Are you a business owner who’s still confused about different elements of business management? There are a few key terms that every business owner should know, whether their business is small or large.
So what’s the difference between business intelligence vs data analytics? Many people are under the impression that these two are one and the same, but is that true?
We want to talk about it so you can keep yourself informed. Keep reading to learn more.
What Is Business Intelligence?
Business intelligence is the result of technical tools that take all relevant business information and compile it. The information is then analyzed (which is where many people get confused between the two).
This data, in the form of charts, graphs, presentations, and more, allows businesses to analyze the data and track trends and results.
There are three basic kinds of business intelligence data.
The first is unstructured data. This data is difficult to categorize for computers. The second is structured data. This data includes simple things that are easily categorized into fields like names, addresses, and headers.
Semi-structured data is a mixture of the two.
You use business intelligence to create a plan of action. You learn what strategies are working, where you need more work, and how to move forward successfully.
If you’re worried about the complicated software and indirect process of business intelligence and analytics, check out Hivecell to see another modern option that takes out the guesswork.
What Is Data Analytics?
So if business intelligence contains analysis, what’s the difference between it and data analytics?
Data analytics uses data mining and complex programs in order to analyze information. It’s often anticipatory, meaning that it always wants to know what’s going to happen next by using what has already happened.
Predictive analytics attempts to use past and current events in order to determine future events. Prescriptive analytics also makes assumptions about potential outcomes, but it also offers suggestions as to how you can get each outcome.
Descriptive analytics focuses on things that have already happened. It’s used to figure out why something did or didn’t work so that business owners and marketers are able to re-route or put more attention somewhere that’s working.
Diagnostic analytics also attempts to answer the “whys” of events that have already happened. It compiles potential solutions based on previous data.
Business Intelligence vs Data Analytics: Which Is More Important?
When it comes to analyzing your business’s performance, both data analytics and business intelligence have their place. Knowing how well you perform is the key to improving or maintaining your customer base and overall success.
Businesses have a lot of data to go through, and doing it without the use of software and computer help is far too difficult to get effective results. Utilize powerful analysis tools to help you move forward. Business intelligence vs data analytics? Use both!
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