How to differentiate once and for all Business Analytics from Business Intelligence? Read below how both together can be critical to success.

Even nowadays when we talk about Business Intelligence and Business Analytics there is always confusion permeating both nomenclatures, especially for those who are still beginning to understand its concepts and how to apply them. The distinction between Business Intelligence and Business Analytics is critical to its applicability in business effectively.

Both approaches are on the edge of a major shift and are geared towards providing a broad insight into business information. Likewise, there is a growing emphasis on superior tools and more advanced software in the making of decisions. Business CEOs often admit that business analytics (BA) walks along with BI.

Although they are distinct, the two tools are connected. Business intelligence provides a way to accumulate data to find information primarily through questions, reports and online analytical processes. The only problem is that the standard BI tools are not very flexible and most databases are not designed for sudden changes.

On the other hand, business analytics takes advantage of statistical and quantitative data for explanatory modeling, acting as a compass to organize risk measurement and predict results. The result of this adhesion is an aggregate perception of business information, creating a new type of intelligence, capable of optimizing the decision-making process within the organization, capable of responding to the inherent demands in ever more complex and competitive scenarios

The BA is a natural advance of the information aspect obtained by the BI, since the organizations need to obtain increasingly efficient answers, and they do it based on a proactive approach, that is to say, through analytical functionalities and predictive models that take as base Historical information to anticipate future trends.

We can compare Business Intelligence and Business Analytics such as the rear view and the GPS respectively, in which the rear view mirror shows the past having its data explored trying to predict the future, and GPS uses predictive mechanisms such as analytical techniques, statistics to identify trends and probabilities of knowing how the future is – it will tell you how to move forward.

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By , have a degree in Information System, majored in Software Engineering and I'm certified on OCJP6. I have been working for 6 years in IT as Systems Developer.

January 12, 2017


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