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Business analytics and business intelligence are two different notions, but only few people understand the difference. Interestingly, even people who have worked in the business industry struggle with this particular topic or have various different answers when someone asks the question 'What is the difference between business analytics and business intelligence?'
Some people define business analytics as an umbrella term and place intelligence as one of its parts, together with data warehousing, enterprise performance management, risk, compliance and analytic applications. Meanwhile, others use the term business analytics as a level of domain knowledge related to predictive or statistical analytics.
So, how can you differentiate between the two?
Business intelligence can be defined as the necessity to get the most out of a particular information. This need is harder to be delivered due to the increased complexity of today's economy, but generally speaking, it has not really changed in the past few decades.
Business analytics is the thing being used or done to help deliver or provide a particular business need.
The answer to the question is quite simple: intelligence is something you have, while analytics is what you do with it. This applies to business too and can help you differentiate between the two terms much easier. People often mix these terms and confuse others since, 'business intelligence' is now used to refer to both these notions, which cannot be more wrong.
Once you determine the role both play in your particular business, you can easily understand the difference between both notions. Business intelligence is related to everything about accessing big chunks of data and consists of the infrastructure and software you will use with the goal of funneling data to analysis.
On the other hand, business analytics is the thing you do with the data you have at your disposal. Once you have gathered a specific amount of data by using business intelligence, you can use it to optimize the performance of your business. Additionally, business analytics help businesspeople to determine the client satisfaction rate.
Business intelligence is used to look backward and provide you with an insight into the data that has already occurred. The function of business analytics, on the other hand, is to anticipate the needs and trends of the future.
In order to have a successful business, it is crucial to follow both. For example, you must look into business intelligence to see what needs to be changed and what worked well for your company. Then, you will use this information and continue with business analytics to anticipate the hypothetical changes that will be done with each of your actions. If you learn to do all this, both business intelligence and analytics will help you make the right changes in the right way.
Many business people do not consider the difference to be very relevant or extend beyond a single company. The fact is, once you establish a way to optimize your business, the difference will not really matter. Still, many analysts consider the difference crucial if one wants their business to succeed. Therefore, it is best to divide the two terms into different categories, understand the meaning and explain it to everyone who needs to know this. By doing this, you can achieve interior precision.
People need to know what you are talking about. Learn the difference between the terms business intelligence and analytics to explain to others if you are thinking of big data or predicting the future of the market and your business decisions. Establishing an understanding of both terms can help avoid any confusion.