The thing with business intelligence and business analytics is that both these terms are used interchangeably and this includes professionals working in these domains as well! However, business experts are always debating if one is a subsection or the other – if there is indeed an overlap between these, how does that happen, and how are they defined?
In this article, we will attempt to provide you with a clearer idea of business intelligence vs. business analytics in terms of how different they are from each other. This is important for business owners as understanding these differences helps them identify the right talent and tools for business growth.
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What is Business Intelligence?
Business intelligence can be defined as an infrastructure that is used to analyze and store data that you collect from business operations. It is through the process of data analysis and collection that you get real-time metrics that offer you the support you need to make better decisions for your business. If you have a good business intelligence dashboard it will help you track performance benchmarks, maximize workflow, and spot patterns and trends. Business intelligence uses a wide range of tools such as software and various other systems such as Excel spreadsheets and supply chain management and reporting software that help it track real-time data.
Popular BI Tools:
- Tableau – Data visualization and interactive dashboards
- Power BI – Microsoft’s business analytics and visualization tool
- QlikView / Qlik Sense – Data discovery and self-service BI
- SAP BusinessObjects – Enterprise-level reporting and analytics
- Looker – Google’s data analytics and BI platform
- Domo – Cloud-based BI with real-time data insights
- IBM Cognos Analytics – AI-powered business intelligence
- MicroStrategy – Advanced BI and enterprise analytics
Also read:- Difference Between Business Analysis and Business Analytics
What is Business Analytics?
As per the business analytics definition, it is the process where you take the data that you get from business intelligence tools and convert it to actionable and, thus, useful insights. The commonest methods used in business analytics are data mining, forecasting, aggregation, and visualization. Business analytics professionals often work with data scientists so that they can make sense of the data they have and thus come up with the right strategies. Many consider business analytics to be a subset of business intelligence.
Popular BA Tools:
- Python – Used for data analysis, machine learning, and automation
- R – Statistical computing and data visualization
- SAS – Advanced analytics, predictive modeling, and AI
- SQL – Querying and managing structured data
- Apache Spark – Big data analytics and machine learning
- Google Analytics – Web traffic and user behavior analysis
- IBM SPSS – Statistical analysis for research and forecasting
- Alteryx – Data blending, predictive analytics, and automation
The Major Areas of Difference Between Business Intelligence and Business Analytics
1. The difference in terms of focus
This is one of the commonest areas of difference between the two and an easy way to distinguish them as well. A business intelligence analyst uses historical data to understand and make decisions on present business operations. On the other hand, in business analytics, the professionals use data for predicting business opportunities and trends in the future. This could mean that business intelligence works through pain points in the internal workflow of an organization to increase efficiency or meet specific goals.
2. The difference in terms of usage based on the size and the age of an organization
The age and the size of a business determine whether it will hire a business data analyst or not. Usually, bigger organizations employ business intelligence while business analytics can be used by organizations of every size. A business that has passed through significant restructuring or a younger one is likelier to focus on business analytics so that it can use its historical data to predict future trends. More established organizations, which are usually content with their growth rate, focus on business intelligence tools to get information on current operations and performance.
The thing is that most businesses will benefit when they use both at the same time.
3. The difference in terms of dealing with structured and unstructured data
A BI analyst is far better equipped to deal with structured data because business intelligence tools work better that way. You get such data from the likes of ERP (enterprise resource planning) systems and financial software. On the other hand, business analytics tools are better at transforming semi- and unstructured data into organized data which can be analyzed with greater ease by employing predictive analysis.
Conclusion – the difference in terms of who should work with them
Business intelligence tools are more suited for people who require access to real-time data in an organization such as managers, accountants, marketers, and departments who lack technical expertise in data analysis. These tools can offer them the information that they need to make sound business decisions without requiring the assistance of data scientists or analysts. Business analytics tools, on the contrary, require more expertise and navigation to understand data so that it can be changed to something meaningful. This is why often they can be used only by data scientists and data analysts.
No matter which of these areas you work in, you must have proper education and training through regular or online post graduate courses in India such as an MBA in Business Analytics from Amity Online or an MBA in Business Intelligence and Data Analytics from the same university.
