#businessanalytics

Business Intelligence vs Business Analytics

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?

  1. The main focus of BI is the analysis of historical and current data. BI provides a process for analyzing / comparing past events, the current situation and business development over a certain period. Using this tool it is possible to find the cause of the problem and determine the necessary actions to fix it. The main focus of BA is predicting future results. Using this tool it is possible to determine the consequences of an unresolved problem in the future, possible strategies and predict the results.
  2. BI works with past and current data to determine business needs. BA works only with past data to predict business needs, customer needs and drive productivity.
  3. The task of BI is to provide a vision of current business operations, information on current trends and customer interests. The task of BA is to provide information on changes in business operations, increased productivity, future customer needs.
  4. Basic BI tools: Qlik Sense, SAP Business Objects, TIBCO, PowerBI, etc. BA tools: Word processing, Google documents, MS Office tools, MS Visio, spreadsheets, etc.
  5. BI is a tool mainly for large companies whose goal is to ensure smooth running of business. BA is a tool for small companies to develop business, improve efficiency and achieve goals.
  6. BI uses more User Interface Dashboards for analysis and carrying out operations, BA uses more tools and software applications.
  7. BI methods and technologies for data analysis: reporting, real-time analytics, dashboards, online analytical processing, etc. BA methods: predictive modeling, data modeling, requirements modeling, SWOT analysis, etc.

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.

10 up to date BI terms

Man of today is an active user of advanced technologies. Every day each of us deals with different technologies that lighten and improve the life: internet, smartphones, messengers, cloud data warehouse, online banking etc. Business also doesn’t stand apart and implements different technologies to optimize its operative activity. It’s difficult to imagine that all these technologies can get along without analytics. In spite of its not always proper and effective usage, the practice necessity is out of questions and doubts. Data is a valuable company resource that deserves attention and analytics the relevance of which continues to grow. Let’s consider 10 key words of business intelligence 2021.

  1. Embedded Analytics – analytical content integration into business process applications. With the help of this decision there appears possibility to get all necessary information. In addition, users work efficiency and ability to solve complex business tasks improves.
  2. Cognitive computing – this is the trend of the last few years, without doubt. Every day «tons» of data are generated, and work with it is overwhelming for human brains. The main ability of this technology is to process a huge amount of structured and unstructured data and transform it into valuable information.
  3. Data accuracy – effective business decisions can be made using accurate data. This is the first and the main rule of the valid business analytics. Understanding it company management begins to focus more on an organization of the effective data management process. For example, COVID-19 situation has shocked the whole world and affirmed the importance of accurate data ownership. All people wanted to know the truth concerning number of infected, vaccinated, mortality etc.
  4. Decision intelligence – new and important discipline of artificial intelligence age that is oriented to transform information into the best practical solution. This discipline is a complex of data science, social sciences, decision science and management science. Using decision intelligence organizations can improve their operative activity, literacy, project management effectiveness, strategy management and decision-making procedure.
  5. Predictive analytics – is indispensable business tool. Advanced analytics technologies give an ability to forecast event and decisions results that help to prevent risks or mitigate effects. This tool promote business to reach new level.
  6. X-Analytics – not always data analytics relates to numbers. Analyzed business data can be in different types: text, video, audio etc. To gain competitive advantage it is necessary to analyze such data too. X-Analytics sense is to make different type analytics of structured and unstructured data (video analytics, text analytics, audio analytics etc.).
  7. Mobile Analytics – the growth of mobiles usage has instigated appearing of mobile analytics necessity. Mobile decisions implementation and usage in business give many benefits specifically data access in any time and in any location. Also, mobile analytics allows companies to get access to data in real-time mood in any place.
  8. Augmented data management – the task №1 is to provide data security and quality for real-time analytics. But it is quite difficult to make. In this case augmented data management helps to realize it. Gartner’s and Deloitte’s reports affirm this trend and accent benefits that could be achieved by artificial intelligence and data management combining.
  9. Prescriptive analytics – users’ prescribing all possible actions that they have to perform. The main task is to help specialists to choose the correct predictive model for the best decision achievement.
  10. Collaborative BI – is the combination of social media and other advanced technologies with online business analytics. It serves as a powerful tool for business to make rapid and effective decisions.
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