Business Analytics (BA) and Business Intelligence (BI) are usually used used interchangeably but there are some key differences between these two and Business Analytics is not Business Intelligence!
Business analytics makes extensive use of data, statistical and quantitative analysis, explanatory and predictive modeling, and fact-based management to drive decision making. Analytics may be used as input for human decisions or may drive fully automated decisions. On the other hand Business intelligence is more about querying, reporting, OLAP, and "alerts".
In this sense, most business intelligence / business analytics tools in the market offers a mix of BA and BI. Some are more BA tool than BI tool and some are more BI tool than BA tool.
Below image shows the Business Analytics levels. There are 2 main level: Reactive decision making and Proactive decision making. And Business Analytics is a term which should be used for proactive decision making, which is predicting the future. So from bottom up the tools you have (in the order of increasing competitive advantage and degree of intelligence):
Standard Reporting - What happened?
Ad Hoc Reports - How many, how often, where?
Query Drilldown - Where exactly is the problem?
Alerts - What actions are needed?
Statistical Analysis - What is happening?
Forecasting - What will happen next?
Predictive Analysis - What is the best that can happen?
Optimization - Lets' act on it.
Business analytics makes extensive use of data, statistical and quantitative analysis, explanatory and predictive modeling, and fact-based management to drive decision making. Analytics may be used as input for human decisions or may drive fully automated decisions. On the other hand Business intelligence is more about querying, reporting, OLAP, and "alerts".
In this sense, most business intelligence / business analytics tools in the market offers a mix of BA and BI. Some are more BA tool than BI tool and some are more BI tool than BA tool.
Below image shows the Business Analytics levels. There are 2 main level: Reactive decision making and Proactive decision making. And Business Analytics is a term which should be used for proactive decision making, which is predicting the future. So from bottom up the tools you have (in the order of increasing competitive advantage and degree of intelligence):
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| Business Intelligence vs. Business Analytics |
Ad Hoc Reports - How many, how often, where?
Query Drilldown - Where exactly is the problem?
Alerts - What actions are needed?
Statistical Analysis - What is happening?
Forecasting - What will happen next?
Predictive Analysis - What is the best that can happen?
Optimization - Lets' act on it.
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