Often business intelligence is confused with business analytics, the reason being that both are superficially similar and influence the data strategy adopted by companies. Let us first understand the fundamental difference between the two, to identify how each influence the growth of a company.
Business Analytics and Business Intelligence – How are they different?
- Business analytics is used to analyze historical data to predict the future business trends; whereas, business intelligence solutions help to collect and analyze the current, actionable data that can be used by businesses to get insights for improving their business operations
- In business intelligence, the data is collected from some sources like questions, reporting, and online analytical processes. However, in business analytics, statistical and quantitative data are used for explanatory and predictive modeling
- Business intelligence is a broader concept when compared to business analytics since it uses a wide range of tools and methodologies to help companies formulate an effective data strategy.
Making A Choice Between Business Intelligence and Business Analytics
Business intelligence and business analytics serve different purposes for a business. Therefore, it is essential for companies to carefully understand which data strategy best suits their business model and adopt the same accordingly. Let us discuss a few features of business intelligence and business analytics that companies can keep in mind while making a choice:
- BI is evolving – Over the years business intelligence tools have evolved and become much more user-friendly. Earlier, companies had to depend on data scientists to use BI systems and build dashboards; however, today they are automated, which make the day-to-day use of business intelligence tools easier for companies.
- Business Analytics and Social Platforms – Social media platforms have gained exponential popularity over the years. This has forced most of the companies to mark their presence on different social media platforms. Business analytics helps companies to integrate social networking and decision-making capabilities to identify gaps in customer requirements and formulate the necessary strategies
- Faster Pace of Business Analytics – Business analytics can process data at a much faster This is highly essential considering the huge volume of data that are available for a company. Today there are various analytical tools that can be used across IT teams, which makes it easier for companies to carry out analytical tasks easily.
- BI as a Gateway to Business Analytics – Business intelligence uses basic calculations to derive strategies; whereas, business analytics utilizes various mathematical models to help formulate strategies. Though BI tools play a major role in an enterprise, their capabilities are limited when compared to analytics.