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Business Intelligence vs. Data Analytics: The Ultimate Guide

 

Business intelligence (BI) and data analytics are essential parts of modern marketing, but many marketers don’t know how to tell them apart. BI and data analytics use statistics and numbers to make sense of big data sets. But there are differences between the two, including what you’ll see in reports and how you collect data. This guide explains the differences between BI and data analytics and helps you decide whether one type of analysis is better suited for your needs.

 

 

What is Business Intelligence?

Business Intelligence (BI) is a strategy, not merely a tool. To understand what it is, you must first understand how data analytics fits into the bigger picture of business intelligence and analytics in general. BI extracts information from your existing data sources to answer questions about your business that are important for decision-making. It’s an analytical approach to gathering and analyzing information to help you make better decisions. BI aims to give your insight into your business so that you can improve performance across multiple areas. For example, if you want to know which customers generate the most revenue, you will use BI to find this out by looking at customer profiles, spending habits, product preferences, and more. In other words, BI provides you with “why behind the numbers” to enable you to make smarter decisions based on facts rather than intuition or guesswork.

 

Why Use Business Intelligence?

There are three main reasons to use business intelligence:
Improve operational efficiency – You can get a bird’s-eye view of all operations within your organization using a dashboard that shows you trends over time. These dashboards can be accessed through any device — even mobile devices like smartphones and tablets — and desktop computers. By having access to these dashboards, you can quickly identify issues that need to be addressed before they become problems.
Gain competitive advantage – With BI dashboards, you can gain insights about your competitors and their strategies to stay ahead. These insights can be used to develop new products, services, and pricing models. You can also leverage historical patterns to predict future outcomes.
Identify opportunities – When you’re able to analyze large amounts of data, you can spot emerging trends and opportunities that might otherwise have been missed. For example, you might find that people who spend $10,000+ per year on holiday gifts tend to be loyal customers. From here, you could use data analytics to determine ways to increase sales among those customers.

 

How Do I Know Which Type of Analysis Is Right for Me?

Several factors to consider when deciding between BI and data analytics: Do you need real-time reporting? You should investigate data analytics if you’re interested in seeing reports only once a week or month. However, if you need daily, weekly, or monthly reports, you should choose BI. How much budget do you have available? One of the most significant differences between BI and data analytics is cost. Although some tools are free or low-cost, others may require licensing fees, depending on your needs. And while you may be willing to pay for data analysis software, you’ll balk at paying for BI tools.

 

What Kind of Data Should I Look At?

Data analytics uses structured data, such as tables and rows, whereas business intelligence uses unstructured data, such as text documents, images, sound files, and video clips. Data analytics is usually limited to one data source, whereas business intelligence can pull data from many diverse sources. Let’s process and understand information from spreadsheets, databases, online sources, and many other data types. On the other hand, BI requires that data come directly from your enterprise systems, including CRM (customer relationship management), ERP (enterprise resource planning), and HR (human resources).

 

Which Platforms Are Available?

BI platforms exist on both the cloud and on-premises. On-premises solutions include Microsoft SQL Server Reporting Services (SSRS) and Cognos TM1. Cloud-based BI solutions include Tableau Software, MicroStrategy, QlikView, SAP Lumira, IBM Tivoli Business Workload Scheduler, Oracle BI Applications, and Teradata Business Analytics. If you plan to change your existing system, it would be best to start testing a cloud solution first. A cloud solution will provide better performance than an on-premises platform because it doesn’t require installation and maintenance of hardware and software. It also provides flexibility and scalability, meaning you don’t need to worry about purchasing additional servers or upgrading technology to accommodate higher demand.
In addition to these two options, there’s also hybrid BI, which consists of both on-premises and cloud components. Hybrid BI allows users to access their data on-premises or through a web portal, so they can switch between them as needed.
Business Intelligence (BI) is about improving profitability. But it doesn’t just mean crunching numbers. There are many distinct types of BI tools out there. Each one is suited to solving a particular kind of problem. So, you should choose a device based on your goal. Not necessarily which brand you prefer. Here are some questions to ask yourself when selecting a BI solution: –

    • What do I want to accomplish?
    • How much data am I dealing with?
    • Is my data structured or unstructured?
    • Do I need real-time reporting or historical analysis?
    • Will I use Excel or SQL Server Reporting Services?
    • Am I looking for a desktop app or a mobile app?
    • Which features do I require?
    • Who else needs access to the data?
    • How often will I update the information?
    • How much budget do I have?
    • Can I afford to pay someone to maintain the system?

 

What is Data Analytics?

Data Analytics is an umbrella term that covers all processes involved in gathering and analyzing information. This includes everything from collecting raw data to creating reports and dashboards.
While there is some overlap with Business Intelligence, it is distinct from BI because it focuses on the analysis of data rather than reporting on historical trends. Is there an overlap between Data Analytics, Business Intelligence, and Information Management? Are the diverse types of data analytics?
Data analytics collects, analyzes, and interprets information about customers, products, and markets. Data analytics helps companies make better decisions and improve operations. There are four main categories of data analytics: descriptive, diagnostic, predictive, and prescriptive. Descriptive analytics describes what has already occurred. This type of analysis describes trends and patterns in historical data. For example, you could use descriptive analytics to analyze how many people visited your website over the holidays. You might find out that there was a spike in traffic during the week leading up to Christmas Day and another spike around New Year’s Eve.
Diagnostic analytics investigates why things happen. In contrast to descriptive analytics, which reports facts, diagnostic analytics focuses on understanding causes and effects. For example, you might use diagnostic analytics to determine whether specific keywords drive sales. If searches for “best dog food” increase, consumers may be more interested in purchasing pet supplies. Predictive analytics predict future outcomes based on current conditions. For instance, you might use predictive analytics to predict customer behavior. You could look at the number of times someone searched for “dog training classes near me” and forecast that they may want to enroll in such a class soon. Prescriptive analytics suggests specific actions to take. For example, you may use prescriptive analytics to suggest adding a product feature. After looking at the frequency of queries related to “best dog food,” you realize that adding reviews of popular brands may increase interest in your brand.
Each type of analytics has its own goals. Descriptive analytics provides context; diagnostic analytics helps understand why things occur; predictive analytics allows you to plan, and prescriptive analytics gives you direction on what to do next.

 

 

Data Analytics vs. BI: What’s the Difference?

Business Intelligence (BI) encompasses everything from traditional reporting tools like Excel to modern analytical platforms such as Tableau. These tools help companies make sense of their data and turn it into actionable information. Meanwhile, data analytics (DA) focuses on extracting value from your collected raw data. DA tools are often used to analyze customer behavior and identify trends. They’re also helpful in identifying opportunities for improvement.
Both BI tools and data analysis software work with structured and unformatted data. However, there are some critical differences between the two types of software. Here’s what you need to know. Insights vs. creating insights The primary difference between BI tools and data analytics is that BI tools focus on providing insight while data analytics focuses on developing understanding. This means BI tools provide a dashboard or report that summarizes your data in an easy-to-read format. Data analytics, on the other hand, provides a deeper understanding of your data by analyzing it. For example, if you have a customer record database, you can use data analytics to create a list of customers who purchased a particular item within the last year.
You can also use BI tools to perform ad hoc analyses. For example, you can use Excel to calculate the average age of your customers or the total amount spent per month by your top 10% of most loyal customers. But these kinds of calculations aren’t possible using data analytics because they require a complex algorithm. You’ll find that many BI tools include dashboards and reports. The reason for this is simple: Dashboards and reports allow users to get a high-level view of their data quickly. Data analytics, however, requires a much higher degree of sophistication. It’s not enough to show a few numbers. Instead, data analysts must be able to extract meaning from copious amounts of data.
In addition, BI tools tend to be more user-friendly than data analytics tools. BI tools typically offer wizards and templates, so users don’t have to learn how to write code. In contrast, data analytics tools require a certain level of programming expertise.

 

Analytics vs. Data Mining

Another vital distinction between BI tools and data analysis tools is that BI tools are focused on analytics. BI tools are designed to answer questions about your data. On the other hand, data analysis tools are designed to mine your data. They look for patterns in your data and then try to predict future outcomes based on those patterns. For example, you might want to see which products are selling well at any given time. You could use a BI tool to generate a sales report showing all the products sold and their current sales figures. On the other hand, you could use data analysis to determine whether there are any correlations between product pricing and customer loyalty. If you notice that customers purchase a specific product when its price drops, you could use that knowledge to set up promotions for those customers.
One final thing to remember is that data analytics tools aren’t just limited to business intelligence applications. You can use raw data to perform data mining operations if you have access to raw data. So it doesn’t matter if you’re looking for trends in your company’s financial statements or trying to spot fraud in your credit card transactions; data analytics will let you do both.

 

 

Why Choose Business Intelligence?

If you’ve never heard of Business Intelligence (BI), that’s probably because it was once reserved exclusively for big companies like IBM, Microsoft, Oracle, SAP, etc.

Today’s small businesses and startups alike can benefit from BI tools. Here’s why:

Easy to Use

Unlike traditional databases, BI tools make it easy for non-technical people to analyze their data. After all, most BI tools come preloaded with lots of ready-made features and templates. And even though BI tools may seem intimidating at first, they take very little training to master.

Accessible Anywhere

Most BI tools work online. And since the internet has become such an integral part of our daily lives, you no longer need to install anything on your computer to use BI tools. All you have to do is log onto your favorite web browser, open your BI software and start analyzing!

Extends Your Reach

BI tools can help you reach out to new markets. For instance, if you run a retail store, you can create a BI dashboard showing how many visitors walk into your shop daily. This information can give you insight into what kind of products customers prefer and where they spend their money.

Keeps Up with Today’s Technology

Most BI tools let you upload files directly from your hard drive. This means you don’t have to wait until your office gets upgraded before you can use BI tools. BI tools often support cloud computing, mobile devices, and social media technologies that were unheard of just a few years ago.

Can Save You Money

BI tools typically cost less than $100 per month to maintain. They also save you money by reducing the time required to produce reports. Plus, with BI tools, you’ll be able to identify issues with your data quickly, so you won’t waste valuable resources trying to track down problems.

Helps Improve Customer Relationships

BI tools can help improve customer relationships in several ways. First, they allow you to understand your customers’ needs better. Secondly, they can provide real-time feedback to your staff, so they know exactly what their clients say about your brand. Finally, BI tools can help you predict future client behavior based on past patterns. Armed with this information, you can more effectively target your marketing efforts toward potential customers who are most likely to buy your product or service.

Increases Productivity

BI tools can increase productivity in two diverse ways. On the one hand, they can dramatically cut down the time it would typically take to create reports. On the other hand, BI tools can help employees find answers to questions they’d otherwise have to hunt through various documents and spreadsheets.

Boosts Innovation

Finally, BI tools can boost innovation within your organization. For example, they can help you identify new market opportunities and develop creative business strategies. BI tools can also encourage team members to think creatively when developing innovative ideas.

Makes Sense of Big Data

BI tools can help organizations collect and organize massive amounts of data. Once you’ve collected and ranked all that data, you’ll want to see what trends emerge. But traditional reporting tools aren’t designed to handle large volumes of data. That’s why BI tools exist. They can help you visualize, explore and analyze big data without worrying about performance issues.

It gives Business Owners the Control They Need

While BI tools can offer countless benefits, they’re not always suitable for every company. Some businesses lack the resources needed to invest in technology. Others might not want to spend the time necessary to learn how to use the software. Still, others might not need the extra functionality that some BI solutions can provide.

Is More Effective Than Traditional Reporting Tools

While traditional reporting tools are great at helping you pull together basic accounting and financial information, they fall short when it comes to analyzing complex datasets. For example, if you want to compare different brands of cars, then you’ll need to combine sales figures from multiple manufacturers into a single report. This is where BI tools come in handy. They can make sense of vast amounts of data and allow you to view results across multiple dimensions.

Has A Longer Life Cycle

When you purchase a BI tool, you buy the program’s latest version. You won’t have to pay additional fees if you don’t upgrade to a newer version. Many companies will even provide a free trial period before requiring users to sign up for a paid subscription plan. If you cancel your subscription, however, you’ll still be able to keep using the current application version.

It helps You Stay Up to Date with Industry Trends

BI tools allow you to stay up to date with industry trends. By keeping an eye on emerging technologies like artificial intelligence (AI), machine learning, and virtual reality, you can gain a competitive advantage over your competitors.

Offers Great Value for Money

BI tools have become increasingly affordable over the years. Today, most vendors charge between $50-$150 per user per month. Many BI tools even include free trials to help you test-drive their services. If you like what you see, you can easily lock yourself into a monthly or annual contract.

Provides Access to Cutting-Edge Technologies

If you’re looking for a way to gain access to innovative technologies, then BI tools may be your best bet. These programs constantly evolve, so there’s no telling which features will eventually make their way into the next release. Plus, because these applications are continually improving, you’ll never encounter compatibility problems.

Allows Your Employees to Collaborate Better

BI tools can improve collaboration among your team members. Not only can they share insights about business operations, but they can also work together to create reports and dashboards. When employees work closely together, they tend to develop stronger relationships.

Can Help You Solve Problems Faster

BI tools can help solve problems faster than traditional reporting tools. If you struggle to generate accurate reports, you should consider investing in one of these applications. Instead of spending hours trying to figure out why specific numbers aren’t displaying accurately, you can focus on solving the problem.

It makes It Easy to Share Information with Clients and Vendors

BI tools often come equipped with built-in integrations. So, if you’re a salesperson, you can send sales reports directly to your clients and vendors via email. The same goes for managers who use BI tools to manage teams. They can easily monitor performance by simply checking each employee’s progress.

Keeps You on Top of Current Events

BI tools are excellent for staying informed about notable events that could affect your company. Whether you’re looking to track stock prices or track political developments, BI tools can offer valuable insight.

Improves Team Communication

You might not think twice about how much time your team spends communicating in person, but you’d be surprised at how much more effective they can be when speaking online. BI tools can help you connect with your team remotely through instant messaging software, video conferencing platforms, and social media channels.
Data is growing exponentially, and organizations are trying to find ways of harnessing its value. Insights are derived from big data, and there are many ways to derive them.

      • But what do you mean by “insight”?
      • What does it look like?
      • How do you know whether it’s worth spending money on?
      • And how do you make sure you’re getting the most out of your investment?

Some critical questions around generating insight include:
• Why do we want insight?
• What types of insight are possible?
• Which sources of information provide the best insights?
• How do we know whether our insights are accurate?
• How do you measure the impact of your insights?

 

Business Intelligence vs. Data Analytics: The Differences

Business intelligence (BI) is a term used to describe data analysis techniques that look backward to identify patterns and trends in historical data. This type of BI is often referred to as retrospective analytics because it looks backward into the past. On the other hand, predictive analytics is forward-looking; it predicts what might happen in the future based on current conditions.
Data analytics is analyzing enormous amounts of information to make better decisions. There are three types of data analytics: descriptive, diagnostic, and prescriptive. Descriptive analytics describes the characteristics of a group of people or objects. Diagnostic analytics helps you understand your organization’s performance against goals and objectives. Prescriptive analytics provides recommendations about how to improve performance.
The critical difference between predictive analytics and traditional BI is that predictive analytics uses statistical models to predict outcomes rather than analyze historical data. For example, a predictive model could tell you whether a customer is likely to purchase a product in the next 30 days. Traditional BI systems use static queries to find correlations among different pieces of data. These tools don’t change over time and, therefore, cannot provide predictions. Business intelligence (BI) and data analytics are often confused terms. BI uses structured data, while data analysis uses unstructured data. However, both fields use similar tools and techniques. They focus on diverse types of data.
An excellent example of how BI and data analytics differ is found in the following diagram. On the left side, we see a dashboard produced by BI software. This type of tool provides information about a particular topic. For instance, it could show you what products are selling well based on customer demographics. You might want to know how many customers bought one specific product versus another one. Or you’re interested in seeing how much profit each department makes. These are examples of BI reporting. On the right side of the diagram, we see a spreadsheet containing raw data. A spreadsheet is used to analyze data. In this case, the data is sales figures for individual stores. If you wanted to find out how much money each store made, you’d use a spreadsheet like the one shown here.
In general, BI focuses on producing information. Data analytics focuses on answering questions. BI and data analytics start with unstructured data, but they have vastly different outputs for users vs. technical users. Business intelligence (BI) is mainly used by non-technical people, while technical professionals usually do data analytics (DA). BI is about making sense of complex data, while data analytics (DA), sometimes called predictive analytics, is about finding insights within vast amounts of data. Non-technical users often find themselves struggling to understand how to analyze information, whereas technical users are usually overwhelmed by the sheer size of the data they’re dealing with picture vs. narrower focus
Business Intelligence (BI) and Data Analytics are often considered interchangeable terms, but they’re not the same. There are some critical distinctions between them. Both help organizations gain insights into their operations, but they approach them differently. Data analytics often focuses on one area or business unit within an organization; for instance, marketing analytics may focus on the sales team, whereas BI might look at the whole company.
Both BI and data analytics should be used together. They complement each other. They should work together to answer broader questions about an organization’s strategy. This requires thinking beyond what you know and asking more critical questions about how things fit together. Business intelligence (BI) and data analytics (DA) are both essential tools used by businesses today. But what do they do? And how do you tell one from the other? BI is about getting information into a dashboard format. This includes sales figures, customer satisfaction scores, and inventory levels. BI is often thought of as being about reporting, but it doesn’t necessarily have to be.
Data analytics (DA), on the other hand, focuses on making sense of the data within the system. Computer programs, algorithms, and statistical models usually do DA. The main difference between BI and DA is that BI tends to focus on the product – the dashboard. In contrast, DA tends to focus on the process. For example, a BI report might show you the number of customers per day, whereas a DA program could help you understand why those numbers changed over time.

Business Intelligence (BI) focuses on descriptive analysis; predictive analytics focuses on prediction.

Descriptive analytics shows what has happened, while predictive analytics predicts the future. In short, BI focuses on delivering what has already happened, whereas data science focuses on predicting what will happen next. In the world of business intelligence, there are three main types of analytics: descriptive analytics, predictive analytics, and prescriptive analytics. Descriptive analytics focuses on describing what has already occurred. For example, it might show how many people visited your site during the holiday season. Predictive analytics uses historical information to predict what will happen in the future. This could help you understand whether you should stock up on toilet paper now or wait until spring. Prescriptive analytics looks into the future to determine what actions you should take to improve performance. For instance, it might tell you that you should change your marketing strategy because your conversion rates are low.

Business Analytics: It’s all about predicting future trends.

Business analytics is about predicting future events based on historical trends. For example, you could use it to predict what customers will do next. You might want to know whether a customer is expected to buy again or has already bought something similar. You could even use it to predict when a product will sell out. This type of analysis helps companies make better decisions. Business analytics is more concerned with why things happen rather than just knowing what happens. For example, you might investigate why some products sell well while others don’t. Or why some people like one brand of toothpaste over another. If you’re interested in understanding why certain events occur, you’ll be looking into business analytics. Business analytics is about finding patterns within data. For example, you’d investigate whether there’s a pattern in sales volume over time. Or whether there’s a pattern in the types of products sold. These kinds of questions help businesses understand how distinct factors affect each other.

Applying Business Intelligence and Business Analytics in the real world

Business Intelligence (BI) is a set of tools used to analyze data and make it worthwhile. Business Analytics (BA) applies BI techniques to understand how businesses work and what makes them successful. These are essential skills for anyone working in marketing today, whether managing a team or running a department. However, many marketers don’t know where to start. How do you decide which BI toolkit to use? What about which BA toolkit to use? And how does each fit together? This session will explain the differences between BI and BA and how to apply them to solve problems in your organization. You’ll learn why you need to combine both BI and BA to run your business effectively and how to choose the best solution for your needs.

 

Examples of Data Analytics

Data analytics is an umbrella term covering many fields within the online world. Many companies are now turning to data analytics to extract useful information from substantial amounts.

 

Business, AI, Intelligence Strategy. AI COntent, AI Marketing

 

Revolutionize Health Industry

The Food and Drug Administration (FDA) uses big data technology to track food safety. In partnership with IBM Watson Health, the agency collects real-time information about outbreaks and recalls, allowing it to act quickly to prevent future problems. As part of the FDA’s efforts to improve public health, the agency works closely with industry partners to develop innovative technologies to detect foodborne pathogens and contaminants. This includes developing tools that use artificial intelligence to analyze substantial amounts of data generated by DNA sequencing, microbiology, and other scientific techniques.
For example, the FDA recently used AI to predict whether certain foods are likely to cause salmonella infections. With this knowledge, the agency can better target prevention campaigns and provide consumers with accurate information about potential risks.

 

Big data tech helps the FDA trace foodborne illnesses

In addition to analyzing data from genetic testing, the FDA relies heavily on traditional methods, such as epidemiological studies, to determine how many people become sick each year due to contaminated food. However, these methods don’t always work well because they rely on retrospective data collection—looking backward to see what happened in the past. To address this problem, the FDA teamed up with IBM Watson Health to collect real-time data on foodborne illnesses. Using machine learning algorithms, the system analyzes millions of records of patient visits to hospitals and doctors’ offices across the United States. By looking at patterns in the data, the system predicts where there might be an outbreak of foodborne disease occurring.
This approach enables the FDA to respond faster to emerging threats. For instance, when the agency learned that a particular type of E. coli bacteria had been linked to several cases of diarrhea in New York City, the system predicted that there could be another outbreak within days. Within hours, the FDA sent out alerts to local health departments and took steps to ensure that products containing romaine lettuce were removed from store shelves.

 

Product Updates

  • The best products are those that evolve. They change and improve based on feedback from customers. However, making product improvements is hard without knowing what customers want. It’s impossible. So, how do you figure out what customers want? You ask them. And you do it often. Surveys are one of the most powerful ways to gather information about what people think about your brand. Surveys give your insight into whether your audience likes your product, where they struggle with it, and even why they love or hate certain aspects of your product. By answering questions like these, you gain invaluable insights into your customer’s needs and preferences. This knowledge allows you to build better products and provide better experiences. But conducting surveys isn’t easy. There are several types of surveys, each with its strengths and weaknesses. To choose the right kind of survey for your project, consider the following factors:
    • What information do you need to collect? Do you want to learn about overall satisfaction levels, or do you need to understand specific issues?
    • How much effort will it take to complete the survey? Will you require respondents to spend extra time completing the survey? Or will it be quick and painless?
    • Who will be responsible for collecting responses? Are you looking for input from multiple stakeholders, or is it just you?
    • Is your goal to identify problems or solutions?
  • Do you want to see what consumers think about your product now, or do you want to pinpoint areas for improvement?

 

The Future of Data Analytics

Data analytics will grow to $250 billion by 2022. Business users are expected to adopt data analytics tools increasingly. Companies will increasingly rely on extensive data networks to provide personalized services. For example, if you have a spreadsheet full of revenue numbers, you can run analytical programs on that file to find patterns. Then, you can use those results to predict future outcomes. BI software was initially designed to help business analysts perform ad-hoc reports and dashboards. It helps companies track vital metrics such as sales, profit margins, customer loyalty, and operational efficiency. BI software typically provides a dashboard view of the collected data so managers can easily access current trends.
As mentioned earlier, data analytics focuses more heavily on statistics than BI software. It’s common for data scientists to work directly with raw data rather than using a BI platform. That means that they can spend more time analyzing data instead of having to sift through spreadsheets and dashboards.

 

Final Thoughts: Business Intelligence vs. Data Analytics

The choice between business intelligence and data analytics depends on your specific needs and goals. If you need help making sense of large amounts of data, data analytics may be the better choice. If you need help making decisions about your business, business intelligence may be the better choice. Ultimately, the best way to decide is to talk to experts in both fields and see which is better for your specific needs.

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