Companies use Business Analytics (BA) to make data-driven decisions. The insight gained by BA enables these companies to automate and optimize their business processes. Business Analytics also provides support for companies in the process of making proactive tactical decisions, and BA makes it possible for those companies to automate decision making to support real-time responses.
The Differences Between Business Intelligence and Business Analytics
Business Intelligence (BI) and Business Analytics are similar, though they are not the same. Business Intelligence involves the process of collecting data from all sources and preparing it for Business Analytics. Business Intelligence is more of a first step for companies to take when they need the ability to make data-driven decisions. Business Analytics, on the other hand, is the analysis of the answers provided by Business Intelligence. While Business Intelligence answers what happened, Business Analytics answers why it happened and whether it will happen again. Business Intelligence includes reporting, automated monitoring and alerting, dashboards, scorecards, and ad hoc query; Business Analytics, in contrast, includes statistical and quantitative analysis, data mining, predictive modeling, and multivariate testing.
Business Analytics Benefits
Adopting and implementing Business Analytics is not something a company can do overnight. But, if a company follows some best practices for Business Analytics, they will get the levels of insight they seek and become more competitive and successful. Some of the practical benefits in implementing BA are
More accurate reporting, analysis or planning
Better business decisions
Improved data quality
Improved employee satisfaction
Improved operational efficiency
Improved customer satisfaction
Increased competitive advantage