What is the Best for Organizations?
Business Intelligence is the process of collecting, examining, and storing data produced by the company for its smooth functioning. BI includes various business tools and software like spreadsheet, reporting software, monitoring software, data mining software, events management, online processing, dashboard development, etc. Companies hire professionals who they think are capable of making reports, maximizing workflow, producing informative speeches, making important decisions, and finding ways to achieve business goals. BI helps in interpreting big data, identifying new opportunities, and executing new strategies for growth. How to place the product in the market and its pricing strategies are decided through decision-making among the workers. BI combines internal and external data which gives a clear picture that cannot be acquired through single data. It helps organizations to understand the market and requirements of the product or service to the public.
Business analytics is a statistical technology with quantitative methods that companies use to gain insights, predict shortcomings, and build strategies accordingly for future growth. BA tools include forecasting analysis, predictive analysis, association and sequence identification, data aggregation, correlation analysis, factor analysis, data visualization, optimization, growth analysis, and many more. This has led to an increase in the hiring of data scientists and the need for business analytics training. BA helps in identifying the company’s weak areas and working upon them. BA uses numerical analysis like predictive modeling, analytical modeling, and explanatory modeling for proper decision-making.
Difference between Business Intelligence and Business Analytics:
- BI focuses on descriptions, which includes analysis of historical and present data. It compares what has happened and what is happening and how the business has evolved over the years. BI can answer questions like where the problem is and what actions are needed. Whereas BA focuses on predictions to determine future outcomes. BA can provide solutions to questions like what if the problem continues in the future, what will happen next, strategies they can implement, and predict possible outcomes.
- BI analyses past as well as present situations to get an idea of the current business needs. Whereas, BA analyses only past data to predict the current business needs and drive customer’s needs and productivity.
- BI focuses more on the current business operations and tells us about the current customers, ongoing trends. On the other hand, BA focuses to change business operations and improve productivity for future growth and tells us about what new customers might ask for in the future and build strategies accordingly.
- Major BI tools include SAP Business Objects, QlikSense, TIBCO, and PowerBIetc. BA tools include Word processing, Google docs, MS Office tools, MS Visio, Spreadsheet, etc.
- BI is used by large-scale companies to run the current business smoothly, whereas, BA is used by small-scale companies to grow their company in the future, increase productivity and achieve its goal.
- BI almost comes under BA while BA contains Data Warehouse, business information management, enterprise application, and governance, assessing risk, security compliances.
- BI used more User Interface Dashboards for carrying out operations and analysis of data whereas BA used a variety of tools and software applications to carry out the work.
- BI provides more information and insights only about the data rather than regenerating extra information to give data insights. But BA leverages more insights with the help of extra information, problem-solving, and converting raw data into meaningful.
- BI is mostly used in more structured data from company’s applications like Financial Software System or Enterprise Resource Planning in the areas of supply chain and operations whereas BI can be used both in structured and semi-structured data and transform it into some meaningful data to get information from that data.
- BI uses different methods and techniques for data analysis like data reporting, mapping analysis, real-time analysis, dashboarding, online analytical processing, etc. BA uses different methods and analyses like case modeling, predictive modeling, data modeling, requirement analysis, SWOT analysis, etc.
Both Business Intelligence and Business Analytics are important for businesses to function smoothly. BA and BI have different roles to function and increase productivity. While BI is used by companies to improve decision making and understand the work process, organizational operation, and build good employee’s relations, BA has also gained popularity in recent times for analyzing the company data, its market, and past performance for predicting business trends to get a competitive edge in the future.
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