Understanding Business Intelligence vs. Business Analytics
Within the modern business world, the importance of data cannot be overstated. In previous decades, many business decisions were based on societal trends, the analysis of limited amounts of information, or simply a gut feeling. While all of these aspects still play a role today, technology has greatly expanded informational and analytical possibilities, providing exhaustive data sets that can be used to make effective decisions.
This is where the concepts of business intelligence and business analytics come in. These two methodologies interrelate, and are often confused for each other, but actually have some key distinctions. Let’s take a look at business analytics vs. business intelligence to develop a greater understanding.
What Is Business Intelligence?
Business intelligence, or BI, is concerned with utilizing data to make informed decisions about the operations of a company. Organizations will use business intelligence methodologies to analyze data sets relating to sales, workflow, output, finances, research, computer systems, and much more, creating detailed reports that illustrate strengths and deficiencies.
At its core, business intelligence focuses on examining historical and current data to show where a company is at in the present moment, letting analysts see which tactics should continue unabated and which should be revised and improved. Tools used by business intelligence analysts include reporting software, business activity monitoring software, and data mining tools.
What Is Business Analytics?
Business analytics, or BA, differs from business intelligence in that it does not focus on the present but rather the future. Utilizing current data and quantitative tools, analysts aim to foresee where a company and its operations are headed, seeking to improve elements like customer relationships, market share opportunities, organizational structures, and many others.
For business analytics’ predictive efforts, approaches such as data mining, machine learning, and modeling are all used to accomplish tasks such as factor analysis, correctional analysis, forecasting analysis, and more.
Data Analytics
A term related to business analytics is data analytics, with some people grouping both together, though there are some differences. While business analytics is concerned with the daily functions of an organization, data analytics is somewhat broader and is concerned with analyzing data from diverse sources to discover trends, problems, and performance metrics.
Data analysis can be somewhat more technical in nature, and operatives can benefit from a background in IT and mathematics. Business analytics, meanwhile, eschews the more technical aspects and focuses on the implementation possibilities of the data.
Business Intelligence vs. Business Analytics: Using Both to Your Advantage
When it comes to examining the roles of business intelligence vs. business analytics within an organization, it should be clear that there is room for, and likely the necessity for, both.
With business intelligence focusing on the here and now, and business analytics looking ahead to create predictive models, any healthy organization would be wise to incorporate each approach. Some of the roles focused on these specializations that companies seek passionate individuals for include:
- Business intelligence analysts
- Data analysis managers
- Data engineers
- Database administrators
- Database developers
The Future of Business Intelligence vs. Business Analytics
Like any field integrated with tech, the speed at which the business intelligence and business analytics world moves can be daunting, which makes it imperative to stay on top of trends and developments. Here are a few that are impacting the sector:
- Augmented analytics – Key tools in the areas of AI, natural language processing, and machine learning will continue to develop and see greater use in mining and analyzing data to aid operators.
- Increased focus on security – Data breaches are concerning for anyone, and that includes companies, since proprietary organizational and customer data can be stolen, leading to a host of problems. Implementing secure data storage solutions, safeguards, and other protection methods will only become more imperative as the years pass.
- Data governance – Related to security measures is data governance, as it is concerned with ensuring data is properly classified, illustrating a clear source of origin for data, indicating who can access data, reporting how data is being used, and placing limits on duration of data use. Such measures will become increasingly important as security takes a prominent role.
- Self-service analytics – This trend focuses on streamlining the business intelligence process so that those outside of an analytics team can access and comprehend information pertinent to their role and the company at large. As analytics become more ingrained within the business world, having options for self-service analytics will become a more prevalent occurrence.
Prepare for Your Future with a Master of Science in Business Analytics
If you are passionate about a career that incorporates key aspects of business intelligence, business analytics, and other core methodologies, an MSBA program is right for you.
At Kent State, we offer a Master of Science in Business Analytics that will help you to hone knowledge and skills to develop the analytical acumen you need to succeed in your career. Core competencies for our program focus on:
- Data mining and machine learning
- Programming and software tools
- Applied probability and statistics
- Databases and data processes
- Quantitative algorithms
- Business acumen development
Our MSBA is a three-foci STEM program and is multi-disciplinary, meaning you will acquire holistic knowledge of analytics with a balance of technological, analytical and business instruction. Additionally, students have the option to take courses in person on the Kent State campus or completely online, allowing them to work within their schedules.
Ready to Get Started? Contact Us
The field of business intelligence and business analytics is an exciting one, and companies throughout the world are looking for talented individuals to improve their operations. Set yourself up for success by applying to our MSBA program where you will develop highly valued skills.
If you have any questions for our team, please feel free to get in touch. We look forward to assisting you!