Business Intelligence and Analytics: Is there a Difference?

The term business intelligence (BI) is used to describe a broad infrastructure of activities centered around the vast amounts of data collected by today’s interconnected businesses. Why is BI, which is sometimes called Big Data, such a big deal? Because of the role it plays in helping businesses make varying decisions in a much more well-informed manner and enabling leaders to navigate organizational and industry-wide challenges and maintain their focus. Much more than a nice-to-have enhancement, the significance of BI and the advantages that its analytical tools can deliver make it a must-have for entrepreneurs who want to succeed in today’s highly competitive business landscape.

With improved BI, organizations can enhance customer experiences, track their performance, identify market trends, streamline operations, mitigate risk, set goals and benchmarks and improve almost every aspect of their business. Using an array of business intelligence tools that include spreadsheets, online analytics, reporting software, business activity monitoring software and data mining software, leaders can collect and house data to inform decision making in areas like business operations, workflow, supply chain management, goal achievement and sales forecasting.

Business analytics (BA) is another collective term that refers to the processes by which all the raw data collected and stored by a business from its various operations – sourcing, manufacturing, operations, sales, customer service and others – is turned into useful information. Businesses use this information to identify trends and predict outcomes, which can give them a competitive advantage. Using an array of data analytics such as statistical analysis, quantitative analysis, data mining and others, business leaders can identify trends and understand information that can drive change while supporting sustainable business practices.

Common methodologies within BA include:

As we answer the “what is business intelligence and analytics” question, we also need to sort out the difference between business intelligence and business analytics. It can be difficult to make a distinction between the two because there is so much overlap in how and where the terms are used, and so much fluidity in how the terminology in the discipline is understood.

A survey of leading experts in the field reveals varying definitions of business intelligence and analytics, underscoring this fluidity. One CEO defined business intelligence as descriptive, looking back and using historical data to make decisions, and business analytics as being predictive, looking forward to see what is going to happen and allowing you to anticipate what’s coming.

The chief information officer at another business analytics solutions provider sees analytics as simply a function, or subset, of BI. He notes that BI platforms are using increasingly sophisticated tools to perform different types of analyses, like the methodologies described in the previous section, and package them in useful reports and dashboards. Some BI platforms can provide information in the form of apps that have ushered in a new trend of “self-service analytics” that allow business users to perform their own analyses and provide the tools they need to get their own answers about their data.  

Lastly, a VP of engineering at a BI software company took a more philosophical approach, saying that while BI is needed to run the business, business analytics are needed to change the business. He weighed in further by saying that BI creates operational efficiency through access to real-time data and analysis of historical data from multiple sources, allowing better-informed decision making and problem solving. 

No matter how you may choose to define BI and its analytical sidekick BA, they have practical uses across many industries and applications. Consumer services, banking, manufacturing and healthcare are examples of industries where massive amounts of data are collected, and modern reporting and analytical capabilities are allowing leaders in these fields to make decisions affecting their operations and growth. 

If you’ve earned a bachelor’s degree and are looking for a way to advance your education – and career—DeVry and our Keller Graduate School of Management can help. Our online MBA with a Specialization in Business Intelligence and Analytics Management can help you prepare to pursue roles in BI as you develop the skills to effectively manage big data and solve multidimensional business problems. Our knowledgeable faculty will help you gain real-world experience as you construct analyses using the same tech platforms and tools businesses use to forecast trends and drive better decision making.

A Keller MBA in business intelligence can help you stand out as a candidate for new roles where employers have specified a master’s degree as a requirement, or to move up to a management-level role in your current organization.

At DeVry and Keller, you can choose the schedule that fits best with your goals and commitments. With qualifying Prior Learning Credit,* you can accelerate your degree program, earning your master’s degree in just 1 year and 4 months. Or, following a normal schedule, complete the program in 2 years and 8 months.** Classes start soon!