People uninitiated in the world of business might look at concepts such as business intelligence and data analytics and arrive to the conclusion that they are both the exact same practices. However, these are different procedures that ultimately help business leaders make decisions based on data. Learn more about both business intelligence and data analytics to understand how these two concepts contrast.
What Is Business Intelligence?
Business intelligence has two distinct uses. First, this term is used to describe the general practice of gathering and analyzing the information from a business’s previous activities. Business intelligence tries to understand the reason behind previous patterns and visualizes the information for easier digestion. The second use of the term is in reference to the numerous tools and resources needed to collect and organize the data. Organizations utilize business intelligence software that includes graphs, tables and flowcharts for effective organization.
What Is Data Analytics?
The science of data analytics involves the use of algorithms to determine present data to predict future relationships and patterns. Businesses use data analytics to estimate new trends, and with those predictions, they can make educated decisions for the future of the organization.
What Is the Difference?
There are two key differences between these concepts. Data analytics is essentially one aspect of the broader field of business intelligence. The latter practice includes data analysis, but it also involves other methods of gathering information relevant to business decision-making. In addition, the second difference is the fact that data analytics focuses on potential future information and how present actions influence it, while business intelligence involves the gathering and presentation of past data.
Ultimately, business intelligence and data analytics are two terms that are not interchangeable. Data analytics is important to determine future business performance, but there are also other tools and resources necessary for the successful use of business intelligence.