Over the past years, organizations have been following the trend of using tools in business processes. The main aim is to handle the workforce, maintain profitability and ensure competitiveness. However, many options are available, but business analytics and business intelligence are the most used systems. So, if you want better business performance, discover new tools, software, and trends. Many business professionals get confused between BA and BI; it’s crucial to learn the difference.
Business Analytics vs. Business Intelligence: What do experts say?
If you are aware of the difference, it will help leaders make better decisions, and it’s vital for business growth. But there isn’t any clear line between both concepts because they are closely connected and interlinked. So, if you want to resolve business issues, you will have to use a combination of both ideas.
According to experts:
If we study BI and BA, then experts have different thoughts. Here we are stating the views of other professionals:
“We need a BA to change the business, and BI helps run the business.”
The above concept is stated by Pat Roche, a vice president of engineering and Magnitude software. But as per other experts:
“BI is used to view historical data and process, whereas BA helps to forecast future and tell what’s going to happen.”
But according to some think tanks, nobody knows the exact difference between business analytics and business intelligence. However, it doesn’t matter if you are running a small business or enterprise; it’s better to use a combination.
Business Analytics vs. Business intelligence: Learn the difference:
These concepts sound familiar, but there are a few key differences that you should know. However, if you want to make a more thoughtful decision, it's vital to use methods to turn the data into actionable insights.
Business analytics:
Business analytics is a vast term that supports workflow management and strategy building. It is one of those rapidly growing fields, and it was a sexist job of the 21st century. Moreover, the vast concept has the following things under its umbrella.
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Embedded analytics
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Big data analytics
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Enterprise reporting
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Generally, it’s a concept where data analytics use quantitative tools to make predictions. In this way, it helps organizations to design future strategies. We can use BA predictive tools to set the base of business intelligence. However, BA uses for many purposes like:
- Correlation analysis
- Regression analysis
- Factor analysis
- Forecasting
- Text mining
- And image analytics
Thus, you can use these strategies to predict the future based on the current data. It’s great for companies that want to change their operations and make better decisions for the future. Moreover, we can use the BA to recognize sales and market opportunities. So, as a result, it helps to improve the relationship with customers because now you can control future events based on the past results.
Business intelligence:
On the other hand, business intelligence is all about making smart decisions by monitoring and collecting data. The tools help to collect and report formal information for interpretation. In short, BI allows organizations to filter the relevant data from the past and present to make better decisions for the future. Here are the following processes that are included in the Business intelligence:
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Data mining
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Data operation
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Descriptive analytics
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Performance metrics
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Benchmarking and questioning
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Statistical analysis and visualization tools
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It helps to know how your customers respond to products and services. We can take the help of social media comments and website visits to prepare a strategy for the future.
Difference between Business analytics & Business intelligence:
Earlier, we discussed that both processes are different and have various applications. You can see the significant differences in this chart:
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Business intelligence
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Business analytics
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Definition
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Analyze past & present to make plans for future
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Analyze past data to run current business practices
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Usage
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Helps to run business
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Best for changing or improving business operations, strategies, and productivity
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Easiness
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For current practices
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Helps to improve future business methods
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Tools
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SAP business objects, TIBCO and PowerBI
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Word processing, Google docs, MS Visio & MS office tools
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Applications
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Helpful for large scale companies
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Companies use where future growth and productivity are of utmost importance.
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The BI market will grow to $40 billion by 2026, which will be $20 billion in 2020. So, it means the trends are actual, and it helps to find exciting information within your data.
Applicable fields of BA & BI:
“BI + BA = Business success”
Both concepts are different and have a variety of applications in various areas. For instance, you can use these concepts in a business proposal, enterprise reporting, or other fields. Here is the list of fields where these concepts are helpful:
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BI
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BA
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Consumer Services & goods
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Uncover key metrics and ways
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You can access market demand & buyer data
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Performance management
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Track employee workload and productivity trends
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Align project goals with resource availability
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HRM
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Helps to create reports on turnover, incentives, payroll, etc.
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Help to design employee leaves and retention policies
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Inventory management
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Provide report templates to view stocks
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You can predict & manage product demand and requirement planning
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Healthcare
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Help in maintaining electronic health record
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Best for creating healthcare setup and strategies and streamlining the workflows
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You can easily differentiate between BA and BI after doing research. Both concepts play different roles, and you can apply these concepts according to your need. However, the choice depends on the business aims, goals, and targets. In short, these concepts are best when you want to make more informed decisions. The best plan is the one that starts with BI and then includes BA to make predictions and improve efficiency.
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