Business Intelligence(BI) is a technology that collects and stores huge amount of unstructured business data (collected from various online and offline market sources), analyze the data with the help of various descriptive statistical tools and extract valuable information and knowledge that were hidden among the vast sea of data. Descriptive statistical tools include distribution, sampling, bivariate and univariate analysis, covariance and extrapolation. In addition to these, Business intelligence employs pattern recognition, data mining, querying, reporting, automated monitoring and alerting. All these analysis tools tend to answer the following questions: What has happened to my business? When did it happen? Who are my customers/suppliers/competitors? How is the market/stock/financial status of my competitiors? Answers to these questions provide additional insight and wisdom about the system and empowers the managers in taking right business decisions at right time. However, Business Intelligence mainly deals with past happenings and helps identifying weaknesses in the business processes so that right decisions can be taken in present business scenarios; it does not indicate any predictive or corrective measures for the future business scenarios.
Business Analytics(BA) is a technology that collects and stores huge amount of raw business data (collected from various online and offline market sources), analyzes the data with the help of various predictive and prescriptive analysis tools and indicates various corrective measures about the future business scenarios. Predictive analysis tools include multivariate analysis, predictive modeling, forecasting, simulation, regression and optimization. In addition to these, Business Analytics also employs data mining, quantitative analysis, query generation and reporting. The analysis will answer the following questions: Why did it happen? Will it happen again? What is likely to happen to my customers/suppliers/competitors? What should be done to avoid it? What is the best course of action under the given scenario? Answers to above questions provide information regarding past performance of the company and makes valuable predictions about future performance. It helps business leaders identify past weaknesses, rectify them and prepare for future growth and challenges.
Business Intelligence is a subset of Business Analytics. BI concentrates on past business data, analyzes it and extracts useful information that helps taking better decisions about present business scenario. BA, on the other hand, collects past data, analyzes it, finds weaknesses and predicts remedial actions that will help in future planning and growth. With the help of BA, business leaders can take well informed decisions regarding future course of action and can reduce cost, reduce time, improve profit and maximize return on investment.