What is Data Analyst? A Complete Guide to Becoming a Data Analyst

What is Data Analyst? A Complete Guide to Becoming a Data Analyst

12 mins readComment
Rashmi
Rashmi Karan
Manager - Content
Updated on Nov 1, 2024 10:29 IST

Data Analysts play a crucial role in extracting valuable insights from large volumes of data, helping businesses make informed decisions and drive growth. India has witnessed a significant surge in demand for Data Analysts in recent years, reflecting the growing importance of data-driven decision-making across sectors. This profession combines statistical and analytical skills with a deep understanding of data manipulation and visualization techniques. Let us learn what a data analyst is and how to become one.

 What is data analyst

What is a Data Analyst?

Data analysts are responsible for collecting, processing, and analyzing statistical data. They translate sales figures, market research, logistics, or transportation costs in plain English. They regulate, normalize, and calibrate the data to be easily extracted and used.

The role of a data analyst is highly transferable, and employment opportunities are available in both private and public sectors, including finance, consulting, manufacturing, pharmaceuticals, government and education.

Must Read - What is Data Analysis?

What does a Data Analyst do?  

Data analysts play a very important role in helping the company's top management make better business decisions. 

Data Analyst roles and responsibilities include -

  1. To work in collaboration with IT, management and/or data scientist teams to determine organizational goals
  2. To dig data from primary and secondary sources
  3. To clean the data and discard irrelevant information
  4. To perform data analysis and interpret results using standard statistical methodologies
  5. To highlight changing trends, correlations and patterns in complicated data sets
  6. To strategize process improvement
  7. To ensure clear data visualizations for management
  8. To design, create and maintain relevant and useful databases and data systems
  9. To prioritize tasks and solve code problems and other data-related issues
  10. To identify trends and make forecasts
  11. To create data dashboards, graphs and visualizations
  12. To produce and track key performance indicators

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What are the problems on which Data Analysts work?

A Data Analyst’s job responsibility includes four types of data analysis.

  1. Descriptive Analysis: Analysis based on historical data of what happened
  2. Diagnostic Analysis: Analysis of data to find out why it happened
  3. Predictive Analysis: Analysis of data to find out what will happen in future (trends and changes)
  4. Prescriptive Analysis: Finding out what should be done in future

Key Data Analyst Skills

Listed below are some of the important skills to become a data analyst -

Technical Skills

  1. High-level analytical and problem-solving skills.
  2. Fundamental knowledge in statistics and mathematics.
  3. Hands-on experience in spreadsheets like MS Excel.
  4. Experience in statistical languages like RSAS and SPSS.
  5. Experience in any scripting language like PythonJava or Scala.
  6. Knowledge of database management systems and querying languages like SQL or NoSQL.
  7. Good data visualization skills using tools like Tableau, QlikView and Power BI.
  8. Data Mining
  9. Multivariate Statistics
  10. Hadoop

Soft Skills

  1. Good verbal and communication skills
  2. Analytical thinking
  3. Interpretive skill
  4. Team management

Behavioral Skills

  1. Critical thinking
  2. Adaptive
  3. Eye for detail
  4. Decision-making
  5. Problem-solving skills

Why is Data Analysis a Good Career Option?

In today’s business world, Data Analysis has become necessary not only in IT or e-commerce but also in sectors like Consumer Goods, Manufacturing, Telecommunication, Risk Management, Banking, Finance, and Consulting. Government organizations, too, are using data analysis tools to make scientifically accurate decisions.

The demand for Data Analysts has steadily increased across sectors in the last few years. The average salary of a Data Analyst in India ranges between ₹ 1.8 Lakhs to ₹ 13 Lakhs, with an average annual salary of ₹6.4 Lakhs (Source - Ambitionbox).

Top companies like Deloitte, Accenture, EY, Google, Amazon, Fractal Analytics, Twitter, Facebook, KPMG, Flipkart, JP Morgan Chase, MachinePulse, LinkedIn, AT Kearney, Microsoft, Make My Trip, Walmart Labs, Citi Bank are among the top recruiters.

A certification can help you to {{%a:{href: https://learning.naukri.com/articles/how-to-become-a-data-analyst/}%}}become a skilled data analysis professional{{%/a%}}. Outlined below are the advantages of a data analysis certification:

  1. Improve your current profile and resume with a certification. Increase your chances of being successful in a data analysis interview.
  2. Learn the advanced analytical techniques and processes like data mining, data cleansing and data processing, which are essential for a core data analytics profile.
  3. Become proficient in some of the popular data analysis tools and software used in the industry.

What do recruiters want in a Data Analyst? 

Recruiters usually look for the following areas while hiring a Data Analyst:   

Prior Experience: Any experience in the field can make the recruiters interested in you. It would also be great if you could have transferable skills like programming, good visualisation skills, and database knowledge.   

Key Skills: R, Python, Java, Hadoop, Pig, SQL, SAS, Minitab, Tableau, Qlikview, and MS Excel. 

Top Recruiters That Hire Data Analysts 

Data analysts are in great demand across all industries, and there is a good career path for those who want to move up the professional ladder. Many top organisations require data analysts to help them make better use of their data or provide the right insights to help them in their business activities.  Some top companies hiring data scientists are Ernst & Young, IBM, Accenture, HCL, TCS, Deloitte WNS, etc.

What is the Average Salary of a Data Analyst? 

The average salary for a Data Analyst with 0-3 years of experience is around Rs. 5.4 Lacs per annum, while a professional with more than 3 years of experience is around Rs. 7 Lacs per annum. The average salary for a professional with more than 10 years of experience is around Rs. 15 Lacs per annum. You can get a better salary than the average mentioned here with a certification.  

Who can become a Data Analyst? 

Data is new money in this world of information, and businesses are trying to get the most out of it with the help of experts who analyse data. There is a huge scope for growth, and you can be in one of the most in-demand industries in the world. Many engineering, science, or commerce professionals are looking to become data analysts. We have listed some eligible candidates who can become data analysts.

Fresh graduates

If you are a fresh graduate and want to become a data analyst, you can easily get opportunities if you have the skills and enrolling in a certification course can help you a lot. 

MBA/Finance/Engineering graduates

Since data is the key element to making business decisions, the role of a data analyst can be a good fit for MBA/finance/engineering graduates.

Software Developers, IT Analysts and Test Analysts

There is a high demand for skilled data analysts. More and more software developers are nowadays moving to the roles of data analysts as they have many common skills, including knowledge of programming languages, tools and methods for thriving at job. A professional certification in data analysis can further offer an extra edge and help an individual to stand out from the crowd.    

System/Database Administrators

System and Database Administrators looking to boost their careers by switching to a data analyst profile. With the requisite skills, they can work within their organisation as most companies are moving towards using data to make business decisions. 

Non-experienced professionals 

If you do not have experience in data analysis, recruiters may hire you as a junior data analyst, or you may have to start as an entry-level professional. Hence, candidates take a certification course to gain the required skills and switch to mid- or senior-level positions. 

Conclusion

Organizations across sectors such as e-commerce, finance, healthcare, and telecommunications are realizing the value of harnessing data to gain a competitive edge. As the reliance on data continues to expand, the role of a Data Analyst will remain indispensable. With the ability to derive actionable insights from complex datasets, Data Analysts empower organizations to stay competitive, optimize processes, and make strategic decisions based on evidence and trends. Pursuing a career as a Data Analyst in India presents exciting opportunities and a promising future.

FAQs - What is Data Analyst?

What skills are required to become a data analyst?

Data Analysis and Interpretation: Data analysts should possess strong analytical skills to effectively analyze and interpret large datasets. They should be able to identify patterns, trends, and insights from data and draw meaningful conclusions.
Statistical Knowledge: A solid foundation in statistics is crucial for data analysts. Understanding statistical concepts such as probability, hypothesis testing, regression analysis, and statistical modeling enables them to make data-driven decisions and draw accurate conclusions from data.
Proficiency in Data Manipulation: Data analysts work extensively with data, so proficiency in data manipulation is essential. This includes skills in data cleaning, data transformation, data merging, and data aggregation using tools like SQL, Python, R, or Excel.
Data Visualization: The ability to effectively visualize data is vital for data analysts. They should be skilled in presenting data visually through charts, graphs, dashboards, or other visual representations. Tools like Tableau, Power BI, or matplotlib in Python can be used for data visualization.
Programming Skills: Proficiency in programming languages is beneficial for data analysts. Python and R are commonly used for data analysis tasks. Understanding programming concepts and being able to write code to manipulate and analyze data efficiently is an advantage.
Database Knowledge: Familiarity with databases and SQL (Structured Query Language) is important for data analysts. SQL is often used to extract data from databases, perform data queries, and manipulate data. Understanding database concepts and being able to work with relational databases is valuable.
Problem-Solving Abilities: Data analysts should have strong problem-solving skills to approach complex data-related challenges. They should be able to break down problems, think critically, and develop innovative solutions using data-driven insights.
Communication and Presentation: Effective communication skills are essential for data analysts. They should be able to convey complex findings and insights to non-technical stakeholders clearly and concisely. Additionally, strong written and verbal communication skills facilitate collaboration within teams and enable effective data-driven decision-making.

What industries employ data analysts?

Data analysts are in demand across various industries, including finance, healthcare, marketing, e-commerce, technology, and consulting. Almost any organization that deals with data can benefit from the skills of a data analyst.

What educational background is required to become a data analyst?

While a specific degree is not always required, most employers prefer candidates with a bachelor's degree in fields such as statistics, mathematics, economics, computer science, or a related field. Higher-level degrees provide an advantage in terms of career progression.

What are the typical responsibilities of a data analyst?

Data analysts are responsible for collecting, cleaning, and preprocessing, conducting statistical analyses, creating data visualizations and reports, identifying trends and patterns, and communicating insights to stakeholders.

What tools and technologies are commonly used by data analysts?

Data analysts utilize a variety of tools and technologies to perform their work efficiently and effectively. Here are some commonly used tools and technologies in the field of data analysis:
Microsoft Excel: Excel is a widely used spreadsheet tool that offers functionalities for data manipulation, basic analysis, and visualization. It is often employed for tasks such as data cleaning, filtering, basic statistical analysis, and creating charts and graphs.
SQL (Structured Query Language): SQL is a programming language used for managing and manipulating data stored in relational databases. Data analysts use SQL to extract, filter, aggregate, and join data from databases, enabling them to perform complex queries and gain insights from large datasets.
Python: Python is a versatile programming language commonly used by data analysts for data manipulation, analysis, and visualization. It offers various libraries and packages, such as Pandas, NumPy, and Matplotlib, which provide advanced data manipulation capabilities, statistical analysis functions, and data visualization tools.
R: R is a statistical programming language widely used for data analysis and statistical modeling. It offers a comprehensive collection of packages and libraries tailored for data manipulation, exploratory data analysis, statistical modeling, and visualizations.
Tableau: Tableau is a popular data visualization tool that enables analysts to create interactive and visually appealing dashboards, reports, and charts. It simplifies the process of data visualization and allows users to explore and communicate data insights effectively.
Power BI: Power BI is a business intelligence tool by Microsoft that facilitates data visualization, interactive dashboards, and business analytics. It enables data analysts to connect to various data sources, create visualizations, and share insights with stakeholders.
SAS: SAS (Statistical Analysis System) is a software suite commonly used in the field of data analytics and statistical analysis. It provides a comprehensive range of tools for data management, advanced analytics, and reporting.
Apache Spark: Apache Spark is a distributed computing system that enables data analysts to process large-scale datasets efficiently. It offers capabilities for distributed data processing, machine learning, and interactive data analysis.

What career opportunities are available for data analysts?

Data analysts have a wide range of career opportunities across various industries and sectors. The growing reliance on data-driven decision-making has increased the demand for skilled data analysts. Here are some common career opportunities for data analysts:
Data Analyst: Data analysts can work in dedicated data analyst roles, where they analyze and interpret data to provide insights and support decision-making within organizations. They work with large datasets, perform data cleaning and manipulation, conduct statistical analysis, and generate reports and visualizations.
Business Analyst: Business analysts focus on understanding business processes, identifying opportunities for improvement, and making data-driven recommendations to enhance operational efficiency and performance. They analyze data to identify trends, predict outcomes, and provide insights to support business strategies.
Market Research Analyst: Market research analysts collect and analyze market data to evaluate market trends, customer preferences, and competitive landscapes. They provide insights to support marketing strategies, product development, and market positioning.
Financial Analyst: Financial analysts analyze financial data to evaluate investment opportunities, assess risks, and provide recommendations for financial planning and decision-making. They analyze financial statements, market trends, and economic data to support investment strategies and financial forecasting.
Healthcare Data Analyst: Healthcare data analysts work in the healthcare industry, analyzing healthcare data to identify trends, measure performance, and evaluate healthcare outcomes. They provide insights to support healthcare delivery, quality improvement, and decision-making in healthcare organizations.

Are there any certifications that can benefit a data analyst's career?

Yes, there are several certifications that can benefit a data analyst's career by demonstrating expertise in specific tools, methodologies, and domains. These certifications can enhance your skills, credibility, and marketability in the field of data analysis. Here are some popular certifications for data analysts:
Microsoft Certified: Azure Data Scientist Associate: This certification validates knowledge and skills in implementing and managing machine learning models using Azure Machine Learning. It focuses on data preparation, feature engineering, model training and evaluation, and deploying models in the Azure environment.
Google Certified Professional Data Engineer: This certification demonstrates expertise in designing and building scalable data processing systems on Google Cloud Platform (GCP). It covers areas such as data ingestion, transformation, storage, processing, and analysis using GCP tools and services.
IBM Data Science Professional Certificate: This certification is offered through IBM's online learning platform, Coursera. It covers various data science topics, including data analysis, data visualization, machine learning, and Python programming. It consists of a series of courses and a capstone project.
Tableau Desktop Certified Associate: Tableau offers certifications for data analysts focused on data visualization and analytics using the Tableau software. The certification validates skills in creating dashboards, visualizations, and performing data analysis using Tableau Desktop.
SAS Certified Data Scientist: This certification from SAS Institute validates skills in data manipulation, data exploration, and predictive modeling using SAS tools and techniques. It covers topics such as statistical analysis, machine learning, and big data analytics.
Data Science Council of America (DASCA) certifications: DASCA offers certifications such as the Associate Big Data Analyst (ABDA) and Senior Data Scientist (SDS) that validate expertise in data analysis, machine learning, and big data technologies.

About the Author
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Rashmi Karan
Manager - Content

Rashmi is a postgraduate in Biotechnology with a flair for research-oriented work and has an experience of over 13 years in content creation and social media handling. She has a diversified writing portfolio and aim... Read Full Bio