Finding the right tools to help you manage your datasets can be overwhelming. Business intelligence and data analytics are two important concepts to consider when hunting for the right tools.
But what's the difference?
This article will give you insight into these concepts and their relationship to hopefully give you a starting point on your journey to find the tools that most align with your work style.
What is Business Intelligence?
Business intelligence (or BI) refers to the methods professionals use to inspect and understand collected data. The scope of the term “business intelligence” is divided into two parts: data collection, which is used to create insight, and the application of the findings.
When collecting data, it is important to consider the two important subtypes of BI.
- Traditional Business Intelligence (BI) uses structural data from internal sources such as sales, finances, and inventory data to create useful information. This category of BI is beneficial because it is directly relevant to business operations, and the datasets are reliable.
- Modern Business Intelligence utilizes newer technologies to access data and present findings in a meaningful way. Many modern BI tools also deliver value through convenience and the ability to simplify complex datasets. The ease-of-use factor modern BI tools exhibit could be extended further by utilizing machine learning algorithms to automate data discovery, preparation, and presentation.
BI tools are used to assist professionals by gathering and observing data from various sources. Some examples of the sources these tools use include:
- Sales information
- Marketing results
- Financial data
- Business operations
Obtaining data from multiple sources is essential for achieving a thorough understanding and making strategic business decisions. For example, gathering data from website traffic can help identify who visits your website, what kinds of content they interact with, and their contact details. This information can then be used to generate lead intelligence you can utilize to maximize your outreach potential.
BI tools generate information that can be used when you are ready to strategize about how to apply what your data has presented. This can apply to many approaches, including coaching your sales team, optimizing remote communication, and specific focus areas such as identifying anonymous website traffic.
What is Data Analytics?
Data analysis can be applied to many fields of study, including business. It’s similar to business intelligence in that information regarding a specific focus is collected to make decisions.
Data analytics uses statistical and computational techniques to discover trends, relationships, and patterns within data sets. The findings within these data sets are used to make decisions with a deeper understanding of the factors that influence your strategies.
When deciding which information to use to improve your business processes, consider the 4 different approaches to data analysis.
- Descriptive Analytics focuses on results. This approach examines historical data to determine what happened in the past. It does this by summarizing data into key performance indicators (KPIs), which quantify and measure performance over a set period. Exploring the realm of descriptive analytics is essential for discovering what has worked and what hasn’t.
- Diagnostic Analytics refers to diving into why something has happened in the past. This is achieved by exploring patterns and figuring out how factors affect each other. Looking into the “why” is crucial for uncovering issues in a process or a strategy to be able to adapt and overcome them.
- Predictive Analytics uses statistical data and machine learning algorithms to anticipate what may happen in the future. Identifying potential risks and opportunities is crucial for a business's growth, and predictive analysis can give you an edge over your competition. This approach focuses on helping working professionals examine what they can change in their current processes to achieve specific goals.
- Prescriptive Analytics uses the collected data to offer suggestions on essential steps to achieve specific business goals. This approach focuses on optimization and ensuring that everything flows efficiently.
Data analytics is an essential factor for developing strategies, optimizing functions and processes, and gaining an edge in the market. Many data analytics tools aim to help businesses achieve their goals. A useful one to start with is Instantly Dealflow which provides perspective into customer relationship management and includes custom sales analytics that address what works and what needs optimization
Business Intelligence vs Data Analytics
Business intelligence and data analytics are two separate but related concepts that will assist in taking effective and meaningful action regarding your business operations. Utilizing the best of both approaches and finding what works for your business is the key to achieving the best results. Here are some key differences between the two:
Reporting
The creation of reports between the two approaches is slightly different. Data analysis is beneficial for observing historical data to be able to predict future trends and make suggestions for what actions to take. This differs from business intelligence as BI is beneficial for taking large amounts of current data to create reports for personal strategizing sessions.
Focus
The two approaches also focus on different things. Data analysis focuses on trends and insights in more complex data sets, while BI focuses on tracking performance, optimizing processes, and making informed decisions.
Skill
Data analysis may require a deeper skill set to interpret information and achieve optimal results. Some of these skills may include: data mining, machine learning, statistical analysis, and programming. Business intelligence, on the other hand, requires less technical skills due to the focus on data visualization and reporting.
Scope
Data analysis utilizes a very narrow focus when observing data. It typically involves looking at specific data and determining what the findings mean to an aspect of the business. Business intelligence takes into account the larger picture, along with specific areas of focus to provide a well-rounded understanding for strategizing.
Frequency
Business intelligence typically addresses individual issues as they appear. This differs from data analysis, which typically addresses recurring issues in terms of avoiding, adjusting, and predicting future problems.
Business Intelligence Tools for SaaS
SaaS (or Software as a Service) tools can help with data collection, visualization, and tracking. Finding the right SaaS tool to match your BI approach can be overwhelming. Here are a few suggestions to help narrow down your search!
Instantly
The value Instantly.ai brings to the table is demonstrated by the wide range of services available to support your BI needs. Their Pixel tool provides aesthetically pleasing representations regarding your company’s website traffic data and allows you to identify and contact potential leads who have already shown interest in your brand.
Key Features:
- Identifies individuals and companies that visit your website
- Customizable client filters to help select the best prospects
- Convenient outreach and communication with a direct link to Slack
Tableau
Tableau takes pride in its user-friendly interface and effective processing capabilities, which deliver actionable information regarding your data input. Their AI tool, Einstein, takes the labour out of analyzing data, drafting usable strategy plans, and creating high-quality predictive models.
Key Features:
- Easy-to-use interface
- AI-driven predictive models
- Ability to collaborate with anyone
Data Analytics Tools for SaaS
Data analysis tools help make collecting and examining relevant information efficient and effective. Many of them offer features that present your data sets in a visually appealing manner, helping you understand and apply the information to your business decisions. Here is a list of top picks.
Databox
Databox is your go-to tool for tracking your business metrics and creating visually appealing data reports. This service allows you to process data, monitor KPIs, and automatically create performance scorecards.
Key Features:
- KPI scorecard automation
- Customizable dashboard templates
- Data Analysis tool integration
Dreamdata
Dreamdata keeps your datasets organized by automating the task of extracting and cleaning data from numerous data sources. It also assists with creating usable insights to help strategize the most effective actions to pursue.
Key Features:
- Ability to measure account-based metrics
- Custom KPIs
- Analyze content performance
Key Takeaways
Due to how business intelligence and data analytics work with each other to provide information, there are many similarities in the value they bring. The two concepts work hand-in-hand to give you a full understanding of your business operations. They will help you determine what works, what needs to be addressed, and how to get the most out of your business.
If you are short on time, here are some of the key differences to note:
Business Intelligence:
- Focuses on strategizing to achieve targeted goals
- Utilizes advances in technology to generate reports to take action on
- Two categories include: Traditional and Modern BI
Data Analytics:
- Focuses on gathering data to determine what works and what doesn’t
- Determines trends
- Categories include: descriptive, diagnostic, prescriptive, and prescriptive analytics
While there are many tools you can use to make your workflow more effective, it can be difficult to decide what works best for you. If you are curious about your website traffic, check out Instantly and receive your first 250 Free Credits today.
