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Career in Data Analytics: Ultimate Guide

Updated on 19 March, 2024

7.81K+ views
14 min read

With data being at the core of the technology, data analytics has gained humongous popularity over the past few years and has become a hot topic in the market. With billions of data getting generated every day, demand for data analysts with the right skill set and knowledge will keep increasing. According to Harvard Business Review, data science is the sexiest job of the 21st century. 

Data analytics is a growing career, the market is expected to expand. The market is projected to reach  USD 655.53 billion by 2029 (Source). There are various employment opportunities in this field as the data is central to almost every industry and the organizations require professionals having an expertise in this field.

Data analytics is of high importance in the field as it helps the organizations in optimizing the data, and monitor the performances. This data helps in gaining better insights that aids in better results that are beneficial for organization’s growth.

Data analytics helps the businesses in understanding more about their customers that helps in adapting a customized approach.

There are various industries that benefit from the science of data analytics. The application lies in retail, manufacturing, entertainment, government, security, web applications, etc. People who are new to the industry and had the apprehension “What is data analytics?” must have gotten a fair understanding of the industry now.

Making a career in analytics is promising for people of all backgrounds, and there is an umpteenth number of opportunities that span across multiple industries for you to explore. According to IBM and Burning Glass insights, the number of positions for data analysts in the United States will increase to 2,720,000 by 2020. Keep reading this article if you want to understand who data analysts are, what they do, and how you can make a successful career in analytics.

Career in Data Analytics: What does a Data Analyst Do?

A data analyst gathers, processes, and analyzes the large volume of data from various sources to find meaningful patterns and insights, identify relevant questions, make predictions, and convert information into solutions to help the organization in the decision-making process. In layman’s language, data analysts convert raw data into meaningful information so that they can be consumed by organizations to grow their business. They prepare visual representation (charts, graphs, reports) of their findings to make it easy for others to understand.

A day-to-day data analyst role may differ based on the industry or domain that they are working in. In some organizations, analysts are also responsible for designing dashboards, maintaining databases and systems for various departments throughout an organization. A data analyst may also work with key stakeholders, top management, or other teams within the company. These include IT, finance, and database infrastructure to determine business goals and provide findings to achieve their goals.

Other set of responsibilities of a data analyst include gather or manage the data. Through the expertise they provide, they are able to predict and analyze the performance that helps in managing the resources and provide better results at much better cost.

Once the data research analyst  have worked with the data, then they are required to communicate their findings to the relevant stakeholders that help in better understanding and business decision-making.

Why should I pursue a Career in Data Analytics?

According to the LinkedIn Workforce Report, there is an exponential increase in the demand for data analysts from 2015 to 2018. Besides demand, diversity also makes them easily fit in most industries such as finance, education, government sector, healthcare, IT, networking, etc.

Here is a list of few reasons that can help you in choosing data analytics as your career:

1. High demand – There is no use of data until it is put to the right use. To translate raw and unstructured data into meaningful insights, companies are continuously recruiting professionals who have the right knowledge of using advanced tools and good command over the programming language to design software that can process a large volume of datasets.  

The data analysts are highly skilled and they help the organization in scaling, understanding the leakages and most importantly they also help in understanding their customers better. 

These reasons also contribute to the data analysis professional being in high demand. Moreover, they also help in better cost- cutting measures as well as customizing the approach according to the users. There are various job opportunities available that help in making a successful career in data analytics.

2. High salary at entry-level and excellent perks – Being limited data analysts in the market, data analysts are paid very well in the industry even at entry-level. There is no denying that data analysis is one of the highest-paid jobs

On average the salary procured by the data analyst are 4.3 lakhs per annum. The average salary ranges from 1.9 to 11.5 lakhs per annum (Source). As one progress in their career and focus on gaining skill sets, updating their knowledge and higher experience the salary bracket keeps expanding for them. One can enroll themselves into data analyst course and understand better of the industry.

The salary of a data analyst also depends upon the education level, a candidate’s experience, the industry that they work in, location, skills, and certifications. 

3. Shortfall of Data Analyst Professionals – As stated above, the demand for a data analyst is very strong, but professionals who possess the right skill set and knowledge to perform the task are very limited. This opens up an extreme number of opportunities to kick start your career in this field.

Currently there is a high demand- supply gap for data professionals. Organizations require data professionals that help in gaining competitive edge over the competition. But there are not many professionals in the market today. 

This results in high salary and successful career on the professional’s part. As the organization’s want to gain skilled professionals and they focus on giving them employee benefits and higher salary on retaining and acquiring their talents.

4. Diverse roles – Based on years of experience and skills, data analyst professionals are always exposed to versatile roles and responsibilities. There are numerous roles that you can choose from. All you need to do is identify your strength, what you are good at, and what exactly you want to do.

Checkout: Data Analyst Salary in India

Career in Data Analytics: What skills do I need to become a Data Analyst?

1. Programming Language

First and foremost, to become an expert in data analysis, you must have a solid understanding of at least one programming language. However, having command over more than one language makes you more versatile and increases your chances of getting a good salary. Some of the languages used by data analysts are python, R, Excel, and SQL. The trend keeps changing with technology, but the logic remains the same. It would be best if you focused on algorithms and fundamentals behind them to stay up to date.

The programming languages help in various efforts of the professionals. Not only working with the humungous data becomes easier but the programming languages also help in visualization, exploration and modelling of data. 

2. Communication Skills

Insights that are gathered from data analysis are consumed by several departments within the company to aid decision-making. Hence, it is of utmost importance for a data analyst to convey their findings in a manner that is easy to understand for a vast audience. Strong presentation and communication skills are the keys to success.

The data analysts are required to present the insights to the stakeholders that helps in better decision making. If a data analyst is not an able communicator, then that creates a communication gap which is not ideal at all. 

3. Database Knowledge

Being a data analyst, you may have to work at the backend wherein you design a data warehouse to store a huge chunk of data from multiple sources in one place. You must possess a strong database and database query language knowledge to query the database to pull information from different tables to perform further analysis.

The data management platforms help in managing the platforms and help in gaining insights on real- time basis, managing, storing and organizing of data.

4. Data cleaning and interpreting

One should possess a strong knowledge of data mining and advanced statistical techniques to clean and extract unstructured data.

The major motive of data cleaning is to bring accuracy and perform the task in lesser time. The professionals procure the data in bulk which is unstructured and need to be segregated in order to begin working  on it. 

The data professionals must possess the skill set to mine the data so that they can invest lesser time in cleaning manually and more time in productive tasks.

5. Analytical thinking and problem-solving approach

Thinking out of the box, keeping a creative mind, and having a problem-solving approach are key attributes of a good analyst. It helps you ask relevant and interesting research questions and build good repo among key stakeholders of the company.

What are the tasks performed by Data Analysts?

By now, you would have a fair understanding of who data analysts are and what they do. Let us take a deep look into the core responsibilities that they perform on a day-to-day basis:

1. Gathering and processing data

A data analyst gathers the data from multiple sources, cleans the data, and then puts it in good shape. The collected data is used to identify trends and patterns to predict forecasts and insights. They make use of different tools to fulfil this task.

2. Identifying trends and patterns

Data analysts help in decision making, which plays a major role in the success of an organization. They translate raw and unstructured data into meaningful information to predict future forecasts, identify what went wrong in the previous quarters, and what new goals must be added for generating more sales. They should have an analytical, creative, and problem-solving mindset to provide recommendations beneficial for the business.  

Preparing for a data analyst role? Sharpen your interview skills with our comprehensive list of data analyst interview questions and answers to confidently tackle any challenge thrown your way.

3. Preparing a report to record the findings

Insights found by a data analyst are useless until it is conveyed in the right context to the audience. Hence, it is the most important responsibility of a data analyst to prepare reports using a flowchart, graphs, bars, pie-charts, diagrams, tables, etc. so that people can easily consume findings. A data analyst always identifies his/her audience to prepare a report that can be understood by each decision-maker.

Check out: Data Analyst vs Data Scientist – Spot the Difference

upGrad’s Exclusive Data Science Webinar for you –

Watch our Webinar on The Future of Consumer Data in an Open Data Economy

 

 

How should you kick-start a Career in Data Analytics?

1. Select the right role

As stated above, the data science field is very diverse, with never-ending opportunities. You must have a strong understanding of current technology trends, how data analysts drive business decisions, tools in demand, and how data science can shape the future to get a good grasp of what you do and evolve with the organization you work for.

Staying in touch with key stakeholders, top management will help you achieve the same. Do not hesitate to ask the right question to understand the different roles of a data analyst. This will help you in deciding the role that suits best to your skill set and requirements.

2. Join a Science Diploma or certification course

Understand the role that you need to perform and take appropriate guidance and mentorship from experts in this field. You must keep your skills and knowledge up-to-date with the role you need to perform. Take a step further and go for the PG diploma or certification courses to better perform your duties and strengthen your knowledge.

3. Learn to code: choose a programming language.

You must master a programming language to become an expert in data analysis. Python and R are the most popular languages. Select the language that you are comfortable with and learn until you have good command over it.

4. Join Data Analysts community and forums

This is one of the most important steps but often overlooked. You must join a data science forum, community group, or take active participation in technical discussions to know what is happening around, how data analysis is shaping the business goals, etc.

5. Enhance your communication skills

What if you have humongous knowledge but have no idea of conveying the same to others. Watch videos or take courses to enhance your presentation and communication skills. Learn different tools to present your findings conveniently and intuitively to the key stakeholders of the organization.

Earn data science certification from the World’s top Universities. Learn Executive PG Programs, Advanced Certificate Programs, or Masters Programs to fast-track your career.

6. Focus on practical applications

Don’t just read theory, also put the knowledge to test. Start developing applications that can do your work in less time and collate data from multiple sources with less coding. You can also take a few freelancing projects to work on different datasets.

Also Read: R Developer Salary in India: For Freshers & Experienced

Conclusion

Being one of the highest-paying jobs, data analysts are in huge demand all over the world. Where the demand is going up steadily, there are not enough resources to meet the demand. This shortfall is seen across the globe. Since data plays a vital role in the success of a business, companies are in the utmost need to hire professionals who can interpret this data and put it to good use.

This urge has led to a shift in the analyst role. With each passing day, the data analyst role is becoming more complex. Therefore, analysts must keep themselves engaged continuously in learning new tools, methods, and technology to do the task right. A good analyst with machine learning, programming language, advanced tool knowledge can rule over the ocean of Big Data and become a crucial asset for the business.

If you are curious about learning Data and Business Analytics to be in the front of fast-paced technological advancements, check out upGrad & IIT-Delhi’s Executive Management Programme in Strategic Innovation, Digital Marketing and Business Analytics

IIT Delhi is one of the top institutes in India and also one of the oldest IIT’s and is always excelled in giving highly industry-relevant courses, Now IIT Delhi has partnered with upGrad to get these top IIT Delhi courses online. They have a variety of other programs like Machine Learning, Executive Management Programme in Strategic Innovation, Digital Marketing and Business Analytics etc

Frequently Asked Questions (FAQs)

1. Do data analysts need to code?

Learning proper programming and coding comes under the job role of a data scientist. However, it is usual to find a data analyst with proper command over R, SQL, and Python. But, it is not mandatory to possess coding skills as data analysts work with data and prepare actionable insights from it without any coding.

2. What are some of the essential skills for data analysts?

Once you have these skills, it becomes easy to get a job in any organization for a data analyst role.

3. Do data analysts need to be good at math?

Data analysts need to move around numbers. So, one has to be proficient in math for becoming a data analyst, as it is considered the building block for this role. One has to be clear with college-level algebra and be able to deal with word problems and convert them into mathematic expressions.
Other than that, one also needs to possess a basic understanding of functions, different types of graphs, and the relationship between functions and graphs in a complete manner. At last, one needs to be well-versed with linear algebra and calculus. So, you definitely need to be good at math to become a data analyst.

4. Is data analytics a high paying job?

Yes, data analyst is a high paying job. The average salary of a data analyst is 4.3 lakhs per annum. The average salary ranges from 1.9 lakhs per annum to 11.5 lakhs per annum. The salary bracket may be differ owed to various factors such as location, skill sets, experience, education, etc.

5. Does data analyst need coding?

Yes, data analysts do require coding. The coding helps in working with data easier and smoother.

6. What is the career path of a data analyst?

The data analyst’s career path is senior data analyst, analytics manager, director, vice president or even chief data officer. All of this comes through when one keeps pushing themselves and always invest getting better than they were before.

7. Is Python required for data analyst?

The data analysts are required to work with large amount of data and excel is not the ideal choice for working with huge data sets. Rather python and other programming languages are very beneficial.

8. What skills is required for data analyst?

Some of the skills required from data analyst are mentioned below- 1) SQL 2) Python 3) R 4) Statistical literacy 5) Numeral literacy 6) Communication 7) Team management