What Are the Differences Between Business Intelligence and Analytics?

Every day, your company generates an enormous quantity of data. You need ways and tools to transform your data into actionable insights to make better choices, detect issues, and be profitable. Business intelligence (BI) and its subsets, business analytics, and data analytics are all data management tools used to comprehend and generate insights from historical and current data.

But what is the difference between these options, and which one is best for your company? The differences between BI, data analytics, and business analytics are complex, and the phrases are often used interchangeably, adding to the confusion. Before we get into the intricacies, let’s first define some terms.

What Exactly Is Business Intelligence?

Business intelligence has traditionally been defined as the use of data to manage a company’s day-to-day operational management. Leaders need business intelligence tools and experience to collect and retain data on current operations, enhance workflow, deliver relevant reports, and achieve current corporate goals.

As business intelligence tools, a variety of software and other technologies may be employed. Spreadsheets, online analytical processing, reporting software, business activity monitoring software, and data mining software are just a few examples of what is available.

What Exactly Is Business Analytics?

Business analytics is often characterized as a more statistically driven field in which data professionals use quantitative techniques to provide projections and plan future growth. Business intelligence, for example, may inform business executives what their existing customers look like, while business analytics may tell them what their prospective consumers are doing. Some experts define business analytics as a collection of prediction techniques utilized in the field of business intelligence.

If after reading the article you still have questions, contact the business intelligence company, which will explain to you in more detail about the features of these models and help you choose the right one for you.

Business Analytics vs. Business Intelligence

Comparison: Description VS Prediction

The first distinction between the two notions is seen in their definitions. They both serve a function in the analytical process, but not the same one. The approach each of them utilizes as a foundation is a key differentiator. While BI describes what occurred in the past and what is occurring now (descriptive analytics), BA predicts what will happen in the future (predictive analytics). Let’s look at a conceptual distinction between the two.

Descriptive analytics: As the name implies, this kind of analysis is used to characterize and summarize the primary aspects of a dataset. This strategy, by detecting patterns and linkages, may convey change through time and leverage trends and insights to drive decision-making. In a corporate environment, it is used to compare performance to prior months, track progress toward targets, and solicit customer feedback, to mention a few examples.

Predictive analytics: This strategy analyzes current and historical data and generates accurate forecasts using sophisticated statistical methods derived from data mining and machine learning technology. In a corporate environment, this strategy may anticipate inventories, predict client reactions to new items, and analyze risks, among other things.

BI Is Used To Improve Efficiency, While Analytics Is Used To Identify New Possibilities

Choosing between business intelligence and analytics is also influenced by your strategic objectives. If your company model is steady and you want to boost efficiency and make real-time operational choices, a BI solution will be useful. If, on the other hand, you are looking for insights to find new business prospects, you should select an analytics tool, which will allow you to assess your company’s performance and market trends in order to design the future.

Reporting vs. Implementing

As previously stated, data is utilized and perceived differently depending on whether business intelligence or business analytics is being performed. BI has been simplified. The data is organized into simple reports that inform users of what is going on. (Dashboards and charts are also popular.) However, with BA, data is taken a step beyond reporting. Data applications and statistical analysis are used to go further into patterns and figure out why things are occurring. So it’s a case of reporting data vs repurposing data.


While identical, the distinction between BI and BA becomes clear after some investigation. Business intelligence optimizes the present for recent success by analyzing previous and current data, while business analytics examines the present to prepare firms for the future.