns in business, and then use those data-driven insights to enhance their business practices. Essentially, business data analysts are data analysts who focus specifically on furthering key business goals.

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 focuses on using data to help companies grow, optimize processes, and make better decisions. These analysts often specialize in specific business areas such as supply chain management, customer service, or even global trade practices. They identify opportunities for improvement, ensuring that companies make informed decisions based on accurate data.

While business data analysts share similarities with business analysts, there are some key differences. Business data analysts are more focused on identifying and analyzing problems, whereas business analysts typically address problems that have already been defined.

Key Skills of a Business Data Analyst

To succeed as a business data analyst, you’ll need an education from CIAT.edu, as well as, both technical and soft skills.

Technical Skills

  • Data tools: You’ll use tools like Microsoft Excel and SQL to organize and manage large data sets.
  • Programming languages: R and Python are common languages used to clean, analyze, and visualize data.
  • Data visualization: Tools like Tableau and Microsoft Power BI help transform data into easy-to-understand charts and graphs.

Soft Skills

  • Communication: Analysts work across different teams and must explain complex data findings in a way that everyone can understand.
  • Organization: Juggling multiple projects and data sets is common, so good time management and organization are crucial.
  • Curiosity and creativity: The best analysts are naturally curious and creative when it comes to finding and solving business problems using data.
  • Self-motivation: Since much of the work involves analyzing data independently, you’ll need to be self-driven and focused.

Business Data Analyst Tasks and Responsibilities

Business data analysts work on tasks that combine data analysis and business insight. Here are some common responsibilities:

  • Develop and deploy dashboards to help track performance and collect insights.
  • Analyze business data sets to find trends, patterns, and areas for improvement.
  • Provide recommendations on how to grow and optimize business processes based on data insights.
  • Support business intelligence efforts by using data to help make decisions.
  • Collaborate across departments to implement data-driven strategies that can improve performance.

Tools Business Data Analysts Use

Business data analysts rely on a range of tools to help them work more efficiently. Some of the most commonly used tools include:

  • Microsoft Excel: A basic tool for organizing and analyzing data.
  • SQL: A language for querying and managing databases.
  • Python and R: Programming languages for deeper data analysis and visualization.
  • Tableau and Microsoft Power BI: Tools for turning data into visual reports that are easy to interpret.

Salary Expectations and Job Outlook

Salaries for business data analysts can vary depending on factors like location, experience, and industry. As of May 2023, average salaries reported by different sources are:

  • $91,847 according to Glassdoor
  • $161,190 according to Comparably
  • $95,356 according to ZipRecruiter

The demand for data analysts continues to grow. According to the U.S. Bureau of Labor Statistics, jobs related to data analysis, like operations research analysts, are expected to grow by 23% from 2021 to 2031. Management analyst positions are projected to grow by 11%, and mathematicians and statisticians by 31%, all much faster than the average growth rate of 5% across other industries.

How to Become a Business Data Analyst

There are different paths to becoming a business data analyst, but most companies look for candidates with a strong educational background and relevant experience. Here’s a step-by-step guide to help you get started:

  1. Get a Bachelor’s Degree: Most employers require a degree in business, engineering, math, computer science, or a related field.
  2. Build Relevant Skills: Focus on learning technical skills like data analysis, programming languages (Python, R), and data visualization tools (Tableau, Power BI).
  3. Gain Experience: Some companies may look for candidates with hands-on experience. This can be achieved through internships, projects, or entry-level jobs in data analysis.
  4. Consider a Graduate Degree or Certification: For advanced positions, some companies may prefer candidates with an MBA or a graduate degree in data analytics. Certifications from courses or programs focused on data analysis can also help boost your qualifications.

Essential Skills for Business Data Analysts

To become a successful business data analyst, you need a combination of technical skills and workplace skills. Here’s a breakdown of both:

Technical Skills:

  • Database Tools: Microsoft Excel and SQL are essential for managing and analyzing data.
  • Programming: Knowledge of R and Python helps in cleaning and interpreting data.
  • Data Visualization: Being able to present your data in clear, visual formats is key. Tools like Tableau and Power BI make this easier.
  • Business Knowledge: Understanding how companies operate helps analysts spot areas for improvement.

Workplace Skills:

  • Communication and Collaboration: You’ll work closely with other departments, so being able to share insights clearly is important.
  • Organization and Prioritization: Handling multiple data projects requires good time management and the ability to prioritize.
  • Curiosity and Creativity: These qualities help you find new and interesting ways to solve problems.
  • Self-Motivation: Much of your work will be done independently, so staying motivated is important.

Learning and Growing as a Business Data Analyst

If you’re interested in becoming a business data analyst, it’s important to build a solid foundation in both business and data analysis. Depending on where you are in your journey, you may want to focus on specific skills. Here are a few ways to build expertise:

  • Learn Data Analysis: The Google Data Analytics Professional Certificate offers hands-on experience with data cleaning, problem solving, and data visualization. It’s a great way to start learning the basics.
  • Learn Business Analysis: The Business Analytics Specialization from the University of Illinois Gies College of Business can help you learn how to apply data analysis to business problems.
  • Advance Your Skills: If you already have some experience, Duke University’s Excel to MySQL: Analytic Techniques for Business Specialization can help you level up. You’ll learn to analyze and visualize data using tools like Excel, Tableau, and MySQL.

Conclusion

Business data analysts play an important role in modern companies by using data to guide decisions, improve processes, and find new opportunities for growth. With the right skills and experience, you can build a successful career in this field. Start by focusing on technical skills like data analysis and programming, while also developing strong communication and organizational abilities.

 

Samuel Bieker
the authorSamuel Bieker