industry & research
Dollars in the data
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making and analytical capabilities to produce evidence-based
insights from data that can help organisations make more
informed decisions to underpin organisational or business
strategies. Analytics professionals typically have a specific goal
in mind when they work with data, looking for ways to support
organisations in making strategic decisions.
Data science and data analytics are central to internet searches,
fraud detection, targeted advertising, route planning, speech
recognition, image analysis, genetic risk prediction, virtual
reality, customer loyalty, product development and autonomous
vehicles. But there are many areas awaiting development in
the future.
DEMAND FOR ANALYTICS SKILLS GROWS
Employers are paying a premium for data experts.
Tracey Wilcox and Bruce Henry
T
he volume of data available to organisations is growing
exponentially and so is demand for the professionals who
know how to gain advantages from the use of ‘big data’.
Universities are responding by launching more courses to meet
this demand for data experts.
Amid the skills shortage, employers are paying a premium for
data scientists and analytics professionals who have the superior
technical skills to manage and take advantage of the data boom.
From industries as varied as health, defence, finance, transport
and logistics, to agriculture, media and technology, organisations
are relying on data science and analytics professionals to deliver
insights from data to drive their organisations forward.
The ‘big data’ boom has been created by growing internet
usage and cloud computing, as well as the proliferation of
online platforms and devices on which people are accessing an
ever-increasing number of services. Some organisations need to
extract knowledge from the data to do their core business, while
others are seeking ways to use data to obtain strategic advantage
or support innovation.
Data scientists use analytical tools in mathematics, statistics
and computer science to extract the insights that power
business and organisational development. They scrutinise data
for patterns of behaviour and insights to predict future trends
and improve productivity and sales. Data scientists often came
with qualifications in computer science or mathematics, but
increasingly data science programs are being created to provide
qualifications. Some of these programs are at the undergraduate
level, but most are postgraduate, building on an undergraduate
background in mathematics, statistics or computer science.
On the other hand, analytics professionals might come from
a business background and use a broad set of strategic decision
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IBM and Burning Glass have predicted that, by 2020, the number
of positions for data and analytics experts in the US will increase
by 600 per cent. Demand is coming from business, government,
healthcare providers and other organisations who need analytics
professionals to organise and extract meaning from data. Similar
growth can be predicted for Australia.
As demand grows, salaries for data scientists and analytics
professionals are increasing at a much greater rate than
professional salaries generally.
The Institute of Analytics Professionals of Australia (IAPA)
2017 Skills & Salary Survey reported that the top 10 per cent of
earners of all data analytics professionals reported an average
jump of 7 per cent to a median salary of $235,000 in 2017. The
median salary of team managers and technical specialists was
$163,000, while the average salary of an analytics professional
was $130,000, well above the average salary of professionals at
around $91,000 in May 2018.
A survey by jobs website Indeed.com.au as at 6 May 2019
reveals that the average annual salary for data scientists in
Australia was $116,889. This figure compares favourably to the
average of $94,131 for solicitors and $71,719 for accountants.
Indeed’s analysis of data scientist salaries was based on 327
salaries submitted to it anonymously by data scientist employees
and users and collected from job advertisements on the site in
the past 36 months.
Data scientists also command a premium compared to other
IT professionals, with systems engineers averaging $112,846 and
web developers averaging $77,322, according to Indeed.
What is also impressive about the analytics industry is that
the wage gap between males and females is narrower than in
many other industries. The pay gap between male and female
salaries in 2017 improved slightly to 8 per cent, almost half that
of the Australian job market at 15.3 per cent, according to the
IAPA 2017 survey.
PROVIDING THE SKILLS NEEDED
Data science and analytics skills are increasingly being
demanded by organisations of all kinds as they seek to
derive value and insights from their data. Since there aren’t
enough experts to go around, universities are launching
undergraduate and postgraduate degrees in both data science
and analytics.
Data scientists need knowledge of database systems, including
modelling, design and implementation. They need very high-
level programming skills that extend beyond Python. They need