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7/22/2015

BusinessIntelligencevs.BusinessAnalytics:WhatsTheDifference?

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Business Intelligence vs. Business Analytics: Whats The Difference?

Justin Heinze

November 12, 2014

Business Intelligence vs.


Business Analytics: Whats The
Difference?
Business intelligence and business analytics arent they the same thing?

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Or are they describing opposite processes?


There are a lot of big words that get thrown around in the world of BI, and its easy to

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get lost in a whirlwind of interpretation.

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June 26, 2015 By Julia Rose Scavicchio

Trending Terminology

2015: The Year of the


Data Scientist
January 22, 2015 By Contributor

The diversity of opinion reflects the fluidity of how we understand the defining
language of the field.
It also demonstrates that in business intelligence, one term can mean different things
to different people, depending on their business focus and their perspective.
Though it is commonly called the BI field, thenumber of Google searches for business
analytics have risen sharply in the past 10 years vs. a mild decline for business
intelligence.

The 10 Most
Important BI Stories
of 2014
January 12, 2015 By Justin Heinze

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Interestovertime.WebSearch.Worldwide,2004present.
businessanalytics

businessintelligence

How BI Is Like Fried


Chicken
December 4, 2014 By Contributor
2005

2007

2009

2011

2013

2015

ViewfullreportinGoogleTrends

Expert Perspectives
We surveyed seven leading experts across thebusiness intelligence spectrumto
better understand the distinction between these two touchstone terms.

Governed Data
Discovery: What You
Need to Know
November 20, 2014 By Matt Satell

Maintaining vs. revolutionizing


Business Intelligence is needed to run the business while Business
Analytics are needed to change the business.
BI is focused on creating operational efficiency through access to real
time data enabling individuals to most effectively perform their job
functions. BI also includes analysis of historical data from multiple
sources enabling informed decision making as well as problem
identification and resolution.
Business Analytics relates to the exploration of historical data from
many source systems through statistical analysis, quantitative
analysis, data mining, predictive modelling and other technologies
and techniques to identify trends and understand the information
that can drive business change and support sustained successful
business practices.

Pat Roche
Vice President of Engineering, Noetix Products
Magnitude Software

Understanding the past versus the future


To me the difference between Business Intelligence is looking in the
rearview mirror and using historical data from one minute ago to
many years ago. Business Analytics is looking in front of you to see
what is going to happen. This will help you anticipate in whats
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coming, while BI will tell you what happened. This is a very important
distinction as both will provide you with different, not less, insights. BI
is important to improve your decision-making based on past results,
while business analytics will help you move forward and understand
what might be going to happen.

Mark van Rijmenam


CEO / Founder
BigData-Startups

Free Report: Get the Definitive Guide to Business Intelligence Download Here

Reporting and analysis


Traditional business intelligence (BI) has been focused mostly on
reporting. In this approach to BI, highly-formatted reports are created
by a few peopletypically report developersand distributed to an
entire department or organization. More recently, the trend in
analytics has been instead to provide the people who have questions
about their data with the tools to get their own answers. Its now
about letting business people become analysts themselves.
This is often referred to as self-service analytics, and in this approach
its not just about generating reports, but about letting people get in
the flow of analysis, explore their data, and ask their own questions.
This has completely changed the way many companies approach
business intelligence.

Francois Ajenstat
Senior Director, Product Management
Tableau

Its all relative


Whats the difference between Business Analytics and Business
Intelligence? The correct answer is: everybody has an opinion, but
nobody knows, and you shouldnt care. I can confidently say that
everybody has a different notion of what ANY particular term
associated with analytics means. For example, when SAP says
business analytics instead of business intelligence, its intended to
indicate that business analytics is an umbrella term including data
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warehousing, business intelligence, enterprise information


management, enterprise performance management, analytic
applications, and governance, risk, and compliance. But other
vendors (such as SAS) use business analytics to indicate some level
of vertical/horizontal domain knowledge tied with statistical or
predictive analytics.

Timo Elliot
Innovation Evangelist
SAP

Analytics is a function of BI
BI used to refer to platform capabilities to access data, manage
metadata, development tools for reports, dashboards, and
applications, and publishing, scheduling and distribution capabilities.
Analytics referred to either methods of analyzing information (i.e.,
descriptive, predictive, regression, neural networks, etc.) or the tools to
perform those methods.
Thus, analytics is a subset of the broader platform capabilities.
Industry leading BI platforms now include increasingly more complex
tools to perform different types of analytics descriptive analytics,
visual patterns discovery, and predictive modeling and data mining.
The value of a BI platform providing such tools is that the results of
analysis performed by highly trained analysts can be packaged in
reports and dashboards. Some platforms can even provide this
information in the form of apps that are intuitive and easily shared
with millions of operational users to perform their own analysis with
a few clicks.

Dr. Rado Kotorov


Chief Innovation Officer
Information Builders

Noun and verb


Business Intelligence (BI) is essentially a noun, in that it is an
umbrella term of the overall scope of acquiring, persisting,
warehousing, analyzing and reporting insights along with everything
else in its periphery. Business Analytics on the other hand is more of a
verb, the act of discovering insights using any tooling or services at
your disposal.

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Years back you would need to buy Business Intelligence platforms


from mega vendors like Oracle, IBM, SAP or Microsoft. The cost of the
software and the complexity of putting everything together puts BI
firmly out of reach for most SMBs. Cloud services have since helped
as many business no longer need to build their own BI infrastructure
as the SaaS providers are performing all the gathering, persisting and
reporting themselves. However this is where the 80/20 rule kicks in, as
every business will inevitably want to look at data in a different way
and supplement with other bits of data. This is where Business
Analytics kicks in, the SMBs no longer require a full scale Business
Intelligence infrastructure; they simply require the tools to gather data
from these different sources and perform Business Analytics.
New generation tools like Clear Analytics no longer insist on a
Business Intelligence infrastructure to be present to deliver, well,
Business Intelligence. These tools should be able to fetch and present
data regardless of where it resides, buried inside spreadsheets, in a
database or in SalesForce. The key challenge now is to present this
data to users in a manner which does not require any significant
training or specialists to hire. At present the most dominant tooling
for Business Analytics is Microsoft Excel, everyone who has graduated
has some level of experience and thus the preferred platform. Clear
Analytics leverages the ubiquity of Excel to deliver the data with the
added benefit of automation, security, auditability and accountability;
aspects which Excel inherently lacks. The result of which is that SMBs
can now get the full Business Intelligence experience without the
whopping pricetag.

Dipak Bhudia
Chief Product Architect
Clear Analytics

Analytics as a way to consume intelligence


There are a lot of conflicting views and opinions on where the lines
are drawn between business intelligence and business analytics. A lot
of it seems to be based on marketing trends and what somebody is
trying to sell.
I have chosen to first look at Business Intelligence as it is the older
term (least amount of controversy on that), it is also the only one that
consistently shows up as being a real word and not needing to be
auto-corrected. I am not referring to Intelligence as a definition of
smartness I am referring to Intelligence as a non-descriptive noun.
A tested definition of this exists in the CIA, the Central Intelligence
Agency. The CIA is responsible for having the people and processes
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and infrastructure in place to capture data (contextual and


numerical) from around the world, but also need to analyze,
disseminate and strategize around how to intelligently apply the
intelligence and output of the various analysis actions done to it. The
intelligence teams exist to capture, analyze and strategize around the
information (intel.)
All types of analysis are different ways of using the intelligence
collected in an intelligent way to make smarter decisions. In that way I
would define Business Analytics as the collective set of methods and
tools used by analysts to intelligently consume intelligence towards
enabling smarter decisions about the business moving forward.
Analysis without intelligence cant be done thats guessing and
intuition (which still rely heavily on informal intelligence.) Analysis that
isnt Intelligent is dumb. Capturing intelligence without doing analysis
is a waste of time, and Intelligence that isnt based on analysis of
intelligence isnt Intelligent.

Tim Biskup
Director, Customer Relationship Management
Progressive Business Publications
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