What Is a Data Analyst?
A data analyst is a problem solver who prepares and analyzes data to provide organizations with insights that help them make better business decisions.
In these organizations, the job of the data analyst is to assign a numerical value to these important business functions so performance can be assessed and compared over time. But the job involves more than just looking at numbers: An analyst also needs to know how to use data to enable an organization to make more informed decisions.
These roles are in high demand. Job openings for analysts are projected to grow by 23% between 2021 and 2031. Data analysts receive a median starting annual salary in the $108,000 range; however, success in the role can lead to senior positions with salaries exceeding $137,000.
Types of data analytics:
Four types of data analytics build on each other to bring increasing value to an organization.
Descriptive analytics examines what happened in the past: monthly revenue, quarterly sales, yearly website traffic, and so on. These types of findings allow an organization to spot trends.
Diagnostic analytics considers why something happened by comparing descriptive datasets to identify dependencies and patterns. This helps an organization determine the cause of a positive or negative outcome.
Predictive analytics seeks to determine likely outcomes by detecting tendencies in descriptive and diagnostic analyses. This allows an organization to take proactive action—like reaching out to a customer who is unlikely to renew a contract, for example.
Prescriptive analytics attempts to identify what business action to take. While this type of analysis brings significant value in the ability to address potential problems or stay ahead of industry trends, it often requires the use of complex algorithms and advanced technology such as machine learning.
What Skills Does a Data Analyst Need?
A combination of soft skills and hard skills will serve you well in preparing to become a data analyst. “It’s important to build your technical skills, but also expand your soft skills, which will complement your technical skills to offer more advanced and unique insight,” Kushner says
Soft skills that are beneficial for this career include:
- Agility
- Flexibility
- Strategic thinking
- Creativity
- Critical thinking
- Curiosity
- Business acumen
- Problem-solving
- Data storytelling
What Does a Data Analyst Do?
A data analyst systematically collects, processes, and performs statistical analyses on data sets. Their responsibilities include:
- Framing the problem
- Understanding the problem
- Data collections:
- Data Cleaning
- Data transformation
- Data modelling
- Data Exploration and Analysis
- Data Visualization
- Reporting
- Finding the pattern, coming out with solution for the business problem
- Collaboration
How much do data analysts make?
The average annual salary of a data analyst can range from approximately $67,509 to $137,000, with some roles paying more than others depending on the city, industry, and specialization required of each one.
