Business Intelligence and Business Analytics are the indispensable and most common tools of modern business to optimize workflows. To understand how each tool can benefit, let’s figure out the definitions.
Business Intelligence is the process of collecting, storing and examining data owned by a company to ensure smooth operations. BI includes various tools and software: spreadsheets, reporting system, monitoring software, data mining software, event management, online processing, dashboard development, etc. BI provides the ability to interpret big data, identify new opportunities and implement new development strategies. The ability to combine internal and external data is the BI advantage. This provides a clear current situation vision and understanding, that cannot be obtained using single data. Incorporating BI into the workflow helps organizations understand the business, market, customer needs and behavior.
Business Analytics is a statistical technology using quantitative methods for obtaining information, forecasting defects, and developing strategies. BA tools: predictive analysis, forecasting analysis, data aggregation, association and sequences identification, correlation analysis, factor analysis, data visualization, growth analysis, optimization, etc. BA usage involves the involvement of data processing specialists, as well as an additional specialized training. The decision-making process with BA occurs through numerical analysis methods (predictive modeling, analytical modeling, explanatory modeling).
What is the difference between Business Intelligence and Business Analytics?
BI and BA perform different tasks and roles in the business optimization process. However, both tools are an important and integral part of operational activities for better understanding the business, ensuring an efficient decision-making process, optimizing business processes, predicting trends and gaining a competitive advantage.