Business Intelligence or Business Analytics
Wow – Busy, busy, busy here. Between building a house to getting ready for IOD EMEA things have been rather hectic.
I was asked a question the other day that reminded me to post to this blog. The question was around the increased usage of ‘business analytics’ over ‘business intelligence’ – What was the difference – and what we ‘we’ using?
So if you go online and query this, you of course are going to come across a massive array of answers. From Wikipedia and other online repositories you may start to become confused – almost as if the two terms were conflicting or even contrasting.
My personal view is that Business Intelligence is best explained by Howard Dresner as an umbrella term to describe… “Concepts and methods to improve business decision making by using fact-based support systems.”
Business analytics then would be a subset of business intelligence – focusing exclusively on leveraging historical patterns with an aim to predict and improve business performance in the future…thus concepts like data mining, modeling, quantitative analysis, etc. would fall into this camp. Business Intelligence would of course include this – but could also rely on other areas not requiring ‘analytics’, competitive analysis and/or more subjective information not able to be quantified…
With all of that being said (being very analytics driven with our portfolio) I use both interchangeably – sensitive to the differences where applicable.