Do you also consider business analytics business intelligence as same terms? If yes, don’t worry you are not alone. In fact, many of us have this misconception that business analytics business intelligence are the same terms but it’s a matter of debate whether business analytics is a subset of Business intelligence or vice versa.Â
Reading this article will help you to understand the basic difference between business analytics business intelligence.
Business Analytics Business Intelligence – Key Takeaways
- Understanding the concept of business intelligence
- Understanding what Business analytics is.
- Learning the key difference between business intelligence Business Analytics.
Business Intelligence
Business Intelligence (BI) refers to the process of gathering, analyzing, and interpreting data to make informed business decisions. It involves using various tools, technologies, and methodologies to transform raw data into meaningful and actionable insights. The key objectives of business intelligence are to improve decision-making processes, optimize business operations, identify opportunities for growth, and enhance overall business performance.
Business Intelligence typically involves the following steps:
- Data Collection: Gathering data from multiple sources such as databases, spreadsheets, ERP systems, web analytics tools, and external sources.
- Data Integration: Consolidating and integrating data from different sources to create a unified view of the Data.
- Data Analysis: Analyzing data using statistical analysis, data mining techniques, and business intelligence software to uncover patterns, trends, correlations, and insights.
- Data Visualization: Presenting the analyzed data in visual formats such as charts, graphs, dashboards, and reports to allow clear understanding and decision-making.
Business Analytics
Business analytics is similar to Business Intelligence in most of the roles but it is being considered as a more statistical-based field, where data experts use quantitative tools to make predictions and develop future strategies for growth. Business Analytics involves the use of data analysis techniques and advanced statistical methods to gain insights, make predictions, and drive decision-making within an organization.
Business analytics tools are used in many functions like:
- Correlational analysis
- Regression analysisÂ
- Factor analysis
- Forecasting analysis
- Text mining
- Image analytics
Many of these tools also require prior training by Data scientists, which makes them hard to use by normal people.
Difference between Business Analytics Business Intelligence
As we have discussed above, business analytics and business intelligence are quite similar to each other, business analytics is nothing but a superset of business intelligence, as business analytics uses the latest and most advanced statistical tools to fetch and analyze data.
For example, if business intelligence is telling business leaders what their current customers look like.
Business analytics at the same using advanced tools and machines might tell them about what their future customers are doing, what their needs are, and much more.Â
Hope this example will help you to understand the main difference between Business Analytics Business Intelligence,Â
let us understand it more clearly with some more basic differences given below-Â
| Â Business Intelligence | Business Analytics |
| Their role is to analyze past and present data, to make decisions on current business problems | Their role is to analyze past and present data thoroughly, to make decisions based on future and present conditions |
| Tools used include Power BI, Tableau, and Qliksense. | Tools used in this include R, Advanced Excel, SAS, Power BI, Tableau, Qliksense, etc. |
| Useful for running business operations smoothly. | BA is useful for making the change in business by analyzing future growth and trends. |
| BI is only responsible for Descriptive analysis | BA is responsible for doing descriptive, perspective, and predictive analysis. |
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Business Analytics Business Intelligence FAQs
What is a Business Analyst (BA)?
A Business Analyst is a professional who analyzes large amounts of Datasets to provide valuable and actionable Data that help in improving efficiency, identifying future opportunities, and solving business problems.
What does a Business Analyst do?
Business Analysts gather and analyze data, create reports, identify business needs, and propose solutions that align with organizational goals.
Business analysts help organizations make informed decisions by analyzing and predicting future trends.
How does Business Intelligence differ from Business Analytics?
Business Intelligence focuses on collecting, storing, and analyzing historical data to generate insights and reports. Business Analytics, on the other hand, uses statistical analysis, predictive modeling, and machine learning to forecast future trends and outcomes.
What are some common Business Intelligence tools used by business analysts?
Popular Business Intelligence tools used by business analysts include Tableau, Power BI, QlikView, MicroStrategy, Advanced Excel, R, SAS, etc. These tools help visualize data, create dashboards, predict future trends, and generate reports for data analysis.
