Business Analytics vs. Data Science: How Do They Differ in Skills, Career Options, and Salaries?

Business analytics and data science aren’t just buzzwords; they’re critical components of business success. As technology advances, the amount of data generated is growing at an unprecedented rate. Recent projections estimate that around 403 million terabytes of data are created daily, with data usage expected to grow exponentially in the coming years. 

As companies increasingly leverage data to make smarter decisions, optimize processes and create personalized customer experiences, the demand for data-savvy professionals is accelerating. The World Economic Forum predicts that AI and data processing trends will create 11 million new jobs by 2030. Now is a great time to enter this field. 

This article explores each career path—including the skills involved, tools, responsibilities, and salary expectations—to help you make a more informed career decision. It also discusses how earning a Master of Science in Data Science or Business Analytics from Merrimack College can open the door to competitive, high-growth careers in these fields.

Business Analytics vs. Data Science

If you’re thinking about diving into the world of data, you might wonder about your many career options in business analytics vs. data science. Both paths offer rewarding opportunities to leverage data-driven insights, solve meaningful problems, and shape organizational success. Both roles require strong collaborative skills to align with stakeholder goals and work cross-functionally to drive data-informed decisions. In short, the careers share many common attributes but take different approaches.

What Is Business Analytics?

Business analytics involves interpreting data to inform strategic decisions within a business context. Business analysts work closely with company stakeholders, translating raw data into actionable insights that guide operations and overall strategy. If you enjoy solving business problems, collaborating with teams and using data to drive decision-making and action plans, this could be an excellent career option for you.

What Does a Business Analyst Do?

A business analyst:

• Gathers and organizes data from various sources
• Performs statistical and market analyses
• Conducts research to identify business opportunities
• Writes reports and presents findings to leadership
• Collaborates with management to optimize decision-making
• Develops key performance indicators (KPIs) to track business goals
• Implements data-driven solutions to enhance profitability and efficiency

What Is Data Science?

Data science involves using advanced techniques such as machine learning, statistical modeling, and data mining to uncover insights from large and complex datasets. Data scientists often work independently on highly technical problems such as predictive models and AI-driven solutions. They employ programming languages to develop predictive models and algorithms that solve complex problems, help organizations make informed decisions and automate decision-making processes.

What Does a Data Scientist Do?

A data scientist:

• Cleans, processes, and analyzes large datasets
• Builds machine learning models to predict trends and patterns
• Applies statistical modeling techniques for data-driven decision-making
• Collaborates with engineers and developers to integrate AI-driven applications
• Communicates technical findings to stakeholders

Key Differences Between Business Analytics and Data Science

Data science requires a higher level of technical proficiency than business analytics; for many considering both career options, that’s the key distinguishing factor. They also differ in:

• Key skills
  • Business analysts should excel in business strategy, data visualization, and communication
  • Data scientists need programming, machine learning, and statistical analytic skills
• Daily responsibilities
  • Business analysts:
    • Analyze business data to identify insights and trends
    • Create reports to communicate findings
    • Collaborate with teams on strategy
    • Track key metrics to assess performance
    • Provide administrative leadership to data teams
  • Data scientists:
    • Clean and analyze large data sets to uncover patterns
    • Develop models
    • Implement and optimize algorithms
    • Build visualizations that communicate insights
    • Lead technical innovation
• Deliverables
  • Business analysts create reports, dashboards and recommendations
  • Data scientists generate predictive models, machine-learning models and data-driven solutions
• Work style
  • Business analysts tend to be strategic and collaborative contributors to team initiatives
  • Data scientists are more likely to work independently, with greater freedom to explore possibilities
• Common tools
  • Business analysts: Microsoft Excel, Tableau, SQL, Power BI
  • Data scientists: Python, SQL, R, TensorFlow & Scikit-Learn, PyTorch

Career Paths and Salaries

Both business analytics and data science offer strong salary potential, with similar earning ranges across entry-level and experienced roles. While the technical focus of data science tends to lead to slightly higher starting salaries, the gap between the two fields is not as wide as you might expect. Both fields offer plenty of opportunities for salary growth as you gain experience. A Master of Science in business analytics or data science can significantly enhance earning potential and access to leadership roles.

Business analysts typically start in entry-level roles in which they develop key technical skills and support teams with data analysis. They take on more responsibility as they advance, managing projects and contributing to high-level business decisions. With experience, they move into senior roles, overseeing teams and collaborating with C-suite executives, potentially advancing to positions like chief operations officer or director of business.

Entry-level data scientists focus on learning and refining their technical and interpersonal skills, executing tasks assigned by senior scientists and gaining hands-on experience with tools like Python and R. As they progress to mid-level roles, they assume greater duties, managing teams and contributing to strategic decision-making. Senior data scientists lead high-impact projects, mentor junior staff and collaborate with business leaders. Some progress to C-suite positions like chief technology officer or chief information officer.

Business Analyst Salary

According to the Bureau of Labor Statistics (BLS), business analysts earned a median annual income of $99,410 in 2023, with the lowest 10 percent earning less than $57,840 and the highest 10 percent making over $172,280. Business analyst salaries vary along many factors, including location, experience, role, and industry. For example, business analysts in professional, scientific, and technical services earned a median income of $104,400, while those in government earned $92,310. 

Business analysts are in demand across various sectors, including finance, healthcare, retail, and technology. Here’s an overview of what they earn by experience level:

• Entry-level/junior
  • Job titles: Junior business analyst, junior IT business analyst, business systems analyst, business analyst
  • Average annual income: $71,321
• Mid-career/senior
  • Job titles: Business analyst, business intelligence analyst, operations analyst, business architect, business intelligence manager, chief operations officer
  • Average annual income: $116,861

Data Scientist Salary

Data scientists earned a median annual income of $108,020 in May 2023. They are in high demand in industries like tech, cybersecurity, telecom, and healthcare. The field offers significant earning potential, with the top 10 percent making over $184,090 annually. Salaries can vary based on factors such as experience, location, and industry. Data scientists in scientific research and development earned the highest median wages, with $126,430, while those in management, scientific, and technical consulting roles made $103,000.

Here’s an overview of what data scientists earn by experience level:

• Entry-level/junior
  • Job titles: Junior data scientist, analyst, data analyst 
  • Average annual income: $92,653
• Mid-career/senior
  • Job titles: Data scientist, data engineer, machine learning engineer, data architect, principal data scientist, chief technology officer, chief information officer
  • Average annual income: $174,943

Business Analytics vs. Data Science: Which Career Path Fits You?

Choosing between business analytics and data science ultimately depends on your strengths, interests, and long-term career goals. Consider these questions as you decide:

• Do you enjoy collaborating with teams and making business decisions? If so, you might prefer business analytics.
• Are you passionate about coding and working with complex algorithms? If so, you might prefer data science.
• Do you like interpreting data and presenting insights to stakeholders? If so, you might prefer business analytics.
• Are you excited about AI, automation, and predictive modeling? If so, you might prefer data science.

Still unsure? Consider these scenarios:

• You might enjoy business analytics if:
  • You like working with people and presenting data-driven insights.
  • You prefer a structured role focused on improving business performance.
  • You want to use data to answer business questions rather than develop technical models.
  • You’re interested in improving customer experience, marketing strategies, or financial decisions.
• You might enjoy data science if:
  • You love coding and developing machine learning algorithms.
  • You enjoy working on deep analytical problems independently.
  • You’re interested in designing AI-driven solutions rather than just interpreting data.
  • You want to build predictive models, automate systems and solve complex computational problems.

How a Master’s Degree Can Boost Your Career

Earning a Master of Science in Business Analytics or Data Science can significantly boost your career prospects, salary potential and industry credibility. With an M.S., you’ll gain:

• Advanced technical skills to set you apart from the competition
• Hands-on experience working with real-world data problems
• Greater job opportunities in high-demand industries
• Career stability; master’s degree holders have higher job security than those with less education
• A stronger professional network through industry connections and collaborations

Merrimack’s online programs in business analytics and data science provide the flexibility you need to advance your career without pausing your job. The M.S. in Business Analytics prepares students to turn data into business insights through coursework designed by industry experts and the practical application of industry tools. Graduates emerge with the skills to create strategic, data-informed solutions to solve complex business challenges. The M.S. in Data Science equips students with the technical, analytical and communication skills to solve real-world problems using advanced data science—no prior experience is required. Students may choose a concentration in applied artificial intelligence or applied data science.

In either field, artificial intelligence will play a prominent role, enhancing productivity by streamlining research and reporting. Business analysts are already using generative AI tools to:

• Access and structure data
• Generate predictive analytics
• Prepare graphics and visualizations
• Assist with business writing

Data scientists utilize generative AI tools to:

• Assist in writing code
• Prototype and test machine learning models
• Generate complex SQL or NoSQL queries
• Create summaries, visualizations, and other data analysis reports
• Augment training datasets with synthetic data

By assuming time-consuming and repetitive tasks, AI frees business analysts and data scientists to dedicate more time to complex problem-solving and innovation.

Turn Insight Into Action With the Right M.S. Program

Merrimack’s online Master of Science programs equip you with the real-world skills, flexibility and support to thrive in a competitive job market. Explore the online Master of Science in Business Analytics or Data Science to take the next step toward new data-focused career opportunities. Connect with an enrollment advisor for more information, or start your application to begin shaping your future in analytics.