There are two simple reasons why data analytics matters. Firstly, it’s useful for decision-making.

Secondly, it’s evidence-based. Combine these two attributes, and data analytics becomes a
potent tool. Basing decisions on empirical information (rather than relying on opinion or ‘gut
feel’) is a much more scientific way of approaching problems. While this does not mean data
analytics is always 100% accurate, it’s by far the best tool we have for predicting future trends
and drawing conclusions about past events.
Data analytics also has a wide range of applications across society. Online, you’ll often find data
analytics touted as a tool for business intelligence, e.g. predicting future sales or informing
product development and marketing spend.

What types of data analysts are there?

As you might have been able to glean so far, the practice of data analysis has an important
function with applications across many industries.
However, data analytics goes far beyond simply boosting a company’s bottom line. It’s also
used in health settings to improve patient care. It’s currently
being applied in agriculture to transform the way we feed the world. It’s even used by
governments to tackle issues like human trafficking. So if you want to help improve the world—as
well as business—a career in data analytics might be for you!
With regards to types of data analysts and job titles, here are some of the common titles you may
see on job advertisements:
Business analyst
Business intelligence analyst
Business systems analyst
Medical and healthcare analyst
Market research analyst
Operations analyst
Intelligence analyst

Technical skills for data analysts

Hard skills sometimes have a steep learning curve. However, with a little discipline, anyone can
pick them up. Key hard skills for data analysts include:
Math and statistics: You’ll be mathematically minded. You may have an undergraduate or
Master’s degree in an area like applied math, statistics, or computing. However, while
qualifications can be useful, they’re not always necessary if you’re a newcomer to the field. As
long as you have solid math skills, e.g. algebra and calculus, that could be sufficient.
Programming skills: To create or tweak algorithms that automate data analytics tasks (like parsing
or re-structuring large datasets) an element of programming know-how is unavoidable. Scripting
languages like Python or MATLAB and statistical computing languages like R and SAS are all
popular in data analytics.
Database knowledge: As well as programming languages, you’ll need some understanding of
database warehousing software, e.g. Hive, and analytics engines like Spark. You’ll also need to
know database query languages like SQL.
Excel skills: Commonly used for transforming raw data into a readable format, or for automating
complex calculations, MS Excel is core to any data analyst’s toolset. Be sure to familiarize
yourself with its key analytical functions.
Visualization skills: A core aspect of data analytics is the ability to visualize data with charts and
graphs. This helps us identify patterns, correlations, and trends. At the very least, you should be
able to create plots using Python, or tables and charts using MS Excel.
Basic machine learning knowledge: As a beginner, nobody will expect you to be an expert in
machine learning—it’s an entire discipline in its own right. Nevertheless, the tenets of machine
learning underpin many data analytics tasks. You should be familiar with the theory, e.g.
supervised learning versus unsupervised learning.
Non-technical skills for data analysts
While soft skills can be honed with practice, they are generally considered more inherent. You’ll
need to have a natural flair for the following:
Communication: Communication is key in any job, but especially in data analytics. Obtaining
accurate insights is the priority, but effectively communicating these to wider audiences is vital.
You should have excellent interpersonal skills, be able to communicate complex concepts in
straightforward terms, and be confident giving presentations and answering questions for non-
technical personnel.
Critical thinking: Arguably the most important skill in data analytics, critical thinking is the ability
to question what’s in front of you to better understand it. You’ll have a naturally inquisitive
mindset, won’t take anything at face value, and will approach tasks using logical reasoning and
deduction.
Creative problem-solving: Problem-solving involves applying your reflective way of seeing the
world to specific data-related situations or problems. You’ll take a step-by-step approach when
defining a problem, devise an approach for solving it, and carry out the necessary subsequent
tasks. These tasks will be different every time, so you’ll need a creative mindset.
Ethics: You’ll understand the importance of data privacy, be aware of your personal biases, and
be comfortable presenting outcomes—even when these are undesirable or are unlikely to win you
any praise. Adhering to a strong ethical code is hugely important. Without it, data can be easily
misused, which can have a real-world impact on individuals and groups affected by your work.
If you’re dipping a toe into data analytics for the first time, ask yourself: do these skills describe
you? If not, don’t worry. While it’s important to appraise your strengths and weaknesses
honestly, the most important thing is to be enthusiastic about the field and willing to develop the
necessary skills. Nobody hiring a beginner will expect you to be an expert right away.
7. What tools do data analysts use?
So far, we’ve covered the skills a data analyst needs and the high-level process and tasks they
need to carry out. As a beginner, this may feel a bit overwhelming. Fortunately, there’s a huge
range of applications and software to help streamline the process. While these require a bit of
technical know-how, once you’ve covered the basics, you should find the whole process a lot
easier.
Common tools for data analysts include:
MS Excel
Python
R
Databases and management systems
SQL
Let’s take a closer look at some of those now.
MS Excel for data analytics
A must-have for any data analyst is MS Excel. Excel allows you to sort data, break it into smaller
subsets, and use a wide variety of functions to understand it better. These functions include pivot
tables , search functions like XLOOKUP and VLOOKUP , the AVERAGE function (which gives
you the average of a given range of numbers), and the SUMIF function (which lets you calculate
the sum of different cells). These tools, along with a great many more, make Excel an invaluable
piece of software for beginners and experts alike.
Python for data analytics
The general-purpose programming language, Python, has fast become the go-to programming tool
for data analysts. This is partly because of its simple syntax, which makes it quick and easy to
learn. However, its popularity is also down to the fact that the Python Package Index (PyPI) offers
a massive range of software libraries.
Python can be used for almost any aspect of the data analytics process. For instance, Pandas is
excellent for manipulating time-series and other quantitative data. Matplotlib is perfect for data
visualization. And NumPy is popular for conducting a range of complex mathematical functions.
These are just three of the many thousands of Python packages that are available.
R for data analytics
R, another programming language, is also common in data analytics. While R is generally
considered more complex to learn than Python, it remains popular due to its historical use in
statistical programming (which has benefits in a field like data analytics). While R doesn ’t carry
out things like image processing with the ease of Python, it has more data analytics functions built
in. It’s also often used in scientific fields. Like Python, R also has a library of software, CRAN ,
with many additional packages available.
Databases and data management systems
As the variety of data we collect becomes more complex, the way we store and manage these data
is also evolving. In data analytics, it’s vital to have an understanding of how databases and data
warehouses work. For instance, MySQL is a relatively simple type of relational database
management system that is commonly used.
Apache Hadoop, meanwhile, is a more complex framework, used to store, manage and process big
data using distributed databases. Whether you’re using simple databases or complex
infrastructures, they are ultimately unavoidable!
Structured Query Language (SQL)
SQL (sometimes pronounced ‘sequel’) is a programming language designed to communicate
with relational databases. In a world where data is the main currency, this has obvious
applications. While relational databases are built using a variety of languages, such as C or C++,
SQL allows you to pull, add or edit data without needing knowledge of the database’s native
language.
Since most organizations now have information stored digitally or online, SQL is becoming an
important language to learn, even for non-analysts. It’s a must-have for those in the field.
Industry-specific data analytics tools
In addition to the tools already described, the industry is starting to produce ever-more
sophisticated sector-specific applications to support data analytics. These tools range from general
business intelligence software like Microsoft Power BI , to data visualization and dashboarding
applications like Tableau .
They also include niche products that you’ll only be likely to learn if you work in a specific
industry. For instance, Definitive Healthcare is an analytics platform designed specifically to
manage tasks relating to health data.