Often used synonymously, BI & Analytics seem to have lost their distinct meanings. Therefore, let’s understand the underlying differences between the two terms and how they differ from each other. Whereas Business Intelligence (BI) has more to do with the “What”, “Who” and “How Many” of the organisation, Analytics is the “Why” of the equation. It’s safe to say that analytics completes business intelligence and makes it a whole. Let’s understand the differences between the two, one step at a time.
What is Business Intelligence?
Business Intelligence (BI) is a technology-driven process that helps in observing, analysing and controlling stats and figures. It is a tool that helps managers and executives to figure out the key result areas and work on them.
Business Intelligence makes use of KPI (Key Performance Indicators) Matrices and automated monitoring to understand the “What”, i.e. the goal for working. It establishes what is to be done, who will do it and how many people are to be employed for achievement of the goal.
BI makes use of past trends and matches them with current performance. Its use ranges from banking and financial services management to trends in the industry.
Business Intelligence software acts as a great solution for organisations that need to enhance decision-making and understand the current work processes in the organisation. It’s an important tool that helps in understanding the business and making changes from the ground up.
What is Business Analysis?
Business Analysis (BA) is the backbone of BI (Business Intelligence). It is “the reason behind” or the “Why” of the equation. It’s because of Business Analytics that an organisation can develop KRA’s in the first place and start to work on them. BA studies the past and the current scenarios to forecast the future proceedings. In a way, it predicts trends and gives a direction to the management.
Business Analytics employs stats and figures to work on projects. It starts with data analysis and then gets into data mining. From running multivariate tests to changing “x” number of values, Business Analytics deals mainly with the figures of the business. It quantifies the current scenario to measure it in numerical form also to find gaps if any. Business Analytics gets into predictive modelling analytics that showcase the potential of the organisation and thus help in setting up goals.
The Final Verdict
BI and Analytics are quite different in how they function. If an organisation needs to choose between them for their business, the best solution would be a combination of the two. Pharma Analytics Companies often make use of Business Analytics in the initial stages and then Business Intelligence takes over. Data Management in banking is also taken care of by employing a combination of BI and Analytics services. It’s crucial that we understand which needs to be employed at what stage and how a combination of the two can benefit the organisation.
About the Author
Incedo Inc. is an expert in the field of data analysis and management. With decades of experience in the industry, they strive to make every business they collaborate with profitable. From holding seminars to providing business solutions, Incedo is involved in making Data Analytics easy to understand and manage.
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