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MS in Business Analytics or Data Science? How to Choose the Right Master’s Program for You

Key Takeaways:

  • A master’s in business analytics focuses on applying data analysis to solve real-world business problems, often using tools like Excel, Tableau, and Power BI.

  • A master’s in data science prepares students for technical roles involving machine learning, programming, and statistical modeling with tools like Python and R.

  • Career paths differ: Business analytics graduates often become business analysts or BI consultants, while data science grads work as data scientists or machine learning engineers.

  • Salary potential varies by role and industry, but in general, data science roles command higher starting salaries due to technical specialization.

  • The right degree depends on your background and goals: choose business analytics if you’re business-minded and strategic; choose data science if you enjoy programming and deep technical work.

Data has become a major discussion topic as of late—data safety, security, and use are on the minds of millions of consumers. On the business side, industry professionals are seeking to acquire user data to leverage information systems and information technology to analyze customer behavior and make better decisions for their business. 

Globally, the data science market is growing and will continue to grow at a rate of nearly 30% each year between 2024 and 2033.1 This growth translates into a demand for data analytics professionals as businesses continue to rely on data-driven insights to make organization-wide decisions.

The increasing demand for data scientists, data analysts, and data engineers—including roles such as machine learning engineer and AI consultant—has many professionals exploring advanced education options, like master’s programs in information technology and information systems, but they may be unclear about which path to pursue. Lifelong learners may be asking themselves: Should I pursue a master’s in business analytics or a master’s in data science? Both graduate studies focus heavily on data, information systems, and AI tools, with the promise of strong career opportunities after graduation. However, as part of the greater data ecosystem, these two disciplines serve different functions.

Wherever you are in your career—a recent graduate, a professional looking for a career pivot, or a seasoned data analyst hoping to upskill—a business analytics or data science master’s program is a worthy academic path, both of which help students build skills in information technology and achieve long-term career goals.

This guide will help you navigate your decision by examining the differences between these two programs, the potential career paths, and expected salaries upon graduation, ensuring you have everything you need to make an informed decision.

What is a Master’s in Business Analytics?

A master’s degree in business analytics combines knowledge of raw data with the analysis and interpretation of data using information systems and AI tools to make business decisions regarding performance and areas for improvement. Unlike programs that focus squarely on data analysis and interpretation, business analytics concentrates on translating complex data into actionable business insights.

Through practical application rather than theoretical modeling, business analytics students learn how to use statistics to process, mine, and visualize data to help uncover patterns that enable better decision-making. A master’s program in business analytics typically combines training in technical skills with business knowledge, preparing students to serve as translators between data teams and leadership. 

Business analytics professionals are crucial members of any organization. They help businesses optimize their operations, improve efficiency, and create a measurable impact. With business analysts translating and creating data-driven insights using advanced AI tools, businesses are better able to forecast sales, streamline their supply chains, or identify new marketing opportunities. 

What is a Master’s in Data Science?

Unlike graduate studies in business analytics, a master’s in data science hinges on the more technical foundations of data analytics, big data, and the development of large and complex datasets. Coursework combines mathematics, algorithmic structures, statistics, and computer science to train students to analyze data, build predictive models, and solve real-world problems. 

By learning programming languages like Python, students explore how to design machine learning models, process data, and automate analytics to uncover patterns using generative AI and other AI tools. Students will be able to design their own algorithms that can predict trends and specific outcomes. Master’s in data science courses also focus on statistical modeling, enabling students to analyze both structured and unstructured data.

Once in the workforce, data scientists can excel in roles in a variety of industries, including as a data engineer, machine learning engineer, or AI consultant in fields like healthcare and finance. As the fields of data science and data analytics continue to grow, professionals who understand these concepts will be in high demand. 

Curriculum and Skills Comparison

When deciding between a master’s in business analytics and a master’s in data science, it’s important to know what skills you’re looking to build and to understand how you work with data.

In each discipline, you’ll focus on different skills, learn different tools—like generative AI and machine learning—and eventually qualify to work on specific projects. The table below breaks it down further.

Component

Business Analytics

Data Science

Focus

Strategy and insight

Modeling and prediction

Tools

Tableau, Excel

Python, R, SQL

Math Requirements

Moderate

Advanced

Projects

Business case analysis

Machine learning, data wrangling, data analytics, AI tools

Aspiring master’s students who are interested in learning how to analyze data, inform business strategy, and communicate findings with other team members might be more suited to become a business analyst. To build these skills, they’ll learn how to use tools like data visualization, business intelligence software, and analytics programs like Tableau and Excel. With this knowledge, students are able to interpret data, identify trends, and recommend solutions that will help businesses achieve their goals. To excel in a master of business analytics, students should have a moderate grasp of statistics, which can help them better understand how to apply insights to challenges in the professional business world.

A master’s degree in data science, on the other hand, relies on more technical and mathematical skills. Students will develop knowledge in programming languages, machine learning, big data, generative AI, and statistical modeling. They’ll also learn how to wrangle data, which involves preparing and cleaning large, complex datasets to identify trends and organize data. Previous experience in statistics and coding will be beneficial for students pursuing a master’s in data science.

Career Outcomes: Job Titles and Industries

Students who obtain a master’s in business analytics or data science can achieve the skills and knowledge for a wide range of careers in information systems and information technology.

  • Business Analytics Jobs and Industries

    Those who obtain a master’s in business analytics may qualify for roles like business analyst, marketing analyst, or business intelligence (BI) consultant. Each of these roles specializes in translating data into real business strategies. They also help optimize operations and support decision-making with the use of data.

    Business analytics graduates can transition into a wide variety of industries, as well, from healthcare to e-commerce and from finance to manufacturing. By pursuing more niche roles like marketing analyst or management consultant, job opportunities expand even more. For example, marketing analysts are in high demand in retail, e-commerce, and digital marketing agencies. As of 2023, the median annual salary for a business analyst was $99,410, with the job expected to experience a projected growth rate of 11% over the next decade.3,4

  • Data Science Jobs and Industries

    Graduates with a master’s in data science tend to pursue more technical roles like data scientists, machine learning engineers, and data engineers. In these roles, professionals build predictive models, design algorithms, and manage big data. Data scientists are responsible for developing advanced statistical models and using machine learning to solve complex data problems.2

    Data science roles are prominent in tech companies, research institutions, finance companies, and AI labs. According to the U.S. Bureau of Labor Statistics (BLS), data science jobs are projected to grow by 36% (“much faster than average”) during the next 10 years.5 The median annual salary for data scientists was $112,590 as of 2024.5

Business Analytics vs. Data Science: Salary Comparison

Salaries for roles in business analytics and data science can vary based on job title, level of experience, region, and industry. Both fields offer strong earning potential, especially as an AI consultant, but there are some nuances that should be considered.

  • Business Analyst Salary

    According to the BLS, the average salary for a management analyst in the United States is $101,190.4 More broadly, professionals who work in business and financial occupations can earn a median annual salary of $80,920.6

    Data from Payscale reveals the average business analyst salary as $69,266, with potential to grow to up to $85,000 with more professional experience.7

  • Data Science Salary

    Data scientists and machine learning engineers tend to earn higher salaries than business analysts due to their more technical expertise and experience with AI tools and generative AI. Per Payscale, the average salary for a data scientist in the United States is $101,913 per year, with more experienced professionals earning up to $142,000 per year.8

  • Which degree leads to a higher salary?

    A master’s in data science leads to a higher average salary compared to a master’s in business analytics. This is due to the more technical knowledge and skills required for a data scientist, machine learning engineer, or AI consultant to perform their job. 

Which Degree is Right for You?

Deciding between a master’s in business analytics and a master’s in data science can depend on a multitude of factors. You’ll want to ask yourself questions like:

  • What am I interested in doing?

  • What are my strengths and weaknesses?

  • What are my career ambitions?

If you enjoy problem-solving, especially in a business context, you may be more suited for a master’s in business analytics. These professionals influence business strategy, communicate insights to stakeholders and leadership, and use business intelligence tools, information systems, and AI tools to make decisions. A good fit for a business analyst role is someone who will enjoy working with structured data and applying statistical analysis. 

However, if your interests lean more toward coding, math, and statistics, data science may be the path for you. As a data scientist or machine learning engineer, you’ll build algorithms and predictive models, relying on technical and math-intensive skills like programming and machine learning.

  • Prerequisites and Modalities

    To gain admission into a master’s in business analytics program, you’ll need moderate foundational knowledge in statistics and business concepts. For a master’s in data science, however, you may need a stronger background in mathematics, statistics, and programming. 

    Both degrees have flexible learning options, from in-person, on-campus study to remote/online options. They also offer full-time and part-time coursework for those who have other commitments and need to self-pace through the program.

Business Analytics and Data Science Program Examples

Whether you’re considering an on-campus or an online master’s in business analytics or data science, the following programs will have an option that meets your needs.

Master’s in Business Analytics Programs

Master’s in Data Science Programs

Next Steps: Data Analytics vs. Data Science

The decision of whether to pursue a master’s in business analytics or a master’s in data science is truly one of personal preference and ambition. With both roles, you’ll be relying on strong data knowledge to make a considerable impact on a business’s operations. If analyzing trends, making strategic decisions, and communicating insights to drive business outcomes sound more appealing to you, you’ll probably enjoy a master’s in business analytics. But if you’re more interested in coding, math, and working more closely with technologies like machine learning, data science may be a better match for you.

To help you make your decision, take some time to reflect on your current skills, your comfort level with technical skills like programming and statistics, and your long-term career objectives. 

When you’re ready to take the next step, take our career quiz, find the right master’s program, and start realizing your dreams of working in data.

Sources:

1https://market.us/report/data-science-platform-market/ 

2https://bschool.pepperdine.edu/masters-degree/business-analytics/article/what-can-you-do-with-a-business-analytics-degree.htm 

3https://damore-mckim.northeastern.edu/resources/cc-what-type-of-jobs-can-you-get-with-a-masters-in-business-analytics/ 

4https://www.bls.gov/ooh/business-and-financial/management-analysts.htm 

5https://www.bls.gov/ooh/math/data-scientists.htm 

6https://www.bls.gov/ooh/business-and-financial/ 

7https://www.payscale.com/research/US/Job=Business_Analyst_(Unspecified_Type)/Salary 

8https://www.payscale.com/research/US/Job=Data_Scientist/Salary