Business Intelligence (BI)
BI encompasses a wide variety of tools, applications and methodologies that enable organizations to collect data from internal systems and external sources; prepare it for analysis; develop and run queries against that data; and creates reports, dashboards and data visualizations to make the analytical results available to corporate decision-makers, as well as operational workers.
The potential benefits of business intelligence tools include accelerating and improving decision-making, optimizing internal business processes, increasing operational efficiency, driving new revenues and gaining competitive advantage over business rivals. BI systems can also help companies identify market trends and spot business problems that need to be addressed.
BI data can include historical information stored in a data warehouse, as well as new data gathered from source systems as it is generated, enabling BI tools to support both strategic and tactical decision-making processes.
Initially, BI tools were primarily used by data analysts and other IT professionals who ran analyses and produced reports with query results for business users. Increasingly, however, business executives and workers are using BI platforms themselves, thanks partly to the development of self-service BI and data discovery tools and dashboards.
Business Analytics (BA)
BA refers to the skills, technologies, practices that are applied on past data and/or processes to derive insights that can be used for future business planning. It is a field that is now applied across all domains and industries. With more and more data being generated, the requirement for data scientists is estimated to be 4.4 million by the end of 2015.
Business analytics makes extensive use of statistical analysis, including explanatory and modeling decision. It is therefore closely related to management science. Analytics may be used as input for human decisions or may drive fully automated decisions. Business intelligence is querying, reporting, online analytical processing (OLAP), and “alerts.”
In other words, querying, reporting, OLAP, it is alert tool can answer questions such as what happened, how many, how often, where the problem is, and what actions are needed. Business analytics can answer questions like why is this happening, what if these trends continue, what will happen next (predict), and what is the best outcome that can happen (optimize).
Choosing Between BI and BA
In recent years, organizations have increasingly turned to advanced software solutions to manage workloads, maintain profitability and ensure competitiveness within their respective industries. While there is several options available, business intelligence tools (BI) and business analytics tools (BA) are arguably the most widely implemented data management solutions. Business analysts and software buyers alike often ask what are the key differences between business intelligence and business analytics. Business intelligence solutions are among the most valuable data management tools available. BI solutions collect and analyze current, actionable data with the purpose of providing insights into improving business operations. Are you looking for ways to better understand your business operations? What about discover pain points in your workflows? How about analyze big data sets to draw valuable insights? You need a business intelligence solution.
Business analytics software is either a child or parent (depending on who you ask) of the business intelligence category. Like BI, it is primarily used to analyze historical data, but with the intention of predicting business trends. It also usually has an eye toward improvement and preparation for change.