Business Intelligence (BI) and Business Analytics (BA) are professions that play an important role in a company. Both are key and determine the strategy for developing a business in the future.
At a glance, BI and BA do look the same both in terms of their duties and functions. However, even though they are both involved in data analysis, the two jobs are very different, you know!
Then, what are the differences between BI and BA? Come on, see the following 5 differences between Business Intelligence and Business Analytics!
Definition of Business Intelligence and Business Analytics
Business Intelligence is a person whose job is to collect and process company data. This data is usually in the form of customer reviews or marketing campaigns that have been implemented.
In this case, BI is tasked with analyzing the company’s past data. In addition, BI must understand all current conditions so that he is able to make wise decisions to improve the company’s performance in the near future.
Furthermore, Business Analytics is someone whose role is to compile and predict the next business steps. The work is of course based on the analysis of available company data.
The BA is tasked with processing past and present company data to determine new innovations for the next business. BA also predicts how the company will move forward in a better future.
Simply put, BI is responsible for maximizing the current business strategy, whereas BA is responsible for predicting and modifying new business strategies in the future.
Types of Business Intelligence and Business Analytics
BI and BA as a set of company data analysis tools are divided into several types, namely:
Business Intelligence
1) Enterprise Reporting
This type of BI serves to compile reports related to static data and distribute them to many people.
2) Cube Analysis
This type of BI serves to provide multidimensional OLTP analysis.
3) Ad Hoc Query and Analysis
This type of BI functions to provide access to users so they can perform queries and dig up information in the database.
4) Statistical Analysis and Data Mining
This type of BI serves to perform predictive analysis.
5) Delivery Reports and Alerts
This type of BI serves to send a complete report.
Business Analytics
1) Descriptive Analytics
Descriptive analysis is data that contains business information that has been implemented. This analysis is useful to get an overview of what happened to the company in the past and present.
Descriptive analytics also helps companies identify strengths, weaknesses, and provides insight about customer behavior. As for some of the data presented in the descriptive analysis, namely the number of sales, inventory, average production, and others.
2) Diagnostic Analytics
Diagnostic analysis plays a role in finding out the cause of an event within the company. This data analysis deals with “what” happened in the past, “how” to overcome it, and “why” it is repeated in the present.
3) Predictive Analytics
Predictive analysis in the world of BA has a fairly high level of difficulty because it deals with something unseen. Predictive analytics estimates all possibilities that will occur in the future so as to minimize company risk.
In addition, predictive analysis also plays a role in determining the design of appropriate sales and marketing strategies.
4) Prescriptive Analytics
Almost the same as before, prescriptive analysis serves to provide recommendations for the right company steps. This step is an iterative experiment to learn the relationship between various actions and their results.
Business Intelligence and BA Job Focus
Not only are they different in analyzing present or future data, BI and BA also have different tasks, you know! So, here are the differences between BI and BA in terms of tasks or work:
a. Business Intelligence
- Analyze consumer behavior, market conditions and ongoing trends.
- Improving the quality of products and services.
- Creating brand awareness and increasing sales.
- Determine the decisions that must be taken so that the company’s operations run well according to plan.
- Measuring company and employee performance through KPI (Key Performance Indicator).
- Also read: Business Intelligence: Definition and Career Prospects in the Digital Age
b. Business Analytics
- Identify the strengths and weaknesses of the company.
- Providing new business insights and innovations.
- Reading market conditions and future business opportunities so as to minimize company risk.
- Refine business methods that have been implemented.
Tools Used at Work
When carrying out their work, BI and BA have their respective tools according to the job description stated in the company. The following are tools from the BI and BA professions:
a. Business Intelligence
- Microsoft Power BI
- Tableau
- Dundas
- QlikView
- FineReport
- Domo
b. Business Analytics
- Wrike
- Trello
- Balsamiq
- Microsoft Visio
- Xplenty
- Rational RequisitePro
- Abacus
Must Have Skills
A person holding the BI and BA profession must indeed have qualified data analysis skills. However, here are some specific skills that BI and BA must have:
a. Business Intelligence
- Mastery of data processing applications.
- Good problem solving ability.
- Have knowledge of statistics.
- Productive and on time.
b. Business Analytics
- Mastery of data processing applications and survey software.
- SWOT analysis capabilities.
- Creative and innovative in reading the ongoing trends.
- In-depth research skills related to market and marketing.
- Good financial planning.
Those are the 5 differences between Business Intelligence and Business Analytics starting from the definition, work focus, types, to the tools and skills that must be available.
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