Data analysts help organizations understand the current state of the business by interpreting a wide range of data. Credit: Thinkstock What is a data analyst? Data analysts work with data to help their organizations make better business decisions. Using techniques from a range of disciplines, including computer programming, mathematics, and statistics, data analysts draw conclusions from data to describe, predict, and improve business performance. They form the core of any analytics team and tend to be generalists versed in the methods of mathematical and statistical analysis. The rising demand for data analysts The data analyst role is in high demand, as organizations are growing their analytics capabilities at a rapid clip. In August, IDC forecast big data and analytics software revenue would hit $66.8 billion this year and would see 8.7% CAGR through 2024. While organizations have spent the past few years focused on data science, machine learning, and artificial intelligence (AI), the pendulum may be swinging back to analytics, says Caroline Carruthers, director at consulting firm Carruthers and Jackson, former chief data officer of Network Rail, and co-author of The Chief Data Officer’s Playbook and Data-Driven Business Transformation: How to Disrupt, Innovate and Stay Ahead of the Competition. “We almost took our eye off the analytics ball because a lot of people got excited about machine learning and AI and suddenly went, ‘Ooh, we have to do all these wonderfully whizzy-bang things.’ We forgot that actually there is a tremendous amount of value organizations get from analytics,” Carruthers says. “We’re starting to move back to how can we really drive analytics throughout our organizations.” Data analyst vs. data scientist While data analysts and data scientists may be commingled on analytics teams, their roles differ considerably. Data analysts seek to describe the current state of reality for their organizations by translating data into information accessible to the business. They collect, analyze, and report on data to meet business needs. The role includes identifying new sources of data and methods to improve data collection, analysis, and reporting. Data scientists, on the other hand, are often engaged in long-term research and prediction, while data analysts seek to support business leaders in making tactical decisions through reporting and ad hoc queries. Hillary Green-Lerman, lead data scientist at Looker, says the difference between data analysts and data scientists comes down to timescale. A data analyst might help an organization better understand how its customers use its product in the present moment — what works and doesn’t work for them. A data scientist might use the insights generated from that work to help design a new product that anticipates future customer needs. Data analyst role Data analysts mostly work with an organization’s structured data. They create reports, dashboards, and other visualizations on data associated with customers, business processes, market economics, and more to provide insights to senior management and business leaders in support of decision-making efforts. Data analysts work with all manner of data, including inventories, logistics and transportation costs, market research, profit margins, sales figures, and so on. They use this data to help the business estimate market share, price products, time sales, optimize transportation costs, and the like. Data analyst responsibilities Data analysts seek to understand the questions the business needs to answer and determine whether those questions can be answered by data. They must understand the technical issues associated with collecting data, analyzing data, and reporting. They must be able to recognize trends and patterns. According to Workable, key data analyst responsibilities include: Analyzing data using statistical techniques and providing reportsDeveloping and implementing databases and data collection systemsAcquiring data from primary and secondary sources and maintain data systemsIdentifying, analyzing, and interpreting trends or patterns in complex data setsFiltering and cleaning dataWorking with management to prioritize business and information needsLocating and defining new process improvement opportunities Data analyst salary According to data from Robert Half’s 2021 Technology and IT Salary Guide, the average salary for data analysts/report writers in the U.S., based on experience, breaks down as follows: 25th percentile: $86,25050th percentile: $103,25075th percentile: $122,25095th percentile: $146,750 Employment search engine Indeed, on the other hand, puts the average data analyst salary in the U.S. at $75,685 per year. Indeed notes that data analysts can typically earn the most in non-traditional tech areas. Top 5 cities for data analyst salaries Rank Location Average salary 1 Phoenix $94,120 2 Charlotte, N.C. $88,893 3 Washington$86,503 4 New York $74,347 5 Chicago $74,295 Data analyst skills According to an analysis of job listing data from Indeed, SimplyHired, and Monster, Towards Data Science says the following are the most in-demand tech skills for data analysts: SQLMicrosoft ExcelTableauPythonRSASMicrosoft PowerPointMicrosoft SQL ServerOracleMicrosoft Power BI In addition to analytical and mathematical skills, and facility with languages such as SQL, communication skills are essential. Data analysts frequently need to engage with the business to understand business objectives and gather requirements. Landing a data analyst job Green-Lerman says an eclectic mix of skills and experience is key to getting noticed when applying for data analyst positions, though facility with SQL and statistical analysis is a requirement. “The things that I generally am looking for on my team are good communicators and writers. Everything on your resume should look professional and be spelled correctly because a big thing that analysts do is write reports. I usually want folks who have some experience beyond a bootcamp or a Master’s program. I want them to have some practical experience, even if it’s an internship,” Green-Lerman says. In addition, she looks for resumes that describe working on at least one analytical project in detail. “I love it if there are actually numbers in their resume because that means they’re already thinking in terms of demonstrating value and KPIs. But not everyone’s job lends itself to that, so that’s not a hard requirement,” she says. Data analyst training While there is no set education requirement for data analysts, most data analysts have at least a BS in mathematics, economics, computer science, information management, or statistics. Coding bootcamps can help, and internships can provide experience that many organizations are looking for. Data analyst certifications Data analytics skills are in high demand and are relatively rare. Individuals with the right mix of experience and skills can demand high salaries. The right big data certifications and business intelligence certifications can help. Some popular certifications include the following: Associate Certified Analytics Professional (aCAP)Certified Analytics ProfessionalCloudera Certified Associate (CCA) Data AnalystMicrosoft Certified Data Analyst AssociateSAS Certified Advanced Analytics Professional Using SAS 9Tableau Desktop Certified ProfessionalTableau Server Certified Professional Other data analytics jobs Data analyst is just one job title in the expanding field of analytics. Here are some of the most popular job titles and the average salary for each position, according to data from PayScale: Analytics manager: $96,396Business analyst: $61,091Business intelligence analyst: $69,087Data architect: $119,242Data engineer: $92,291Data manager: $63,528Data scientist: $96,303Database administrator (DBA): $74,041Database developer: $75,578Research analyst: $56,267Research scientist: $80,802Statistician: $74,236 Related content BrandPost The Era of Multi-Cloud Services Has Arrived How to unlock the benefits of multi-cloud environments By Adelino Simao Mar 21, 2023 4 mins VMware BrandPost Why CISOs Are Looking to Lateral Security to Mitigate Ransomware How to fight ransomeware attacks with lateral security By Adelino Simao Mar 21, 2023 4 mins VMware BrandPost 4 Factors That Influence Modern App Success in a Multi-Cloud Environment Enable your developers to do what they do best: code By Adelino Simao Mar 21, 2023 5 mins VMware Feature 10 cloud mistakes that can sink your business Just a single mistake can send your cloud strategy plummeting to earth. 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