Why does a company need a Data Analyst?

Are you planning to become a Data analyst/BI analyst?
Do you know why an organization would require a Data/BI analyst?
What value do you add using your data skillsets?

In this article, I’ll briefly answer the above questions.

As you all know, data analytics is one of the fastest-growing domains with many job openings in 2023. If you’re planning to become a data analyst, then you need to know why would anyone need a data/BI analyst in the first place.

Profits

The goal of every company in any business is to make profits (except non-profit organizations). To make profits, the company’s revenue (money inflow) should be greater than its expenditure (costs/money outflow).

A company can increase its prospects of obtaining profits by either:

• Increasing its revenue (OR)
• Cutting its costs

Business functions

Every company will have multiple business functions like finance, HR, operations, sales, marketing, etc. Under each business function, you will have many business processes.

Thanks to the digital age, most of the processes can be tracked using the data generated during those business activities. For example, in the Sales function, you can track the retail sales activity with all the transactions recorded in a database.

Role of Data/BI analyst

This is where a data/BI analyst role is required. As a techno-functional resource, you should be able to analyze the data generated during the business process and generate useful insights.

These insights should help in either cutting down costs or increasing revenue generated through that business process. You will have multiple data teams to carry out this task across all business processes of the company.

Conclusion

Thus, in the big picture, a data/BI analyst helps the company in earning more profits. This is the reason why companies are investing in data/BI analysts for the value you bring in using your skillsets.

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