Business Intelligence vs. Business Analytics

<p>My opinion on the differences and why you should care. Business intelligence and business analytics may seem like a couple of buzzwords to some of us (myself included, originally), but they are both actually extremely useful concepts for any organization, if not necessary practices for all organizations (or at least successful ones!).   What Exactly is Business Intelligence? Business intelligence, or BI, is a little bit of an umbrella term that pertains to the tools, processes, and methodologies organizations implement when examining past and present data in order to make informed business decisions. And What About Business Analytics? Business analytics…</p>

<div data-elementor-type="wp-post" data-elementor-id="1364" class="elementor elementor-1364" data-elementor-post-type="blog"> <section class="elementor-section elementor-top-section elementor-element elementor-element-727764b elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="727764b" data-element_type="section"> <div class="elementor-container elementor-column-gap-default"> <div class="elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-659455a" data-id="659455a" data-element_type="column"> <div class="elementor-widget-wrap elementor-element-populated"> <div class="elementor-element elementor-element-92842a6 elementor-widget elementor-widget-text-editor" data-id="92842a6" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">My opinion on the differences and why you should care.</span></p> </div> </div> <div class="elementor-element elementor-element-89432b3 elementor-widget elementor-widget-image" data-id="89432b3" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/emily-morter-8xAA0f9yQnE-unsplash-scaled.jpg" title="" alt="" loading="lazy" /> </div> </div> <div class="elementor-element elementor-element-6c54396 elementor-widget elementor-widget-spacer" data-id="6c54396" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-f000e93 elementor-widget elementor-widget-text-editor" data-id="f000e93" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">Business intelligence and business analytics may seem like a couple of buzzwords to some of us (myself included, originally), but they are both actually extremely useful concepts for any organization, if not necessary practices for all organizations (or at least successful ones!).   </span></p> </div> </div> <section class="elementor-section elementor-inner-section elementor-element elementor-element-a8f9572 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="a8f9572" data-element_type="section"> <div class="elementor-container elementor-column-gap-default"> <div class="elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-10765a4" data-id="10765a4" data-element_type="column"> <div class="elementor-widget-wrap elementor-element-populated"> <div class="elementor-element elementor-element-3c668b6 elementor-widget elementor-widget-spacer" data-id="3c668b6" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-e1677fd elementor-widget elementor-widget-heading" data-id="e1677fd" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">What Exactly is Business Intelligence?</h2> </div> </div> </div> </div> <div class="elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-78d097e" data-id="78d097e" data-element_type="column"> <div class="elementor-widget-wrap elementor-element-populated"> <div class="elementor-element elementor-element-490f3d9 elementor-widget elementor-widget-image" data-id="490f3d9" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/dex-ezekiel-fg8tdcxrkrA-unsplash-scaled.jpg" title="" alt="" loading="lazy" /> </div> </div> </div> </div> </div> </section> <div class="elementor-element elementor-element-7c1b090 elementor-widget elementor-widget-spacer" data-id="7c1b090" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-31e1c44 elementor-widget elementor-widget-text-editor" data-id="31e1c44" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">Business intelligence, or BI, is a little bit of an umbrella term that pertains to the tools, processes, and methodologies organizations implement when examining past and present data in order to make informed business decisions.</span></p> </div> </div> <section class="elementor-section elementor-inner-section elementor-element elementor-element-e2f2d15 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="e2f2d15" data-element_type="section"> <div class="elementor-container elementor-column-gap-default"> <div class="elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-e730dac" data-id="e730dac" data-element_type="column"> <div class="elementor-widget-wrap elementor-element-populated"> <div class="elementor-element elementor-element-e79de6b elementor-widget elementor-widget-image" data-id="e79de6b" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/dex-ezekiel-fg8tdcxrkrA-unsplash-1-scaled.jpg" title="" alt="" loading="lazy" /> </div> </div> </div> </div> <div class="elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5d2157b" data-id="5d2157b" data-element_type="column"> <div class="elementor-widget-wrap elementor-element-populated"> <div class="elementor-element elementor-element-b3a7e54 elementor-widget elementor-widget-spacer" data-id="b3a7e54" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-e9b55e9 elementor-widget elementor-widget-heading" data-id="e9b55e9" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">And What About Business Analytics? </h2> </div> </div> </div> </div> </div> </section> <div class="elementor-element elementor-element-c26d1ea elementor-widget elementor-widget-spacer" data-id="c26d1ea" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-8c43d4c elementor-widget elementor-widget-text-editor" data-id="8c43d4c" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">Business analytics (BA) is also somewhat of a blanket term that often refers to the tools, processes, and methodologies organizations implement when examining past and present data in order to make informed business decisions. </span></p> </div> </div> <div class="elementor-element elementor-element-af47559 elementor-widget-divider--view-line elementor-widget elementor-widget-divider" data-id="af47559" data-element_type="widget" data-widget_type="divider.default"> <div class="elementor-widget-container"> <div class="elementor-divider"> <span class="elementor-divider-separator"> </span> </div> </div> </div> <div class="elementor-element elementor-element-6c82ccb elementor-widget elementor-widget-text-editor" data-id="6c82ccb" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">You&#8217;re probably doing a bit of a double take right now, and rightfully so! Because those seem like the same definitions. Pretty confusing huh? I certainly think so!</span></p><p><span style="font-weight: 400;">BI and BA are complementary and are very similar in that they both:</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Fall under the broad scope of data analysis</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Rely heavily on </span><a href="https://paristech.com/blog/how-do-business-intelligence-and-analytics-differ-and-overlap/" target="_blank" rel="noopener"><span style="font-weight: 400;">quality and quantity</span></a><span style="font-weight: 400;"> of data</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Involve transforming, integrating, and enhancing operational data</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Provide stakeholders with reliable information that guides business decisions</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Work together to form a holistic view of the business</span></li></ul> </div> </div> <div class="elementor-element elementor-element-d17bfa9 elementor-widget elementor-widget-image" data-id="d17bfa9" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/doors-1767562_1920.jpg" title="" alt="" loading="lazy" /> </div> </div> <div class="elementor-element elementor-element-04f2597 elementor-widget elementor-widget-spacer" data-id="04f2597" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-58c8270 elementor-widget elementor-widget-heading" data-id="58c8270" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">But what’s the difference?</h2> </div> </div> <div class="elementor-element elementor-element-bb0e1fd elementor-widget elementor-widget-text-editor" data-id="bb0e1fd" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">Don&#8217;t worry, I’ll share what’s helped me clear up some of the confusion after listening in on several of our conversations with customers! </span></p><p><span style="font-weight: 400;">While the two terms are sometimes used synonymously (which seems to be pretty often, to be honest), they are not quite the same. Although BI is concerned with the here and now and is strategic in nature, deriving from descriptive and diagnostic analyses, conversely, BA is future-focused and is more tactical in nature, involving predictive and prescriptive analyses. BI answers the whos, whats, whens, wheres, whys, and hows (</span><span style="font-weight: 400;">W</span><span style="font-weight: 400;">5</span><span style="font-weight: 400;">Hs</span><span style="font-weight: 400;">) of past and present data and BA answers the </span><span style="font-weight: 400;">W</span><span style="font-weight: 400;">5</span><span style="font-weight: 400;">Hs</span><span style="font-weight: 400;"> of future data. Essentially, organizations utilize BI to take immediate action by making decisions regarding current operations and BA to make decisions that aim to understand and improve their operations to come. So, to summarize, BI is more surface level for reporting purposes (KPIs and metrics) and BA digs a little deeper to facilitate planning ahead (forecasting and optimization), allowing you to tell stories with your data, by uncovering business opportunities through statistical and quantitative analyses. </span></p><p><span style="font-weight: 400;"> </span></p><p><span style="font-weight: 400;">I’ve even created this awesome graphic (with guidance from some </span><a href="https://www.youtube.com/watch?v=f5d03Pwweus" target="_blank" rel="noopener"><span style="font-weight: 400;">great resources</span></a><span style="font-weight: 400;">) hoping to shed some light on the subject, so please feel free to borrow it for educational purposes: </span></p> </div> </div> <div class="elementor-element elementor-element-0905c1d elementor-widget elementor-widget-image" data-id="0905c1d" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/Level-of-Analytical-Maturity1024_1.jpg" title="" alt="" loading="lazy" /> </div> </div> <div class="elementor-element elementor-element-ce8bf8c elementor-widget elementor-widget-spacer" data-id="ce8bf8c" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-b2d46bb elementor-widget elementor-widget-text-editor" data-id="b2d46bb" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">As you can see, descriptive analytics explain what happened, diagnostic analytics reveal why things happened, predictive analytics aim to (you guessed it&#8230;) predict what will happen, and </span><a href="https://learn.g2.com/business-analytics" target="_blank" rel="noopener"><span style="font-weight: 400;">prescriptive analytics</span></a><span style="font-weight: 400;"> both determine outcomes and advise future dealings. In a nutshell, the super awesome graphic above indicates that organizations not taking advantage of descriptive, diagnostic, predictive, or prescriptive analytics are basically just guessing, which pretty much makes them clueless! Analytical maturity requires employing both BI and BA to make the </span><a href="https://www.tableau.com/learn/articles/business-intelligence/bi-business-analytics" target="_blank" rel="noopener"><span style="font-weight: 400;">best possible decisions</span></a><span style="font-weight: 400;"> for your business. </span></p><p><span style="font-weight: 400;">Now we’ve reached the ‘why you should care’ point of this blog post, where I will attempt to persuade you to get with the times and harness the power of your data with BI and BA. Let’s just consider some of the many benefits offered by each of them:</span></p> </div> </div> <div class="elementor-element elementor-element-8b1e8de elementor-widget elementor-widget-heading" data-id="8b1e8de" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">Benefits of Business Intelligence</h2> </div> </div> <div class="elementor-element elementor-element-4c0502e elementor-widget elementor-widget-text-editor" data-id="4c0502e" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Provide fast answers to business questions</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Visualize past &amp; present performance</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Increase awareness of data</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Gain </span><a href="https://www.omnisci.com/technical-glossary/business-analytics#:~:text=Business%20Analytics%20is%20the%20process,and%20improve%20strategic%20decision%2Dmaking." target="_blank" rel="noopener"><span style="font-weight: 400;">new perspectives</span></a><span style="font-weight: 400;"> on existing data</span></li><li style="font-weight: 400;" aria-level="1"><a href="https://www.simplilearn.com/what-is-business-analytics-article" target="_blank" rel="noopener"><span style="font-weight: 400;">Identify trends</span></a><span style="font-weight: 400;"> and patterns in organizational procedures </span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Easily create reports to </span><a href="https://www.mygreatlearning.com/blog/what-is-the-difference-between-business-intelligence-and-business-analytics/" target="_blank" rel="noopener"><span style="font-weight: 400;">summarize the data</span></a></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Uncover useful insights</span></li></ul> </div> </div> <div class="elementor-element elementor-element-a902f2d elementor-widget elementor-widget-heading" data-id="a902f2d" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">Benefits of Business Analytics</h2> </div> </div> <div class="elementor-element elementor-element-5c2edd7 elementor-widget elementor-widget-text-editor" data-id="5c2edd7" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Improve performance &amp; efficiency </span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Increase accuracy in decision making</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Minimize risks</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Inspire change &amp; innovation</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Plan for the unexpected</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Test new marketing campaigns</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Understand the effectiveness of marketing activities</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Gain a competitive advantage</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Enhance </span><a href="https://www.simplilearn.com/what-is-business-analytics-article" target="_blank" rel="noopener"><span style="font-weight: 400;">comprehension of consumers</span></a></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Drive long-term growth</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Discover hidden trends</span></li></ul> </div> </div> <div class="elementor-element elementor-element-884ec4f elementor-widget elementor-widget-text-editor" data-id="884ec4f" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">I know, there are a ton of perks associated with BI and BA!</span></p> </div> </div> <div class="elementor-element elementor-element-06d871f elementor-widget elementor-widget-image" data-id="06d871f" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://cdn.datalakehouse.org/media/sites/3/pexels-clive-kim-4220967-scaled.jpg" title="" alt="" loading="lazy" /> </div> </div> <div class="elementor-element elementor-element-31cc310 elementor-widget elementor-widget-spacer" data-id="31cc310" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-94722af elementor-widget elementor-widget-text-editor" data-id="94722af" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">And just to further indulge your cognizance, check out how some companies in a variety of industries are currently using BI and BA to successfully guide them in the real-business-world examples I’ve provided below:</span></p> </div> </div> <div class="elementor-element elementor-element-e381a48 elementor-widget elementor-widget-heading" data-id="e381a48" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">Current Successes From BI & BA </h2> </div> </div> <div class="elementor-element elementor-element-ad18f68 elementor-widget elementor-widget-text-editor" data-id="ad18f68" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">Transportation &#8211; finding gaps in performance to reduce budgets and maximize profits </span></p><p><span style="font-weight: 400;">Service &#8211; optimizing routes for fast and efficient service  </span></p><p><span style="font-weight: 400;">Retail &#8211; creating personalized marketing messages with purchase suggestions for loyalty customers, based on their past purchases, as well as keeping up with production and distribution needs, based on demand </span></p><p><span style="font-weight: 400;">Hospital &#8211; optimizing the flow of patients, scheduling surgeries, and associating symptoms and diagnoses for faster care</span></p><p><span style="font-weight: 400;">Banking &#8211; learning which customers are most likely to apply and qualify for specific services, based on a variety of complex factors and appropriately individually targeting them with marketing messages based on their qualifications and needs</span></p><p><span style="font-weight: 400;">Public Sector &#8211; making infrastructure improvements where they&#8217;re needed most, first</span></p> </div> </div> <div class="elementor-element elementor-element-4c79d62 elementor-widget elementor-widget-text-editor" data-id="4c79d62" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">So, now you might be pondering how to get your organization up to speed with BI and BA. That’s where we come in!</span></p> </div> </div> <div class="elementor-element elementor-element-fc1bf06 elementor-widget elementor-widget-image" data-id="fc1bf06" data-element_type="widget" data-widget_type="image.default"> <div class="elementor-widget-container"> <img decoding="async" src="https://datalakehouse.io/blog/wp-content/uploads/sites/3/2020/04/datalakehouse_512x512.png" title="" alt="" loading="lazy" /> </div> </div> <div class="elementor-element elementor-element-38837b3 elementor-widget elementor-widget-spacer" data-id="38837b3" data-element_type="widget" data-widget_type="spacer.default"> <div class="elementor-widget-container"> <div class="elementor-spacer"> <div class="elementor-spacer-inner"></div> </div> </div> </div> <div class="elementor-element elementor-element-d1c081c elementor-widget elementor-widget-heading" data-id="d1c081c" data-element_type="widget" data-widget_type="heading.default"> <div class="elementor-widget-container"> <h2 class="elementor-heading-title elementor-size-default">Enter DataLakeHouse </h2> </div> </div> <div class="elementor-element elementor-element-45852a3 elementor-widget elementor-widget-text-editor" data-id="45852a3" data-element_type="widget" data-widget_type="text-editor.default"> <div class="elementor-widget-container"> <p><span style="font-weight: 400;">DataLakeHouse is an end-to-end self-service business analytics platform with ELT and advanced machine learning capabilities. Although most platforms that offer business analytics capabilities also serve as business intelligence tools, it usually </span><a href="https://www.youtube.com/watch?v=rwn47xXX0Cs" target="_blank" rel="noopener"><span style="font-weight: 400;">doesn&#8217;t work the other way around</span></a><span style="font-weight: 400;">. To clarify, not all BI platforms include business analytics tools. Lucky for you, DataLakeHouse acts as an all-in-one solution that will bring any organization to the highest level of analytical maturity. To learn more about how DataLakeHouse can inform your business decisions and in turn improve your organization’s efficiency and drive long-term growth, click the button below 👇!</span></p> </div> </div> <div class="elementor-element elementor-element-ab085c7 elementor-button-success elementor-align-center elementor-widget elementor-widget-button" data-id="ab085c7" data-element_type="widget" data-widget_type="button.default"> <div class="elementor-widget-container"> <div class="elementor-button-wrapper"> <a class="elementor-button elementor-button-link elementor-size-md" href="https://datalakehouse.io/"> <span class="elementor-button-content-wrapper"> <span class="elementor-button-text">Learn More About DataLakeHouse</span> </span> </a> </div> </div> </div> </div> </div> </div> </section> </div>