What Are The Benefits of Data Analytics? – Detailed Guide

November 2, 2024 Riya Joshi

The demand for data analytics is at stake and the reports promise it to increase more than average shortly. With the increasing competition and demand, the Benefits of Data Analytics as a career choice accelerate too. In India, reports project million openings in this field by 2026. A huge increase in people switching to data analytics can be seen. The U.S. BLS even predicted a 23% increase in this role by 2031, which is far above average. With more technology, the amount of data will increase, which will automatically need the skills that come in hand with data analytics.

A career is a very important choice one has to make in life. If you have discovered this article then we are assuming that you already have a plan to become the next data analyst. However, knowing the positive aspects of a profession helps us decide more accurately, as knowledge never goes in vain.

Here, in this article, we will try to enlighten you with all the details on data analytics and the benefits of Data Analytics so that you can choose without any uncertainty.

What Is Data Analytics? Types of Data Analytics

Data Analytics: It is the process of analyzing, interpreting, and communicating different forms of raw data. By providing better insights into data patterns, effective business solutions are attracted. The data could be of any category. It includes four processes- discovering, filtering, analyzing, and presenting. Let’s understand with an example.

Discovering: The collection of multiple spreadsheets, charts, or any other kind of data collection of a company in different sectors can be called the first step. Using programming or computerized data can also be used in the process. It can also include the use of certain tools and online resources to find data.

Filtering: The second step is filtering this raw data to draw an improvised presentation for better understanding. The step involves shrinking data into sets of groups and summarizing it for better decision-making.

Analyzing: The third process includes analyzing the filtered data to draw effective conclusions. This process involves mechanical processes, many algorithms, and tools like SQL, and open source like Python, Microsoft, etc.

Presenting: The final stage is to communicate the processed data in a presentable manner so that the data can be accessed and understood by individuals within a company.

Simply speaking, these analytics help us get a peek into insights to increase the overall efficiency of any business or organization. There are many social media platforms nowadays that provide us with insights like Instagram, for instance. The way they give account details that have reached or engaged to your content in a limited period, views’ insights, and much more. The collection and analysis of such data to expand your business can also be called data analytics.

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Data Analytics is Distributed in Four Types:

Descriptive Analytics: It focuses on the achievements over some time. For example, how many followers you have received this month? Or, is the sale higher this month than the last?
Diagnostic Analytics: This more focuses on what caused the problems. For example, why the amount of followers is less this month? Or, why the sale is lower this month than the previous one?
Predictive Analytics: This is more of a future thing on what is likely to happen, based on experience. For example, what are the chances that the business will increase if we use paid services on the platform?
Prescriptive Analysis: This step demands an action after the analysis. For example, we should use paid services on Instagram as they will advertise our brand, and with the increase in visibility, more followers will reach our account.

Data Analytics can be helpful in many ways. Whether it is establishing a startup business or growing an already established business, the learned skills will be encouraging in all aspects. Below we have mentioned all the benefits of data analytics from a student perspective. We assure you that this article will help you make the correct choice on why you should choose data analytics. Read carefully and we hope you get your awaited answers after going through this article.

Benefits of Data Analytics:

In High Demand

Data Analytics is raising its demand due to the skills it provides, at all markets and sectors. The career benefits of Data Analytics are many. For example, students will develop analytical skills so that they can give heavy competition to anyone in the market. There were 1,071 search results for this profession.

With the increasing development, companies will generate plenty of data resulting in many job opportunities for this profession. And as not many students have expertise in this profession, it is a good career choice

. In India, reports promise by 2026, there will be an immense amount of increase in this particular career. Among the many benefits of Data Analytics, one is the job opportunities at renowned companies like Paypal, Insight Global, and others.

There is always a need for a Data Analyst in renowned companies. A wide range of job openings in sectors like insurance, retail, defense, healthcare, government, business, and human resources are already available and will only increase shortly.

According to LinkedIn, there are more than 83 thousand data analyst jobs in India. In today’s digital world, companies are forced to hire data analysts to achieve business growth. The sectors that have adopted the use of data analytics are those industries where modifications happen rapidly.

Companies want to adopt cost-effective methods to meet all time changing customer needs. And the plus point of this profession is that it satisfies all market needs. Once you have the right skills, this career will surely bring you many high-paying jobs.

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Scope Is Wide

Another one of the benefits of Data Analytics is the education and skills developed in data analytics, which pave the way to many career paths in numerous fields. You can choose to work in any sector with the knowledge gained in this profession.

Sectors like finance, security, marketing, management, and healthcare are longing for expertise in data analytics. According to the U.S. Bureau of Labor Statistics, the position of information security analyst is the eighth fastest-growing occupation.

And the demand for predictive analytics skills is more. If you improve your programming skills, learn mathematics, and get familiar with machine learning you can also shift from data analyst to data scientist. Developing some core data analyst skills, including SQL, R or Python, data management, statistical analysis, and data visualization will set you off as a junior analyst.

You can become a financial analyst, marketing analyst, system analyst, healthcare analyst, analytics manager, director of analytics, or even chief data officer (CDO), options are immense. If you plan to do a master’s degree in data analytics then the chances of getting a job in top companies rise.

As a data analyst, you can choose to work in any field of analytics as the career benefits of data analytics are immense. After gaining experience you can also work as a freelancer for a consulting firm. You get more compliance in the market with these analytical skills. According to reports, the profession is already in demand and is expected to grow in a short period.

A Better Salary Package – Benefits of Data Analytics

The pay of data analysts depends on the seniority level. The average salary varies from 4 lakh to 17 lakh per year, as per Glassdoor metrics. These metrics are calculated based on jobs posted on the platform. The salary range for a data analyst per year is as follows:

Entry-level experience – 3 to 4 lakh
Early career experience – 5 to 6 lakh
Mid-career experience – 7 to 10 lakh
Experienced – 12 to 14 lakh

You can become a financial analyst, marketing analyst, system analyst, healthcare analyst, analytics manager, director of analytics, or even chief data officer (CDO). With more experience, you can also shift to similar fields that pay heavily.

Take for example, the salary of chief data officer can increase up to 40 lakh or even 50 lakh per year, according to platforms like Glassdoor, Ambitionbox, etc. And it won’t be a wrong prediction if we say that the salary will get more raise with the increasing demand.

There are many offline and online courses available in India. In these courses, you get to learn all essential tools like Excel, Python, Power BI, Tableau, SQL, R, Alteryx, and much more.

The salary of a data analyst depends on three factors such as certification, experience, and skills in handling data. A valuable name certificate can influence the salary range of a candidate. These are some major benefits of data analytics that you can’t ignore!

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Benefits of Data Analytics – Learning Productive Skills and Tools

The technical benefits of Data analytics include learning the tools and skills that are always in demand. You might have heard names like Python, SQL, R, and other programming languages. Not only this, you also develop many soft skills like communication skills, presentation skills, analytical skills, and many more. Let’s study these skills and tools in more detail.

Programming and Other Tools

Statistical Programming is a type of language that focuses on solving data-heavy problems. In this programming, you get to learn important languages like Python, R, SAS, and other relevant programming languages to help you with many business projects. With the help of these languages, one can manipulate data and analysis.

R is a prominent tool used in academic research and data visualization. Another important language is SQL for database management. This language is critical if you want to pursue a career in data analytics. You can discover, update, and twist data according to your needs with its help.

Tools like Tableau and Power BI are used in transforming complex data in a more absorbable manner so that anyone can understand it without having any knowledge in the field. Power BI is a tool designed for creating reports to allow data tracking whereas Tableau is designed for creating complex visualizations without any coding.

Machine Learning

Machine Learning is a gift of AI Technology whose importance is said to be increasing with the rising importance of AI. This learning has been prominently introduced recently from the year 2022. The learning will only add to your other capabilities as a data analyst. With more demand in predictive analytics, supervised learning techniques along with machine learning can prove useful in drawing predictions based on organized data.

Mostly all kinds of businesses use patterns and insights to improve their overall efficiency and the main aspect of this branch is to build algorithms to find trends and patterns in data sets. As it is a gift of AI technology, it will start using analytical methods automatically leaving you with less effort.

Shortly, candidates who are familiar with machine learning will be preferred more than the candidates who are not familiar, as AI is already on the rise in 2023.

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Data collection and Data Filtering

Data Collection is like when a company collects customer feedback through social media and reviews to improve their services. You can gather data from anywhere, such as online resources, documents, spreadsheets, insights, metrics, and much more; where on the other hand, Data Filtering is a process of restructuring data in a presentable manner.

These both are very important skills that are taught in the program, as they will help you get off with the initial stage. Data needs to be cleaned and organized to make it accessible to everyone.

Big Data Technologies

With the changing world, new industries are positioning themselves at all corners, producing more complex data every year. A report says that 300 million people are trying to start about 150 million businesses. Suppose, if even one-third are launched, 50 million businesses will present themselves each year.

If data keeps on increasing at the same speed, big technologies like Hadoop and Spark will also raise their importance. There will be a need for employees who can handle large datasets, perform complex computations, and understand metrics and other software. The good thing is that the above-mentioned skills including this one come in handy with the other Benefits of Data Analytics.

Benefits of Data Analytics Soft Skills:

For Better Interaction and Professional Satisfaction

Along with technical skills, soft skills are the pillars that make you better at your workplace. This is also one of the Benefits of Data Analytics, you not only learn about productive tools but also develop many soft skills in advance. Your social and interpersonal skills add to your other built skills, for better interaction.

Whether it is forming customer relationships or other skills like time management, presentation skills, decision-making, communication, and problem-solving abilities; all of them result in better collaboration with others and oneself. Let’s understand the most important skills that you will build as a data analyst.

Presentation skills are very important when you want to bring your collected information into a visual form. Visualizing the data in a client-facing presentation, helps clients to understand the analysis better and draw solutions accordingly.

Data management skills guide you with discovering, filtering, and organizing data; it includes how to understand formats, metrics, records; how to bring them all together, and much more. SQL was a common tool used for this purpose in the early days and it’s still very useful in 2023.

Decision-making Skills are needed for companies to increase the probability of success rate, rather than relying on intuitions. These decision-making skills come with a strong base as it is predicated on the authority of advanced skills and tools. These skills help you understand the shortfalls of any business, giving you the ability to define your desired outcome.

The study of a variety of analytics like predictive analytics, descriptive analytics, diagnostic analytics, and prescriptive analysis helps you visualize the outcomes and where the changes should be made if made, whether will they be in favour of the company’s success or not. You get to decide with more accuracy.

Problem-solving abilities involve critical thinking, analyzing, modifying, etc. An analytical mindset will prepare you to understand problems more briefly, leaving your mind to make decisions logically. On the other hand, critical thinking will put your subjective opinions aside giving you the ability to think more objectively. If needed, you can also bring some changes to your traditional approach with this ability.

Communication skills are not just limited to presenting your report but also translating complex data into an easily readable manner. How much this skills is important, is out of the question; almost every job needs this skill. Enhancing your communication skills is also one of the Benefits of Data Analytics.

The ability to weave the collected information in such a way that it looks appealing to the client is the outcome that every company wishes for. It doesn’t matter how good you are technical, at the end of the day, if you can’t explain your business idea to your client, your efforts are in vain.

Customized Customer Experience

Companies always prioritize their customer demands. And Data Analytics can help businesses to meet client preferences at a personal level. By analyzing their customer behavior and shopping preferences, companies can suggest better services for each client.

Have you ever noticed how a product we saw on an online shopping platform keeps recommending itself on every other platform too? That’s the result of AI technology used by data analysts. The recommendations are always based on our preferences, making us feel prioritized.

Security Analytics

Hackers can exploit our data using different mechanisms. Therefore, it becomes very crucial to protect one’s privacy by all means. Data Analytics paired with Artificial Intelligence, can keep companies one step ahead of cybercriminals. Security Analytics is structured in such a way that it can quickly notify analysts of threats.

With the help of business applications, network traffic, user behavior data, external threat intelligence sources, and tons of resources, companies can prevent any kind of unnecessary invasion of their privacy.

Frequently Asked Questions:

Q1. Is data analytics a good career in the future?

According to the calculations of many reports from India and worldwide, there will be a huge increase in ten years for data analysts. More development will generate more data and there will be an excessive need for candidates that excel in data analytics. Even at present, Data Analysts get paid with high packages which will only increase shortly.

Q2. Do I need to know math to be a data analyst?

Knowledge of mathematics, algebra, statistics, and probability is essential to become a data analyst. Proficiency in these skills will complete more than half of your daily work problems. To understand algorithms, insights, and metrics from collected data, you will need the support of maths. However, math is not the only requirement to pursue this career but it’s the most important.

Q3. What education do you need to become a data analyst?

To become a data analyst, you will need to have basic knowledge of maths, statistics, probability, and computer science. You have to score at least 50% for further education. After that, you can obtain a graduation or post-graduation in Computer Science, Mathematics, Statistics, or Economics as a specialization subject. If you spend less time, you can also look for online courses in data analytics from institutes like IIM Skills, UpGrad, Coursea, IBM, and other platforms.

Q4. Is coding necessary for data analysis?

Coding is not the must-have requirement to become a data analyst but it can provide you with work experience. However, there are many tools available in the market for data visualization without coding, such as Tableau, Power BI, or Excel with excellence in Python, R, SQL, and other programming languages.

Conclusion

The role of a Data Analyst involves multitasking and some technical skills too. If you plan to pursue a career in Data Analytics, we would like to tell you that students with a background in mathematics, statistics, computer science, or economics usually have a higher chance in this career path.

You can either have a bachelor’s or master’s degree in the previously mentioned fields, which will cost you four or five years, or you can opt for an online course that will cost you six to eight months.

Are you ready to take this step in your data analytics journey? IIM SKILLS is a trusted online platform that offers a 6-month course with an additional 2-month internship in data analytics. With their master certification; you get access to advanced tools, lifetime entrance to their recordings, all-time support, the guidance of trained professionals, and many more.

Vaibhav Kakkar