Business Intelligence and Business Analytics is a constantly changing landscape in today’s fast-driven business world. The wealth of information that can be accessed through the use of various tools is amazing. The problem is that it’s not easy to find the information you need and to actually make sense of it.
Not to mention the terms Business Analytics (BA) and Business Intelligence (BI) have both become relatively synonymous over time. There are several key differences between these two. One of the most important is that BA relies on doing the analysis in real-time whereas BI is more of a stored, post-analysis.
So the post that is to be penned today will have an in-depth comparison and detailed idea of the uses & purposes between Business Intelligence and Business Analytics in business. So read on!
Introduction to business intelligence (BI) and business analytics (BA)
More often than not, Business Intelligence (BI) is known to be an application of technology to support business decision-making. It is done by revealing insights and supporting informed decisions. It enables organizations to capture, store and analyze data from multiple sources. This is done also to see patterns and predict trends, and to facilitate better decision-making.
Business Intelligence (BI) and Business Analytics are two terms that get thrown around an awful lot these days. While they are often used interchangeably, there are some differences between the two. Moreover, it is also the process of gathering and analyzing data. And it is often referred to as information, for the purpose of making informed business and marketing decisions.
Business Analytics (BA), on the other hand, is the process of creating reports and data visualizations. It can help business leaders make more informed decisions. This means that while analytics is a component of BI, it is not the same thing. Business Analytics is an umbrella term that encompasses many different types of analytics, including Business Intelligence.
Moreover, the concepts of how to extract meaningful information from large amounts of data, share with others and use it to make informed decisions are the same as those for Business Analytics. Business Analytics is merely a more hands-on approach to understand what big data means to your company.
Business intelligence and analytics in the day-to-day life of a business
Many people in modern society are unaware of what Business Intelligence and analytics entails in the day-to-day life of a business. Business intelligence is used for decision-making purposes in regard to the operations of a company. The keyword there is decisions. Analytics is essential in order to provide accurate answers and information.
In today’s technology-driven world, data analysis is an integral part of everyday business. It helps businesses identify and solve problems, allocate resources, strategize for the future, and gain insights into what their customers want and need. In a world where a quick data analysis can lead to huge profits, there are a variety of software solutions to choose from. One of the top choices for small and medium-sized businesses is IBM Cognos TM1.
Moreover, Business Intelligence and Analytics (BI & BA) is an effective tool for increasing the efficiency of any business. One of the ways BI & BA can help a business improve its profits is by helping them find ways to reduce costs. One example of this is with the dashboard in Microsoft Dynamics 365. Microsoft Dynamics 365 simplifies how a business can manage all their incoming data, allowing them to take specific actions, on the data they need most, and before they know it, more time and money will be saved.
Also Read: 12 Useful Things to Do With WP ERP for Your Business
How are BI and BA different from each other?
How BI Is different
To understand the difference between Business Intelligence and Business Analytics, it is important to first understand what each one actually involves. Business intelligence is defined as a type of software used to track data and information. It is also used to answer complicated questions about businesses. With it, executives can better understand how the business and competitors are performing. Also, how their costs compare to industry standards and measure the success of their strategies.
Many people confuse Business Intelligence and Business Analytics. BI is the technology, services, or end-user knowledge designed to maximize an organization’s ability to interpret data. Business intelligence does not necessarily mean that the data is gathered in a long-term or deep manner, but maybe gathering small bits of information that will be used in more than one operation, typically with either quick turnaround times or at the last possible minute.
With Business Intelligence, businesses gather and analyze data about operations and key aspects of their business for the purpose of making strategic decisions.
How BA is different
On the other hand, Business Analytics is not only a different branch of Business Intelligence, but it is also a type of software. Not to mention that customers can also use data about key aspects of their business and operations to find trends and patterns that might help predict possible future outcomes. Whereas BI takes the data and applies it to business workflows, the analytics piece offers an all-inclusive overview of the market. Business Analysts have the ability to analyze the data and turn it into valuable insights to make the company more efficient and profitable.
The field of Business Analytics has a wide range of tools and skillsets that are not found in Business Intelligence. Moreover, Business Intelligence deals more with research-based work, while Business Analytics is more about the application and use of data to solve real-world problems.
Pros and cons of business intelligence (BI) and business analytics (BA)
Key Advantages of BI
- Easily get insights into your business.
- Get information about your customers, employees, and suppliers.
- It offers real-time data that can be applied to take effective business decisions.
- It offers a huge repository of data that can be used to make informed decisions.
- Be aware of current and potential problems.
- It helps businesses to plan strategies and offer the right kind of products and services to the right target audience.
Key Disadvantages of BI
- It’s a long-term investment.
- It’s a solution for a problem that doesn’t exist.
- It is an over-complicated solution for a simple, specific problem.
- It’s a solution that needs to be constantly maintained.
- It’s an expensive solution that doesn’t deliver any value.
Key Advantages of BA
- Helps you bring more customers, leads, and sales.
- Provides a clear picture of your business and its performance.
- Helps you stay ahead of the competition.
- Helps you increase your ROI.
- Enables you to increase your customer satisfaction.
- Helps you increase your conversion rate.
- Helps you win more customers.
Moreover, it also
- Ensures better decision-making by understanding your customers.
- Provides a better understanding of your employees and improve your team.
- Make use of data to get a competitive edge in your industry.
- Help you be more competitive and profitable.
Key Disadvantages of BA
- Time-consuming.
- A lengthy process that involves a lot of manual work.
- Expensive to maintain.
- Difficult to find staff.
- Difficult to find consulting firms.
- Not easy to find a place to store data.
Moreover, it is entitled with some more drawbacks like:
- High cost: Business Analytics can be expensive to purchase and implement.
- Not user-friendly: it can be difficult to use.
- Complex: BA are complex for marketers to use.
Also Read: Advantages of Using and Implementing Open Source Solution
The major use cases of business intelligence and business analytics in business
Key use case of BI
Business intelligence and Business Analytics are both essential to the growth and development of any business. Due to the overwhelming amount of information available in today’s digital world, it is important to be knowledgeable about the ways that Business Intelligence and Business Analytics can help you with your business.
Moreover, both are used for specific purposes that help businesses grow. Business intelligence provides a company with data that can be used to promote growth and development. Business Analytics, on the other hand, typically takes Business Intelligence and applies it to specific products and services to improve them.
BI is a broad term that encompasses a vast number of solutions and technologies that are used to make smart business decisions. From data warehouses to dashboards, Business Intelligence has a wide range of applications. Business intelligence is used by organizations to gain insight into the performance and health of the business and to make the right decisions with the right information.
Moreover, it is also an umbrella term for the set of tools and technologies that are used to create Business Intelligence. These tools and technologies include data warehouses, data mining and analytics tools, Business Intelligence applications, and Business Intelligence software. Business intelligence can be used by the entire organization, or in a specific business unit or department, depending on the needs of the organization.
Key use case of BA
Much like Business Intelligence, there is a whole world of potential uses for Ausiness Analytics. From improving service to increasing profits and maintaining the company’s ability to stay competitive, the possibilities are endless in this field. Business Analytics can be used to meet these goals in any industry, from construction to healthcare, but its usefulness is not limited to such diverse industries.
The technology enables businesses to make informed decisions, and even take action on the results. It is comprised of several software packages and hardware that are used to perform data mining, decision support, forecasting, and business optimization. It is meant to help businesses make intelligent decisions. For example, let’s say you’ve just developed a new product and would like to know what type of marketing campaigns would be most suited to selling your product. Analyzing the data of your past sales and customer preferences can give you a clear idea of what your marketing efforts should be like.
You can also use this technology to optimize your business in other areas, such as merchandising and inventory management. If you don’t have a clear idea of what the future holds for your business, then there’s a good chance you’ll end up with a mess on your hands. Business Analytics will help you avoid such situations.
Make decision faster and better with the right use of business intelligence and analytics
By now you may have already realized that Business Intelligence and Business Analytics are two different solutions to solving problems. Which solution you need depends on your business needs. To be honest both these fields have their role in making decisions better and faster. And with the proper use of it, business personnel can manage their business better with detailed analytics and detailed business-related reports.
Significantly enough, nowadays a comprehensive business management tools like WP ERP can help understand all the key Business Analytics and enables its user to generate essential reports. This assists the company, to have a better idea about their business insights and make well-informed decisions. It’s something that every growing company needs.
Moreover, when it comes to the world of business and technology, it can often feel like there are new terms coming out every day. Business Intelligence and Business Analytics are two of the more popular ones that you hear all the time. There are many questions that people have about the differences between these two terms and how they can be used. We have tried to take a look at the different aspects of each in this post so that you can have an understanding of the differences and the benefits of using each.
If you’re interested in discussing more the different BI and BA tools on the market or are already utilizing one then, don’t hesitate to share it with us in the comments below. We’d be happy to discuss in detail the different features and benefits of the different BI and BA tools available.
