Data Analytics vs Data Science: Which Role Does Your Business Actually Need?

Table of Contents

Article Summary:

  • Data analytics vs data science serve different business purposes – analytics explains what happened, science predicts what’s next
  • Data analysts create reports and dashboards from historical data to guide daily business decisions
  • Data scientists build machine learning models and algorithms to forecast trends and automate processes
  • Analysts need SQL and visualization tools; scientists need Python, R, and statistical modeling expertise
  • Most businesses need analytics capabilities first before investing in data science roles
  • Scientists typically earn 20-30% more than analysts due to specialized technical requirements

Many companies hire for “data roles” without knowing what they need. A store asks for a data scientist when they need sales reports. A factory hires analysts when they need prediction models.

In exploring the difference between analytics and science, industry leaders like IBM explain that analytics investigates past data, while science builds models to predict future outcomes.

This guide explains the practical differences so you can make smart hiring decisions.

The Main Functions of Data Analytics

Data analytics answers “what happened” and “why did it happen.” Analysts work with past data to find patterns and create reports that help leaders make decisions.

Analytics FocusWhat It MeansExample Output
DescriptiveWhat the numbers showMonthly sales dashboard
DiagnosticWhy patterns existRoot cause of customer churn
ReportingRegular business metricsWeekly performance reports
VisualizationCharts that explain dataInteractive department dashboards

Common analyst tasks:

  • Pull data from databases using SQL
  • Clean messy data into usable formats
  • Build dashboards that teams can understand
  • Create regular performance reports
  • Find trends in historical information
  • Present findings to business leaders

Tools include SQL for databases, Excel for quick work, and platforms like Tableau or Power BI for charts. Understanding what is data analytics provides helpful context on how these pieces fit together.

In my experience working with mid-size companies, most need strong analytics before they benefit from advanced data science work.

The Main Functions of Data Science

Data science predicts “what might happen next” and recommends “what to do about it.” Scientists build models that learn from data and make predictions about future events.

Science FocusWhat It MeansExample Output
PredictiveForecast future eventsCustomer churn probability scores
PrescriptiveRecommend actionsAutomated pricing optimization
Machine LearningModels that improve over timeProduct recommendation engine
AutomationComplex decisions at scaleFraud detection system

Common scientist tasks:

  • Develop machine learning algorithms
  • Test ideas using statistics
  • Build models that automate decisions
  • Work with huge datasets
  • Put models into live systems
  • Team up with engineers on AI features

Scientists use Python or R programming, machine learning tools, and big data platforms. When datasets get massive, the work overlaps with big data analytics territory.

Key Skills and Tools Comparison

The technical needs differ significantly between roles. Both work with data, but the depth of skills varies.

SkillData AnalystData ScientistWhy It Matters
SQLExpertIntermediateAnalysts query databases daily
StatisticsBasicAdvancedScientists need deep math knowledge
ProgrammingOptionalRequiredScientists write custom code
Excel/BI ToolsExpertBasicAnalysts create business reports
Python/RNice to haveMust haveScientists build algorithms
Machine LearningNot neededCore skillScientists create prediction models
VisualizationExpertIntermediateAnalysts present to non-tech teams
CommunicationCriticalImportantAnalysts explain findings more often

Education differences: Analysts often have business or economics degrees with technical training. Many have bachelor’s degrees and learn tools on the job.

Scientists need math, statistics, or computer science backgrounds. Many have master’s degrees, though experience sometimes works instead.

Corpim slide showing holographic data analytics dashboards, projecting $302.01B global Data Analytics market by 2030 with 28.7% CAGR.

Salary and Career Paths

Pay reflects how complex and rare the skills are. These ranges come from major U.S. cities.

Experience LevelData Analyst SalaryData Scientist SalaryDifference
Entry (0-2 years)$55,000 – $75,000$85,000 – $110,000+35-45%
Mid (3-5 years)$75,000 – $95,000$110,000 – $145,000+40-50%
Senior (6+ years)$95,000 – $120,000$145,000 – $180,000++50-55%

Smaller cities pay 20-30% less. Finance and healthcare often pay more for both roles.

Career growth: Analysts move to analytics manager or business intelligence director roles. Some transition into data science.

Scientists advance to lead or principal scientist positions. Others move into machine learning engineering or AI research.

Which Role Your Business Needs First

Most companies should build analytics before data science. You need to walk before you run.

Your SituationRole to HireWhy
No regular business reportsData AnalystNeed to understand current performance
Make gut-feel decisionsData AnalystNeed data-based decision process
Data in many disconnected systemsData AnalystNeed unified reporting first
Strong analytics alreadyData ScientistReady for prediction models
Need to forecast trendsData ScientistAnalytics foundation exists
Want to automate decisionsData ScientistHave infrastructure for models

From my experience with data modernization projects across industries, companies that skip to data science without analytics foundations struggle badly. You need clean data and teams that use information to decide before prediction adds value.

The distinction between business intelligence vs data analytics helps show where reporting ends and advanced work begins.

Real Examples by Industry

Different sectors use these roles in specific ways.

IndustryAnalyst WorkScientist Work
RetailTrack sales, inventory, customer trafficBuild recommendation engines, optimize pricing
HealthcareMonitor outcomes, costs, efficiencyPredict patient complications, readmission risk
ManufacturingWatch production metrics, quality dataForecast equipment failures, detect defects
FinanceReport on portfolio performance, riskDetect fraud, predict credit defaults
E-commerceAnalyze conversion rates, campaignsPersonalize shopping experience at scale

Common Mistakes to Avoid

Several myths lead to poor decisions about the difference between data analytics and data science.

Mistake 1: Thinking scientists can do everything better: Scientists build models well but often lack business context. Both roles matter.

Mistake 2: Believing you need scientists to be data-driven: Most business intelligence comes from good analytics. Science helps specific prediction cases only.

Mistake 3: Treating analytics as just a stepping stone: Analytics is a complete career path. Many analysts prefer deepening business skills over technical modeling.

Mistake 4: Trusting job titles across companies: One company’s “analyst” does another’s “scientist” work. Focus on actual tasks, not titles.

Reducing cognitive load in data visualization: person interacting with simplified, colorful bar and pie charts on laptop to minimize design clutter.

Building Your Data Team

Your current maturity determines what you need.

Phase 1 – Foundation (Start here): Hire analysts who create dashboards and answer business questions. Get data into one place using warehouses or cloud platforms.

Phase 2 – Growth (Second step): Add analysts for different departments. Let business users explore data themselves with self-service tools.

Phase 3 – Advanced (Final step): Bring in scientists for high-value prediction cases. Build infrastructure for model development.

Corporate InfoManagement has worked with companies at all these stages since 1997. In my experience, the pattern holds everywhere: strong analytics first beats jumping to science.

Making Smart Hiring Choices

Once you know which role you need, focus on finding the right person.

For analyst jobs, look for:

  • Strong SQL and analytics tool skills
  • Clear communication with non-technical people
  • Understanding of business and metrics
  • Focus on useful insights
  • Good visualization abilities

For scientist jobs, look for:

  • Python or R programming skills
  • Statistics and machine learning knowledge
  • Experience putting models into production
  • Ability to connect business problems to data solutions
  • Proven impact from past model work

Many companies benefit from hiring an analyst first. They build good data practices and find problems where models would help.

Data Analytics vs Data Science: Side-by-Side Comparison

To help you make the right choice for your organization, here’s a complete comparison of both disciplines across key factors.

FactorData AnalyticsData Science
Primary FocusExplain what happened and whyPredict what will happen next
Analysis TypeDescriptive and diagnosticPredictive and prescriptive
Core SkillsSQL, Excel, BI tools, visualizationPython/R, machine learning, statistics
ProgrammingOptionalRequired
Typical EducationBachelor’s degreeMaster’s/PhD preferred
Entry Salary$55,000 – $75,000$85,000 – $110,000
Senior Salary$95,000 – $120,000$145,000 – $180,000+
Key DeliverablesDashboards, reports, insightsPrediction models, algorithms
Time to ValueQuick (weeks to months)Longer (months to year)
Best Starting PointMost businesses start hereAfter analytics foundation exists
Infrastructure CostLower ($50K-$200K/year)Higher ($200K-$500K+/year)
Hiring DifficultyModerateHigh

Turn Data Into Business Results With Expert Help

If your organization needs to build analytics or move to data science without costly mistakes, Corporate InfoManagement provides the expertise you need – backed by 25+ years of data systems experience.

Corpim’s approach helps companies develop the right capabilities for their current stage. The team creates solutions that work today while building foundations for tomorrow.

The work fixes data quality and integration problems during planning when solutions take days, not after launch when the same issues need months of expensive fixes. Partner with Corpim today and build data capabilities that match your business needs.

Data science's ROI in retention. Netflix's AI recommendation drives 80% streams, aiding $1B retention. Corpim graphic with AI shopping cart.

Frequently Asked Questions About Data Analytics vs Data Science

Q. What is the main difference between data analytics and data science? 

A. Data analytics looks back to understand what happened and why. Data science looks forward — using machine learning and statistics to predict what might happen next.

Q. Do I need data scientists if I already have data analysts? 

A. Many companies see great results with skilled data analysts alone. Data scientists become essential only when you need advanced predictions, automation, or machine learning models to scale insights.

Q. Which role is harder to hire for? 

A. Data scientists are typically harder to find and more expensive to hire. They require deeper technical skills in programming, statistics, and machine learning. Good analysts are also valuable but have a larger talent pool to recruit from.

Q. Can data analysts transition into data science roles? 

A. Yes, many data scientists started as analysts. The transition requires learning programming languages, statistics, and machine learning techniques. Some analysts prefer to deepen their business and communication expertise rather than move into technical modeling work.

Q. How do these roles work together in organizations? 

A. Analysts often identify business problems that need prediction, scientists build the models to address those problems, and analysts help business teams understand and use the results. The best data teams include both skill sets working collaboratively.

Corp Im Editorial Team

Written by the Corporate InfoManagement Editorial Team

Our editorial team brings together seasoned experts in Business Intelligence, Cloud Computing, and Enterprise Performance Management. Every article is crafted to share actionable insights, industry trends, and practical strategies to help businesses simplify complexity and achieve measurable results.

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