It is natural for businesses to create a large amount of data on a daily basis. For your business to be profitable, make better decisions, and figure out problems, you need business analytics software. The software has tools and methods that can convert vast data into actionable insights.
The differences between business analytics and business intelligence software are subtle. The terms are often used interchangeably, which makes things even more confusing. Let’s first start with a simple definition to understand both these terms.
Business Intelligence
This process involves collecting data and storing and analyzing it. With BI tools, get comprehensive business metrics in real-time for an improved decision-making process. Business intelligence tools help you create performance benchmark, increase compliance, and spot marketing trends.
The difference between business and data analytics
In simple terms, BA refers to using the company’s data for anticipating trends and outcomes. Business analytics can help you with data mining, predictive modeling, statistical analysis for making better business decisions.
Data analytics, in short, is the technical process of mining, cleaning, and transforming big data.
Business intelligence Vs. Data analytics
BI tools offer descriptive analysis, which summarizes the historical and present data that shows what happened and what can happen. With BI, you get answers to ‘what’ and ‘how’ so that you know what can work and whatnot.
Data analysis is a larger, umbrella term, which refers to any kind of data analytics be it in spreadsheets, app, or databases. The main intent here is to uncover trends, measure performance.
Business analytics, on the other hand, focuses on the daily operations and overall functions of a business. A BA (business analyst) typically has to deal less with technical aspects and more with practical applications of the gathered data insights. Some common job responsibilities may include choosing the best vendors, streamlining workflow, etc.
Real-life application
Let’s begin by taking the example of the jewelry business. A data analyst can help to gather insights on how people are using the website, analyze visitors, identify trends in traffic, etc. A BA will dive deep into the practical applications of the gathered data. They can work on making decisions for purchasing ads, updating the website, and creating/adding new products.
