Business Analytics Vs. Business Intelligence… aren’t these the same thing?
I’m being asked many times what are the differences between Business Intelligence and Business Analytics.
Today, there are a lot of “big words” that get thrown around in the world of business intelligence, analytics and data, and it’s very easy to get lost in the variety of the interpretations.
There are a lot of conflicting views and opinions on where the lines are drawn between business intelligence and business analytics.
However, to me, all these words/ terms actually support the same goal- using tools and techniques to turn data into business insight.
And still, what is in fact the difference between Business Intelligence and Business Analytics?
To my opinion, business analytics is more about the methods used to transform the business intelligence into actionable insights, and eventually to smart decisions that will bring a financial value to the business.
I especially agree with Tim Buskop*, saying that:
“Capturing intelligence without doing analysis is a waste of time, and Intelligence that isn’t based on analysis of intelligence, isn’t Intelligent”.
To my approach, these are the main differences between Business Intelligence and Business Analytics:
- The Business Intelligence and Business Analytics are both needed to run the business, by allowing fact-based decision making
- Business Analytics and Business Intelligence cannot be complete without each other… in fact- analysis without intelligence can’t be done
- Business Intelligence is about building and supporting the platform and infrastructure of: capabilities to access and manage data, development of tools for reports, dashboards, publishing, scheduling and distribution capabilities
- Business Analyitcs is more about the methods of analyzing information or the tools to perform those methods
- Business Analytics takes the Business Intelligence reports and then asks the question: “What does it all mean?”.
In order to answer this question, the analyst will use statistics and different methods/ tools
Business Intelligence (BI)- Functions
- Provides a unified source of data and access tools
- Creation and Maintenance of data structures
- Creation of links between data of different sources
- Data Models
- Supports end-user efforts to generate reports and analyses- allows business people to become analysts themselves
- Working Processes:
- Synchronization on projects
- Data must be reported and fully uploaded to the BI system
- Data Verification processes
- Time Zone alignment- between the different data sources and operational tools
Business Analytics (BA)- Functions
“Business Analytics is the collective set of methods and tools used by analysts to intelligently consume intelligence that will enable smarter decisions about the business moving forward” [Tim Buskop*]
- BA is about exploration of data using statistical analysis, quantitative analysis, data mining, predictive modeling, and other technologies and techniques to identify trends and understand the information
- Drive business change and optimization of marketing, products and other processes and domains in the business
* https://www.betterbuys.com/bi/business-intelligence-vs-business-analytics